Loading the content... Loading depends on your connection speed!

What are the advantages of overseas factories

1, for external supply, production capacity to supply overseas markets
Prior to this national brand forklift to take the “domestic resources to supply foreign markets,” the old way, mainly to export-oriented, but after years of development, this approach met the excess capacity, homogenization of serious bottlenecks. Now only go out from the domestic production base of domestic production products sold at home and abroad, to overseas factories, through the transformation of foreign capital, technology, market, while foreign talent, land, energy and other resources for me Used to achieve the “outside for the outside” profit model: the factory overseas, return in the country, for the sustainable development of enterprises to find a new way out.

2, the cost of overseas construction advantages
The cost advantage in the country to build factories slowly change, although the domestic plant is still very advantageous, such as the investment environment is more familiar with, but China’s manufacturing costs are rising. It is possible to have more advantages than the domestic ones, but there are other advantages in the show, such as land cost, energy cost, logistics cost, tariff, tax preferential policies, sound government training policies, etc. In recent years, domestic labor costs continue to rise, so the Chinese production of products exported to overseas, the cost is almost flat and overseas production.

3, for overseas customers to provide value-added services
National brand forklift after the export, overseas after-sales service has been plagued by forklift sales of the biggest difficulties. Compared with the international large enterprises, our sales service network is small, less capital, can not entrust large companies to the full agent. After the local construction, these problems will be able to solve all, can speed up China’s forklift enterprises in overseas sales and after-sales service system construction process, to provide value-added services to customers. At the same time, after overseas factories, to support the corresponding product development, market research and other departments to better produce suitable for local conditions, in line with the standards of the forklift, better customer service, which is conducive to better open overseas market.

Third, the national brand forklift out of the country overseas construction proposal
1, overseas factories can be divided into three steps, the first step is to export the mouth to open up overseas markets to play well; the second step in accordance with the principle of the first market after the construction of the factory, when sales break even point, Playing credibility; the third step in accordance with the localization policy of localization strategy to play reputation. Of course, this is not a necessary process, but to emboldened out of the country or need some accumulation.

2, foreign investment and construction of forklift manufacturers how to avoid or control the investment risk, which is an important part. Risk assessment and control of investment projects is an important part of the success of investment, how to identify and evaluate the risk of investment projects, and through effective means to reduce or eliminate the risk, the possible losses to a minimum.

3, the location of overseas factories directly related to the company’s entire production network operating capacity and competitive advantage. Site selection decisions are the primary issue that forklift manufacturing companies have decided to set up factories overseas. Chinese manufacturing enterprises in the overseas factory site decision-making is mainly to cross trade barriers, immediate feedback to the host country’s demand information, extend the product life cycle, improve cost competitiveness and improve customer service. On the basis of some reasonable assumptions, the paper analyzes the influence of cost, demand, tariff and exchange rate change on the results of factory location in the procurement, production and sales of various modules in international production, and analyzes their importance in overseas factory location decision.

forklift safety cage

4, “going out” strategy implementation, in addition to circumvent or control investment risks and location, but also focus on solving the human resources planning, funding and financial management, risk aversion and control issues, the host country’s foreign policy and social welfare and The Impact of Technological Innovation in Host Countries.

5, the forklift industry “going out” points “two legs to walk”, that is, one leg learn from Mu’en and Roy’s “theory of imbalance” to the developed countries to invest, to make up for China’s international brand and sales channel shortage, The use of Dunning’s “international production eclectic theory” and the island of the marginal industry “expansion” to the developing countries to invest and build factories, which will help China’s forklift industry, industrial upgrading, to avoid trade barriers and regional group , For China’s forklift industry to win a wider range of broader areas of development space. The strategy of entering the developed countries is dominated by cross-border mergers and acquisitions and transnational alliances. Into the strategy of developing countries to overseas investment and construction-based, the use of progressive strategy. But for now, China’s forklift manufacturing enterprises in the market or to the level of economic development and China “half a dozen” countries and regions.

The above five points is the advice we have given, but the overseas construction of this investment is a round of investment process, the need for enterprises to weigh the pros and cons and then carefully consider the implementation.

Fourth, the national brand forklift out of the country the significance of overseas factories
Overseas production and production, marketing is an important form of internationalization, its significance is not only overseas factories, but through overseas factories to carry out resource integration, resource allocation and global supply chain management model, on the basis of the existing Overseas a region of talent to attract China’s national brand forklift. In addition, the rapid development of the forklift industry, attracting a large number of forklift investors, there are a considerable part of the potential competitors are preparing to enter the industry, so that the domestic gathering of mass production of “homogeneous” forklift, one of the solutions is to speed up their own Technology transformation and upgrading, research and development of high-end forklift products to join the international market competition, and overseas factories to effectively alleviate the domestic forklift industry overcapacity, homogenization of these serious problems.

Finally, we look at Ji Xinxiang, Liugong two companies choose to start overseas factories have very significant similarities: First, Russia and Argentina each year from China imports a large number of machinery and equipment, including forklifts; Second, Russia and Argentina before this is no forklift manufacturing enterprises. This will provide strong support for the two companies to open the local market overseas.

Of course, there are some companies have been focusing on overseas markets, and now the domestic market is also rising attention, indeed, China is a very large market, whether it is out of the country overseas factories or concerned about the domestic market, choose their own development Is the last word.We just put forward some of their own views, hoping to continue with the forklift industry, healthy and common development.

Leave a Comment