Constraints for the Expanding of Bearing Export Scales

Bearing industry in China has gained rapid development

. The export of bearing products also increases, however, there are still many factors which may restrict the expanding of the export.

At first, the exported bearing products are low-end. In recent years, China has made remarkable achievements in developing international markets and expanding the export. Although the export value of bearing products increases year by year, most of them are cheap miniature ball bearings.

Taking the 608ZZ bearings as an example, China is the world's largest producer of this kind of products. It is also one of the largest exporters of these bearings. However, bearing products of this model that are applied in household appliances such as domestic air conditioners and vacuum cleaners are all imported from NSK and KOYO companies. This is a common phenomenon. It illustrates that China's miniature ball bearings are sold in the low-end market.

Secondly, the exported products are too focused on specifications. Meanwhile, they compete with other products at low prices. Because there is a certain capacity limit of the low-end miniature ball bearings in the international market, hundreds of bearing products from China have to compete with products from other countries such as Russia and Romania. As a result, the supply exceeds demand. This is the main reason for the competition at low price.

Currently, there are no less than 500 enterprises in China which do export business through various channels. Therefore, the competition is quite fierce, resulting in lower prices to compete for market with each other. For example, one kind of spherical bearing has high export prices. When seeing this, many manufacturers start producing these products without considering the market capacity. Thus, the current export prices of these bearings have been reduced to 1 / 3.

Thirdly, the market of Chinese bearings is not stable. At present, China's export products mostly rely on intermediaries. In addition, products directly sold to the market are few. Manufacturers always do not know the requirements of end users clearly. This situation is no only detrimental to the organization of production, but also not conducive to after-sales service.

Fourthly, the export of overseas-invested enterprises is growing increasingly. At present, many well-known foreign bearing companies all invest in China and set up bearing factories. Their products are also exported. With the expanding scale of production, the proportion of those bearings will expand, too.

Fifthly, the quality and level of the foreign trade clerks are very low. Some workers are not familiar with the technology and market. They can not provide perfect services to buyers which causes great difficulty for Chinese bearing products to enter the OEM market.

Constraints for the Expanding of Bearing Export Scales

By: Lois Ling

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