Three Measures for China Sanitary Hardware Industry to Deal With Foreign Trade Problems

Chinese high-quality and low-charge bathroom products have been much favored by foreign

dealers and consumers for a long time, and its export volume increased remarkably. However, with the gradually increased export volume and the deterioration of the international economic situation, more and more countries begin to implement almost harsh technical standards for making trade barriers, which has increased difficulties for China sanitary ware enterprises to develop foreign markets. In the face of this trend, to solve trade protection, what Chinese enterprises should do first is to rely on technological innovation and practise the upgrade of industrial standard. According to experts, products must meet standards is the first thing for breaking through technical barriers to trade, manufactures should establish product control system in order to ensure that the products put on market are in line with standards. At present, under the situation of the export pressure increasing, Chinese sanitary ware enterprises have increasingly attached importance to related international standards, their products quality has substantially improved in accordance with relevant technical standards, which has avoided export disputes caused by standard barriers. With the strength of Chinese sanitary ware enterprises increasing gradually, more and more bathroom products has reached or even exceeded foreign stringent standards. High standard products and reasonable prices will become key factors to break trade barriers, and then win a larger overseas market. Under the influence of financial crisis, the demand from major trading partners such as United States, Japan and Europe fell sharply, the international market became shrink.

China is a big exporter of sanitary ware, but its exportation is mainly in the form of OEM, which only can earn meager processing fees. From the perspective of the whole exportation development trend it is extremely unfavorable, for a long time foreign countries use the Chinese cheap labor advantage, which make domestic manufacturers only receive small amount of processing fees and result Chinese foreign trade tend to a simple quantitative expansion, the increase of export value is significantly lower than export volume, the export benefit falls and enter the error that only stress foreign exchange income, but ignore brands creation. Chinese sanitary ware enterprises should pay more attention to the construction and development of self-owned brand in future, develop independent brand and try best to do the publicity and planning. According to characteristics of foreign trade enterprise, enterprises should fully understand the market changes, moderately grasp the scale of processing, combine manufacturing products with foreign brands with creating their own brands, reasonably confirm the ratio of OEM and self-owned brand. They can learn and master the world-famous brand management and technology through OEM, as well as establish reputation in domestic and international markets through their own brands, expand the market share and improve their competition.

In short, with the competence of Chinese enterprises becoming stronger and stronger, the differences between foreign advanced sanitary enterprises in industrial standard, product quality, production technology and other aspects are getting smaller and smaller. As the international trade competition increasing, the traditional cheap processing exportation way must be adjusted properly under the new situation. Related policies established by China in future will also encourage innovation and guide brand strategy, the foreign trade development mode that rely on cheap labor and sacrificing non-renewable resources and environment will be limited gradually. Chinese enterprises should take advantage of this crisis to accelerate their adjustment and self-improvement, develop viable development strategies to expand market.

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Three Measures for China Sanitary Hardware Industry to Deal With Foreign Trade Problems

By: Deland Selectchina

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