Tear off the Label Made in China of “Good Quality and Low Price”, Don’t Spoil the International Market
From the perspective of international trade markets, China has become the largest country in world trade. However, consumers around the world are buying Chinese manufacturing, while they are constantly deprecating Chinese manufacturing. This is an abnormal market phenomenon. Foreign companies that buy products in China often tremble and they always panic to buy inferior goods.
An entrepreneur once said to the CLI that they always use the most stringent quality technical standards for export products, while strictly controlling the supply chain management, and is also popular in the international market. However, he said that he did not understand: Why is China’s high-quality and inexpensive goods exported to the international market, but it has been described as low-quality and cheap goods by European and American media?
This is a crib export enterprise from Qingdao. Its products are exported to Europe, North America and many other countries. It is generally welcomed.It has never been any quality problems and related incidents involving infants and children, and the company attaches great importance to supply chain management. In addition,the product design and material selection are strictly in accordance with international first-class standards, which make products more popular than that of similar products in Germany, France, Italy and other countries.
It is such a supplier of quality products made in China that will not be exchanged for the praise of the international market.Where is the problem? In order to clarify the phenomenon that Chinese manufacturing in the international market has “market and no word of mouth”, the CLI inspection investigated several export-oriented manufacturing enterprises and found that the problem is not so serious, but it does exist.
To sum up, the reasons are as follows:
Ⅰ.The best quality products are exported to the international market, and they are not concerned about the domestic market.
Almost all export-oriented manufacturing companies have strict requirements on the quality of their exported products.On the contrary, the quality of domestically-sold goods is relatively relaxed. Even so, sometimes the price of exports is much lower than the domestic factory price.Because for export products,they do not have to consider the issue of marketing,only manufacturing.In the domestic market, companies must have the corresponding marketing capabilities.Therefore,many companies give up the domestic market, only export-oriented enterprises.They do not need good supply chain management and no own brands.What brands are required to be labeled, what brand they will put on, and finally just print “Made in China”. As a result, Chinese-made goods enter the international market and all the benefits are attributed to the brand. Once the products are not good, it will blame on Chinese manufacturing.This is the sorrow that only manufacturing but no brand.
Ⅱ.The traditional impression of Europe and the United States naturally divides Chinese manufacturing into low-end products.
In many product fields,it is not because Europe and the United States can not produce, but their production and manufacturing costs are too high,resulting in high market prices,consumers are not willing to pay for high prices.Therefore,these brands have to build their complete high- and low-end product systems through China manufacturing to perfect the supply chain management and sold them to the market. As a result, they naturally classify their products as high-end,classify Chinese-made products as low-end. For a long time, although consumers can feel “good quality and low price”, they can’t have a sense of brand value, and naturally they will not feel any special quality reputation for Chinese manufacturing.
Ⅲ.Chinese manufacturing export enterprises have price wars with each other, making the export price more and more low.
I heard a story 10 years ago, a clothing price of 500 yuan, no one cared about it, then the store owner added a 0 after the 500 to 5000 yuan, and soon sold.When consumers cannot judge the value of the product from the product itself, they will judge by price.Switch to the importer, if the price given by the supplier is too low, the importer also does not believe in the quality, only when the Pre-shipment inspection is arranged to check on site, then they will trust.
Therefore, if a market is always stimulated by low prices, the market will reflect a “low quality”, and the supply chain management will become more and more lax. After a long time, a general consensus will be formed.
Ⅳ.The quality of the late-developing economy is not self-confident.
The development of the economy is always less friendly to the latecomers, because later generations often steal the food of the pioneers.Of course, pioneers may be protected by technological patents, brand recognition, and intellectual property rights, which are obstacles for latecomers to enter the manufacturing market.In this way, it will create a feeling of unconfident quality for the latecomers.If the relevant media of the late-developing economy and pioneers jointly speculate on their quality problems, they will help the late-developing economies to establish poor quality and confidence. There is no confidence in doing the supply chain management at same time.As a result, even if the quality of the manufacturing enterprise has reached the international standard, it will not be able to get rid of the bad reputation of poor quality from outside world.
Ⅴ.Lack of support for independent brand operations in the international market.
In addition to technical quality, what is most important for Chinese manufacturing? Of course it is brand marketing. If we can reduce the export of products, increase the export of branded goods, open the international market with our own brands, and increase the supply chain management system, then China’s manufacturing will naturally rise to a higher level.We have seen that brands such as Huawei, Lenovo, Gree, Haier, and Geely have taken the independent international market brand operations as the core elements of the company’s entry into the international market. These companies have the right to speak in the international market and will of course be subject to the pursuit of the international market.
On the contrary, Chinese manufacturing companies that only output products without exporting brands will not enjoy the same treatment as these brands, thus lowering the quality of Chinese manufacturing. Of course, not all importers have the strength to buy products from branded companies. At this time, it is necessary to strictly select quality-manufactured China-made products.The enterprises with perfect supply chain management will not play tricks because they also want to expand abroad market. Importers can use the CLI factory audit to judge the strength of the factory.
In many cases, the impression that Chinese manufacturing is “low quality and low price”, which does not mean that Chinese manufacturing has reached the international advanced manufacturing standard in terms of technical quality in the international market,and a large part of it is due to the lack of our own brand. Only make products but no brands, with the “good quality and low price” to spoil the brand operators in the international market, and also spoil the consumers who enjoy “good quality and low price”. In the event of rising raw materials and manufacturing costs, Chinese manufacturing will be plagued by the quality of international brand operators and public opinion, making Chinese manufacturers have to digest the bitter consequences of rising costs.
In order to get a better price, importers need to constantly develop new plants, but they also face the quality risks of the new plants. Therefore, how to continuously develop factory resources and raise the level of supply chain management in China with the lowest risk is the core issue that all importers need to seriously deal with.Importers who lack the level of supply chain management will eventually be at a disadvantage in the market competition.
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