Analysis on the phenomenon of low-price export of goods in China and its countermeasures

China's low-price export trade is actually the status quo of China's processing trade and three-to-one-supplement trade. Under the strong demand environment formed by global economic expansion, China's advantages in human resources and mass production are gradually reflected. In recent years, processing trade has developed in full swing in China, accounting for more than 60% of foreign trade and becoming the most important contributor to the trade surplus. And this trend will continue in the short term. However, at present, China's processing trade is mainly OEM, so it is necessary to analyze the advantages and disadvantages of low-price export, or the advantages and disadvantages of OEM trade and its impact on Chinese enterprises. 1, analysis of advantages and disadvantages of manufacturers: compared with buyers, suppliers are in a relatively passive position. However, it is profitable to use OEM. (1) Enter the international market and participate in international competition. In recent years, the competition in domestic household appliances and other industries has become increasingly fierce, and the market has become saturated. Some domestic manufacturing enterprises do OEM work for foreign brands in order to open up the market. Enhance the global awareness of enterprises. (2) Scale production and cost reduction There is a widespread scale economy effect in modern production, that is, with the expansion of output scale, the unit cost tends to decrease. This may come from the deepening of specialization and the distribution of fixed costs. If the enterprise itself has this overcapacity, the effect of cost reduction will be more obvious. Participating in OEM supply means the expansion of output scale, which not only increases product sales, but also reduces costs. (3) Learn from experience and improve management. Enterprises that provide OEM often play an important role in the product supply chain of OEM buyers. OEM buyers can have strong strength in production management, marketing and product development. In the process of cooperation, OEM suppliers can organize production according to the buyer's requirements in product quality control, success control and operational efficiency control, with advanced organizational control, accumulated experience from "learning by doing" and improved the management level of enterprises. (4) Product innovation, enhancing capabilities If the OEM products are innovative products, suppliers can not only meet the needs of buyers, but also sell them in domestic and foreign markets under their own brands. Or increase the length of the product line and launch new products; Or deepen the depth of the product line and increase the variety of existing products, which will increase the competitiveness of enterprises in any way. For buyers and sellers, OEM mode not only enjoys the overall competitive advantage of products, but also has the most distinctive advantage, that is, the flexibility of buyers and sellers inside and outside the market. Either party can terminate the contract at any time as long as it finds a more profitable way. From this perspective, the OEM market is efficient. (5) Saving sales investment When enterprises face foreign markets, it is difficult to establish a completely independent circulation network due to the vast territory and different business habits of different countries. But it will be much more convenient to borrow the sales force of foreign companies. For example, Fuji, Ricoh and so on. OEM is adopted for its manufacturers and brokers in Europe and America, which reduces the friction in the business process, reduces the large amount of sales funds that enterprises should have invested, and enables enterprises to adapt to overseas operations. 2. Disadvantages of producer enterprises Most enterprises engaged in processing, production and export in China have developed under the background of industrial transfer in developed countries, so their markets are mostly overseas. Now, with the decline of labor cost advantage and the expansion of industry production scale, such enterprises are generally faced with problems such as falling profit rate and slow development, and many enterprises are trying to carry out secondary development. However, when thinking and trying strategic development, these enterprises have three hidden bad symptoms that need to be paid great attention to. (1) Scale expansion-the weak part behind expansion. Export-oriented enterprises recognize the trap of diversified development and clearly point out that they will continue to seek development in the original industry at the initial stage and will not engage in diversification. On the question of how to seek development in the original industry, almost all the top managers of these enterprises answered "expanding the scale of production". However, with the increase of domestic labor costs, the production profits of processing and export-oriented enterprises tend to decline, and the competitive position of production links in the industrial chain tends to decline; On the contrary, the profit rate and competitive position of market segments are relatively rising-this phenomenon will occur after all industries develop to a certain stage. For example, the home appliance industry encountered this situation a few years ago, forcing home appliance manufacturers to finally implement the market integration strategy and realize the penetration and control of market links. Although the expanded production scale can improve the competitive position of enterprises in the industry, its position may be more passive because it fails to improve its position in the industrial chain, and it will also cause further dependence on market links. When considering the development of the original industry, processing export-oriented enterprises should not simply deal with the problem of expanding production scale, but should be particularly cautious when considering the way to expand production scale, otherwise, they will not only not enhance their competitiveness, but also increase the cost of enterprise transformation or withdrawal. (2) Cost advantage-weakness behind success The key to the successful development of China's export-oriented processing enterprises lies in their significant cost advantage. Among the factors that form cost advantage, the comparative advantage of labor price in China is the main factor. However, with the development of this industry in China, the cost advantages of export-oriented processing enterprises are being offset by some opposite factors. First, the advantage of labor price is unsustainable for a specific enterprise, and with the development of China's economy, the comparative advantage of labor price is definitely weakening. Now, due to the rising labor price, many enterprises are troubled by the decline in profit rate; Secondly, because the cost advantage derived from labor price is the advantage of China's processing and export-oriented enterprises compared with similar production enterprises in other countries, rather than the unique advantage of a specific enterprise in China, this overall advantage does not constitute the competitive advantage of a specific enterprise within the scope of domestic competitors. Now, with the intensification of industry competition, the development of specific enterprises has begun to be restricted by the lack of unique competitive advantages. Obviously, for specific enterprises, they must form their own unique and difficult-to-imitate competitive advantages through other means. As far as cost is concerned, the cost advantage obtained through efficient production organization ability, logistics system improvement ability and process innovation ability can continuously support the development of enterprises. Processing and export-oriented enterprises have long relied on the advantage of labor price and paid no attention to the cultivation of this ability. Therefore, for this kind of processing and export-oriented enterprises, this factor brings success, which in turn becomes a hidden danger for their further development. (3) Acting as an export agent-the heaviness behind relaxation According to the survey of Fusi Management Consulting Company, processing and export-oriented enterprises are highly dependent on foreign markets, and some enterprises rely on exports for more than 90% of their products. However, with the excellent export performance, it is the fragile or even incomplete market function of such enterprises. The reason is that these processing and export-oriented enterprises do not sell their products through their own sales networks abroad, but generally adopt the way of export agents and only deal with a few foreign first-class agents. For these enterprises, the real market is completely a "black box", and their ability to grasp the ultimate demand of the market, establish an efficient sales network and flexibly use different sales methods has long been abandoned. Now, the profit range has begun to shift to the market, which requires these enterprises to have strong market ability, otherwise, in overseas markets, their own destiny will be more and more controlled by others, and the risk of survival and development will become greater and greater. In addition, many processing and export-oriented enterprises are also preparing to open up the domestic market, which requires sufficient market capacity, which can not be done only by first-class agents. However, export-oriented enterprises use export agents for a long time, ignoring their own market functions, and the formation of market functions takes a long time. Therefore, for processing and export-oriented enterprises, agency brings benefits, but at the same time it also causes the incomplete market function of enterprises, which will become a heavy "debt" for enterprises to seek greater independent development in the next step. (4) The trouble of anti-dumping Because the cost of producing export products by OEM is lower than that of world-famous brands, they are often subject to anti-dumping when they are sold in developed countries, because the local government has caused huge losses to China enterprises in order to protect their own industries. (5) Lack of brand When China enterprises process more and more ingredients for others, their own brands will be less and less, which is a severe test for enterprises in China. Therefore, it is not a good thing to develop processing trade for a long time and exchange low-priced exports for foreign exchange to occupy the market. This will lead to a single domestic economic structure and abnormal development of the quality of the national labor force, which will also put further pressure on the appreciation of the renminbi and give some countries reasons for export deficits. In essence, it is necessary to develop our own national industry, produce our own internationally competitive products, and build several well-known brands that can really stand the competition in China, so that China can truly change from a big trading country to a powerful trading country.

I hope to adopt it as a satisfactory answer