China Valve Goes Out of Country Strategy Analysis

Abstract: Valves as a production and living material equipment are widely used in various aspects of the national economy, national defense and people's lives. Valves as small as nano-scale, industrial valves as large as hundreds of tons, all show valves. Importance and irreplaceability.

First, the current and future of the international valve market, the current status and future of valve international trade In today's economic globalization, we must use a global perspective to look at each issue. The total annual volume of valve use in the world has reached more than 1,100 billion US dollars, and the annual total market demand for replacement of valve products has reached more than 50 billion U.S. dollars, far exceeding the number of new construction projects worldwide. The total market demand is 30 billion U.S. dollars. In addition, the total volume of valve inventory and semi-finished products in the world is about 70 billion U.S. dollars, and the total annual production volume is about 57 billion U.S. dollars.

From the above data, we know that the global demand, production volume, and inventory of valves are very large and surprising; and as the world economy grows and speeds up, with the acceleration of global economic integration, and with the global The acceleration of the transmission speed of valve market demand information and the symmetrization of market demand information will surely accompany the global valve market demand increasing year by year, and the global valve production capacity and total volume will expand and increase; at the same time, it will accompany the world. Valve inventory and total reduction of semi-finished products.

The world economy is growing at a rate of 3% each year, and at a rate exceeding double digits in individual regions. The global demand for valve products must also increase at a certain rate.

Similarly, as the global economy becomes more and more integrated today, the global valve market's international trade and transactions are more sensitive and leading in the development and promotion of the development and change of the world economy. The international trade of global valves is currently limited to a large degree and relies on fluid technology, engineering consulting and service in developed countries in Europe and the multinational corporations and groups of well-known valve brands, and with the acceleration of world economic integration, with the European countries. Fluid technology, engineering consulting and service in developed countries, multinational companies and groups of well-known valve brands have accelerated and expanded the development and promotion of valve markets in other regions of the world, market demand and distribution of global valves, and international products of valve products. Trade, there is the formation of the situation and pattern of fluid technology, engineering consulting and service, well-known valve brands of multinational corporations and group cohesion and monopoly in developed countries in Europe.

2. Necessary preparations for China's valve companies to develop international trade The increasing integration of the global economy will inevitably accompany the global transfer of international capital, especially the international capital of labor-intensive international equipment and capital equipment. Big transfer.

The rapid development of Asia’s economy, especially the two countries with different social systems and institutions, China and India, is rapidly developing and growing. The preferred regions for the global transfer of global capital are Asia and China and India.

However, India, which is a template engineering and comparative engineering at the entrance of the western capitalist world, India's annual production capacity and total quantity of valves, as well as the construction and quantity of valve products for export and valve national brands, are far away in China. On top of that, China's total valve exports in 2006 were less than US$1.2 billion.

With the deepening and development of the reform and opening up in Mainland China, with the rapid development of the national economy in mainland China, with the formation of the valve market and production capacity in China's mainland, and the formation of a qualified labor force in the valve industry, the scale of international capital has shifted. The great transfer of international capital for the production of valve equipment and equipment has just arrived in China. In 2006, the total number of China's valve exports was less than 2 billion U.S. dollars, which is far from China's status as a “valve production factory in the world” and a “big power equipment and equipment country”, and the normal level of valve exports from the country should not exceed 17 billion U.S. dollars. Water.

In the face of the fact that most Chinese valve companies want to develop international trade, we are less optimistic because Chinese valve companies need many necessary preparations to develop international trade.

The most important points in summarizing and summarizing the necessary preparations for Chinese valve companies to develop international trade are:

1. Understanding and mastering foreign valve standards, and obtaining necessary certifications and certificates.

2. The satisfaction, establishment, development, and maintenance of domestic valve companies' own production factors.

3. The maturity and scale of the international trade industry employees in the domestic valve industry.

4. Domestic valve companies' grasp of international trade methods and their understanding of international law.

The specific analysis of the above points is explained in the following sections.

Third, China's valve companies in the development of international trade in the process of attention China's valve companies to develop international trade process time has been about 20 years ago, in the past 20 years or so, let us sum up and review is too much, From the macro perspective of the industry, there are two points that need to be highlighted; from the microscopic point of view, there are also seven points that need to be highlighted:

From the macro perspective of the industry:

1. Blindly advertising, blindly believe that the media promoted the effect of many Chinese valve companies to develop international trade, from the beginning there is no set of scientific, rigorous demonstration of media placement and advertising programs, coupled with no peers of universal success The media placement and advertising campaigns can be used as a reference, and seduce and explain with the media sales promotion company's business personnel. Many valve companies have invested huge amounts of money in different media advertising and promotion from the very beginning.

However, with the advent of capital investment and media advertising and promotion, almost all companies find that the funds they invest are actually the accumulation of the original capital of the media companies. It is no wonder that the meticulous valve practitioners will find that several well-known domestic companies with successful international trade in valves can not find shadows in media that are generally considered valuable. why? Because they have already discovered this falsehood and bubble.

2. Inadequate understanding of the difficulties in the development of international trade, and expecting excessively high returns in the short term. When many valve companies develop international trade, they think that the development of international trade is easy, universally successful, highly profitable, and has a high rate of return on investment. , With a rapid return, and neglecting the formation of the company’s own construction and supporting services when developing international trade, many valve companies lost their “market intelligence” and “patience” when they developed international trade. In the short-term, the rapid change in the concept of corporate leadership, the development of international trade business is hot and cold, intermittent, and some companies quietly abandoned the international trade business efforts in the last few years.

From the microscopic perspective of the enterprise:

When enterprises develop international trade, they should pay attention to and pay attention to the specific operations of international trade. Inquiries and Suggestions in the Process of Inquiries and Recalls The first substantive step in entering into quasi-trade in international trade is the inquiry from the prospective customer and the return of the enterprise. After receiving the inquiry from the prospect, we must pay attention to the specific technical requirements for the product and the delivery terms of the product and other commercial terms in the inquiry.

The technical requirements for the product in the inquiry include the material, specification, quantity, special processing and requirements of the product; the delivery terms of the inquiry include the delivery conditions, delivery methods, delivery location, delivery time, and payment of the goods. Terms and conditions, etc.; Other commercial terms in the enquiry include the quality assurance period of the goods, the product liability, and the means and methods of solving the economic and trade disputes.

The inquiry content of the aforementioned prospective customers must be carefully interpreted and understood. Even if the prospective customer does not indicate or propose in the content of the inquiry, the company must specify and indicate in the contents of the return order because it is not only related to the success of trade. And whether it is smooth or not, but also directly related to the production of cost accounting and trade disputes.

2. Notices and Recommendations in the Confirmation Process of Technical Specifications When the prospective customer is interested in or has the meaning of a transaction to the company's return, the prospective customer will ask the company's returning party to reconfirm the company's return content, or Make changes to the content of the company's return and ask the company's return party to re-confirm, in particular, the technical specifications of the product. This is when the operator who is the company's return-to-distributor encounters special processes, material handling, and requirements standards, they must check and verify each one, or seek necessary assistance and support from the company's technical department.

If the company's return party needs technical details of the product specifications to be clarified and confirmed by the two parties, or when the prospective customer has a request for confirmation of technical details, it is best to obtain technical drawings and confirm and clarify product technical details; It is well documented that both sides have clear and consistent technical details of the product and are ready to form an order.

3. Terms and Recommendations in the Negotiation of Commercial Terms There are many commercial terms that need to be determined before the order is formed. There are many business terms that need to be determined between the two sides before the formation of the order. We will talk about the following points here, only talking about the responsibility of the product and the strange or Unfamiliar business terms are dealt with.

The responsibility of the product includes many issues, including quality assurance deadlines, quality accident liability sharing, and processing. Regarding the attribution and handling of the responsibility for quality accidents, the company's returning party in the negotiation of the commercial terms prior to the formation of the order must be familiar with and understand the knowledge of international law. Many commercial terms are the requirements of the end user for the intermediary who directly sells the product to the user. The company's return to the market is not required to bear responsibility, but not to bear these commercial terms.

The handling of unfamiliar or unfamiliar business terms must be handled well; if the company's return party is difficult to implement during the execution of the order, or the reality is difficult to implement, and the effective assistance cannot be obtained during the execution, these commercial terms Do not accept, or do not appear in the order request.

4. Some Considerations and Recommendations in the Confirmation of the Payment Conditions The payment terms in the commercial terms that need to be determined by both sides of international trade are still important. The payment terms and conditions for the return of the company are directly related to the safety of the export of the goods and the safety of foreign exchange collection. .

The quality of the payment terms for the company's return to the market is reflected in the export security of the goods. It is the goods produced by the company's return party according to the order's requirements. The other party to the international trade is whether he can trade according to the order's requirements. Sex. If the firm's return-to-card ratio is not good enough, there is a high possibility that the goods produced according to the order will have a backlog of inventory.

The quality of the payment terms for the firm's return to the market is reflected in the security of the collection of goods, which is the export of the goods produced by the company's returning party upon order, and the other party to international trade is whether or not he has made the order. Trade and payment possibilities. If the firm's return-to-card ratio is not good enough, it is highly probable that the export of goods produced according to the requirements of the order will not be promptly received and the foreign exchange cannot be collected.

5. Some considerations and recommendations in the process of product delivery and delivery The value of bulk goods, or order products, is negotiated between the two parties of international trade in the process of product delivery and delivery, or prior to the execution of product delivery of the order contract and product production. Large and large quantities of goods can be implemented in the form of "delivery in batches, foreign exchange in batches, batch-by-batch delivery, and batch-by-batch collection of foreign exchange". This can effectively avoid trade risks and increase the security of foreign exchange collection.

6. Quality Assurance Period and Quality Liability Dispute Confirmation Process Points to Note and Suggestions When both parties to international trade negotiate on product quality assurance deadlines and quality liability disputes, it must be based on the actual product design service life and correct quality accident liability attribution. Sharing and processing proceed.

The useful life of actual product design depends on the actual product design requirements for the quality assurance period. Generally within 12 months of actual delivery and installation, or within 18 months after the date of bill of lading, the two are shorter.

The responsibility for attribution and handling of the correct quality accidents is that many commercial terms are the requirements of the end-user for the middlemen who directly sell the products to the users, and the company's return-to-parties are not required to bear the responsibility. Therefore, the quality of the products in both sides of international trade When negotiating guarantee deadlines and quality liability disputes, these commercial terms should not be taken over.

7. Some points and suggestions in the legal confirmation process for the resolution of trade disputes or arbitration methods When negotiating the trade dispute resolution channels or arbitration laws applicable to possible future trade disputes between both parties, it is recommended that The location for resolving trade disputes was selected in China, the arbitration parties and the arbitrators, and the laws applicable to the arbitration method were selected by relevant organizations of China as relevant laws of China; only when it was not possible to choose an independent third country or law.