How Bearing Enterprises in China Should Develop Foreign Markets

With the continuous integration of domestic and foreign markets, China's bearing industry has gradually integrated into the international bearing trade family to participate in a wider range of international bearing market competition. In the first half of this year, China's bearings were exported to 129 countries and regions in the world, generating foreign exchange of 50.306.81 million U.S. dollars, a year-on-year increase of 26.40%. Many bearing manufacturing enterprises in China have adopted exports as an important way to increase profits, increase visibility and competitiveness, and continue to develop. With the increasingly fierce competition in the international market, how to find the "gold mine" and dig for the "gold mine" before the opponent in the market has become the key to success.

North America, which is targeted at North America's mainframe supporting market, is the largest bearing production and consumption region in the world and the largest bearing import market in the United States. The United States currently consumes about 8 billion U.S. dollars in annual bearings, and imports more than 2 billion U.S. dollars in bearings each year. It is forecasted that the bearing consumption will increase to 12 billion U.S. dollars by 2005, and it will need to import bearings worth 4 billion U.S. dollars. According to statistics, the proportion of US mainframe pre-markets (mainly direct to host customers) is about 52%, and the general maintenance bearings account for 48%. In general, the US automobile industry accounts for 31% of the consumption of rolling bearings, machinery and equipment manufacturing accounts for 26%, and aerospace uses 7% of bearings.

The US bearing market is highly competitive. There are three major forces: First, the American bearing manufacturer represented by Timken controls more than 70% of the bearing market; second, it is the bearing exporter of several developed countries represented by Japan. Basically, the United States imports the bearing market; third, the Eastern European countries, they are centralized management, unified external.

The United States has always been the largest market for bearing exports in China, and its share of exports has also increased year by year. The competitors of China's bearings in the U.S. market include not only well-known domestic companies, but also numerous world-renowned companies. The strength and product quality of China's bearing companies are still difficult to compete with, and it is impossible to launch real competition with the former market. China's bearing exporting enterprises should learn from some domestic companies to enter the United States before the market or set up joint ventures in the United States to set up their own products directly for the United States main engine plant supporting experience, in the consolidation of the development of the market (mainly refers to the maintenance market or through the intermediary At the same time, actively compete in the pre-market.

In addition, in order to deal with US trade protectionism, preventing dumping complaints from United States bearing manufacturers over and over again involves China. In order to further expand the bearing market in the United States, directly into the user's factory and increase profits, there is only one way out: It is to cooperate with a US distributor or set up a distribution company in the United States alone to hire Americans who are familiar with the bearing market. Because once the establishment of a joint venture or investment in the establishment of a single company, the entry price of the input bearing will not be used as a comparative price determined by “dumping”, and the final price to the customer will be used as a comparative price. Although its profits earned in the United States must be taxed, it has the advantages of customer stability, low price fluctuations, avoidance of intermediate exploitation by importers, rapid understanding of market conditions, flexible operation, and easy absorption of new technologies.

Consolidating the Asian Traditional Market In the Asian market, Japan is the largest market for bearing exports in China. Mainly because of its focus on the development of high value-added bearings in recent years, ordinary bearings mainly rely on imports. The quality of ordinary bearing products in China can be comparable to Japanese products, and the price is low.