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Four barriers for China household electric appliance manufacturer realize intern

Improve product quality

Familiar with local laws and regulations

Get rid of latecomer inferior position

Establish internationalization strategy

The trend of global economy incorporated and the development and breakthrough of enterprise urge more and more Asian and Chinese enterprises itch to try to operate in oversea market. Yesterday morning Boyao Asian Forum, in the meet of “ Internationalization journey for Asian Enterprise”, Yang Qingyuan, CEO of Legend; Zhang Ruimin, Chairman of Haier; Li Runyu, vice chairman of Sumsung and officers, entrepreneurs reminded Asian enterprises who are preparing to develop in oversea market: the road of internationalization is not only long, but also full of risks and challenges, so enterprises must make abundant preparation in talent, quality, strategy and knowledge and other aspects.

Trump to win internationalization———improve quality

Many Chinese enterprises think internationalization is sold goods to foreign country. The fact approved this understanding is wrong. Yesterday, Zhang Ruimin told us by his personal experience: the understanding above is not enough, only sales lead products through major channel to foreign major markets, then that is internationalization. But it is not so easy to reach. He told the people at the meeting, though Haier mini refrigerator under 200L occupies 35 percent of American market, Haier washer under 5Kg listed the second in Japanese market. But these two products are not major products in American and Japanese markets. It is very difficult for Haier to enter local large capacity refrigerator and washer market.

In the opinion of Li Runyu, the precondition of internationalization is improving product quality. Sumsung spent a long time to develop international business. In the process of internationalization, they met many troubles, barriers and hard challenges. But in 1990s, Sumsung started overall quality management strategy and changed the whole system. Many reformed are made and finally it worked. International market share of Sumsung products begin to rise. During the course of internationalization, because there was problem of Sumsung’s oversea manufacturing business, they met many laws troubles and the challenges of anti-dumping, but at last they solved these troubles by quality management strategy.

A required course for internationalization———local laws

Because ignoring and not familiar with local laws and met law troubles, this is not strange to China enterprises that have entered international market. Even Legend Group who have purchased IBM global PC business and become world famous does not make an exception. Yang Qingyuan admitted that: this purchase is elaborated designed for realizing internationalization, but Legend did not expect that CFIUS will involve in the inspection of this purchase. Though Legend passed the inspection successfully, but the process is “heartquake”. He said this incident make Legend deeply understand that enterprise who want to internationalization will get to know laws and regulations in different countries. Meanwhile, be good attitude, and do not thought that the other is baffling you once encounter this kind of problem.

China enterprise need to get away from the latecomer disadvantage.

While talking to the troubles that Haier met during internationalization, Zhang Ruimin said:” the more problems, the more difficulties.” Internationalization needs to pass three difficulties: to go to foreign market; to enter foreign market; and catch up with others foreign brands. It is easy to go to outside and make other know this name, but is more and more hard to go to lead market and compete with foreign products and become lead brand. While competing with foreign brands, China enterprises must get rid of the disadvantage as being as beginner.

Xie Qihua, Chairman of China Baogang Group think: China enterprise is facing the evolution and transform of development strategy, which representing in three aspects: development mode change from extensive type to constant development type, in international division evolve from comparing advantage to competitive advantage; in region resource integration evolve from introduction to go out. Among the three aspects, develop from comparing advantage to competitive advantage. From long time ago, because the competitive advantage of price, cost and labor cost, most of China manufacturers centralizing in labor integrated type area, in short of core technology and self-independent brand. It just can wonder in middle and low-end of the industry chain, and easy to be impacted by dumping and anti-dumping. So, China enterprise should break comparing advantage as soon as possible, and get to R&D and marketing, evolve from low-end producing links to high-end producing links, to form competing advantage of its own.

Base on China, to establish internationalization stratagem

When should enterprise consider develop international market? Yang Qingyuan said when Legend feel after constantly taken up the No.1 position in domestic PC market hard to get breakthrough development, Legend chosen marching oversea market in diversification and internationalization. And Zhang Ruimin released that, in internationalization strategy, the approach of Haier is to consider China market and foreign market as a whole, firstly to achieve advantage in domestic market and then change it to oversea market. Haier sales 7 million set of refrigerator, this volume listed World No.2, but the quantity of export and sales in China is fifty-fifty. “If there is not domestic market, there is not solid foundation, but just watching domestic market, and not go out to foreign market, you will never become strong.”
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