At present, the average sales rate of fastener products exported is less than 3%. Many companies even have to accept orders below 1%.
Although low-grade products are in direct proportion to low prices, Chinese fastener manufacturers have always been proud of their low prices and high quality. However, developed countries do not think so. They think that high quality and high prices are the same.
In the face of survival crisis, small and medium-sized fastener enterprises have finally voiced their "bye-bye" voices with low-price strategies. Shanghai Fastener Manufacturing Co., Ltd. boss signed more than 30 million yuan worth of foreign trade orders at the Canton Fair. He told reporters that there are only two choices for enterprises that have reached the edge of the cliff, either by continuing to wait for the low-cost exports to die, or by killing them. They chose the latter. Compared with the same period of last year, the companyâ€™s export of fastener products increased by an average of 7%-10%, and it was also worried that foreigners would not refuse. However, practice has proved that most merchants still accept price increases, although the number of exports has decreased, but the total export volume has not declined.
The value of brand image Creating an export brand is a commonplace topic. Nuts are second to none in the national fastener exports. The amount of exports signed at the Canton Fair will reach more than 10 million yuan, relying on the strength of the brand. Last year, the Canton Fair increased its price by 3%. This autumn Canton Fair further rose by 5%. The export business is still very good. This is the problem that companies face in building brand image.
Bid farewell to low-price strategy In recent years, with the continuous liberalization of foreign trade's right to operate, China's fastener export volume has been increasing, but the unit price of exports has continued to fall. Taking DIN hex bolts as an example, the unit price today is 13%-15% lower than the previous year, resulting in less and less export profits of most fastener companies.
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