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International market analysis of Chinese electric valve enterprises

by:Sino Valves     2021-02-26
A statistics from developed countries in foreign industries is quite intriguing: the output value of valves in these countries exceeds the total output value of compressors, fans and pumps, accounting for about 5% of the output value of the entire machinery industry. A phenomenon in these countries is more intriguing: in recent years, more and more electric valve products made in China have been active in the international electric valve market, but the right to speak in the international electric valve market is not in the hands of Chinese companies. It is still a worker. Because the necessary casting, casting, welding, electroplating, pickling and other necessary in the production of electric valves affect the environment, and the investment in environmental protection is large, in recent years, developed countries have produced labor-intensive electric valves, especially General Electric Valve moved to developing countries, such as China. They usually buy electric valve products that meet the standard requirements from developing countries, and then sell them to developing and developed countries. Or set up sole proprietorship or joint ventures in developing countries, and then sell back products. To be honest, in this industrial transfer from developed countries, my country's electric valve companies still get a lot of benefits.  Many companies have obtained ISO9001 quality management system certification and API certification, and some companies have also obtained European Community CE safety certification. At the same time, many electric valve companies in my country have been able to produce API standard gate valves, globe valves, check valves, ball valves, butterfly valves and other products, and the product quality can fully meet the requirements of ISO5208:1993 inspection standards. As a result, the export of Chinese valve products has increased year by year. In recent years, the export output value was 380 million US dollars in 2001, 430 million US dollars in 2002, and 656 million US dollars in 2004, which shows that the export situation is very good.   What's more gratifying is that my country's electric valve industry has already established factories abroad. For example, Suzhou Valve Factory has established factories in Iran. Some manufacturers have offices abroad. For example, Zhejiang Fangzheng Valve Factory has offices in Singapore, the Netherlands, and Italy, and almost all of its valves are sold abroad. At present, my country's valves have been exported to more than 30 countries and regions such as the United States, Canada, Germany, Italy, etc., and have entered the world valve market. my country's valve exports rank about 11th among the world's valve exporters.   However, even though domestic valve products are exposing all over the world, Chinese companies still have no right to speak in the international electric valve market. The price is the final decision, and the rules are the final decision. Developed countries buy extremely low-end valves from our country, and then sell them to developing countries at an increased price. They both profit and buy well. However, domestic companies can only act as part-time workers.  There are many business opportunities in the market  Is the international valve market unable to accommodate us? Obviously not. It is understood that the Middle East, as the world's most important oil production and export region, countries are trying their best to increase the daily output of oil, and at the same time increase oil exploration and investment. Kuwait’s largest northern oil and gas development project in the next few years is currently in progress; Qatar will build the world’s largest natural gas liquefaction product processing plant; the UAE plans to increase crude oil production through the construction of large-scale projects, and it is estimated that daily crude oil production will exceed 3 million Barrels; Abu Dhabi National Oil Company plans to invest US$1.5 billion annually in some projects in the next 5 years, 40% of which are used in the oil industry... and each project requires the largest amount of valve products. On the other hand, due to the severe destruction of oil fields and pipelines in the Middle East, Iraq and other countries, it is necessary to import oil system and pipeline valves, including API gate valves, gate valves, stop valves, check valves, long-distance pipeline flat valves and ball valves. These are the main products of domestic electric valve manufacturers and are our strengths. Why don't we grab these businesses ourselves?  Eligible to stand at the front desk  In fact, as long as they understand the needs of the market, domestic electric valve companies have the advantage to dominate the international market. As long as the method is right, we can stand at the front of the market and act as the protagonist of the market.   One is an exit. Exports include direct exports and indirect exports. Direct export refers to companies directly selling products on the international market. It also has two methods: one is to sell to the local market through foreign intermediaries. The second is that companies set up their own sales agencies abroad to directly sell products to local customers. Indirect exports refer to companies exporting their products through domestic intermediaries. This export method is the simplest option. It does not require a full-time exporter, nor does it require a large amount of capital investment, and is highly flexible and less risky. However, the shortcomings are also very obvious, that is, companies cannot directly participate in international sales activities, basically out of control of the export market, and limited market information feedback, making it difficult to make timely adjustments to market changes.   The second is license trading. License trading is the right or technology that the authorized person grants to the authorized person with trade value, including the right to use trademarks, patent rights, know-how, etc. Due to lack of management experience, famous brands and unique technologies, domestic valve companies have rarely used this method. But this is also a development direction that can encourage companies to cultivate their own brands and develop technologies with independent intellectual property rights.  
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