One is to expand the market; The second is to break through. Now, the domestic market is too competitive and needs to be expanded. In addition, the scale of the Chinese market is here, but competition is also there, so we need to expand the market.
There are two ways to go to sea: active and passive.
Active:
At present, the company has developed relatively well, accumulating resources such as funds, talents, and customers. We want to make our company healthier, more balanced in layout, less risky, and more opportunities in the future. Choosing to go to sea in such a context is actively going to sea;
Passive:
I feel too overwhelmed in China, with too much competition pressure, or encountering bottlenecks in transformation and upgrading, but I am unwilling to be eliminated and want to start from another place; Or if they are involved in existing business, they will encounter more difficulties if they do not go out; Someone else has gone out, I want to go out.
Is going out to sea to deal with the present or to lay out the future?
In recent years, there have been a lot of companies going overseas, especially Thailand, the Philippines, Vietnam, and Malaysia, who all want to go to these countries. A few years ago, in response to the layout of the trade war, large enterprises went out one after another to start laying out. After the Spring Festival this year, there are more small and medium-sized enterprises going out. I believe this is mainly due to the intensification of internal competition in the domestic market. This is actually an anxiety, and I feel that it may be better to take a look overseas.
In the past two years, European and American customers have felt some unstable factors and requested to establish warehouses or factories in the United States or neighboring countries to address their supply chain stability concerns. This is very obvious and will continue to be evident in the future.
Domestic policies are becoming increasingly tight. Whether it's in the fields of filters, brake pads, or other products, environmental protection, labor costs, and recruitment are becoming increasingly difficult in China. If you want to break through, you may choose to go out.
What preparations should be made before going out to sea?
1. To understand why we went to sea? The purpose and goal should be clear, whether to deal with a trade war or to relocate domestically phased out equipment to that location for factory construction. It is important to clarify this matter on your own.
2. Are you sure to set up a factory for production at sea or establish inventory at sea? This is a lengthy plan, and different plans enjoy different policies abroad.
3. Research before going to sea is a crucial step.
Now, some of the platforms and data that you see are all found online. When you really go to research, it may not be as you imagine. So, when we choose a research team, we need to have research planning, analysis, and certification.
The overseas delegation has a model line, and doing trade and engineering is the preparation for the model line, as well as the preparation for going abroad. At that time, as the first leader, I proposed to go abroad and take the lead in conducting research. The first step was to investigate the policies of this place. If you were not prepared, you would encounter these bottlenecks when going out. As well as economic, financial and tax regulations, the situation of peers, and so on, only after conducting sufficient research can your decision be more accurate.
Sharing the Experience of Going Abroad
I will share the 'path' I have taken with everyone, so that everyone can step on fewer pitfalls.
Cognition, inertia, and identification, these three differences are very significant. Before I went out for research, I first agreed not to go to the Philippines, but to study Vietnam, Thailand, and Malaysia. Why? At that time, we believed that Thailand and Malaysia had more Chinese people and more Chinese enterprises, making it easier to expand the market than the Philippines. But when we arrived in the Philippines due to a transfer and stayed for two days, we found that this place was more suitable for us to invest, breaking our previous cognitive decision. This is the issue of the speed of going out for research.
Why is the speed of going out so different for different enterprises? Everyone wants to go out to sea, but the paths they take are different, with many differences in time and curves. For example, starting from May 1, 2019, I decided to go out, starting from May 4, 2019 to apply for a visa, and starting from June 1, 2019, I decided to establish a team until September 2019 to start selecting sample boards and lines, which equipment to use, and how many people to use. I dismantled all the equipment every Monday and trained every week. After the research, we started training the team on which machine to move and how many times to dismantle it every day.
In January 2020, I had not yet made a decision to do it. Without construction, I had already started recruiting Filipino university students. I would rather be sent back as a dispatch worker. If I go out, I can be listed soon. This is the preparation for training. Why do you talk about the path you have taken here? Because we went to sea with the same batch, our speed was the fastest, which was surprising.
By September 2020, the first team will take the sample line out to train local employees. According to local laws, our employees cannot exceed 10%. If Chinese employees do not receive training in China, it is actually difficult to keep up with them outside.
In March 2021, 10 expeditionary teams were in place and production began. By July 2021, all 10 teams have passed the acceptance inspection and met the standards. This is the first time we have introduced them to China, and college students have been sent to work in China to start learning here. If I decide to invest in the Philippines, these people will be very easy to get started when they go back, which is what I said about preparing in advance.
The first batch in China, according to Chinese standards, they were able to work. Everyone knows that the industry in the Philippines is underdeveloped, and its skill level, learning ability, and craftsmanship are much slower than ours. It is equivalent to the 1980s in China, and it is not easy to work according to Chinese standards in China. So, the first batch of us to work in China, which is what I mentioned in 9 months, starting from 0 for pile driving and construction, until all the equipment is in place and 10 production lines are in place.
Our first line has been disassembled and disassembled 140 times, constantly dismantling where the screws are lost, how to find them, and how to mark them. These people used to pack with their eyes closed, and they are absolutely foolproof. They assemble all the equipment once a week, then move and box it, put it on the container and take it off again. How to arrange the loaded container and how to lower it is the training in China. Why do many companies that do well in China still struggle to keep up with efficiency when going abroad? I think there are several aspects:
01
Cognitive issues
Vietnam, Thailand, the Philippines, we chose the one we didn't go to at first and ended up in that place.
02
Circle circle relationship.
At that time, we went out together and started talking about finding chambers of commerce, such as the Anhui Chamber of Commerce and the Zhejiang Chamber of Commerce. Before going, we were not allowed to invest, build warehouses, or build warehouses under any name. There is a deep tradition abroad, and some colleagues go overseas and say that I am the leader of the Zhejiang Chamber of Commerce. The government drives you and has various relationships with you. I feel that the treatment is very good, and then I go to the government to guide you to buy land, invest, etc., causing the project to slow down. You thought it was a good relationship and it was helpful for you, but in the end, you found that it was biased. Finally, I told my friends at the time that I was building a factory here, and after many people went down, they led us astray. They hoped that all the Chinese people would compete for investment in the local area, but we thought for ourselves whether it would make us succeed or fail.
03
The power of preparation.
Whether it's doing auto parts trade or building factories, the power of preparation is very powerful, which can help you pay a lot less tuition fees. We are talking about model lines and cross talent reserves, and everyone must do a good job. If we really want to go to sea, this team needs to be prepared.
04
You cannot take it for granted with your own thinking.
They have much slower thinking and lower efficiency than Chinese people. For example, if you go to the Philippines to build a factory and give him 25 yuan to eat, he will stick 5 yuan himself, but he doesn't want to eat it himself. He thinks that 5 yuan is very high and rice is free, but he likes it. This is because different places have different opinions.
Final summary:
picture
Internationalization of the Strong: The global market is huge, and only by truly competing with global peers can one become stronger.
Taking a step back, there is still a lot of market space in Central Asia, Southeast Asia, and other regions, as Europe and the United States cannot enter, while domestic markets cannot move forward.
Cost and efficiency: The average wage for Filipino workers is approximately 1350 yuan, but with over 10000 yuan in China, we have high requirements for the automotive parts manufacturing industry. How many differences can you offer and how to train their employees to the domestic level, including sales, are the tactics and strategies we are talking about.
How can we find the talent you want with the fastest speed as an enterprise engaged in automobile parts trade and factory?
Our research data shows that there are more than 40 schools in China that accept Filipino international students. From there, I began arranging for the domestic human resources department to contact more than 40 universities and invite all Chinese students to visit China. In addition, during the winter and summer vacations, these students were recruited to intern at the company. I remember that at that time, 47 Filipino nationals and 100 Chinese international students were recruited. This way, Filipinos who wanted to return to China to study and Chinese international students who wanted to stay in the Philippines, the first batch of candidates came out as soon as both sides crossed. From this, you can find the person you want as quickly as possible, which I believe is the most crucial and only in this way can you be more efficient.
At the same time, if you want to expand into the US and European markets in the future, Filipino employees have excellent English proficiency and unrestricted communication. When they land in the United States, they are eligible to sign up, and it is not exclusive to work in the global market. Why not.
As we all know, most of the centers of Apple phones are in the Philippines, where customer service is provided, and the labor cost is 1300 yuan per month. As an automotive aftermarket enterprise, we can establish a sales team in the local country to attack the market without having to go out for people or factories, which is why it is the most difficult to talk about people. People are the most critical core of success or failure, and the ultimate gap in a company lies in this person.
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