International Business Daily: How do the foreign trade companies deal with the new normal challenges

There are two major points for the future export company to make transformation and upgrade: the one is to transform from the foreign trade manufacture to supplier and from the commodity trader to manufacturing organizer to integrate the export products chain with its supplying chain. The other one is to transform from to realize the value to lift the value to get both the rights to set the price as well as to speak.

The foreign trade data in the first half of the year will be disclosed soon. In the first five years, the accumulated exporting volume amounts to 5,400 billion RMB, increasing by 0.8% when compared to the same period of last year. The target of increasing by 6% schemed in the beginning of this year is unpredictable whether or not to be reached, not to mention the flourishing status of the high augment speed by 10% many years ago.

The status of foreign trade in China is facing a crucial transforming stage from focusing on the high development speed to the quality improvement, a new normal condition. Under such circumstances, the foreign trade companies always confront with an issue: is there nothing for enterprises to do but swallowing the bitterness of the shrinkage of orders and the downturn of benefits if the traditional trade advantages are fading away while the new trade is on the way to be cultivated and nurtured. Then what on earth can the companies do to maintain a satisfying increase under such sullen big environment of tremendous slip in the total exporting volume?

Ms Zhang Li, the researcher from the research institute of commercial department, said there were two points for our companies to upgrade and transform in 2015:The one is to promote the enterprises to transform from foreign trade manufactures to its suppliers and from the products traders to its organizers, encouraging the manufacturing companies to improve the capacity to research and design and build up their own brand. Thus the profit margin will be expanded greatly to integrate to the foreign trade product chain with the supplying chain in a more sound way.

The other one is to urge the companies to transform the role of relieving the value to the role of upgrading the value to promote the ethics of developing the foreign trade companies. The enterprises shall pay more attention to increasing the additional value by popularize its brand to catch the right of determine the price of the products and its relevant right to speak, lifting the overall value of Chinese international trade.

Seen from a practical terms, the development route of ADTO, the leading enterprise of domestic engineering construction materials, is cast in the same mould as what Zhang Li has pointed out, hammering away with glorious achievement.

Mr You, director of ADTO told the reporter from International Business News that in the first half of this year, the group has earned 80% of the export volume in last year and he still thought it as kind of satisfaction.“As planned, the increase range should have been much more satisfying”, said Mr You, “ by means of thorough market investigation and exploring, we have made new development strategy already, and we are confident the export volume will be doubled to that in last year.

What on earth makes such optimistic remarks?The development of new scaffolding products helps to push the exporting volume of ADTO in the first half year up. It was said by Mr You that they used to provide monotonous scaffolding products to their client. But now they are engaging in the auxiliary scaffolding products to their clients to find more market margins.

ADTO staff told the reporter that a Thai buyer used to only scaffold products from ADTO. While through several successful talks, he also chooses ADTO his supplier for steel wires, ppe, fixation elements and steel grid plates.

The responsible person also told that the quote of auxiliary metal products in their exporting volume was steadily increasing by 30% when compared to the same time of last year.

What’s more, ADTO also makes more investment in the scientific researches and innovations, speeding up the upgrading of traditional products, a revolution of the product crafts and techniques. Most of ADTO scaffolding products have already won many patents in China, among which the most reputable one is the kwikstage scaffolding. Many of its other products have been titled as star products in the peer industry and some even ranked on the edge of advanced techniques.

 “What we are providing more to day are products with high quality as well as great added value, enabling us to earn more profit and credit from our clients”, expressed by Mr You.

Among all the innovative products, the one which is greener and energy saving receives more reputes from buyers. The responsible person informed the reporter that the hot selling products of aluminum alloy formworks, brand new environmental friendly products, can not only save the entire construction time but also reduce the environmental pollution and the emission.

At the very mention of its advantages, a sense of prize flows out from the bosom of the responsible person. “Such formworks can help to reduce the cost of construction materials and work force. And the working time limit will also be shortened to a large extent.”“It can be recycled more than times and its waste can be reused with high values, which means such formworks can also level down the usage cost. A lot of construction rubbish will also be eliminated as it has a simple bracing system.”