A Strategic Direction for Multinational Abrasives Enterprises in China

In the past three decades, numerous multinational enterprises have swarmed into Chinese market, especially in the post-financial crisis period when a great number of companies seek to regain market share in China. Nowadays, the "gold rush" has faded even disappeared due to the combined influence of market situation and labor costs. However, it is without doubt that domestic market remains the most attractive, taking up 8% of the global individual consumption, which made tremendous contributions towards China consumption growth from 2011 to 2013. Meanwhile, the prospects for a majority of abrasives manufacturers in China are not going well. What shall they do to turn it around? 

The general manager of iAbrasive, Shi Lei, simply gives a strategic direction that might be of help in dealing with the difficult situation. "Generally speaking, there are two aspects that can be done by abrasives enterprises in China. On one hand, enterprises are supposed to make adjustments both in their operation philosophy and marketing strategy. To be specific, choose to center their business upon multi-centered online marketing instead of the multinational marketing based in home country. On the other hand, as a long-term market strategy, the idea of "global village" needs universal recognition. If multinational abrasives enterprises accelerate optimizing configuration and absorbing high-quality resources, they will have more advantages when tackling complicated and changeable marketing situation so as to use resources more effectively." Shi suggests.

"During the process, abrasives enterprises have to be clear about the following issues such as 'whether it is necessary to build a factory', 'Where does the factory locates', 'what qualifications are needed for a technician or a salesman', 'How to produce products that are most suitable for domestic users', etc. A right decision is half the battle. Therefore, enterprises should be down to the earth when considering these issues according to their own situation. Any blind investment in domestic market or step-by-step following international standards may pay the price." Shi continues.

According to iAbrasive, it is pleasant that all the enterprises in abrasives industry have embarked on the production that is more innovative, sustainable and suits social needs. No matter you are multinational corporations or domestic giants, if you don't keep up with the trend, you may fall behind. The "gold rush" has never ended; the key is whether you have the competitiveness to check it out.—iAbrasive report

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