iAbrasive: a Visit to Yongkang

iAbrasive has reported in its previous article (China Hardware Fair Took Place As Scheduled) that the professional platform for the abrasives industry attended the 19th China Hardware Fair held on Sept. 26, 2014 in Yongkang International Conference and Exhibition Center both as an exhibitor and a network media. It can be regarded as a most rewarding visit.

iAbrasive has not only attended the 19th China Hardware Fair, but also paid a visit to the neighboring hardware cities, including Yiwu and Yongkang. "We have benefited a lot, in brief, it has been a rewarding trip", a staff from iAbrasive revealed.

The exhibition hall was packed with exhibitors and visitors all over the world. According to iAbrasive, the items on display included a wide range, vacuum cups, grinding ultrathin discs, agricultural machinery, cars, just to name a few. iAbrasive mainly visited pavilion G and F, where abrasives giants were impressive. Communication and contacts were conducted with most of the abrasives companies so as to know about the problems during the current operation. There were not so much abrasives companies attending the fair and most of them were Yongkang locals or companies from Zhejiang Provinces. Zhengzhou Jinwei Abrasives Co., Ltd. also paid a visit. To attract customers' attention, Jinwei Abrasives adopted the "Buy ten get one free" strategy, which achieved favorable effect.

Generally speaking, influenced by the national and world economic trend, the overheated trend in the construction industry experienced an obvious downturn, which also has an effect on the domestic abrasives industry that produces industrial consumables. Currently, most abrasives companies in China still depend heavily on regular customers to keep production. The profit was slim. Some even can hardly make ends meet. iAbrasive holds that the reasons are twofold. On the one hand, it is caused by overstock. When China stimulated the economic growth, the abrasives manufacturers expanded the scale of production and sold most products to distributors, who developed secondary distributors, which led to abundant supply. On the other hand, the transparency in domestic market price has made the profit even lower. Take resin cutting disc for example, the unit price is around 2.7 Yuan in the exhibition, while the distributor bought it at 2.5 Yuan. It is obvious that the profit for a single resin cutting disc is only 0.2 Yuan. Actually, small profits but quick turnover has become a popular marketing strategy for most factory agents. However, with regular customers shrinking, it becomes still difficult for abrasives companies to survive.

In view of the current situation, some companies have turned to foreign trade for help. According to iAbrasive, some clients are willing to expand overseas market and iAbrasive had introduced to them the integrated marketing strategy, namely, to adopt multiple channels when doing foreign trade, including not only the traditional exhibitions, but also online B2B platforms such as iAbrasive to effectively increase business opportunities.

The 19th China Hardware Fair has provided iAbrasive with an opportunity to know more about the current situation of the abrasives industry and helped iAbrasive make right judgments and decision on future plans. iAbrasive provides online showrooms for abrasives suppliers of all types, and matches them up with buyers seeking raw materials and abrasives components.

Author: Liwei Chu 
Copyright: iAbrasive.com--Abrasives & Diamond Tools Market