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Chinese valve companies need to create their own brands and become protagonists in the industry
Release time: 2018-04-13

In recent years, developed countries in Europe and the United States have moved labor-intensive valve production, especially general valves to developing countries. They usually buy valve products from developing countries that meet the standards and then sell them to developing and developed countries. Or resell the product. To be realistic, in the industrial transfer of developed countries, China's valve companies have unique opportunities for development.

Today, many valve companies have obtained ISO9001 quality management system certification and API certification in order to better serve these foreign companies, and some companies have also obtained the European Community CE safety certification. At the same time, many valve companies in China have been able to produce API standard gate valves, globe valves, bellows globe valves, ball valves, butterfly valves and other products. The product quality can fully meet the requirements of the ISO5208: 1993 inspection standard. As a result, China's valve products have been increasing year by year, and the export situation is generally good. Some Shanghai valve companies also set up valve factories abroad, while others have offices abroad.

Generally speaking, China's valves have been exported to dozens of countries and regions such as the United States, Canada, Germany, Italy, etc., and entered the world valve market, but China's valve exports are still relatively low in the world's valve exporting countries. Although domestic valve products are flooding the country, Chinese valve companies still have no say in the international valve market. The price is up to the people, and the rules are up to the people. Developed countries buy very low-grade valves from China, and then sell them to developing countries at increased prices. They are both profitable and good. However, domestic companies can only play a part-time role.

It is understood that the contracting engineering industry in the Middle East Gulf region will once again experience a booming year in 2013. The total amount of project contracting during the year is expected to reach 1.35 trillion US dollars, which is much higher than 730 billion US dollars last year. These projects are distributed in the fields of energy, hydropower, mining, tourism, housing construction, and transportation. As the world's most important oil production and export region, the Middle East is trying its best to increase the daily output of oil and increase the extraction of oil. 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 is expected to produce more than 3 million barrels of crude oil per day ; Abu Dhabi National Petroleum Corporation plans to invest 1.5 billion U.S. dollars in some projects in the next 5 years, of which 40% will be used in the oil industry, etc., and the largest demand for each project is valve products. On the other hand, due to the destruction of oil fields and pipelines in the Middle East, Iraq and other countries, imported petroleum systems and pipeline valves are required, including API gate valves, bellows globe valves, check valves, and long-distance pipeline American standard ball valves. These are the main products of domestic valve manufacturers, which are our strengths. We should take the initiative to grab these items.

One is license trade. License trade is the granting by the licensor of the rights or technologies of commercial value, including the right to use trademarks, patents, proprietary technologies, etc. Due to the lack of management experience, well-known brands and unique technologies, domestic valve companies have not used much of this method. But this is also a development direction, which can encourage enterprises to cultivate their own brands and develop technologies with independent intellectual property rights.

Second, exports include direct exports and indirect exports. Direct export means that the company sells its products directly to the international market. It also has two methods: one is to sell to local markets through foreign intermediaries. The second is that companies set up sales agencies abroad to sell products directly to local customers. Indirect export refers to the export of products by enterprises through domestic middlemen. This export method is the simplest option. It does not require a full-time exporter and does not require a large amount of capital investment. It is also flexible and less risky. However, the shortcomings are also very obvious, that is, the valve factory cannot directly participate in international sales activities, and it has basically lost control of the export market, limited market information feedback, and it is difficult to make timely adjustments to market changes.

Chinese valve companies can change the role of workers only by going out and creating their own brands. As long as we understand the needs of the market, domestic valve companies have a great advantage to become the masters of the international market. As long as it is done properly, we can stand at the front desk of the market by ourselves and act as the protagonist of the market.

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