In the rapidly evolving global market, Chinese foreign trade professionals are facing increasing internal competition, or what is commonly referred to as neijuan. This phenomenon occurs when businesses within the same industry fiercely compete against each other, often leading to decreased profits and market saturation. In a recent article on the MiKe Circle, a prominent forum for foreign trade professionals, an experienced trader known as India Prince Alwen shared insights on how to avoid this detrimental trend. Here’s a summary of his strategies for navigating the challenges of neijuan.
Differentiated Products and Niche Markets
Alwen emphasizes the importance of creating differentiated products to cater to niche markets. He argues that the United States, being the largest global market, offers ample opportunities for discovering unique customer needs. This is due to its high per capita GDP, diverse population, and a culture that fosters innovation.
The U.S. market is ripe for mining niche demands and opportunities, which can lead to differentiated survival, Alwen writes. For instance, we developed a diffuser project targeted at children’s rooms, using Disney characters for product design and focusing on safety and health.
By identifying and capitalizing on these niche markets, foreign trade professionals can escape the trap of intense competition and achieve sustainable growth.
Domestic and Localization Collaboration
Another key strategy Alwen discusses is the importance of building a robust domestic supply chain and forming deep collaborations with local partners. He highlights the benefits of partnering with American clients to create customized products, leveraging their expertise in product insight, marketing, and brand building.
This year, I made the right move by forming a partnership with American clients, establishing a company in the U.S. to develop customized product designs for the local market, Alwen explains. Having a local partner has significantly improved our business dynamics.
This approach not only helps in avoiding discrimination faced by Chinese faces in the U.S. market but also enhances the value of the entire supply chain, from product design to customer service.
Cross-Border E-commerce and Brand Globalization
Alwen also advocates for the importance of cross-border e-commerce and brand globalization. He suggests that leveraging the complementary strengths of Chinese and American talent can lead to the successful establishment of brands.
Chinese e-commerce operators have a cost advantage over their American counterparts, and by combining this with American strengths in brand storytelling, visual design, and user insight, we can create successful brands, he says.
By focusing on building a brand in a niche category and then expanding globally, foreign trade professionals can create a sustainable competitive advantage.
Conclusion
In conclusion, Alwen argues that the key to avoiding neijuan in the foreign trade industry lies in finding a unique path of differentiation, discovering niche markets, forming local partnerships, and leveraging the benefits of cross-border e-commerce and brand globalization.
For us, as regular foreign trade professionals, we must find our own path of differentiated survival and development, discover differentiated demands and niche markets, develop local partners, and utilize local teams and the talent红利 of domestic cross-border e-commerce to carve out our own path to brand globalization, Alwen writes.
His insights provide a valuable roadmap for foreign trade professionals looking to thrive in an increasingly competitive industry. As the global market continues to evolve, these strategies may offer a beacon of hope for those navigating the complexities of international trade.
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