With both delicate hand-carving and efficient machinery, a Chinese furniture and arts and crafts exporting company is trying to shape the industry. After ten years in the business, the owner, Yu Heqin, is busy designing new products in the hope of becoming more competitive.
Yu Heqin, general manager of Beijing Heyixing Furniture Company, said, “Starting from the second half of 2008, we have encountered difficulties on the overseas market due to the financial crisis. So I decided to hire designers from Italy to make new designs, adding modern elements to the traditional chinese style. I think this would add extra value to our products and increase our competitiveness.”
Mr Yu has also received advice from his long-time partner, Tian Wenhua. Mr Tian has been exporting products to Europe since 2001, when China first became a member of the WTO. He understands the need for change.
Tian Wenhua, general manager of Beijing Gongmei CO., Ltd, said, “The difficulty is that we are facing more and more direct challenges to meet the demand of consumers in the west. Also the technical standards for export products are getting tougher and stricter. So we must adjust to the new rules and standards of the countries we are exporting to.”
In the hay days, Tian’s company saw its export volume triple, from 10 million US dollars before 2001 to 30 million in 2007. All this thanks to the WTO membership. But the 2008 financial crisis cut profit margins, and so it’s time to change business model, and that starts with improving designs.
Li Yong works for the China Association of International Trade and he agrees companies need to evolve.
Li Yong, vice chairman of China Association of International Trade, said, “The companies should focus on chang of their value-added process. For example, from the old equation of “raw material+labor+ manufacturing” process, to the new equation of “knowledge+innovation+design”. The export should not be only low-cost product, but also service and solution. I think they should also consider a shift from their market focus to diversify from developed market to developing markets.”
For Mr Yu, change means new modern assembly lines and facilities. With these, he can produce new products better adapted to the international markets.
China is now the world’s second largest economy, the biggest exporter and the second-biggest importer. Despite all the titles, Chinese traders and businessmen are still learning to fit in the global competition. As for the future, Mr Tian and his colleagues like to remain confident and cautious because the changing role from ’student’ to ’participant’ in the WTO requires knowledge and experience and it means a lot of work to do.
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