The currently hotly discussed topic amongst China's manufacturers is what to do in an unstable economy. Ann Wu, Vice President of Sunell Technology shares her views on how to approach such difficult markets at the a&s CEO Forum, stating that there are always ups and downs throughout a life time and the same applies to business. The current market situation in Europe and America has created difficulties and many manufacturers are struggling to see the light at the end of the tunnel. But in Wu's opinion there are several things which can be done to make it through negative situations.
The currently hotly discussed topic amongst China's manufacturers is what to do in an unstable economy. Ann Wu, Vice President of Sunell Technology shares her views on how to approach such difficult markets at the a&s CEO Forum, stating that there are always ups and downs throughout a life time and the same applies to business. The current market situation in Europe and America has created difficulties and many manufacturers are struggling to see the light at the end of the tunnel. But in Wu's opinion there are several things which can be done to make it through negative situations.
Vision and Passion Expanding horizons and
focusing on products, R&D and business is deemed the best way to proceed and to conquer the obstacles in the current market. “Learning to organize and persevere is what is required in times of uncertainty,” said Ann Wu, Vice President of Sunell Technology. “More importantly, learning to upgrade and observing the world outside in order to broaden horizons is important, if not a company's view and options become narrow.”
R&D without a doubt is the way forward although to begin with it does require a lot investment and results are slow in comparison to quick business but in the long-term the vision is a lot more than just quick money. According to Wu, the “Gold Rush Mentality” and “Quick Money Business” success is short lived and in the long run without vision or passion business will have an uncertain future. Passion is the formula for success, looking into the long-term future and not quick money requires dedication and passion. Caring about the future means success in the future.
Due to a lot of “Quick Money” businesses in the Chinese security, some buyers/users still hold the view that Chinese manufacturers do not care about interface, product design, corporate image or identity. “All manufacturers should care as it is not just about selling an idea but also the concept and technology,” said Wu. Looking into details and perfecting to become the industry benchmark is what China manufacturers should be aiming for.
Looking for Potential Clients and Market Positioning
Searching for clients and targeting the right markets are fundamental. With the transition from analog to IP, it has been complicated as the mentality and technology involved is not the same. Wu pointed out that when searching for potential clients, it is better to consider other channels. For example, hiring IT specialists can make the transition from analog to IP much easier due to the mature IT infrastructure and the better understanding of the distribution channels. “They know the channels supplying products to IT companies. Being a manufacturer, it is much easier to handle technical support as these IT channels can directly solve the problems,” said Wu.
R&D still remains the core strength to successfully enter and expand markets. However, in order to gain market share, it is no longer about general business and offering a general product as there is no advantage in selling commodities. It is important to focus on both the horizontal and vertical market as well. More importantly, how to enter the niche markets is a critical issue for suppliers as these markets do not require standard “me-too” devices. Therefore, in-depth market analysis is required in order to offer customized and tailor-made products. “Without investment and market development, it is not possible to enter the markets,” Wu added. “This stifles a company's ability to take their business to the next level.”