The development of China's security enterprises in recent years can be said to be an increasingly internationalized process. Its performance is that internationalization has significantly accelerated the pace of expansion. The start of the second exchange reform in 2010 and the trend of appreciation of the renminbi will surely have many important impacts on China's security industry. In the coming period of time, the majority of Chinese security companies, especially exporting companies, will inevitably face a serious issue, “how to avoid being eliminated in the new round of exchange rate mechanism policies, and to obtain a more stable and larger scale. development of"! Is it gorgeously turned and walked on the broad road, or fell from the single-plank bridge?
Now that the security market demand has increased rapidly, a large number of low-end companies lacking technological capabilities are constantly pouring in and rushing for gold at lower prices. Not only has the industry's competitive order been severely affected, but it has also caused outstanding companies in the industry to struggle to cope with a round of price intrusion. Nowadays, the appreciation of the renminbi will gradually squeeze the profit margin of such low-end, low-profit companies, making it even more difficult for low-end companies that rely on low-price, non-technical products to compete. In such an external environment, only those companies that truly insist on winning products and sticking to both quality and technology will be able to survive. Through such market selection, not only can low-end enterprises that disrupt the order of market competition be eliminated, and the development environment of the industry can be standardized, but also the security companies in China can be transferred to high-tech and high-margin products to upgrade China's security industry. The overall level to achieve industrial upgrading and progress.
The Impact of RMB Appreciation on Security Export Business Yang Peiwen, director of international marketing at Hikvision, when talking about the appreciation of the renminbi, said that this is a very inevitable result, because in the international economic market, the renminbi is already undervalued. Yes, it is inevitable that the appreciation of the renminbi will have a certain impact on our business, such as the increase in costs and the reduction in profits. However, since the appreciation is only for the appreciation of the U.S. dollar, it does not seem to affect Hikvision's export business at present. However, it needs to be vigilant at all times and always be able to do so in accordance with exchange rate policies and international market conditions. Corresponding strategic adjustments. For the domestic market, it seems to me personally that the secondary exchange reform should not make much changes to the domestic security industry structure.
The appreciation of the renminbi has the greatest impact on export-oriented enterprises. Therefore, this part of the security companies can consider their own circumstances and move to the domestic market. After all, China is currently experiencing rapid economic growth. Economic policies across the country are also proceeding in an orderly manner. Demand is high, and a move to the domestic market is also a good choice. Of course, some powerful foreign export-oriented security companies may also consider opening up the domestic market, but at the same time they must improve channels, brand promotion, and after-sales services.
Concluding remarks on the appreciation of the renminbi is already a matter of stagnation, the government will also launch long-term economic planning and favorable policies to guide and help companies strengthen structural adjustment. The banking sector will also further improve financial services, help companies manage exchange rate risks, and provide strong support for corporate development.
Any appreciation of the local currency of any country will in the short term pose a certain resistance to the export of its own products. Regardless of whether the current global economy is recovering or whether it is the case for “double bottomingâ€, the key to our security business is to improve our internal strength. Only products with excellent quality, fair prices, and perfect after-sales services can be invincible in the competition.
Now that the security market demand has increased rapidly, a large number of low-end companies lacking technological capabilities are constantly pouring in and rushing for gold at lower prices. Not only has the industry's competitive order been severely affected, but it has also caused outstanding companies in the industry to struggle to cope with a round of price intrusion. Nowadays, the appreciation of the renminbi will gradually squeeze the profit margin of such low-end, low-profit companies, making it even more difficult for low-end companies that rely on low-price, non-technical products to compete. In such an external environment, only those companies that truly insist on winning products and sticking to both quality and technology will be able to survive. Through such market selection, not only can low-end enterprises that disrupt the order of market competition be eliminated, and the development environment of the industry can be standardized, but also the security companies in China can be transferred to high-tech and high-margin products to upgrade China's security industry. The overall level to achieve industrial upgrading and progress.
The Impact of RMB Appreciation on Security Export Business Yang Peiwen, director of international marketing at Hikvision, when talking about the appreciation of the renminbi, said that this is a very inevitable result, because in the international economic market, the renminbi is already undervalued. Yes, it is inevitable that the appreciation of the renminbi will have a certain impact on our business, such as the increase in costs and the reduction in profits. However, since the appreciation is only for the appreciation of the U.S. dollar, it does not seem to affect Hikvision's export business at present. However, it needs to be vigilant at all times and always be able to do so in accordance with exchange rate policies and international market conditions. Corresponding strategic adjustments. For the domestic market, it seems to me personally that the secondary exchange reform should not make much changes to the domestic security industry structure.
The appreciation of the renminbi has the greatest impact on export-oriented enterprises. Therefore, this part of the security companies can consider their own circumstances and move to the domestic market. After all, China is currently experiencing rapid economic growth. Economic policies across the country are also proceeding in an orderly manner. Demand is high, and a move to the domestic market is also a good choice. Of course, some powerful foreign export-oriented security companies may also consider opening up the domestic market, but at the same time they must improve channels, brand promotion, and after-sales services.
Concluding remarks on the appreciation of the renminbi is already a matter of stagnation, the government will also launch long-term economic planning and favorable policies to guide and help companies strengthen structural adjustment. The banking sector will also further improve financial services, help companies manage exchange rate risks, and provide strong support for corporate development.
Any appreciation of the local currency of any country will in the short term pose a certain resistance to the export of its own products. Regardless of whether the current global economy is recovering or whether it is the case for “double bottomingâ€, the key to our security business is to improve our internal strength. Only products with excellent quality, fair prices, and perfect after-sales services can be invincible in the competition.