UPS has released its ‘2016 Made in China 2.0’ report, according to the company’s official press release.
The MiC 2.0 report provides a clear way forward for China’s manufacturing sector, as it faces challenges and headwinds and is intended to provide insight and information to Chinese export manufacturers and leaders who can then use it to implement successful strategies.
Export manufacturers are more pessimistic than before, with 29% of the companies saying the economy is worse than in 2014.
Chinese export manufacturers are facing challenges on demand and supply, two of the most commonly-cited challenges are increasing competition from Chinese companies (39%) and decreasing demand from Chinese customers (37%).
It’s not enough to offer a lower price to remain competitive, instead higher quality products (83%), showing an understanding of the customers’ business (82%) and offering a faster and more efficient supply chain (82%) are the top reasons for customers to switch suppliers.
MiC 2.0: no longer enough to think domestic
- 97% of MiC 2.0 leaders sell to at least one market in Asia and are more focused than other export manufacturers on key markets in Asia and Europe such as Thailand (161%), Hong Kong (151%), France (126%), Indonesia (116%) and the UK (115%).
- It is also important to serve a diversified customer base of both B2B and B2C customers. Export customers that are focused on B2B manufacturing are associated with low quality production and lower margin operations.
- Industry leaders are more likely to recognize the importance of logistics and emerging trends such as industry ecommerce (29%) and consumer ecommerce (24%). Identifying these trends can set manufacturers apart.
UPS’s role in boosting China’s manufacturing sector
UPS wants to provide support for businesses in China as they facilitate global markets. The company is rolling out a new initiative to include later pickup time and faster time-in-transit in key cities such as Beijing, Shanghai and Tianjin.
Customers in Beijing and Tianjin can benefit from faster transit times up to 24 hours, and pickup- cutoff time extension up to 2.5 hours in Beijing, and 3 hours in Tianjin. These changes will help Chinese businesses that are seeking presence in global markets by providing the flexibility to import and export goods more effectively.