Breakthrough Analysis of Development of Die Industry in South China

A few days ago, the author learned from the Asian Mold Exhibition held in Guangzhou that mold makers and injection molders in South China are currently facing a trend of consolidation due to the double blow of global demand shrinkage and rising costs. Many small mold-molding companies are facing production. Under the pressure of rising costs and foreign trade, they have started to test the water e-commerce field, expand the domestic market channels, and find a way to “break through” for the survival and development of enterprises.

It is understood that due to the international economy, especially the economic situation in Europe and the United States, there has been a wide range of weaknesses, the international market demand for mold molding has further slowed down. This has also led to a general integration trend in China's South China mold-molding industry, which has a certain share of exports. Some small mold-molding companies have experienced a decline in sales of their products, and companies have experienced crisis in their survival and development.

A relevant person in the mold association said that by the beginning of next year, 20-25% of companies in the plastic mold manufacturing and molding industry in South China will face bankruptcy. The scale of such companies may not be large and they belong to small businesses in the industry. Because of the sudden drop in foreign trade exports, the domestic market of these small companies has not been developed, resulting in a backlog of corporate products, capital turnover problems, companies are facing great pressure for survival.

At the exhibition, the heads of some large mold companies also believe that the industry is undergoing major changes. Under the triple influence of rising labor costs, the appreciation of the renminbi and the slowdown of the global economy, the operating environment has become even more difficult. More occupied by more powerful, more funded, or more innovative companies. Therefore, small-scale must seek market transformation, and turn its attention to the development of the domestic market, in which relying on e-commerce can become a "breakthrough" exit.

A person in charge of a mold company stated that there are a number of small and medium-sized enterprises that manufacture automobile molds in southern China. In the situation where foreign trade exports have continued to slump, they have cooperated with well-known B2B e-commerce platforms and used e-commerce platforms to develop the domestic market. . In a short period of one year, companies have perfected a number of national sales channels, which have opened up sales of products.

According to statistics from Yihu Baiying Platform, up to now, there are more than 200,000 mold molding enterprises in the country registered in the country, among which enterprises in South China occupy an important part. The mold molding industry's participation in e-commerce began to show rapid growth. Many mold-molding companies increasingly focus on deep participation in e-commerce platforms and organize product marketing to strengthen the development of the domestic market. It is expected that in 2013, the overall e-commerce level of the mould molding industry in China, especially in South China, will be a qualitative leap.