Steel business bottleneck? A move to teach you to easily transform the foreign trade industry, successful reversal!

Release Date:2024-08-28

Views:

In recent years, competition in the steel foreign trade industry has become increasingly fierce. The number of steel foreign trade companies engaged in the export of stainless steel, carbon steel, and galvanized steel has surged to more than 2,000. The products are similar, the promotion areas are similar, and the target customer groups are similar. At the same time, with customers pressing prices, the cost of source manufacturers' goods has increased, and the inquiry cost has increased from dozens of yuan to three to five hundred or even higher. The labor cost has increased, and the logistics and shipping costs have soared. Competition is becoming increasingly fierce. By the end of 2023, the industry is saturated, the order rate has dropped significantly, and policy risks such as buying orders for export have intensified, and corporate profits have fallen sharply...

Dear steel bosses, are you also worried about the market saturation and thinning profits? Want to transform but don't know where to start? Today, let's analyze how to successfully transform to other foreign trade industries! In recent years, the steel industry has been highly competitive and has limited profit margins. However, there are still many product demands on the market that have not been met. For example, foreign trade industries such as building materials, household goods, and even new energy equipment are all transformation directions that steel bosses can consider. These products have a wide range of uses and large overseas demand, and can do long-term business; they are also hot-selling products, and the demand is on an upward trend year by year. In addition, they are raw materials, the products are not complicated, and they are quick to learn! The business team is easy to get started; in terms of profit, because they are commodities, the single order transaction amount is large to ensure working capital and profit protection! This article will analyze in detail the potential transformation directions of new energy vehicles, construction materials and furniture industries, and provide valuable reference for steel foreign trade companies.

1. New energy vehicle industry: a potential stock with rapid export growth

Exports are growing rapidly: In 2023, China's new energy vehicle exports increased by 77.6% year-on-year, and the export value increased by 88.5% year-on-year. In the first half of 2024, 534,000 new energy vehicles were exported, a year-on-year increase of 1.6 times. Many Chinese new energy vehicle brands are actively expanding overseas markets and exporting to Europe, Southeast Asia, the Middle East and other regions and countries.

Exports continue to expand: With the increase in global demand for new energy vehicles and the continuous development and improvement of China's new energy vehicle industry, export volume and export value are expected to continue to grow. Government support policies for new energy vehicles, such as subsidies, tax incentives, and vehicle purchase quotas, will further promote the growth of market demand and provide broad space for China's new energy vehicle exports.

2. Construction and building materials industry: a traditional market with steady growth in demand

The construction and building materials industry is another transformation direction worthy of attention. With the recovery of the global economy and the continuous advancement of infrastructure construction, the demand for construction and building materials is expected to maintain steady growth. In addition, international cooperation projects such as the "Belt and Road" have also brought new development opportunities to the construction and building materials industry.

Export scale: From January to April 2024, the export value of building materials and non-metallic mineral products was US$12.79 billion, an increase of 11.6% year-on-year. Excluding price factors, the export value of building materials actually increased by about 3.4%.

China's construction and building materials products are exported to a wide range of destinations, covering traditional markets such as Europe and the United States as well as emerging markets such as countries and regions along the "Belt and Road".

The export of building materials is rich in variety, including cement, glass, ceramics, stone, geotechnical materials, wood products, construction steel, insulation materials, waterproof materials, etc. Among them, cement, glass and other products have certain competitiveness in the international market, and the export proportion of some high value-added, green and environmentally friendly, new building materials is also gradually increasing.

Continued Growth:

With the gradual recovery of the global economy and the advancement of infrastructure construction, the demand for building materials is expected to continue to grow, thereby driving the continued expansion of China's building materials industry exports. In particular, the urbanization process and industrialization development in emerging market countries will provide new opportunities for China's building materials exports. For example, the infrastructure construction needs of countries along the "Belt and Road" will bring more export orders to Chinese building materials companies.

3. Furniture industry: an emerging sector with huge overseas market potential

The furniture industry is one of the emerging fields with rapid export growth in recent years. With the pursuit of quality of home life by global consumers and the continuous expansion of overseas markets, the export potential of the furniture industry is huge.

Export scale growth: China's exports of household products have been on the rise this year. According to the data from the General Administration of Customs, from January to April 2024, furniture exports increased by 20.4% year-on-year to 168.55 billion yuan, a record high for the same period in history, and the monthly increase in April was 12.6%. From January to May, the cumulative export value of furniture and its parts was 212.55 billion yuan, a year-on-year increase of 20.5%; the cumulative export revenue of lamps, lighting devices and their parts was 120.58 billion yuan, a year-on-year increase of 7.9%167

Great market potential: The overseas home furnishing market shows great potential. The "2024 Global Furniture Market Insight Report" released by Dashu Cross-border predicts that by 2024, the global furniture market revenue will reach US$766.2 billion.

4. Transformation strategies and suggestions

Faced with the dual challenges of market saturation and declining profits, steel foreign trade companies must bravely explore ways to transform. On the journey of transformation, companies should fully explore and give full play to their unique advantages, such as deep insight into the supply chain, rich product knowledge reserves, and extensive customer resources. At the same time, with the powerful power of Internet tools, such as the use of Google promotion and Facebook and other social media for integrated marketing, it will be more efficient to lock in overseas buyers. Leaders in the steel industry, don't hesitate to wait and see! The market is ever-changing, and only those who dare to break through can seize the opportunity for success. Actively entering overseas markets and continuously enhancing brand influence is the wisest choice at the moment.

In short, potential transformation directions such as new energy vehicles, construction materials and furniture industries provide new development opportunities for steel foreign trade enterprises. Enterprises should seize market opportunities and actively adjust their strategic layout to achieve successful transformation.

If you have any questions about the construction and operation of foreign trade websites, please contact Yiyingbao technical customer service WeChat: Ieyingbao18661939702, and the staff will answer you wholeheartedly!