Food Packaging Machinery Exports: Innovation Gradually Become Amulets

- Mar 15, 2019-

In recent years, China's food machinery industry has maintained a good momentum of development. The reporter learned from the China Food and Packaging Machinery Industry Association that in 2008, the food processing and packaging machinery industry sales value of 126.2 billion yuan, a growth rate of 24%. The import and export trade of food and packaging machinery manufacturing industry is also relatively obvious. The average annual growth rate of exports during the period from 2001 to 2008 was 27.7%. In 2008, the total export volume reached 1.74 billion US dollars. China's food and packaging machinery is well-known in the international market for its "good quality and low price". Export has also become a channel for many enterprises to obtain more living space, and has become an important profit growth point for many enterprises.

Through the development in recent years, China's food and packaging machinery export areas are more and more extensive, products in Southeast Asia, the Middle East, South America, Africa, Europe and other places. According to He Nanzhi, executive vice president of the China Food and Packaging Machinery Industry Association, the Asian region accounts for 35% to 40% of the total export volume. The Middle East and Southeast Asia are our traditional export markets. On the one hand, there are more Chinese, they believe China. The other side of the product is more convenient for transportation.

The African and South American markets are an emerging market in the past two years. In view of the geographical advantage, Africa has always mainly traveled to the European market to purchase equipment. Since the China-Africa Forum, Africa's understanding of China has deepened. At present, many Africans will come directly to China to purchase, and will also pay attention to Chinese products at European exhibitions. From the perspective of exports in 2008, the African market has risen relatively fast, and He Nanzhi believes that the share of exports to the African region will increase. At the South American exhibition, Chinese products have been well received by the locals. In the past two years, the South American market has developed relatively well.

The European market accounts for about 30% of the total export volume. Although the proportion is relatively large, the equipment they purchase is mainly used to re-export the difference. He Nanzhi introduced that our product price is 1/3 or 1/4 of the international market. They purchase Chinese equipment and then sell it in Europe. The price of re-export is slightly lower than the price of European products. Through this difference, you can get more profit.

Financial crisis hits export

In 2008, affected by the international financial crisis, China's food and packaging machinery exports, although still maintaining growth momentum, but the growth rate has dropped significantly by 41.26%. From the export situation in the past five years, the export speed of China's food and packaging machinery has gone through a development process from high-speed growth to gradual decline.

According to statistics from the China Food and Packaging Machinery Industry Association on 1145 enterprises in the industry, from January to July this year, the cumulative industrial production value increased by 11.35% year-on-year, and in July and last year, it increased by 12.72%. The output value of new products decreased by 28.65% year-on-year. The industrial sales output value increased by 9.92% year-on-year, lower than 10%, and the export delivery value decreased by 11.82% year-on-year. In July, it increased by 7.7% compared with the same period of 2008. "Overall, these sets of data are not optimistic, and they are the worst data in the past 20 years." He Nanzhi said.

He Nanzhi pointed out that under the current situation, all enterprises should regard "innovation" as the foundation of their foundation, and leading enterprises should play an active role in driving the development of the industry. He said, "As far as I know, some companies still maintain rapid growth. From January to June, a group of companies grew by more than 30% year-on-year, and these companies are relatively large."

Wu Jun, general manager of HC Food Industry Network, also said, “Since the financial crisis, more and more enterprises have begun to attach importance to technological innovation and brand building. Through painstaking technological transformation and channel expansion, some products have been able to compete with international first-class brands. under".

Independent innovation out of the crisis

Wenzhou Dingye Packaging Machinery Manufacturing Co., Ltd. and Zhejiang Xindebao Machinery Co., Ltd. are representatives of advanced enterprises mentioned by He Nanzhi and Wu Jun.

Since entering July, Li Yong, the chairman of Wenzhou Dingye Packaging Machinery Manufacturing Co., Ltd., has become more busy than ever. In addition to daily business management, he has frequently attended various industry technologies and sales exhibitions.

All of this stems from the recent rebound in confidence from the domestic and international markets.

As a large-scale backbone enterprise in the packaging machinery industry, Wenzhou Dingye Packaging Machinery Manufacturing Co., Ltd. was founded in 1991. Despite the success of the Asian financial crisis 10 years ago in responding to the decline in orders, the decline in exports last year put pressure on Li Yong. "The most severe time in the market was in August last year, in the face of reduced orders, we are adjusting the product structure and increasing sales in the domestic market, while continuing to increase investment in technology." Li Yong told reporters.

The effect of strategic adjustment a year ago began to appear this year. Li Yong said: "Because of the implementation of the policy of expanding domestic demand, our domestic market has a 20% growth, and the growth of the central and inland regions is more obvious." However, I am most surprised by Li Yong. Or the export is obviously warming up. "In July, orders from overseas entered the peak period. In the European and American markets alone, our order for July was more than 500,000 US dollars, which was unimaginable last year."

Li Yong said: "Because the users of European and American countries were biased against China's packaging machinery products, after our products were exported to the United States, Germany and other European and American countries, they were quickly forwarded to the surrounding underdeveloped countries. It is because of this global financial crisis. European and American users have cut costs and started experimenting with our products, giving us a platform to showcase their strengths."

“The price of our products is only one-fifth of that of foreign counterparts. However, the most important thing is technology. In the food packaging machinery industry, European and American customers are very demanding on technology. Our technical level has won us opportunities.” Li Yong said that At the end of August, the company's overseas sales have exceeded $2 million, not only far exceeding the same period last year, but also showing a trend of increasing month by month. "More importantly, the US, Canada, Germany and other European and American markets began to accept our products, which is one of our biggest gains."

Cai Xiuping, general manager of Zhejiang Xindebao Machinery Co., Ltd. also said that in fact, the strength of China's food processing and packaging machinery enterprises is not bad. The reason why Xindebao can maintain sales growth of 30% in the context of the financial crisis. The secret is Xindebao's "six first-class" - choosing first-class materials, using first-class technology, developing first-class products, seizing the first-class market, providing first-class services, and striving for first-class brands. He also said that "our food processing machine packaging machinery enterprises are currently in the growth stage. After the initial accumulation of the business, what is lacking now is no longer funds, but a stage to showcase their own innovations."

He Nanzhi finally said that the experience of advanced enterprises is driving the improvement of the whole industry. “Now there are more and more new products independently developed by our food packaging machinery industry. Some enterprises have obtained more than 100 domestic patents, and even enterprises. I have obtained international invention patents. I hope that all enterprises can embark on the road of independent innovation, and only in this way can they become bigger and stronger, and the industry will reach the world advanced level."