On June 19, 2010, the People's Bank of China, through a news spokesman, stated that it would "further promote the reform of the RMB exchange rate formation mechanism and enhance the flexibility of the RMB exchange rate." In this regard, the Chinese government has once again initiated the reform of the RMB exchange rate, which will once again have a profound impact on China's manufacturing industry, and our country's security companies cannot be excluded from it.
China’s security companies have made a firm move in the internationalization of their businesses. With the continuous expansion of overseas businesses, the author believes that in the expectation of RMB appreciation, in the overseas markets, China’s security companies can adopt the following strategies:
Exploring the market and operating the market
The appreciation of the renminbi will inevitably lead to an increase in the export costs of China's security companies, but the regional markets in the world can be characterized by different characteristics. If we can develop targeted markets and operate markets, we can provide special products for the regional market and improve the profitability of products. Helps China's enterprises reduce the compression of the profit space brought about by the appreciation of the renminbi.
In fact, the appreciation of the renminbi for security companies engaged in product exports, the biggest pressure comes from the relative increase in the price of our products. This is the biggest pressure and blow for Chinese companies that often use price strategies as the core means of competition. This also led to the overall weakening of China's production cost advantage. However, the constant promotion of industrial upgrading and the implementation of technological upgrading of products are the constant orientation of China's export strategy. Therefore, jumping out of low prices and using the opportunity of RMB appreciation to achieve a transition on a technical level and participating in international competition and occupying overseas markets through high value-added products are also the best countermeasures for Chinese security companies.
The global security market is rapidly expanding, and the market size of each region has also been continuously increasing, and the demand of the regional market is increasingly showing professional characteristics. Therefore, if there is a targeted development of the regional market, the focus on operating the selected regional market, rather than a full-scale network-wide expansion in the global field, will also help China's security companies achieve rapid growth in overseas business performance, and through Long-term market operation will inevitably bring stable long-term customers. Through the provision of targeted products, it will inevitably bring about the growth of profit margins. All of these will effectively reduce the negative impact of the appreciation of the renminbi and provide security for our security companies. International market development provides strong support.
Overseas mergers and acquisitions, strategic cooperation
The appreciation of the renminbi is the international development of Chinese security companies, bringing with it a rare historical opportunity. Looking at the development of Chinese security companies in recent years, we can see that the international market has increasingly become a focus area for security companies, and even an important support for development.
Compared with foreign giants, China's security companies not only have a large gap in terms of technical level and operating capability, but also have a large gap in business philosophy, brand building, and talent team. All these have brought certain difficulties and obstacles to the overseas expansion of Chinese security companies. Business ideas, technical capabilities, brands, professional talents, and channel layouts are all rapidly enhanced through overseas mergers and acquisitions. The appreciation of the renminbi, to a certain extent, reduces the cost of mergers and acquisitions by Chinese companies. The means to obtain corresponding resources provides a shortcut that provides a more effective way for Chinese companies to deploy overseas.
Moreover, the appreciation of the renminbi is also on another level, increasing the competitiveness of Chinese companies in international business, at least in terms of capital, making China's security companies more abundant than ever. Therefore, it is also recommended that China’s security companies seize this opportunity to establish strategic partnerships with foreign giants on an equal footing, work together to open up markets, improve competitiveness, and fully develop cooperation in various fields to achieve comprehensive and comprehensive overseas operations. Rapid development.
In conclusion, the author believes that under the influence of the adjustment of the RMB exchange rate mechanism and the expected appreciation of the mid-to-long term, China's security companies will inevitably face new opportunities and challenges. Those Chinese security companies that are truly “standing high, seeking for a long time, and acting steadily†will also stand out and become leaders in market competition. They will become the vanguards and leaders of China’s security companies in the face of the world and their confidence in going global.
At the same time, the appreciation of the renminbi will also help Chinese security companies conduct overseas mergers and acquisitions and implement a global resource integration layout. As China's security companies gradually go out of the country, how to use global resources and implement resource integration in the global field to support their own development has become a problem that Chinese companies have been thinking about. Through targeted and selective overseas mergers and acquisitions, it can help China's security companies quickly achieve the goal of global distribution. Whether it is the acquisition of a company, the acquisition of a brand, the acquisition of a channel, or the acquisition of technology, the appreciation of the renminbi will reduce the cost of cross-border mergers and acquisitions by Chinese companies and help overseas mergers and acquisitions by Chinese companies. It can be said that the appreciation of the renminbi has enabled China’s security companies to open wider doors to international development and provide the most powerful support for the development of China’s security companies’ internationalization.