Kohai Machinery - China's Pump and Valve Industry Urgently Needs Self-discipline to Gain Respect

Kehai Machinery Co., Ltd. showcased at the 7th International Pipeline Pumps, Valves, and Components Exhibition in São Paulo's Imigrantes Exhibition Center. Zhejiang Aoxiang Automatic Control Technology Co., Ltd. and nearly 100 domestic pump and valve companies participated. In recent years, an increasing number of domestic pump and valve enterprises have begun to expand internationally, gradually becoming a norm in the industry. However, the process of going global has not been as smooth as anticipated.

"Going global has become the norm in the industry."

The Brazilian International Pipeline Pumps, Valves, and Components Exhibition has successfully been held for 6 editions, with this one marking the 7th. It serves as a primary gateway for the pipeline, valve, and components industry to enter the Brazilian and South American markets, attracting companies from various regions every year. This time, over 100 Chinese companies participated in the exhibition, occupying nearly half of the entire exhibition area.

With China's entry into the WTO, an increasing number of domestic companies have begun to realize the importance of going global. Amid this wave, many pump and valve enterprises have stepped into the international market and achieved considerable success. The main exporters in China's valve and pump industry are primarily located in Wenzhou, Taizhou, Ningbo, Shanghai, Suzhou, and so on. Country M is a major exporter in China's valve industry, accounting for 22% of the total export value, followed by the UK and Japan, which together account for 10%.

Data shows that from January to June this year, Wenzhou's exported valve products reached 8,672 batches, with an export value of $269 million, a year-on-year increase of 42.33%. During the same period, companies in Yongjia with independent export rights exported pump valves valued at $1.4388 billion, a year-on-year increase of 61.4%.

International Trade Show Participation Met with Caution and Scrutiny

Despite the widespread optimism of overseas markets by domestic enterprises, the actual market share of domestic pump and valve products in foreign markets remains relatively low. The total annual sales of China's pump and valve industry are approximately 100 billion yuan, with exports accounting for only 2% of the total pump and valve sales. Most of the exported products are mainly branded production or low-value-added items, and the export volume is small, failing to establish a brand influence in foreign markets.

Careful exhibitors abroad often notice a concerning phenomenon: there are few foreign clients actually willing to visit the Chinese exhibit group. When Chinese exhibitors visit the booths of foreign exhibitors, their staff become extremely nervous and vigilant, often prohibiting the Chinese exhibitors from taking photos.

Many Chinese pump and valve companies, investing considerable human and material resources in overseas exhibitions, often find the outcomes to be disappointing. Despite their financial capabilities to undertake such endeavors, the results are consistently disheartening.

In summary, it can be observed that in the eyes of foreign customers, Chinese pump and valve products are often labeled as shoddy, with unstable quality and engaging in low-price competition. The foreign suspicion and caution towards domestic enterprises are often fueled by their perceptions of plagiarism, infringement, and a lack of respect for intellectual property rights. This lack of recognition and trust has significantly impacted the international reputation of domestic pump and valve products.

On the other hand, the export of pump and valve products is predominantly settled in US dollars, and the appreciation of the RMB adds insult to injury, exacerbating the exchange rate risk. All these factors contribute to the continuous decline in profit margins for the valve industry in terms of exports.

Strengthen self-discipline to gain trust

Currently, there are some domestic pump and valve companies that fail to meet quality standards, substituting inferior products for better ones, which has damaged the interests of domestic competitors and the image of China's exported pump and valve products, leading to the export challenges faced by domestic pump and valve enterprises today.

It has been revealed that some domestic valve and pump companies have failed to strictly control product quality, and have arbitrarily changed product models and unilaterally adjusted contract terms in their production collaborations, which has damaged the industry's reputation. An insider commented, "At the beginning of China's opening to the outside world, foreign markets had limited knowledge of domestic products and were willing to give them a try. However, as time went on, foreign clients found that Chinese product quality was subpar and felt they were cheated, thus不敢 come back to purchase. This has led to increasingly poor outcomes of foreign exhibitions. "

Chinese pump and valve companies are facing increased export pressures. Enterprises should enhance independent innovation, respect intellectual property rights, shift from a focus on quantity and scale expansion to a greater emphasis on quality and efficiency, in order to secure a position in the external pump and valve market. KeHai Machinery