Global Industrial valves Market is Expected to Hit a New High in 2017
Jonloo Valve Manufacturer Company
Valves, valve, ball valves
According to related investigation and analysis, the total sales of global valve market is nearly $3 billion in 2012, and is expected to reach $3.5 billion by the end of 2017, with the average annual growth of 3%. Despite the current global valve market is uncertain and recessionary, analyst pointed out that the prospect of valve is clear. Related developing market are food processing, beverages, disinfection, especially chemical products keeping grow rapidly. While traditional markets, such as chemical and paper industries continue to decline, energy and natural gas plant is facing a new investment, innovation, and modernization transformation, with the rise of global oil prices and refining device, the demand of valve will continue to grow.
In fact, as long as to understand the demand of market, there is a great advantage for domestic valve enterprises to become the master of international market.
1. Export. Exports include direct and indirect export. Direct export refers to that the enterprise directly sells product to the international market. It has two ways: one is selling to the local market through intermediaries abroad; The other is to set up sales agencies in foreign countries for selling the products to local customers by enterprises themselves. Indirect export means that the enterprises export their products through domestic middlemen. This way is one of the simplest choice, for it does not need professional export clerk and a lot of money input, as well as it is strong flexibility, with less risk. However, the shortcomings are also very obvious, that are, enterprises can't directly be involved in international marketing activities; basically, out of the control of export market; the feedback of market information they can get is limited; it is difficult to make timely adjustments to the change of the market.
2.Licensing. Licensing trade is that licensor authorizes its commercially valuable rights or technology to licensee, including the right to use the trademarks, patents, proprietary technology, and so on. Licensing is a simple way for a manufacturer to become involved in market abroad. Not many domestic valve enterprises chose this way due to lacking of management experience, famous brand and unique technology. But it is also a development direction, which can make the enterprises foster their own brand and develop intellectual property rights owned by themselves.
3.OFDI. OFDI(outward foreign direct investment) refers to the enterprise actually possess and control of foreign enterprises, directly involved in their management. From the perspective of stock equity, it has two kinds of forms, joint venture is one. Joint venture means that the enterprises corporate with local companies to run a business in the overseas market. Joint venture can be fulfilled by purchasing stock equity of local enterprise or jointly establishing a new enterprise. This has the advantage of more profit. The enterprise have the right of marketing and controlling production, also, they can get feedback of market information. The disadvantage of this way is that they may conflict with their partners due to different views on production and marketing.
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