The hottest TV drama of the year 2024, “blooms”. In the early 1990s in Shanghai, the protagonist Ah Bao transformed from an ordinary youth to a business tycoon, and his success reflected the spirit of hard work of a generation of entrepreneurs. At the same time, the Chinese fastener industry also underwent earth shaking changes during that period.
In the 1990s, with the rapid development of the Chinese economy and the deepening of reform and opening up, the fastener industry faced unprecedented opportunities, and market demand continued to grow, driving the rapid development of the industry. At the same time, state-owned fastener enterprises began to reform and restructure, while private enterprises gradually emerged. During this period, the Pearl River Delta, Yangtze River Delta, Bohai Rim and other regions gradually formed fastener industry clusters, and foreign trade became increasingly active. Many fastener companies have stood out from that era and are still active today.
As shown in the drama, unlike today, in the early stages of reform and opening up, foreign trade was owned by state-owned enterprises. In the mid to late 1990s, foreign trade formed a market-oriented institutional framework that was in line with international rules. At the same time, in response to the needs of state-owned enterprise restructuring, a large number of private foreign trade enterprises have stepped onto the stage, and more and more private production enterprises in the fastener industry have obtained self operated import and export operation rights.
The fastener industry in Haiyan has experienced significant development under the trend of foreign trade. Under the guidance of the policy of enriching the people, a group of employees from state-owned and collective enterprises began to establish private enterprises and obtained the right to self operate export operations. After years of development, Haiyan has become an important export base for fasteners in China, with exports accounting for about 70%.
On the other hand, there is strong demand in the domestic market. After entering the 1990s, China’s automotive industry developed rapidly, attracting the attention of international automotive giants. The emergence of a series of “joint venture car” brands has brought enormous opportunities to the automotive parts industry, such as fasteners. During this period, many fastener companies rapidly emerged with their own technological strength and scale advantages, becoming a solid backing for China’s automotive industry.
A glimpse into the management of tight enterprises from “blooms”
It can be said that fastener companies that have come all the way since the 1990s, in addition to the objective dividends of the times, are more important than their own choices. Both Changli and Mingtai seized the opportunity of starting with automotive fasteners, which led to the vigorous development of the enterprise. The entrepreneurial and business war stories in “Fanhua” are equally exciting, and from them, one can also glimpse the “business strategies” worth thinking about for fastener companies.
Scale advantage: Currently, the overall scale of China’s fastener industry is small and scattered, and many enterprises do not have scale advantages. Through large-scale production, enterprises can reduce costs, improve profit margins, and stand out in fierce market competition. Fully utilizing the advantages of economies of scale can further enhance the competitiveness of enterprises.
Brand strength:
“Brand” is also an aspect that Chinese fastener enterprises urgently need to strengthen. A strong brand can enhance the added value of products and bring more market share to the enterprise. As demonstrated in the drama, the rise of the “Sanyang brand” fully demonstrates the power of the brand, and the comparison between high imitation and authentic products highlights the importance of brand value.
Risk control:
Risk control is also the key to the stable development of enterprises. In the process of operation, fastener companies need to be cautious about high-risk operations such as investment and stock market leverage to ensure the stable development of the enterprise. Through effective risk control, enterprises can better respond to market changes and avoid unnecessary losses.
Partnership:
The establishment and maintenance of partnership are equally important for the development of enterprises. At different stages, enterprises need to find suitable strategic partners to grow together. Flexible adjustment and deep cooperation with partners can enable enterprises to gain greater advantages in market competition.
In business activities, fastener companies should pay attention to maintaining their good image and reputation. Avoiding debt disputes involving personal relationships as much as possible can maintain a good business environment and further promote the development and growth of the enterprise.
From TV dramas and the development process of China’s fastener industry in the 1990s, we can see the changes of an era and the struggles of a group of entrepreneurs. Whether it is the success of Abao or the rise of fastener enterprises, they cannot do without a keen grasp of market opportunities and continuous efforts on their own. Nowadays, the fastener industry still faces many challenges and opportunities, but those enterprises that can keep up with the times and constantly innovate will surely achieve even more brilliant achievements in the Chinese and even global markets.
Post time: Jan-09-2024