July 14, 2022

Low price strategy of China mold making industry

blog aco mold

It’s been a long time since China mold makers compete in the global market with low price strategy. The temperate win gives China mold making industry a chance to develop fast, a complete industry chain from raw material to machinery is established in 30 years, many other industry such as household appliance, Auto, Consumer, Electronic benefit from fast growing China mold making industry.

In the injection mold industry in China, the competition is fierce, the quality issue is not as critical as pricing in local market (look at the other products produced by China), so the competition between mold factories are basically the price. During the past few years, China labor cost increase every year by 23%, RMB exchanged rate increase 30%, all of these make the low price strategy more and more difficult.

China mold makers should change the way they choose to compete on the international market. Win the customer and business by providing competitive quality mold instead of low price simply, rapid response capability to the market and improving mold making technology and added value of high-level competition instead of purely pursuit of the market share, competition on human resources instead of capital investment.

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