Price War vs Cooperation Which is a better plan?
Shanghai YOCO Teaches You How to Become an Elite Brand
In the market, there are both wise business models and self-destructive business models. What is the difference? Wise companies know how to avoid price wars, while self-destructive companies are deep in the mud of price wars. Moreover, a single self-destructive company can lead to the ruin of the whole industry. – Hermann Simon
In today’s Chinese printing and packaging industry, “recession,” “bankruptcy,” and “plant closings” have become frequent topics for the industry. Faced with sluggish market demand, many are eager to breakthrough this industry bottleneck. In order to survive, companies have had to rely on lowering wages in order to receive orders; thus participating in a price war. Then they stare dumbfounded at the falling price levels of the products.
Besides the “transition” into price wars, are there other ways to benefit companies and win the market? The answer is yes. Shanghai YOCO Printing Machinery Co., LTD. offers one such model.
No price reductions, technological innovations win the market!
In recent years, YOCO has fine-tuned their product structure and market strategies. YOCO’s main products are die-cutting machines and stamping machines, with formats from as small as 370mm to as large as 1800mm, fully covering the eight series. Regardless of whether it may be 60 gram dictionary paper, 9 mm corrugated paper, or 3mm industrial paperboard and plastic material, you can find suitable products within the YOCO product line.
Besides constantly promoting the production structure, YOCO makes decisions based on their own practical situation. At the same time, YOCO is always paying attention to the changes in today’s printing industry. YOCO believes that the printing chain begins from the design pictures and box shape conception of the designers, and ends up with the production on the counter. From the beginning to the end printing chain, YOCO focuses on efficient, accurate, and seamless connection with the next process. This concept is fully embodied in the field of the traditional printing industry and today’s popular digital printing. Based on this concept, YOCO has developed many customized products to meet the individual’s production requirements.
No fighting in price wars! Comprehensive distribution channels for domestic and international sales
In addition to introducing new, high-quality products, marketing is also a top priority for YOCO. Through using marketing networks, YOCO constantly increases its information flow and influence. Also advertising by traditional paper media is easy to save and query. In the next three years, YOCO’s post-press equipment manufacturing team will basically cover the post-press field, like RITO and DINGXING. Meanwhile, YOCO will penetrate related areas like pre-press, printing, logistics, and packaging, similar to NanJiang company.
Since the beginning, YOCO has attached great importance to trade shows as a good way for marketing. In addition to actively participating in SinoCorrugated hosted by Reed Exhibition, YOCO attended “the second session of the Chinese post-print integration solution meeting“ at the Yangtze River plant in Dongguan. They also attended Drupa in June for their fourth time in April. In the future, YOCO will remain one of the most popular exhibitors domestically and abroad.
No fighting in price wars, create two teams in 3-5 years!
In the past two years, with the domestic economic downturn and fierce competition, the market can only achieve healthy operation through market restructuring and rebuilding. This is a great development opportunity for strong companies. YOCO products are 60-70% export oriented. In 2016, the orders have been very high, and compared to domestic orders, YOCO has more foreign orders. Therefore, YOCO is less affected by the domestic environment.
During the interview, the head of YOCO, Mr. Donald Ng, said there are two different opportunities for YOCO moving forward. Firstly, YOCO must expand its domestic market and take the contrarian investment strategy. Secondly, YOCO must continue to pay attention to foreign markets. About foreign markets, Mr. Ng said, “Because many domestic competitors often have similar products with few models and a single use, many rely on copying the products of others and lack self-development capabilities. On the other hand, YOCO has a diversified product range along with strong self-development capabilities. For small-scale printing in Europe and America, the demand is more personalized, and YOCO is able to meet their demands accordingly.”
Currently, YOCO’s market development in Southeast Asia is going very well. The United States, South America, and countries that have not established diplomatic relationships with China will be the focus for development in the future. Therefore, YOCO sincerely hopes that their die-cutting machines and stamping machines will garner the attention of overseas machinery dealers and customers at SinoCorrugated, which is a strong international platform.
Follow industry trends and work hard to be the first. YOCO has completed its acquisition of Shanghai YAWA Printing Machinery Co.,Ltd.. Within three to five years, YOCO will create two teams. One team, represented by Ding Sheng, will be composed by 10 or more companies in a market alliance. The other team will be a sales group represented by YaHua. The two teams will work in mutual cooperation and complement each other, thereby improving the overall impact overseas.
If you participate in a price war, the only end result will be failure!
Mr. Donald Ng, chairman of YOCO, was born into a family of printer manufacturers. With family investments in printer manufacturing industries for 28 years, Mr. Wu has developed an effective and compartmentalized team by concentrating on the management of market and factory, adopting a one-vote negation system by the senior management to locate the product, and maintaining a high sensitivity to the market.
With the market downturn, it is an indisputable fact that we are all seeking ways to survive. If R&D does not progress and companies only rely on lowering their prices, their business will not be able to survive. So, YOCO believes that the industry needs to join together. The industry needs to be more interactive and more cooperative in order to protect itself.
SinoCorrugated 2017 is quickly approaching. At the show, YOCO will display a series of new products and will work together with HONGJING、DINGXING and RITO. They will also work with two other manufacturers through joint participation to focus on creating cardboard, corrugated paper, and more post-print solutions. With an open and pragmatic attitude, looking more like like-minded partners, YOCO sincerely hopes to meet new faces and new customers at the show.
11-14 April 2017 Shanghai New International Expo Centre, be there or be square!