Not long ago, Zhang Wanyou, general manager of Shuangqin Co., Ltd. went to the United States for related business, where he discovered a phenomenon: he encountered more peers than he saw in China. “We feel that Chinese companies are desperately exploring the international market.†On April 22, 2014, at the 2014 General Assembly of the China Rubber Industry Association Tire Branch, Zhang Wanyou shared his feelings with delegates. It is understood that about half of the tires produced in China are now exported, but after all companies are unwilling to do so, they are quickening the pace of “going out†and increasing their efforts to open up the international market. Is this accidental or inevitable? Export surge: SEMA shows a few Chinese companies Regarding the phenomenon mentioned by Zhang Wanyou, many people in the domestic tire industry have actually felt it for a long time. One vice president of a tire company from Shandong is one of them. “Over the years, we have participated in the famous SEMA tire exhibition in the United States every year. At this professional trade show, it was originally to see more foreigners’ faces, and in recent years, more Chinese people have been seen. Even not at all. In an exaggerated manner, this exhibition has quickly become a professional exhibition of Chinese tire products.†The vice president shook his head a little helplessly. The data shows that in 2012, the export volume of Chinese tires increased by 9.6% year-on-year. By 2013, the export volume of tires increased by 13.3%. Among them, the domestic exports of radial tires rose by 1.03 percentage points compared with the previous year. Due to the relative surplus of domestic low-end production capacity and intensified market competition, various tire companies have chosen to increase their export efforts. Xu Wenying, vice chairman and secretary-general of the China Rubber Industry Association, revealed that the US market is one of the most outstanding countries in China's tire export destination countries. In 2013, the total number of passenger tires imported from China by the United States reached 43.57 million, which accounted for approximately 32% of the total U.S. imports of tires for use by passengers. The total number of Chinese tires exported to the United States also increased by 24% year-on-year. "This shows that in the United States, one of the three passenger tires imported from the United States comes from China." However, people have also noticed that while the volume of exports has risen sharply, the delivery value of Chinese tire exports has been getting lower and lower, and the prices of products have been relatively low. The above-mentioned vice president shared the same view with Zhang Wanyou: Due to "saturation of domestic sales and expansion of foreign sales," the domestic "price war" bonfire is spreading abroad and will soon be burnt to the international market. Deep internationalization: leap from export to investment According to the Tire World Network observation, the Chinese tire industry also presents another “strange status†to some extent: the domesticization of domestic companies and the internalization of foreign companies. For this phenomenon, Zhang Wanyou analyzed that due to the rapid development of China's auto industry and huge market potential, foreign suppliers, including tires, are focusing on the Chinese market and are doing everything possible to meet this market, and even to occupy the market, the product area will come from the high end. Delayed to the low end, domestic-funded enterprises that are generally at the low end have to be forced to go abroad to seize the low-end market abroad. According to relevant statistics, in 2013, the export volume of radial tires for foreign-invested enterprises in China fell by 1.89 percentage points year-on-year, while that of domestic-funded enterprises rose by 1.03 percentage points year-on-year. At the same time, Tireworld also noticed another phenomenon. The world tire industry is showing a shift from developed to developing regions. For example, from 1999 to 2012, more than 60 tire factories were closed in Europe and the United States, while at the same time, more than 60 new factories were established in Asia, including China. This provides footnotes for foreign tire companies to expand their investments in China. Correspondingly, from 2012 to the present, China’s tire backbone enterprises have adopted the “go global†strategy and have invested in factories in some countries in order to win market opportunities, such as Shuangqin Group, Zhongce Rubber, and Linglong Tire to Thailand. , Triangle tires to Russia, Sailing shares to Vietnam, Ogori to build factories in Indonesia, etc. (see details below). Although the name of Fengshen Tire has not yet appeared on this list, Wang Feng, chairman of the National People's Congress and Fengshen Tire general manager, has valued the two paragraphs of internationalization in the Prime Minister's government work report for the past two years. The first paragraph of 2013 was to promote the formation of new advantages in export competition with technology, brand, quality, and service as the core. In 2014, the first paragraph was: Supporting enterprises to build their own brands and international marketing networks, and improve China’s manufacturing position in the international industrial division of labor. . Wang Feng's views may represent the expectations of the chief tire industry executives in China. PBL (Polybutylene terephthalate laminate) plastic tube packaging is a type of packaging that is commonly used in the cosmetics and personal care industries. It consists of a laminate of polybutylene terephthalate (PBT) and aluminum foil, which provides a high barrier to moisture, oxygen, and light. The PBT layer also provides a high level of chemical resistance, making it suitable for a wide range of products.
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