FoxconnAs a global electronicsOEMThe giants of the field, with the rapid development of China for many years, have enjoyed the policy andDemographic dividenddividends, but with the increasing competition in the Chinese market, as wellTerry GouDissatisfaction and ignorance of the mainland,FoxconnIt has begun to accelerate its withdrawal from the mainland market, and the main reasons can be analyzed from the following aspects.
First of all, there is the pressure of market competition. InHuaweiand other local ChinaMobile phonesDriven by the rise of brands and technological innovationFoxconnwithApplesof partnerships are starting to take a hit. ApplesAsFoxconnThe main partner has been gradually declining in the Chinese market in recent years. At the same time, the Chinese market is gradually becoming more mature and competitiveFoxconnFacing more challenges and competition.
Second, there is the increase in cost pressures. Labor costs in China are gradually increasing, for labor-intensiveOEMFor businesses, this is a huge pressure. At the same time, China's requirements for environmental protection and labor law are also constantly improvingFoxconnand other enterprises have added more costs and responsibilities. At the same time, India, as a market for cheaper labor, attractedFoxconngaze.
Thirdly, yesPoliticsfactors. In recent years,Terry Goumany times to their ownPoliticsAmbition and selfish interests have stirred up cross-strait turmoil, and they have even attacked the mainland for the sake of their own elections. This behavior not only harmsFoxconnThe reputation in the mainland also makes China the bestFoxconnThe attitude has changed, and an investigation into its tax and land use has been launchedFoxconnApply a certain amount of pressure.
FoxconnThe main reasons for the accelerated shift to the Indian market are the pursuit of profit maximization and market diversification. Here's what I meanFoxconnAnalysis and interpretation of the reasons for the accelerated shift to the Indian market.
On the one hand, India, as a country of 1.4 billion people, has huge market potential. FoxconnBy expanding into the Indian market, we hope to gain more orders and market share. In addition, India's cheap labor resources are also attractedFoxconn, they can provide products and services at a lower cost by setting up a new factory in India.
On the other hand,FoxconnAccelerating the shift to the Indian market could also reduce dependence on the Chinese market. In the context of fierce competition in the Chinese market and rising costsFoxconnHe believes that the shift to the Indian market can diversify risks and achieve long-term sustainable development of the company. This move is tooFoxconnRespond positively to market changes and achieve stable growth of the enterprise by diversifying the market.
FoxconnAccelerating the exit from the Chinese market is undoubtedly a major decision, for:Foxconnand the industrial landscape in China and the world. Here's what I meanFoxconnPersonal views on accelerating the exit from the Chinese market.
First of all,FoxconnAccelerating the exit from the Chinese market is an inevitable trend. With ChinaEconomyThe transformation and intensification of market competition,FoxconnetcOEMThe living space of enterprises in China is gradually becoming smaller. FoxconnAccelerating the transfer to emerging markets such as India is a positive response to market changes and an adjustment of enterprise development strategy.
Secondly,FoxconnAccelerate the exit from the Chinese marketManufacturing in ChinaIt has a certain impact, but it will not shake China's status as a manufacturing power. As an important base of the world's manufacturing industry, China has a complete industrial chain and abundant resources, and still has strong competitiveness. FoxconnThe withdrawal will also giveManufacturing in ChinaIt will bring opportunities for transformation and upgrading, and promote China's transformation from a labor-intensive manufacturing industry to a high levelTechnologyHigh added valueManufacturing transformation.
Finally,FoxconnAccelerating the exit from the Chinese market is also to ChinaEconomyIt brings certain challenges and opportunities. FoxconnThe exit means that China has lost a huge number of jobs and foreign trade income**, and will also lose some technical and management experience. However, this also gives ChinaEconomyIt provides an opportunity for transformation and upgrading, which can be achieved through the development of highTechnologyindustry and improve the ability of independent innovation to stabilize and improveEconomyLevel of development. In the context of the era of globalization,FoxconnThe accelerated withdrawal from the Chinese market is only a microcosm of the adjustment of the industrial structureEconomyThe inevitable result of development is also the realistic demand of global industrial competition. It is important for China to seize the opportunity to accelerate transformation and upgradingEconomySustainable development.