On June 19, 2010, the People's Bank of China, through a news spokesman, stated that it would "further promote the reform of the RMB exchange rate formation mechanism and enhance the flexibility of the RMB exchange rate." In this regard, the Chinese government has once again initiated the reform of the RMB exchange rate, which will once again have a profound impact on China's manufacturing industry, and our country's security companies cannot be excluded from it. 
Exchange direction, slowly increasing
Through the analysis of the central bank's relevant statements and the economic environment at home and abroad, it is not difficult to find that the direction and measures of this exchange rate reform are still expected to slowly increase slightly.
For a long time, the appreciation of the renminbi is expected to be indisputable. However, the mode of appreciation adopted is whether to adopt a slow appreciation or a one-time revaluation. This is still the focus of discussion and controversy among all parties. Although a one-time revaluation is theoretically a relatively good method, it will seriously hit a large number of manufacturing companies in China. In this exchange rate reform process, the central bank not only emphasized that the adjustment rate of exchange rates was controllable, but also talked about adopting a gradual approach in the management and adjustment of the exchange rate of the renminbi, leaving time for corporate structural adjustment. In fact, with the overall downturn in the international economic environment, the cost of China's export enterprises has entered an upward path. If a one-time revaluation approach is adopted, then the exchange rate costs of a large number of export companies will increase substantially. By then, Jiangsu, Zhejiang and the Pearl River Delta region It will not only be a stricken situation, it will even be a devastating blow to the regional economy.
Therefore, in the face of the restart of this exchange rate reform, it can be expected that the future reform of the RMB exchange rate will continue to be carried out under the framework of the “active, controllable, and gradual†three-emphasis. The response strategies adopted by China's security companies should also be based on the long-term slow appreciation of the RMB.
Security Enterprise, International Expansion
The recent development of Chinese security companies can also be said to be an increasingly international process. It is precisely because of the rapid expansion of the internationalization of security companies that the current appreciation of the renminbi will have an important impact on China's security industry.
Recalling the development of China's security industry for over 20 years, it can be described as weak to strong, from small to large, and it has formed many companies with considerable strength and foundation in R&D, production, and marketing. In fact, from the beginning of the development of China's security industry, it is closely linked with international business. From the beginning of the reform and opening up, the sales of foreign security products began in the 1990s. Through the production of OEMs, imitative reference, and independent research and development, the company gradually formed its own product system, and then it became increasingly fierce in the face of competition in the domestic market. China's security companies, whose product quality and technological level has rapidly increased, have begun to gradually go abroad to sell their security products overseas.
Through the observation of China's security industry in recent years, it can be found that the international development of China's security companies is already a general trend. Today, China's security companies have already had the most preliminary understanding of foreign markets, coupled with the increasingly fierce competition in the domestic security market, the rapid improvement of China's security technology, China's security products in terms of price advantages, and foreign security market Orderly stability, abundant profits, and so on, therefore, under such a development trend, all have determined the determination and pace of domestic security companies going out. It is expected that by the end of the "Eleventh Five-Year Plan" period, China's export of security products will account for more than 30% of the industry's total sales.
For the operation and development of international business, the impact of the RMB exchange rate is also obvious. With the gradual change of the international business model of China's security companies, it can be said that the impact of exchange rates on Chinese companies is even greater. In the early models such as agency sales, the impact of exchange rates only involved price settlement in the process of product import and export, and most of the risks lie with foreign partners. As more and more Chinese companies go abroad and participate in international competition, their production, procurement, marketing, and channels will all be profoundly affected by exchange rates.
It is precisely because more and more Chinese security companies are firmly implementing the international development path, and in the foreseeable future, more Chinese security companies will go abroad and go overseas, so the RMB exchange rate Change is already a problem that Chinese security companies must seriously face and attach great importance to. What kind of coping strategies to choose is not only a problem that Chinese security companies must consider, but also will affect the success or failure of Chinese security companies' future development.
Appreciation of the renminbi, risks and opportunities coexist
The slow appreciation of the renminbi is a predictable trend. The firm international development of Chinese security companies will not change the trend. The appreciation of the renminbi, for Chinese security companies, can be described as both risks and opportunities coexist.
The reason why the central bank adopts a slow appreciation method is to take into account the affordability of China's manufacturing industry, and to give our country's corresponding companies the time to adapt and adjust the time. Faced with the appreciation of the renminbi, the risks faced by security companies in China can be said to be in line with the vast majority of manufacturing enterprises. Not only will they face increased corporate costs and decline in profitability, but they will also increase the external risks of corporate operations. This will not be detailed here.
Of course, the appreciation of the renminbi also brings a new historical opportunity for our security companies. The revaluation of the renminbi will not only help the industrial adjustment of security companies, reduce the current industry's disorderly competition, eliminate some low-end enterprises that do not meet the needs of market competition, but also contribute to the international development of China's security companies and facilitate China's security. The implementation of global resource integration by enterprises can also facilitate the overseas mergers and acquisitions of our security companies.
On the one hand, the appreciation of the renminbi will surely bring about a new round of industrial adjustment in the security industry. Since the new century, China's security industry has achieved vigorous and rapid development. However, the rapid development of the industry, the industry's enterprises have shown a good and bad situation. With the rapid increase in market demand, a large number of low-end companies lacking technological capabilities have continued to integrate and rush for gold at lower prices. Not only has the industry's competitive order been severely affected, but it has also caused outstanding companies in the industry to struggle to cope with a round of price intrusion. Nowadays, the appreciation of the renminbi will gradually squeeze the profit margin of such low-end, low-profit companies, making it even more difficult for low-end companies that rely on low-price, non-technical products to compete. In such an external environment, only those companies that truly insist on winning products and sticking to both quality and technology will be able to survive. Through such market selection, not only can low-end enterprises that disrupt the order of market competition be eliminated, and the development environment of the industry can be standardized, but also the security companies in China can be transferred to high-tech and high-margin products to upgrade China's security industry. The overall level to achieve industrial upgrading and progress.
On the other hand, the appreciation of the renminbi will also help Chinese security companies conduct overseas mergers and acquisitions and implement a global resource integration arrangement. As China's security companies gradually go out of the country, how to use global resources and implement resource integration in the global field to support their own development has become a problem that Chinese companies have been thinking about. Through targeted and selective overseas mergers and acquisitions, it can help China's security companies quickly achieve the goal of global distribution. Whether it is the acquisition of a company, the acquisition of a brand, the acquisition of a channel, or the acquisition of technology, the appreciation of the renminbi will reduce the cost of cross-border mergers and acquisitions by Chinese companies and help overseas mergers and acquisitions by Chinese companies. It can be said that the appreciation of the renminbi has enabled China’s security companies to open wider doors to international development and provide the most powerful support for the development of China’s security companies’ internationalization.
Responding to the appreciation of the renminbi by "standing high, seeking success, and achieving stability"
In the face of the external environment for the appreciation of the renminbi, the response choices of Chinese security companies, the author believes that consideration can be given from the macro overall situation, development strategy, and self-ability. In short, China’s security companies need to “stand tall and achieve In the long run, the line is stable."
"Standing High" - The Big Picture
The appreciation of the renminbi is an inevitable result of China’s economic development. Therefore, China's security companies must first establish their own overall situation. They must face up to the reality of the appreciation of the renminbi and avoid escaping. Instead, they must face and use the appreciation of the renminbi as an opportunity for the industry. Once China’s security companies can understand the adjustment of the RMB exchange rate from the overall perspective, then our security companies will also examine and select the coping strategies to be adopted from the perspective of long-term development of the industry, so that our security companies can Its own development is well tied up with the national and even global economic trends to achieve long-term, stable development of the company.
Recalling the history of China’s reform and opening up, every macroeconomic change will bring rare opportunities and arduous challenges to companies with a large number of export-oriented economies. Enterprises that can grasp the trend and transform smoothly will not only become strong players in market competition. It will become a leading company in the industry, and it will also usher in a new life after the big wave of Ebbing, ushering in a new situation in business operations. Looking back at the year of the WTO, in the process of chanting wolf, some Chinese enterprises became the past in the history of China’s reform and opening up, while some enterprises not only achieved their domestic competitive position, but also ushered in a more A vast international market. It can thus be seen that every change in the external macro-environment is like an exam. They are all the same gantry. Passing through and passing through will be a road to success.
"Seek Far" - A Strategic View
Enterprises that can achieve everlasting growth are gradually developed under the guidance of long-term strategies. Through long-term development planning and business selection, through dedicated market development and construction of professional competitiveness, it is possible to effectively avoid the impact of short-term changes in the external environment. In other words, through long-term strategic planning, it is also possible to reduce the business operating pressure brought about by the appreciation of the renminbi in the short term.
Today, after more than two decades of "barbaric growth," China's security companies also need to temporarily slow down the pace of arrogance, and to carefully consider the company's long-term development strategy. Whether it is the market orientation of the enterprise or the product selection of the enterprise, there needs to be a clearer contextual guidance, so as to help the company concentrate its limited resources and make targeted breakthroughs. The security industry is a sufficiently subdivided industry. Even industry giants must face many different market segments and distinctly different consumer demands, resulting in differentiated competitive advantages and market-leading advantages. Both will lay a solid foundation for the long-term development of the company. The appreciation of the renminbi is merely a periodical external environmental fluctuation. Through such long-term development planning and design, it is possible to effectively mitigate the impact of short-term external fluctuations, and by subdividing the market's "monopoly profits", security Enterprises can also effectively accommodate and resolve the decline in profits brought about by the appreciation of the renminbi and ensure the survival and development of the company.
"Persist" - Capability View
The calm and security of “I'm in a hurry, I’m in a hurry,†comes from self-confidence in the ability of my company’s internal operations, it comes from a comprehensive understanding of the external market environment, and it comes from expanding the internationalization of the company. Global vision. Whether an enterprise succeeds or not requires the analysis of the external environment as well as the need to build internal capabilities. It also requires leaders to be farsighted. China's security companies are no exception. Therefore, in the face of strong pressure to face RMB appreciation, how to improve its own operating capabilities, risk control capabilities, and international operating capabilities will test every aspirational Chinese security entrepreneur and will test every single one of them. China's security companies that strive for higher breakthroughs.
The external competitive environment has always been changing, and constantly improving its own operating capabilities should also be the choice that China's security companies have always maintained. First of all, security companies must be profitable from the inside, profit from the inside, strengthen their own level of cost management and business operations, and through their own cost control, to reduce the operating pressure of RMB appreciation. Secondly, security companies must also build their own risk management systems and strengthen risk control capabilities. The exchange rate changes are volatile, so the external macro market will also show volatility changes. By building its own risk control system, it will improve itself. The exchange rate monitoring and analysis mechanism can effectively resist the operational risk brought by exchange rate changes and maintain the smooth operation of the company. Finally, we must strengthen our ability to operate internationally and constantly explore overseas development paths. Through global resource allocation, we can achieve business operations within a broader scope and jump out of the impact of changes in the RMB exchange rate.
Domestic market response strategy
While China's security companies are building a "big picture, a strategic view, and a capability view," the author believes that in response to the domestic market, China's security companies can have the following options:
1, enhance technology, intensive cultivation
Products are the only means for companies to win the market, and they are also the only means for companies to obtain profits. Therefore, in the process of facing the external environment for the appreciation of the renminbi, we must first work hard on our own products, seek breakthroughs, increase technological content, and implement quality strategies.
The increasingly fierce competition in China's security market is obvious to all parties in the industry. Fierce market competition is also continuously lowering the profitability of industry players. The appreciation of the renminbi has increased the operating costs of enterprises and eroded the market in a new dimension. Has shrunk a lot of security companies profit margins. Because of this, China’s security market has become increasingly narrower in terms of price, constantly increasing the technological content of products, and obtaining new market space for security companies in high-value-added products. The best choice for Chinese companies with lofty goals.
Therefore, I also believe that taking advantage of the appreciation of the renminbi to firmly implement product upgrades and technology upgrades, make a fuss about high-value-added products and seek benefits, is an effective means to deal with exchange rate changes, and it is also a Chinese security company. The inevitable choice for long-term stable survival and development.
2, corporate cooperation, alliance operations
Security companies participate in market competition through cooperation or alliances, which is already a feature of the development of China's security industry. Under the influence of the appreciation of the renminbi, security companies in China should adopt such a method to cope with market competition, meet customer needs, and reduce the operating pressure caused by the appreciation of the renminbi.
By means of cooperation and alliances, participating companies can complement each other's strengths, and they can focus their efforts on the development of their own unique technologies or products in the development process, with limited investment in resources and maximum investment in their results. Return. The pressure caused by the appreciation of the renminbi is actually the cost of the operation, and through the dedicated input and the rational division of labor within the alliance, not only can the efficiency of input be improved, but also the investment level of a single company can be reduced, thereby reducing the cost increase. Brings business pressure. As an integral part of the alliance, the companies of all parties achieve overall improvement in overall competitiveness through the cooperation of capital level, product level, technology level, operation level, and even corporate culture.
Therefore, in order to cope with the appreciation of the renminbi, the use of inter-firm cooperation and corporate alliances is an effective means to avoid the rise in the cost of exchange rate changes.
International market response
With the steady advancement of China’s security companies’ internationalized business operations and the continuous expansion of overseas businesses, the author believes that in the expectation of RMB appreciation, in the overseas markets, China’s security companies can adopt the following strategies:
1, open up the market, operate the market
The appreciation of the renminbi will inevitably lead to an increase in the export costs of China's security companies, but the regional markets in the world can be characterized by different characteristics. If we can develop targeted markets and operate markets, we can provide special products for the regional market and improve the profitability of products. Helps China's enterprises reduce the compression of the profit space brought about by the appreciation of the renminbi.
In fact, the appreciation of the renminbi for security companies engaged in product exports, the biggest pressure comes from the relative increase in the price of our products. This is the biggest pressure and blow for Chinese companies that often use price strategies as the core means of competition. This also led to the overall weakening of China's production cost advantage. However, the constant promotion of industrial upgrading and the implementation of technological upgrading of products are the constant orientation of China's export strategy. Therefore, jumping out of low prices and using the opportunity of RMB appreciation to achieve a transition on a technical level and participating in international competition and occupying overseas markets through high value-added products are also the best countermeasures for Chinese security companies.
The global security market is rapidly expanding, and the market size of each region has also been continuously increasing, and the demand of the regional market is increasingly showing professional characteristics. Therefore, if there is a targeted development of the regional market, the focus on operating the selected regional market, rather than a full-scale network-wide expansion in the global field, will also help China's security companies achieve rapid growth in overseas business performance, and through Long-term market operation will inevitably bring stable long-term customers. Through the provision of targeted products, it will inevitably bring about the growth of profit margins. All of these will effectively reduce the negative impact of the appreciation of the renminbi and provide security for our security companies. International market development provides strong support.
2. Overseas mergers and acquisitions, strategic cooperation
The appreciation of the renminbi is the international development of Chinese security companies, bringing with it a rare historical opportunity. Looking at the development of Chinese security companies in recent years, we can see that the international market has increasingly become a focus area for security companies, and even an important support for development.
Compared with foreign giants, China's security companies not only have a large gap in terms of technical level and operating capability, but also have a large gap in business philosophy, brand building, and talent team. All these have brought certain difficulties and obstacles to the overseas expansion of Chinese security companies. Business ideas, technical capabilities, brands, professional talents, and channel layouts are all rapidly enhanced through overseas mergers and acquisitions. The appreciation of the renminbi, to a certain extent, reduces the cost of mergers and acquisitions by Chinese companies. The means to obtain corresponding resources provides a shortcut that provides a more effective way for Chinese companies to deploy overseas.
Moreover, the appreciation of the renminbi is also on another level, increasing the competitiveness of Chinese companies in international business, at least in terms of capital, making China's security companies more abundant than ever. Therefore, it is also recommended that China’s security companies seize this opportunity to establish strategic partnerships with foreign giants on an equal footing, work together to open up markets, improve competitiveness, and fully develop cooperation in various fields to achieve comprehensive and comprehensive overseas operations. Rapid development.
In conclusion, the author believes that under the influence of the adjustment of the RMB exchange rate mechanism and the expected appreciation of the mid-to-long term, China's security companies will inevitably face new opportunities and challenges. Those Chinese security companies that are truly “standing high, seeking for a long time, and acting steadily†will also stand out and become leaders in market competition. They will become the vanguards and leaders of China’s security companies in the face of the world and their confidence in going global.
Exchange direction, slowly increasing
Through the analysis of the central bank's relevant statements and the economic environment at home and abroad, it is not difficult to find that the direction and measures of this exchange rate reform are still expected to slowly increase slightly.
For a long time, the appreciation of the renminbi is expected to be indisputable. However, the mode of appreciation adopted is whether to adopt a slow appreciation or a one-time revaluation. This is still the focus of discussion and controversy among all parties. Although a one-time revaluation is theoretically a relatively good method, it will seriously hit a large number of manufacturing companies in China. In this exchange rate reform process, the central bank not only emphasized that the adjustment rate of exchange rates was controllable, but also talked about adopting a gradual approach in the management and adjustment of the exchange rate of the renminbi, leaving time for corporate structural adjustment. In fact, with the overall downturn in the international economic environment, the cost of China's export enterprises has entered an upward path. If a one-time revaluation approach is adopted, then the exchange rate costs of a large number of export companies will increase substantially. By then, Jiangsu, Zhejiang and the Pearl River Delta region It will not only be a stricken situation, it will even be a devastating blow to the regional economy.
Therefore, in the face of the restart of this exchange rate reform, it can be expected that the future reform of the RMB exchange rate will continue to be carried out under the framework of the “active, controllable, and gradual†three-emphasis. The response strategies adopted by China's security companies should also be based on the long-term slow appreciation of the RMB.
Security Enterprise, International Expansion
The recent development of Chinese security companies can also be said to be an increasingly international process. It is precisely because of the rapid expansion of the internationalization of security companies that the current appreciation of the renminbi will have an important impact on China's security industry.
Recalling the development of China's security industry for over 20 years, it can be described as weak to strong, from small to large, and it has formed many companies with considerable strength and foundation in R&D, production, and marketing. In fact, from the beginning of the development of China's security industry, it is closely linked with international business. From the beginning of the reform and opening up, the sales of foreign security products began in the 1990s. Through the production of OEMs, imitative reference, and independent research and development, the company gradually formed its own product system, and then it became increasingly fierce in the face of competition in the domestic market. China's security companies, whose product quality and technological level has rapidly increased, have begun to gradually go abroad to sell their security products overseas.
Through the observation of China's security industry in recent years, it can be found that the international development of China's security companies is already a general trend. Today, China's security companies have already had the most preliminary understanding of foreign markets, coupled with the increasingly fierce competition in the domestic security market, the rapid improvement of China's security technology, China's security products in terms of price advantages, and foreign security market Orderly stability, abundant profits, and so on, therefore, under such a development trend, all have determined the determination and pace of domestic security companies going out. It is expected that by the end of the "Eleventh Five-Year Plan" period, China's export of security products will account for more than 30% of the industry's total sales.
For the operation and development of international business, the impact of the RMB exchange rate is also obvious. With the gradual change of the international business model of China's security companies, it can be said that the impact of exchange rates on Chinese companies is even greater. In the early models such as agency sales, the impact of exchange rates only involved price settlement in the process of product import and export, and most of the risks lie with foreign partners. As more and more Chinese companies go abroad and participate in international competition, their production, procurement, marketing, and channels will all be profoundly affected by exchange rates.
It is precisely because more and more Chinese security companies are firmly implementing the international development path, and in the foreseeable future, more Chinese security companies will go abroad and go overseas, so the RMB exchange rate Change is already a problem that Chinese security companies must seriously face and attach great importance to. What kind of coping strategies to choose is not only a problem that Chinese security companies must consider, but also will affect the success or failure of Chinese security companies' future development.
Appreciation of the renminbi, risks and opportunities coexist
The slow appreciation of the renminbi is a predictable trend. The firm international development of Chinese security companies will not change the trend. The appreciation of the renminbi, for Chinese security companies, can be described as both risks and opportunities coexist.
The reason why the central bank adopts a slow appreciation method is to take into account the affordability of China's manufacturing industry, and to give our country's corresponding companies the time to adapt and adjust the time. Faced with the appreciation of the renminbi, the risks faced by security companies in China can be said to be in line with the vast majority of manufacturing enterprises. Not only will they face increased corporate costs and decline in profitability, but they will also increase the external risks of corporate operations. This will not be detailed here.
Of course, the appreciation of the renminbi also brings a new historical opportunity for our security companies. The revaluation of the renminbi will not only help the industrial adjustment of security companies, reduce the current industry's disorderly competition, eliminate some low-end enterprises that do not meet the needs of market competition, but also contribute to the international development of China's security companies and facilitate China's security. The implementation of global resource integration by enterprises can also facilitate the overseas mergers and acquisitions of our security companies.
On the one hand, the appreciation of the renminbi will surely bring about a new round of industrial adjustment in the security industry. Since the new century, China's security industry has achieved vigorous and rapid development. However, the rapid development of the industry, the industry's enterprises have shown a good and bad situation. With the rapid increase in market demand, a large number of low-end companies lacking technological capabilities have continued to integrate and rush for gold at lower prices. Not only has the industry's competitive order been severely affected, but it has also caused outstanding companies in the industry to struggle to cope with a round of price intrusion. Nowadays, the appreciation of the renminbi will gradually squeeze the profit margin of such low-end, low-profit companies, making it even more difficult for low-end companies that rely on low-price, non-technical products to compete. In such an external environment, only those companies that truly insist on winning products and sticking to both quality and technology will be able to survive. Through such market selection, not only can low-end enterprises that disrupt the order of market competition be eliminated, and the development environment of the industry can be standardized, but also the security companies in China can be transferred to high-tech and high-margin products to upgrade China's security industry. The overall level to achieve industrial upgrading and progress.
On the other hand, the appreciation of the renminbi will also help Chinese security companies conduct overseas mergers and acquisitions and implement a global resource integration arrangement. As China's security companies gradually go out of the country, how to use global resources and implement resource integration in the global field to support their own development has become a problem that Chinese companies have been thinking about. Through targeted and selective overseas mergers and acquisitions, it can help China's security companies quickly achieve the goal of global distribution. Whether it is the acquisition of a company, the acquisition of a brand, the acquisition of a channel, or the acquisition of technology, the appreciation of the renminbi will reduce the cost of cross-border mergers and acquisitions by Chinese companies and help overseas mergers and acquisitions by Chinese companies. It can be said that the appreciation of the renminbi has enabled China’s security companies to open wider doors to international development and provide the most powerful support for the development of China’s security companies’ internationalization.
Responding to the appreciation of the renminbi by "standing high, seeking success, and achieving stability"
In the face of the external environment for the appreciation of the renminbi, the response choices of Chinese security companies, the author believes that consideration can be given from the macro overall situation, development strategy, and self-ability. In short, China’s security companies need to “stand tall and achieve In the long run, the line is stable."
"Standing High" - The Big Picture
The appreciation of the renminbi is an inevitable result of China’s economic development. Therefore, China's security companies must first establish their own overall situation. They must face up to the reality of the appreciation of the renminbi and avoid escaping. Instead, they must face and use the appreciation of the renminbi as an opportunity for the industry. Once China’s security companies can understand the adjustment of the RMB exchange rate from the overall perspective, then our security companies will also examine and select the coping strategies to be adopted from the perspective of long-term development of the industry, so that our security companies can Its own development is well tied up with the national and even global economic trends to achieve long-term, stable development of the company.
Recalling the history of China’s reform and opening up, every macroeconomic change will bring rare opportunities and arduous challenges to companies with a large number of export-oriented economies. Enterprises that can grasp the trend and transform smoothly will not only become strong players in market competition. It will become a leading company in the industry, and it will also usher in a new life after the big wave of Ebbing, ushering in a new situation in business operations. Looking back at the year of the WTO, in the process of chanting wolf, some Chinese enterprises became the past in the history of China’s reform and opening up, while some enterprises not only achieved their domestic competitive position, but also ushered in a more A vast international market. It can thus be seen that every change in the external macro-environment is like an exam. They are all the same gantry. Passing through and passing through will be a road to success.
"Seek Far" - A Strategic View
Enterprises that can achieve everlasting growth are gradually developed under the guidance of long-term strategies. Through long-term development planning and business selection, through dedicated market development and construction of professional competitiveness, it is possible to effectively avoid the impact of short-term changes in the external environment. In other words, through long-term strategic planning, it is also possible to reduce the business operating pressure brought about by the appreciation of the renminbi in the short term.
Today, after more than two decades of "barbaric growth," China's security companies also need to temporarily slow down the pace of arrogance, and to carefully consider the company's long-term development strategy. Whether it is the market orientation of the enterprise or the product selection of the enterprise, there needs to be a clearer contextual guidance, so as to help the company concentrate its limited resources and make targeted breakthroughs. The security industry is a sufficiently subdivided industry. Even industry giants must face many different market segments and distinctly different consumer demands, resulting in differentiated competitive advantages and market-leading advantages. Both will lay a solid foundation for the long-term development of the company. The appreciation of the renminbi is merely a periodical external environmental fluctuation. Through such long-term development planning and design, it is possible to effectively mitigate the impact of short-term external fluctuations, and by subdividing the market's "monopoly profits", security Enterprises can also effectively accommodate and resolve the decline in profits brought about by the appreciation of the renminbi and ensure the survival and development of the company.
"Persist" - Capability View
The calm and security of “I'm in a hurry, I’m in a hurry,†comes from self-confidence in the ability of my company’s internal operations, it comes from a comprehensive understanding of the external market environment, and it comes from expanding the internationalization of the company. Global vision. Whether an enterprise succeeds or not requires the analysis of the external environment as well as the need to build internal capabilities. It also requires leaders to be farsighted. China's security companies are no exception. Therefore, in the face of strong pressure to face RMB appreciation, how to improve its own operating capabilities, risk control capabilities, and international operating capabilities will test every aspirational Chinese security entrepreneur and will test every single one of them. China's security companies that strive for higher breakthroughs.
The external competitive environment has always been changing, and constantly improving its own operating capabilities should also be the choice that China's security companies have always maintained. First of all, security companies must be profitable from the inside, profit from the inside, strengthen their own level of cost management and business operations, and through their own cost control, to reduce the operating pressure of RMB appreciation. Secondly, security companies must also build their own risk management systems and strengthen risk control capabilities. The exchange rate changes are volatile, so the external macro market will also show volatility changes. By building its own risk control system, it will improve itself. The exchange rate monitoring and analysis mechanism can effectively resist the operational risk brought by exchange rate changes and maintain the smooth operation of the company. Finally, we must strengthen our ability to operate internationally and constantly explore overseas development paths. Through global resource allocation, we can achieve business operations within a broader scope and jump out of the impact of changes in the RMB exchange rate.
Domestic market response strategy
While China's security companies are building a "big picture, a strategic view, and a capability view," the author believes that in response to the domestic market, China's security companies can have the following options:
1, enhance technology, intensive cultivation
Products are the only means for companies to win the market, and they are also the only means for companies to obtain profits. Therefore, in the process of facing the external environment for the appreciation of the renminbi, we must first work hard on our own products, seek breakthroughs, increase technological content, and implement quality strategies.
The increasingly fierce competition in China's security market is obvious to all parties in the industry. Fierce market competition is also continuously lowering the profitability of industry players. The appreciation of the renminbi has increased the operating costs of enterprises and eroded the market in a new dimension. Has shrunk a lot of security companies profit margins. Because of this, China’s security market has become increasingly narrower in terms of price, constantly increasing the technological content of products, and obtaining new market space for security companies in high-value-added products. The best choice for Chinese companies with lofty goals.
Therefore, I also believe that taking advantage of the appreciation of the renminbi to firmly implement product upgrades and technology upgrades, make a fuss about high-value-added products and seek benefits, is an effective means to deal with exchange rate changes, and it is also a Chinese security company. The inevitable choice for long-term stable survival and development.
2, corporate cooperation, alliance operations
Security companies participate in market competition through cooperation or alliances, which is already a feature of the development of China's security industry. Under the influence of the appreciation of the renminbi, security companies in China should adopt such a method to cope with market competition, meet customer needs, and reduce the operating pressure caused by the appreciation of the renminbi.
By means of cooperation and alliances, participating companies can complement each other's strengths, and they can focus their efforts on the development of their own unique technologies or products in the development process, with limited investment in resources and maximum investment in their results. Return. The pressure caused by the appreciation of the renminbi is actually the cost of the operation, and through the dedicated input and the rational division of labor within the alliance, not only can the efficiency of input be improved, but also the investment level of a single company can be reduced, thereby reducing the cost increase. Brings business pressure. As an integral part of the alliance, the companies of all parties achieve overall improvement in overall competitiveness through the cooperation of capital level, product level, technology level, operation level, and even corporate culture.
Therefore, in order to cope with the appreciation of the renminbi, the use of inter-firm cooperation and corporate alliances is an effective means to avoid the rise in the cost of exchange rate changes.
International market response
With the steady advancement of China’s security companies’ internationalized business operations and the continuous expansion of overseas businesses, the author believes that in the expectation of RMB appreciation, in the overseas markets, China’s security companies can adopt the following strategies:
1, open up the market, operate the market
The appreciation of the renminbi will inevitably lead to an increase in the export costs of China's security companies, but the regional markets in the world can be characterized by different characteristics. If we can develop targeted markets and operate markets, we can provide special products for the regional market and improve the profitability of products. Helps China's enterprises reduce the compression of the profit space brought about by the appreciation of the renminbi.
In fact, the appreciation of the renminbi for security companies engaged in product exports, the biggest pressure comes from the relative increase in the price of our products. This is the biggest pressure and blow for Chinese companies that often use price strategies as the core means of competition. This also led to the overall weakening of China's production cost advantage. However, the constant promotion of industrial upgrading and the implementation of technological upgrading of products are the constant orientation of China's export strategy. Therefore, jumping out of low prices and using the opportunity of RMB appreciation to achieve a transition on a technical level and participating in international competition and occupying overseas markets through high value-added products are also the best countermeasures for Chinese security companies.
The global security market is rapidly expanding, and the market size of each region has also been continuously increasing, and the demand of the regional market is increasingly showing professional characteristics. Therefore, if there is a targeted development of the regional market, the focus on operating the selected regional market, rather than a full-scale network-wide expansion in the global field, will also help China's security companies achieve rapid growth in overseas business performance, and through Long-term market operation will inevitably bring stable long-term customers. Through the provision of targeted products, it will inevitably bring about the growth of profit margins. All of these will effectively reduce the negative impact of the appreciation of the renminbi and provide security for our security companies. International market development provides strong support.
2. Overseas mergers and acquisitions, strategic cooperation
The appreciation of the renminbi is the international development of Chinese security companies, bringing with it a rare historical opportunity. Looking at the development of Chinese security companies in recent years, we can see that the international market has increasingly become a focus area for security companies, and even an important support for development.
Compared with foreign giants, China's security companies not only have a large gap in terms of technical level and operating capability, but also have a large gap in business philosophy, brand building, and talent team. All these have brought certain difficulties and obstacles to the overseas expansion of Chinese security companies. Business ideas, technical capabilities, brands, professional talents, and channel layouts are all rapidly enhanced through overseas mergers and acquisitions. The appreciation of the renminbi, to a certain extent, reduces the cost of mergers and acquisitions by Chinese companies. The means to obtain corresponding resources provides a shortcut that provides a more effective way for Chinese companies to deploy overseas.
Moreover, the appreciation of the renminbi is also on another level, increasing the competitiveness of Chinese companies in international business, at least in terms of capital, making China's security companies more abundant than ever. Therefore, it is also recommended that China’s security companies seize this opportunity to establish strategic partnerships with foreign giants on an equal footing, work together to open up markets, improve competitiveness, and fully develop cooperation in various fields to achieve comprehensive and comprehensive overseas operations. Rapid development.
In conclusion, the author believes that under the influence of the adjustment of the RMB exchange rate mechanism and the expected appreciation of the mid-to-long term, China's security companies will inevitably face new opportunities and challenges. Those Chinese security companies that are truly “standing high, seeking for a long time, and acting steadily†will also stand out and become leaders in market competition. They will become the vanguards and leaders of China’s security companies in the face of the world and their confidence in going global.