In the past two decades, China's manufacturing industry has experienced remarkable growth, with the machine tool sector advancing at an astonishing pace. It is now among the world's leading machine tool manufacturers, driven by a surge in demand and technological progress. A significant milestone was reached in 2002 when China’s machine tool consumption hit $5.696 billion, securing its position as the top consumer globally. This trend continued for ten consecutive years, solidifying China's role as the largest market for machine tools.
By 2009, China surpassed Japan in total manufacturing output, becoming the second-largest manufacturing country in the world. That same year, the Chinese machine tool industry also overtook Japan and Germany, marking its rise as the world’s largest machine tool manufacturer. In the Global Manufacturing White Paper's "Top 10 Manufacturing Powers in the World," China ranked third. This vast and growing market has become a magnet for global machine tool companies, eager to tap into its potential.
Foreign machine tool firms have repeatedly emphasized that China is one of their most important markets. But how should these companies approach this dynamic environment—through localization or scale? As multinational corporations enter the Chinese market, competition intensifies, turning it into a highly competitive arena. Domestic and foreign players alike fight for technology, service, talent, and strategic positioning.
For many foreign companies, entering the Chinese market requires more than just selling products; it demands adaptation. Localization has become a necessary strategy to integrate into the local culture, while scale expansion ensures long-term success. These two approaches are closely linked, with localization enabling market entry and scale allowing for investment recovery.
The battle for dominance in the Chinese market continues to evolve. Many foreign firms have successfully adapted through localized strategies, gaining valuable insights and experiences. Sharing these practices can offer useful lessons for other companies navigating similar challenges.
Tactic 1: Establishing Local Factories
Setting up local production facilities is often the first step for foreign machine tool companies aiming for full localization. Over the years, numerous factories have been built across China, reflecting the commitment of these companies to the market. For example, Swiss company Baichao Laser established its first factory in Tianjin in 1993, followed by a second in 2011. Similarly, Mazak introduced its first intelligent networked factory in China in 2000, while DMG opened its first overseas plant in Shanghai in 2003.
These factories not only support local production but also ensure high-quality standards. Companies like EMAG and TRUMPF have invested heavily in local manufacturing, ensuring that products meet international benchmarks while being tailored to the Chinese market.
Tactic 2: Reverse Innovation
Many foreign companies have adopted reverse innovation, redesigning products to better suit local needs. For instance, Schleifring launched the KP Compact grinder specifically for the Chinese market, while DMG introduced the CTX 310 eco machine tool. These efforts reflect a shift from simply exporting existing technologies to developing solutions that align with the diverse requirements of Chinese users.
Tactic 3: Enhancing Local Services
Customer service has become a critical differentiator in the competitive Chinese market. Companies like DMG, Haas Automation, and Tonas have established extensive service networks, including spare parts centers and application laboratories. These initiatives ensure quick response times and customized support, enhancing user satisfaction and loyalty.
Tactic 4: Building Local Talent
Investing in local talent is another key aspect of successful market entry. Companies such as Schleifring, Sandvik Coromant, and Siemens have partnered with universities and research institutions to develop skilled professionals. Internship programs, joint labs, and scholarship initiatives help bridge the gap between education and industry needs.
Tactic 5: Partnering with Local Enterprises
Forming joint ventures with Chinese companies has proven to be an effective strategy. Examples include Beidaiyi Machine Tool Co., Ltd., a joint venture between Beijing No. 1 Machine Tool Plant and Japan’s Otsuka, and Kunming Daosi Machine Tool Co., Ltd., which combines Czech technology with Chinese expertise. These partnerships allow foreign firms to access local markets more effectively while leveraging the strengths of both sides.
As the Chinese machine tool market continues to grow, the balance between localization and scale will remain crucial for long-term success. By adapting to local conditions and investing in innovation, service, talent, and collaboration, foreign companies can thrive in one of the most dynamic markets in the world.
Glass Sliding Door
Products characters
1.All the products produced by good quality building material factory need get through three strict inspections before packing: Raw material cutting test, Production process inspection, The finished debugging.
2.Providing customized service to apply each customer requirements, we will try our best to achieve 100% customer satisfaction.
Profile
1.High quality aluminum alloy profiles, thickness 1.2-2.0mm
2.Excellent quality thermal break aluminum profiles, thickness 1.4-3.0mm
3.PVC/UPVC material (need to be ordered)
Color
White/ Sliver / Grey / Champagne / Black / Wood grain / special color can be ordered
Glass Type
1.Single toughened glazing:6mm/8mm/10mm/12mm...
2.Double toughened glazing:5+12A+5mm/6+12A+6mm...
3.Laminated glazing:5+0.38PVB+5mm/6+0.76PVB+6mm...
4.Low-E glazing:Green/Blue/Brown/Golden...
5.Other glazing:frosted glass/crystal glass/art glass...
Mesh
1.Aluminum security mesh
2.Stainless steel security mesh
3.Solid iron security mesh
4.Mosquito net(Nylon,Stainless steel,Diamond)
Hardware
1.Germany brand
2.Japanese brand
3.Chinese top brand
Surface treatment
1.Anodizing
2.Powder coating
3.Electrophoresis
4.Fluorocarbon paint
Glass Sliding Door,Tempered Glass Sliding Door,Double Glass Sliding Door,Automatic Glass Sliding Door
Shenzhen Hongfa Automatic Door Co., Ltd. , https://www.hongfadoor.com