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From Components to Complete Machines: Strategic Choices and Analysis of China’s Manufacturing Export Model

Specific meanings, advantages and disadvantages, and points to note for complete-machine export versus parts export:

I. Complete Machine Export

1. Specific connotation

Complete-unit export refers to the direct export of fully assembled products to the target market, such as exporting complete machinery, household appliances, or automobiles.

2. Strengths and Weaknesses Analysis

優(yōu)位性

  • high added value: Whole-machine products typically offer larger profit margins;
  • Brand effect: Helps establish an international brand image for the enterprise;
  • After-sales service: Direct control over after-sales processes enhances customer satisfaction.

劣勢

  • Higher tariffs: Whole-unit products are generally subject to higher tariff rates;
  • High logistics costs: Large size and heavy weight result in high shipping costs;
  • Certification complexity: Must comply with the end-product certification requirements for the target market (e.g., CE, FCC).

3. Issues Requiring Attention

  • Certification Compliance: Ensure that the complete product passes the mandatory certifications for the target market (such as CE certification for the EU and FCC certification for the US);
  • 包裝と輸送: Use shockproof and moisture-resistant packaging to prevent damage during transit;
  • After-sales service: Establish a localized after-sales team or agency network to respond to customer needs promptly.

II. Parts Export

1. Specific connotation

Parts export refers to shipping the components of a product to the target market—for example, exporting engine parts, electronic components, or mechanical accessories.

2. Strengths and Weaknesses Analysis

優(yōu)位性

  • Lower tariffs: Parts are generally subject to lower tariff rates;
  • Flexible logistics: Compact size and light weight, resulting in low transportation costs;
  • Certification Simplification: Some components do not require whole-device certification, resulting in lower compliance costs.

劣勢

  • low added value: The profit margin for component products is relatively small;
  • Highly dependent: Must work closely with the system integrators in the target market;
  • Weak brand effect: Difficult to directly establish a terminal brand image.

3. Issues Requiring Attention

  • Technical Specification Matching: Ensure that the parts meet the technical requirements of the OEMs in the target market;
  • サプライチェーン管理: Establish long-term partnerships with OEMs to ensure order stability;
  • 知的財(cái)産保護(hù): Avoid infringing patents or trademark rights in the target market.

III. Comparison Between Complete Machine Export and Component Export

ProjectComplete machine exportParts Export
Added valueHighlow
関稅relatively highlower
logistics costHighlow
Certification RequirementsComplex (Whole-Unit Certification)Simplified (some parts do not require certification)
Brand effectStrongweak
After-sales serviceLocalization team requiredDependent on the system vendor

IV. Selection Strategies and Recommendations

Select based on the target market

    • developed countries(Europe and the United States, for example): prioritize exporting complete machines to leverage brand premium;
    • Emerging markets(Southeast Asia, for example): Consider exporting components to lower the barrier to entry.

    Choose based on enterprise capabilities

      • Strong in technology and well-funded: Export complete machines and build brand barriers;
      • Small in scale and limited in resources: Component export, focused on niche segments.

      Blend Mode
      Establish an assembly plant in the target market: export parts and assemble locally, balancing tariff optimization with brand building.

        結(jié)論

        Complete-machine exports and component exports each have their own advantages and disadvantages; companies must choose flexibly based on target-market demand, their own capabilities, and strategic objectives. Whichever model is chosen, compliance, supply-chain management, and brand building are the keys to success.

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