Results are from senior executives of 191 companies engaged primarily in domestic sales and 202 companies focused mainly on exporting.
Enterprises outline key strategies to overcome challenges
Chief Executive China conducted a separate poll to gauge China enterprises' primary strategic responses to the current global economic crisis. As of Feb. 18, more than 8,900 readers responded:
- 43% said they will build brands and/or increase efficiency and product quality;
- 21% indicated they will cut costs;
- 20% said they will focus on the domestic market and/or emerging markets; and,
- 16% indicated they will expand their online channels.
Global Sources' COO, Craig Pepples, said: "With China's retail sales still strong, it's no surprise that companies focused on the domestic market remain optimistic. What's surprising is that, despite the global economic downturn, China's exporters are generally projecting much higher sales ahead.
"This optimism is, in part, due to the fact that many have already adapted to the current global economic situation and have evolved new strategies to deal with the crisis.
"Given China's increasing cost base, cost cutting is less of an option than previously. To justify higher prices, suppliers are now looking to improve quality and production efficiency while, at the same time, building their brands.
"We see this as a natural evolution, and one that is not without precedent. Japan, Korea and other Asian economies also moved up market at about the same stage in their development when faced with economic and competitive pressures."
