It hasn't always been thus - a large client of mine set up a heavily subsidised plant in Tunisia some 20 years ago. They moved to China when the subsidy expired and are now busily looking for the next cheap alternative.
Every sector has a 'China', so what is yours and how do you compete?
Fighting on price will inevitably lead to a race to the bottom - something our supermarkets are keen to initiate yet again. The consumer is the short term winner, last to blink might win the war - but at a huge cost.
With the actual China, there are clear avenues to build a value proposition - depending on customer needs it could be lead times, batch quantities, ability to inspect goods, provenance of materials, consistency, ethical/environmental etc etc.
Despite media coverage, our 'china' remains the banks (and their subsidiary finance companies). quite simply, if they see a nice, juicy deal that they fancy they will take it on rate.
We could fight - and end up doing a deal for nothing - but I realised some time ago that there is no value in this.
Ignore china & set your proposition - we are the next stop after the banks.
It works!
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