Zhejiang NAC set sights on emerging destinations

The maker will expand selection of automotive parts for the Middle East and South Africa.

Zhejiang NAC Auto Parts Dept offers brake sheets, pads and air filters for vehicles. In coming months, the supplier is planning to introduce high-quality designs to new overseas markets, including the Middle East and South Africa.

In an interview with Global Sources, vice general manager Ren Guokui shares his insights on current industry challenges and the strategies implemented to address these. Below are excerpts of the discussion.

Which overseas markets will your company be emphasizing in the coming months?

In the next six months, we will not only continue shipping to the Europe and the US, but also provide selections to emerging destinations. The new target locations are the Middle East and South Africa.

The traditional areas will still account for the majority of exports in the long run as strong business relations have been established there. It is, however, a good idea to explore different countries, especially after the economic crisis. It is not wise to depend solely on Europe and the US for exports.

How is your company dealing with the rising manufacturing outlay and ongoing labor shortage?

To address climbing raw material rates, we will implement two strategies. First, we will focus on improving internal management, including certain construction processes. This will entail enhancing production and service efficiency, controlling costs and offering competitive prices for high-quality designs.

We will also place more effort in integrating advanced technology and value-added features in our selections.

With regard to labor, we have increased our employee’s wages and benefits.

The local government is promoting the yuan as the international trade currency. What do you think of this strategy?

I do believe that the currency is increasingly used in overseas transactions. Regarding the government’s policy, our company is not updated on recent developments. We will, however, listen to our clients’ suggestions and follow China’s policy.

Should China-based suppliers continue to roll out OEM products or try to build their own brands for overseas shipments?

I think deciding on what to do will depend on the company’s own production capability. Shifting to the OEM segment or creating an in-house brand will require a certain level of capability. Either way, makers should always provide high-quality service and selections.

What sets your company apart from others in the industry?

Our employees are working hard to improve the quality of our automotive parts and accessories. We believe that this translates to a strong company reputation.

Providing value to our clients is our basic principle. Our three strong areas are high-quality products, good reputation and sophisticated service.

About the company

Founded in 1975, Zhejiang NAC is a subsidiary of Zhejiang Native Produce & Animal By-products I/E Group Co. Ltd. More than 90 percent of its selection of auto parts and accessories is shipped overseas.

The company has factories in Zhejiang province. It currently employs 400 full-time personnel to handle daily operations.

For more information about this supplier, visit http://www.globalsources.com/zjnac-auto.co.

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