China's security industry is in a period of rapid growth. The international market position of domestic security companies is gradually improving. Therefore, there are many market opportunities at this time, and it also brings a lot of competition. For the plight of China's security industry entering the international market, there are mainly three shortcomings: first, the perception and recognition of the original real estate is relatively low; second, the users' habits in foreign regions are not understood; and third, there is not enough Talent.

Domestic market response strategy While China's security companies are building a "big picture, a strategic perspective, and a capability perspective," the author believes that in response to the domestic market, China's security companies can have the following options:

1. Upgrading technology and pursuing quality products are the only means for companies to win the market, and they are also the only means for enterprises to obtain profits. Therefore, in the process of facing the external environment for the appreciation of the renminbi, we must first work hard on our own products, seek breakthroughs, increase technological content, and implement quality strategies.

The increasingly fierce competition in China's security market is obvious to all parties in the industry. Fierce market competition is also continuously lowering the profitability of industry players. The appreciation of the renminbi has increased the operating costs of enterprises and eroded the market in a new dimension. Has shrunk a lot of security companies profit margins. Because of this, China’s security market has become increasingly narrower in terms of price, constantly increasing the technological content of products, and obtaining new market space for security companies in high-value-added products. The best choice for Chinese companies with lofty goals.

Therefore, I also believe that taking advantage of the appreciation of the renminbi to firmly implement product upgrades and technology upgrades, make a fuss about high-value-added products and seek benefits, is an effective means to deal with exchange rate changes, and it is also a Chinese security company. The inevitable choice for long-term stable survival and development.

2. Cooperation between enterprises and alliances. Battle security companies participate in market competition through cooperation or alliances of enterprises, which is a feature of the development of China's security industry. Under the influence of the appreciation of the renminbi, security companies in China should adopt such a method to cope with market competition, meet customer needs, and reduce the operating pressure caused by the appreciation of the renminbi.

By means of cooperation and alliances, participating companies can complement each other's strengths, and they can focus their efforts on the development of their own unique technologies or products in the development process, with limited investment in resources and maximum investment in their results. Return. The pressure caused by the appreciation of the renminbi is actually the cost of the operation, and through the dedicated input and the rational division of labor within the alliance, not only can the efficiency of input be improved, but also the investment level of a single company can be reduced, thereby reducing the cost increase. Brings business pressure. As an integral part of the alliance, the companies of all parties achieve overall improvement in overall competitiveness through the cooperation of capital level, product level, technology level, operation level, and even corporate culture.

Therefore, in order to cope with the appreciation of the renminbi, the use of inter-firm cooperation and corporate alliances is an effective means to avoid the rise in the cost of exchange rate changes.

The international market response strategy With the steady advancement of China’s security companies' internationalized business operations and the continuous expansion of overseas business, the author believes that in the expectation of RMB appreciation, in the overseas markets, China’s security companies can adopt the following Strategy:

1. Exploring the market and operating the market The appreciation of the renminbi will inevitably lead to an increase in the export costs of China's security companies, but the regional markets in the world can be characterized by different characteristics. If we can develop targeted markets and operate markets, we can provide special products for the regional market and improve The profitability of the product will then help China's companies reduce the compression of the profit margin brought about by the appreciation of the renminbi.

In fact, the appreciation of the renminbi for security companies engaged in product exports, the biggest pressure comes from the relative increase in the price of our products. This is the biggest pressure and blow for Chinese companies that often use price strategies as the core means of competition. This also led to the overall weakening of China's production cost advantage. However, the constant promotion of industrial upgrading and the implementation of technological upgrading of products are the constant orientation of China's export strategy. Therefore, jumping out of low prices and using the opportunity of RMB appreciation to achieve a transition on a technical level and participating in international competition and occupying overseas markets through high value-added products are also the best countermeasures for Chinese security companies.

The global security market is rapidly expanding, and the market size of each region has also been continuously increasing, and the demand of the regional market is increasingly showing professional characteristics. Therefore, if there is a targeted development of the regional market, the focus on operating the selected regional market, rather than a full-scale network-wide expansion in the global field, will also help China's security companies achieve rapid growth in overseas business performance, and through Long-term market operation will inevitably bring stable long-term customers. Through the provision of targeted products, it will inevitably bring about the growth of profit margins. All of these will effectively reduce the negative impact of the appreciation of the renminbi and provide security for our security companies. International market development provides strong support.

2. The rise in overseas M&A and strategic cooperation The appreciation of the Renminbi is the international development of China's security companies, bringing with it a rare historical opportunity. Looking at the development of Chinese security companies in recent years, we can see that the international market has increasingly become a focus area for security companies, and even an important support for development.

Compared with foreign giants, China's security companies not only have a large gap in terms of technical level and operating capability, but also have a large gap in business philosophy, brand building, and talent team. All these have brought certain difficulties and obstacles to the overseas expansion of Chinese security companies. Business ideas, technical capabilities, brands, professional talents, and channel layouts are all rapidly enhanced through overseas mergers and acquisitions. The appreciation of the renminbi, to a certain extent, reduces the cost of mergers and acquisitions by Chinese companies. The means to obtain corresponding resources provides a shortcut that provides a more effective way for Chinese companies to deploy overseas.

Moreover, the appreciation of the renminbi is also on another level, increasing the competitiveness of Chinese companies in international business, at least in terms of capital, making China's security companies more abundant than ever. Therefore, it is also recommended that China’s security companies seize this opportunity to establish strategic partnerships with foreign giants on an equal footing, work together to open up markets, improve competitiveness, and fully develop cooperation in various fields to achieve comprehensive and comprehensive overseas operations. Rapid development.

Under the influence of the adjustment of the RMB exchange rate mechanism and the expected appreciation of the mid- to long-term stability, China's security companies will inevitably face new opportunities and challenges. Those Chinese security companies that are truly “standing high, seeking for a long time, and acting steadily” will also stand out and become leaders in market competition. They will become the vanguards and leaders of China’s security companies in the face of the world and their confidence in going global. The appreciation of the renminbi is not only a security export enterprise, but also brings great pressure on the entire export industry. However, as long as the company adheres to quality product quality and service quality, it can be invincible in the wave of appreciation of the renminbi. Ground.