There are three sides to the development of China's clock industry
(1) generally, enterprises are small
The scale of Chinese watch enterprises is generally small, and there is a lack of leading watch enterprises with comprehensive competitive advantages. For a single enterprise, the lack of large-scale production capacity and low risk resistance capacity have seriously affected the market competitiveness and market expansion capacity of the enterprise, thus restricting the development of China's watch movement industry. In addition, enterprises are small and numerous, which may easily lead to vicious competition and is not conducive to the development of the industry.
(2) insufficient investment in r&d and design
Compared with international enterprises, the focus of domestic clock enterprises is still on the production and manufacturing process. The investment in r&d and design is seriously insufficient, and the ability to make profits and resist risks is limited, so the resources cannot be continuously invested in the r&d and design field, resulting in the weak r&d and design strength of China's clock industry.
(3) RMB appreciation is not conducive to the export of clock products
The renminbi has appreciated by more than 4 per cent since the second revaluation began in June 2010, compared with more than 20 per cent since the revaluation in 2005. The appreciation of RMB increases the export cost and reduces the international competitiveness of China's export clocks. For a large number of Chinese clock and clock movement enterprises that rely on export and have low profit margins, the negative impact of exchange rate change needs to be eliminated by means of industrial upgrading, cost transfer to the downstream and cost control.