Yin Yuhang: Recognize the situation and meet the challenge

Over the past three decades, China’s rapid development has largely been driven by a “growth economy” model, where expanding production capacity met both domestic and international demand. Every industry continuously added new capacity, creating opportunities for growth. However, the global financial crisis starting in 2008, followed by the European debt crisis, had a major impact on the world economy and served as a warning for China. With declining exports and slowing investment, many sectors now face the challenge of overcapacity. The era of easy growth is fading, and sustainable economic development must now rely more on boosting domestic demand, a process that will be slower and require long-term planning. This shift will significantly affect the development of various industries.

The super-hard materials and products industry, like other sectors, is currently transitioning from rapid expansion to more sustainable, intrinsic growth. The global and domestic economic environments, along with the conditions in customer industries, are all undergoing major transformations. In short, the competitive landscape has changed dramatically, bringing more pressure to the industry. Many feel that the good times are behind us, and the future looks increasingly uncertain. This is a natural outcome of evolving economic laws and shifting competition. This new environment will become the norm, and we need to fully understand it and prepare for the long term.

After years of hard work, Benlang has grown into one of the leading companies in the domestic super-hard materials industry, establishing a strong competitive position in the global ceramic tool segment. However, we must also recognize that as competitors improve their capabilities, some of our product advantages are shrinking, and in certain areas, they have even surpassed us. Previously, the cost-effectiveness of our products was a key strength, but this advantage is gradually diminishing. Additionally, the high-quality customer service that once defined our brand is showing signs of decline. These developments signal a growing risk to our competitiveness, which is a serious warning sign.

Market competition is like rowing upstream—without constant effort, you fall back. Competitors won’t give you a chance to rest, and customers won’t accept products or services without a clear value proposition. The market is fair to all; there is no bad market or bad industry, only weak companies. Therefore, we must take the initiative to adapt to the changing competitive landscape. Let go of the “industry leader” mentality accumulated over the years, and approach the market with a fresh mindset, ready to compete on equal footing. On one hand, we should focus on internal improvements—enhancing technology, production, marketing, and customer service. We must continue to strengthen our competitive edge and offer unique products and services that add real value to our customers.

If this is the case, why is the market changing? It's because the world is evolving, and so must we. The old ways are no longer sufficient, and only those who adapt can survive and thrive in the new era.