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Private firms strategize to survive financial crisis

(Xinhua)
Updated: 2008-11-17 18:47

The third important strategy for Liang's company is anticipating market changes and modernizing its industrial structure ahead of time.

"In 2006, I decided to exit from the footwear and furniture industries, because we didn't have our own brands. We just produced on behalf of other companies and profit margins kept shrinking. I expected that I would start losing money if I didn't change the company set-up," Liang said.

Real Faith has since shifted focus to developing and producing its own high-tech products.

"At the time I closed my footwear and furniture factories, these two facilities still generated annual profits of up to 100 million yuan. To close them was a painful decision," Liang said.

"But I feel vindicated. I was able to restructure my company in advance of the financial crisis. My products have become more competitive and my company has a safe capital chain," Liang said. "I am fully confident that my company will survive the financial crisis."

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