One of the key issues facing companies today is the spillover of low-priced generic products in the market due to oversupply from China. Therefore, we will examine the innovative experiences of companies in some industries that have already experienced this issue and derive implications for survival.

• When we look at the examples of companies that have overcome the impact of Chinese companies' supply surplus, leading companies have mainly implemented innovation through ① upgrading their portfolios with high-value-added products, ② innovating low-cost process technologies, ③ reorganizing their global production systems, ④ streamlining non-core businesses, and ④ leading industrial restructuring.

Focusing on high-value-added products that can replace generic product lines and upgrading portfolios through innovation.

• Shifting from a supply-based mindset to a demand-based mindset, predicting the functional materials market, and concentrating business capabilities

  • Examples: Expanding high-value product lines such as display glass and solar glass (Asahi Glass); high-value productization of polyester, aramid, carbon fiber, spandex, etc. (Daijin); focusing on spandex, a material used in leggings, in anticipation of increased demand for mountaineering and sportswear (Hyosung); proactively focusing on electric vehicle tires to strengthen synthetic rubber (Kimho Petrochemical)

Developing groundbreaking “low-cost process technologies and innovations” to replace high-cost product processes

• Process innovation based on breaking away from the dominant logic of existing production and sales

  • Examples: Even historical facilities are boldly closed and converted into research facilities (Daejin); developing natural gas-based process technologies and making swift investments (Dow Chemical)

• Major reorganization of existing systems and nurturing programs to inherit and strengthen core manufacturing technologies

  • Example: Redesign of SJT (Self Job Training) linking local and experienced personnel (Asahi Glass)

Establish a flexible “global operational management system” for upstream and downstream processes, and utilize opportunities for innovation in cost competitiveness through overseas facility conversions, etc.

• Examples: Relocation of core upstream processes to India and reorganization of market-oriented downstream processes (Asahi Glass); closure of outdated facilities and transition to overseas local production systems for generic product lines (Daikin)

Strengthening competitiveness through ‘business reorganization (structural adjustment)’ by streamlining non-core businesses and rebalancing industrial structures

• Examples: Leading the way in industry-wide survival through strategic alliances with competitors in core businesses, and achieving stable business restructuring through mergers and spin-offs with competitors (Dow Chemical)

In this era of major transformation, companies must clearly recognize that to survive in the face of geopolitical changes and market competition, they must embrace a paradigm shift and unleash their DNA of challenging innovation