In the face of the current situation of tariff increases in the European and American markets, what are the advantages of localised operations

First, reduce costs and avoid tariffs
Reduce the burden of tariffs: through localisation, enterprises can set up local production bases in Europe and the United States or purchase local raw materials and components, thus reducing or avoiding the impact of tariffs. This helps to reduce the production cost of products and improve the price competitiveness of products.
Optimising the supply chain: Localisation allows companies to be closer to markets and suppliers, shortening the length of the supply chain and reducing logistics and time costs. This helps to improve production efficiency and responsiveness, further enhancing product competitiveness.
II. Adapt to market demand and cultural differences
Close to consumer demand: There are differences in consumer demand in different countries and regions. Through localisation, enterprises can better understand the needs and preferences of local consumers, develop products that meet the needs of the local market, and improve the marketability of products.
Integration into local culture: Localisation helps enterprises to better integrate into the local culture and social environment, and enhance the emotional connection with local consumers. This helps to improve brand awareness and reputation, laying the foundation for the long-term development of enterprises in the local market.
Third, enhance brand image and reputation
Enhance the sense of trust: localisation enables enterprises to establish production bases or offices in the local area and establish closer ties with local governments, enterprises and consumers. This helps to enhance local consumers’ trust in the enterprise and improve brand awareness and influence in the region.
Enhancement of corporate image: Through localisation, enterprises can demonstrate their contribution to local economic and social development and enhance their sense of social responsibility and image. This helps to win the support and recognition of the local government and all walks of life, creating favourable conditions for the long-term development of the enterprise in the local market.
Responding to Trade Barriers and Policy Risks
Avoiding trade barriers: In addition to tariff increases, there are other forms of trade barriers in the European and American markets, such as quota restrictions and technical standards. Through localisation, enterprises can avoid the impact of these trade barriers to a certain extent and maintain market share and competitiveness.
Reduce policy risk: International trade policies are uncertain, and measures such as tariff increases may be adjusted or changed at any time. Through localisation, enterprises can reduce their dependence on a single international market and disperse policy risks.
To sum up, in the face of the current situation of tariff increase in the European and American markets, localisation becomes an important strategic choice for enterprises to cope with the challenges and seize the opportunities. Through localisation, enterprises can reduce costs, avoid tariffs, adapt to market demand and cultural differences, enhance brand image and reputation, and cope with trade barriers and policy risks. Therefore, enterprises should actively promote the implementation of the localisation strategy in order to maintain their competitive advantages and sustainable development ability in the international market.