Where does China's manufacturing industry go?

Going to the cooperation of the industrial chain, instead of becoming a parasite of the industrial chain;

In a certain part of the industry chain, it is specialized and the ultimate;

The self-built network can be used as a domestic market for cooperation with domestic companies.

This day will come sooner or later.

With the superposition of multiple factors such as rising labor costs, rising raw material prices, and appreciation of the renminbi, the low-cost era of manufacturing in China has gradually drifted away. Many foreign buyers have no plans to endure the high cost of China's manufacturing industry and gradually transfer orders to Southeast Asia. At this time, it was hit by the situation that the shrinking orders caused by the shrinking demand in the European and American markets, the days of the Chinese factories were even more sad, and it was inevitable that a new outlet had been sought.

According to Jiang Xixiang, chief consultant of Beijing Xi En Enterprise Management Consulting Co., Ltd., “China's SMEs face two basic choices today: one is that it will become a companion product in economic fluctuations, and the so-called companion product is a good economic cycle. When they grow up, they die when the economic cycle is not good. Second, they choose to become a member of professionalism, that is, they become partners and cooperators in the global industrial chain, rather than purely OEM workers."

At present, the issue of China's manufacturing industry exposure is that when the economic cycle is not good, those companies that rely on heaven to eat will not be able to live. However, this also gives Chinese manufacturing companies an opportunity to rethink their own way out. This approach should be a move toward the industrial chain rather than a paradox of becoming an industrial chain.

The so-called parasitism is that companies reduce themselves to a simple product maker, and they can only survive when the economic cycle is good and there are external orders. Therefore, at present, China's SMEs must diversify a group of industrial chain collaborators, form cooperation with large companies at home and abroad in the industry chain, and achieve professionalism and exclusivity in a certain part of the industry chain. For example, Foxconn used to walk many years ago. Passed the road: Foxconn worked with Motorola, Nokia, Samsung, and then the company step by step to grow.

Zhang Jiamin, general manager of Hong Kong Li & Fung Group Research Center, a large-scale trader, said that when the financial crisis hit, many enterprises in the Pearl River Delta region had closed down, and many companies would fail in the future, but those that were competitive and did not fail would close down. Business orders are concentrated and business is better. “So currently Chinese manufacturing companies should study the smile curve. It tells us to improve our competitiveness, including upstream R&D, design, and downstream product promotion capabilities, channel control capabilities, etc., and then on this basis and the surrounding Companies cooperate with each other and even deploy global resources."

At present, most of China's manufacturing companies are concentrated in the manufacturing process in the middle of the smile curve, which has the lowest added value. Therefore, this requires the bosses of manufacturing companies to change their thinking and not to confine themselves to the manufacturing system, but to the cooperation and service of the industrial chain.

In addition, China's domestic sales market is very large and it also gives OEM companies a very good export. With overseas orders shrinking, turning to the domestic market is a major trend, including Li & Fung Group also began to shift to the mainland market. However, the current situation is that it is difficult for OEMs to switch to domestic sales. Most companies are still in the stage of tuition payment. However, Jiang Yuxiang believes that this is an inevitable stage in the process of corporate transformation. The success rate of the self-built network for OEMs in the domestic market is indeed very low, but it can be done in ways that cooperate with domestic companies, such as becoming a domestic customer and other e-commerce. Platform partners, gradually open the domestic market.