The Transformation And Upgrading Of Chinese Service Enterprises Should Not Be Eager For Quick Success And Instant Benefit In Brand Cultivation

During this year's World Cup, the sales volume of "Wawazula" speakers produced by Zhejiang Ninghaixidian Jiying Plastic Products Factory exceeded 1 million, with a price of about $8, while its ex factory price was only $0.3. "I earn a dime for each product, and the workers earn a dime." Wu Yijun, the general manager, said helplessly, "After working for half a year, I can earn 100000 yuan."

From toys to clothing, from small household appliances to steel products, the output of many Chinese products has accounted for half of the global total output, and almost every hour can export "Made in China" worth 100 million dollars to the world. But behind the "dazzling" figures, it is difficult to hide the brand dilemma.

In the "V" curve of international industrial chain profits, one end is R&D and design, and the other end is sales and service. A large number of Chinese products are at the bottom of the curve, that is, processing and manufacturing. The profit margin of the industries at both ends is about 20% to 25%, while that of the bottom processing and manufacturing industry is only 5%.

According to the statistics of China Textile Industry Association, from 2001 to 2009, the textile industry created a trade surplus of 1144.377 billion US dollars, accounting for 82.78% of the total national trade surplus, but the products exported by self owned brands only accounted for about 10% of all exported products. According to the data provided by the Ministry of Industry and Information Technology, less than 20% of China's export products have their own brands.

"The price of clothes produced by Chinese enterprises can rise three to five times as soon as they are labeled with foreign brands, which shows the value of the brand," said Wang Tiankai, vice president of China Textile Industry Association.

Chinese manufacturing enterprises continue to export OEM products in accordance with various international standards, providing cheap production capacity for international giants who master core technology and sales channels, and it is difficult to escape the fate of manufacturing for others. Zhu Hongren, chief engineer of the Ministry of Industry and Information Technology, said: "The lack of brand has become a obstacle for China to move from a manufacturing power to a manufacturing power."

It is understood that the core technology of China's industrial development is still highly dependent on foreign countries, and the independent innovation ability is insufficient. Many key technologies of industrial products rely on introduction, digestion, absorption and re innovation are slow, and the technical content of industrial products is not high. Enterprise brand awareness is indifferent, brand cultivation is insufficient, brand added value is low, and market competitiveness is not strong.

Li Yizhong, minister of the Ministry of Industry and Information Technology, believes that a large number of OEM production and low product quality have become prominent problems restricting the steady and rapid development of China's industrial economy, and become a severe test facing China's own brands. "The top priority of China's industrial products is to develop varieties, improve quality, create brands and improve services." {page_break}

"Backward research and development and blocked marketing channels are the two bottlenecks facing China's independent brands." Zhu Hongren believes that independent innovation and independent brands are the core competitiveness of modern manufacturing industry. From the perspective of China's industrial transformation and upgrading, independent brands have been given more requirements for quality, variety, service and social responsibility.

Since the international financial crisis, when the global old brand communication equipment manufacturers fell into profit decline, loss, layoffs and even bankruptcy protection, the private enterprise ZTE, led by Chairman Hou Weigui, took advantage of the opportunities brought by the changes in the competitive landscape, successfully seized the 3G and 4G opportunities of international communication, and entered the global first square. At present, ZTE products have entered 51 of the world's 100 top telecom operators, and overseas revenue accounts for 60% of the company's total revenue.

Hou Weigui said, "Even in the time of the international financial crisis, when our competitors were forced to reduce their R&D scale, the growth rate of our R&D investment still exceeded the growth rate of our income. Therefore, in the global competition, especially in the European and American high-end markets that attach importance to technology and the communication industry is facing upgrading, we gradually show our advantages."

"The cultivation of brands cannot be quick success and instant benefit, nor can it be achieved overnight. Over time, I believe that with the improvement of the country's own strength, there will be a number of independent brands rising, which is the inevitable result of years of accumulation in China's manufacturing industry." Zhu Hongren said.

Qingdao is one of the first cities in China to implement the brand driven strategy. Haier, Hisense, Tsingtao Beer, Qingdao Port and many other well-known brands and competitive enterprises with independent intellectual property rights and strong international competitiveness have played an important role in promoting the economic development level and core competitiveness of Qingdao. At present, there are 17 national technology centers in Qingdao. The carriers of these technology innovation centers are famous brand enterprises. They not only develop high-tech products for their enterprises every year, but also undertake national key technology research projects.

Li Yizhong said that in the next step, China will take home textile, clothing, household appliances, automobiles and other industries as the starting point, promote the construction of its own brand, encourage qualified regions, industries and industrial clusters to cultivate regional and industrial brands, and study and issue policies and measures to guide the construction of industrial product brands.