In the first half of this year, a total of 60,000 and 70,000 small and medium-sized enterprises in China collapsed, prompting national leaders to go to various places to inspect. Enterprises that are exploring and facing upgrades in the long run face the troubles of their growth in the global economic winter that has not happened for many years. "China Business News" chose to open up the "Growth" version at this time, and face growth with the majority of enterprises, discover and explore problems, find lessons, and convey business wisdom. The topics of interest in this issue are: the experience, challenges and experience wisdom of OEMs that have eroded profits and blocked exports to their own brands.
There are things that do not accept OEM orders every year, but this year may be the year when Yang Guangqun pushed down the most orders.
Yang Guangqun is the chairman of Guangzhou Danqi Daily Chemicals Co., Ltd. Last year, Danqi Daily's overseas OEM orders accounted for 30%~40% of its output, and this year it fell to 20% of production. This year, the price of energy raw materials has risen, and labor costs have also risen, which has led to an increase in corporate costs. The export exchange rate and tax rebate policy have reduced profits. Therefore, after raising the quotation, some overseas OEM orders have no profit, and we will not accept them. Yang Guangqun explained.
This is not only the cosmetics industry, but also the dilemma of overseas business facing the entire Chinese manufacturing industry.
Jiangsu Sunshine Energy Saving Technology Co., Ltd. mainly produces energy-saving lamps, and 75% of its sales come from foreign OEMs, while overseas orders have decreased by 50% this year. Chen Bin, the company's production manager, feels helpless.
Homemade brand returned to the original shape in two or three years
When the reporter visited the company in the Pearl River Delta, he found that many business owners in the region have already realized that enterprises should be bigger and stronger, and only their own brands should be led by the nose. However, how to take the road of branding has become the ultimate confusion of many business owners.
Zhongshan Shaxi Town is a Chinese leisure clothing production base. This unremarkable projectile has gathered more than 1,000 garment manufacturers. The clothing business owners who have always been good at production have become more and more eager to create their own brands when the competitive advantage is gradually weakened.
However, creating a brand is not easy.
Branding is not that easy. A clothing owner still in the founder sighed at the reporter. He tried to create his own brand, but he soon discovered that it is only necessary to concentrate on production, design and marketing operations are not worrying, and self-built brands are completely different modes of operation. Due to the lack of experience, the boss's initial accumulation of funds, in the two or three years after the brand was consumed, the brand road is still not improving. In the end, he had to give up and rework it.
In fact, after Shaxi’s first service fair, local companies were encouraged to launch more than 100 brands in a year, but after two or three years, they were all back to their original shape.
A real problem is that companies must be willing to invest. Shi Yongjun, assistant to the president of NVC Lighting, said that OEMs are only responsible for production and quality control, but their own brands also involve scientific research, brand promotion, marketing, after-sales service, company management and other scientific operations. Human, material and financial resources. These are not what the average company can afford. When doing OEM, the operating cost of the company only accounts for 5% of the total sales, but to be a self-owned brand means that the minimum investment should be 16%.
In fact, many business owners are often reluctant to invest, and believe that earning one million pockets is their own, lacking long-term awareness. However, some business owners have to be forced to give up after the accumulated funds have been spent due to limited funds and lack of experience in developing the market.
From simple foundry to brand, increase added value. This road is right, but it is full of hardships. Guo Shanhui, chairman of Taisheng Industrial Co., Ltd., lamented. In order to open up the domestic market, he has already made plans to lose a few years.
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