China's manufacturing industry gradually farewell "on behalf of the factory"

- Sep 27, 2016-

 Compared with the continuous reduction of China's demographic dividend, labor costs continue to rise, Southeast Asia and other regions of the labor advantage is increasingly prominent. Data show that China's labor costs are 1.4 times in Indonesia, Vietnam is 2 times, is about 3 times in Burma. China's labor costs rise, is one of the important reasons for the relocation of manufacturing enterprises.

 For these due to China's rising labor costs and manufacturing factory relocation, don't feel sorry. In the long run, China's manufacturing industry can not always play the role of "the factory". In the past China's low labor costs, the economy of developed countries such as the US and Japan enterprise will have "factory moved to China, which stimulate China's economic growth to a certain extent, our country has gradually developed into a manufacturing power, MADE IN CHINA worldwide.

 Of course, in this context, most of our manufacturing enterprises can only earn a lower "hard money", most of the profits in the hands of the developed countries in the hands of enterprises. And the generation of processing, extensive mode of development, not only make our country's manufacturing industry in the "smile curve" on the bottom end of the low value-added part, to a large extent also bring great pressure to the environment.

 Currently, the transformation and upgrading of manufacturing industry has become the trend. On the one hand, China's demographic dividend is declining, on the other hand, the "beautiful scenery" in urgent need of our country to abandon the extensive mode of development. Of course, through many years to play the role of "generation plant", with the international first-class enterprise communication learning, China's manufacturing industry already has the foundation of the transformation and upgrading.

 As the "2025" Chinese manufacturing planning, the next ten years for China to become a manufacturing power from a manufacturing power and manufacturing power to 2025 entered the queue to go for the new road of innovation driven, quality first, green development, structure optimization.

 In order to realize the strategic planning for the transformation of manufacturing power to manufacturing power, this is closely related to each manufacturing enterprise. Chinese has a population of more than 1 billion 300 million, the market contains huge consumption potential, if manufacturers do not want to give up Chinese market this big "cake", want to continue the layout in the China market, must take the transformation and upgrading of the road.

 The key to the transformation and upgrading of China's manufacturing enterprises is to change the past OEM (that is, OEM production) development model, to OBM (that is, the plant operating its own brand) for the transformation and upgrading, take the brand development route.

 Going from OEM into OBM, one of China's manufacturing enterprises need to improve their development ability, increase R & D investment, more novel design, creative products; on the other hand also need to increase efforts in brand building, distribution channels, and strive to establish its own brand in the global market.

 At present, China's economic development has entered a new normal, manufacturing enterprises have to adapt to this new change. In the future only to the manufacturing industry smile curve layout of both ends, to enter the high value-added chain, one hand research and development design, the first hand to grasp the brand operation, China's manufacturing industry to achieve further development.

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