« China should consider “Brand Highway”.
Post: 2011-11-25 View:
China will be made as a low cost machine to OEC market and it is a world factory. There are two environment problems including factory pollutions and inadequate energy sources. The quality controlling problem results in the reconsideration whether China is a reliable supplier. The social responsibility urges that the government force the entrepreneur to offer higher salary. Increasing administration and more controlling will come.
But there are some difficulties. And all of these will increase Chinese production cost. This will force the manufacturers in China move the product place to the lower cost area in the same country, or move to Vietnam. As some person is always willing to make the cost lower, you will die because of the lower cost, if you just depend on the lower cost.
China must consider “Brand Highway”. This way will bring China to the place where it can establish local and international brands (what supplies is not just the low cost). That is to say, it will produce for itself not for others. This will result in a fierce completion.
Durak, the father of America Management Consultant, has suggested there are just two ways to have new clients. They are marketing and innovating. All of the other ways will cost more. This means that China must learn to market. They will learn how to position or how to succeed in the battle between the prospects and the customers. They have to learn from the marketing battles or how to face the competition. They also have to study the differences, or consider what makes them differ from other competitors. But what’s more important, they must realize it is about not just the low cost, but also additional value or creating excuses that emphasis your products have more value than others’.
Mary, a Chinese medical machine producer, put most profits to its research and development. Now, it exports ultrasound developing and blood test machine to 140 countries. This is a way to success.
Some Chinese companies buy non-Chinese brand on hand from all over the world. It may be a good strategy. However, what they gain is not a famous brand, but the brand out of date. Therefore, they have a task to make himself from a loser to a winner. It is not an easy thing for those who are not good at marketing.
It is not easy and not fast to make the economy from the production-oriental economy to the market-oriental one. China has to choose this way if avoid walking the old way which has some huge holes.
