The Strategy Of "OEM" To "Brand": The Way Of China'S Economic Prosperity

According to the "Guangzhou daily" reported on August 4th, at the second SME Economic Forum, the head of the national development and Reform Commission SME division revealed that in the first half of this year, more than 6.7 SMEs in China collapsed.

As a labor-intensive industry, small and medium-sized enterprises in textile industry have closed down more than 1, and 2/3 textile enterprises are facing reorganization.

Almost all of these small and medium sized enterprises are those labor-intensive enterprises characterized by "three to one supplement, processing with supplied materials and export by foundry".

This type of processing enterprises, though not having their own brands, is only OEM processing for foreign brands or supporting enterprises, but they have been an important way to develop rapidly in the early years of the southeastern coastal areas of mainland China, and also the backbone of China's export earning.

However, due to the changes in international and domestic situations in recent years, the low cost advantage that they used to have ceased to exist. As a result, a crisis of survival has emerged. Enterprises that are really unable to survive have to close down, even those companies that are still at the top of the market are facing a closed down situation at any time.

The seriousness of the problem has attracted the attention of the central authorities. In recent years, the top leaders of the CPC Central Committee and the State Council have gone deep into the southeast coastal areas to investigate relevant enterprises and seek solutions.

Why does this happen?

There are five main reasons:

First,

This is the most direct and obvious reason.

Because of the impact of the subprime mortgage crisis in the United States, the economies of Europe and the United States have declined, and the total consumption of the population is shrinking. Foreign enterprises are no longer as prosperous as they used to be, so the processing orders have been greatly reduced.

This makes the processing enterprises that have already overcapacity become more competitive. In order to get the order, they will lower the price, and make a living to avoid bankruptcy, resulting in greater losses.

Two

As oil prices continue to rise, resulting in soaring prices of many raw materials, making these enterprises extremely small profits, in order not to collapse, resulting in greater losses, or even negative profits, but also to maintain production.

Coupled with the increase in the price of gasoline and diesel, the pportation cost remains high.

Three.

After years of development, the demand for labor resources in the coastal areas has been enlarged, and relatively insufficient human resources have been formed. The bad influence of non-standard employment has made more migrant workers stagnant. In 2006, when the state abolished the agricultural tax completely, the state increased support for rural areas and agriculture, and there were more choices for migrant workers. Therefore, the globrand.com phenomenon of "shortage of migrant workers" appeared.

The new labor law, which began in 2008, has made those enterprises that have long been "fragile" add insult to injury.

Four

In the past, these enterprises were almost unqualified for the disposal and disposal of wastes. With the emphasis on environmental protection, the government changed the direction of GDP in the past, and began to attach importance to the work of environmental pollution control. Those unqualified enterprises were faced with the cost of increasing waste pollution.

Five

With the accession to the WTO and the changes in the international situation, China's policy of export tax rebate for related industries has been adjusted accordingly. Enterprises that relied on the export tax rebates in the past have no longer enjoyed the state subsidies. This subsidy can be regarded as a reward when the country needs a large amount of foreign exchange in the year. Now China is no longer the same as it is. Foreign exchange reserves are the highest in the world. Even when the "money is more than enough", the incentive of the past foreign exchange earnings seems to be gone. It can only be regarded as a blessing.

At the same time, some countries in Europe and the United States impose high anti-dumping duties on some products in China, which further reduce the welfare that has already been reduced.

Solution