Dongguan "Smile Curve": Manufacturing Bottom, &Nbsp; R & D And Brand At Both Ends.

A Hong Kong funded toy factory in Changping, Dongguan.

The toy industry in Dongguan has a pivotal position in the world, but compared with other industries, the toy industry has a higher proportion of OEM.

Before 2009, the number of famous brands in Dongguan toy industry has been missing. It is the only industry in Dongguan's eight pillar industries.

Nandu reporter Fang Guangming photo

At the end of July 1978, the the third Plenary Session of the 11th CPC Central Committee of ideological emancipation was not yet held. A Hongkong businessman came to Humen town of Dongguan, and opened up the curtain of the rise of Dongguan.

Since then, "three to one supplement" has become the main path for Dongguan to start.

In 2008, when the global financial crisis broke out, Dongguan, which relied heavily on exports and processing, was hit unprecedentedly, especially the closure of the Jun Jun toy factory in October 2008, causing the whole nation and even the global media to continue to focus on Dongguan.

Dongguan can not avoid changing the way of economic growth.

In 2009, affected by the financial crisis, Dongguan's G D P grew by only 5.3%, the lowest in 30 years of reform and opening up.

Liu Zhigeng, Secretary of the Dongguan municipal Party committee, said that it is necessary to "endure the temporary labor pains, endure the slowdown of the temporary speed, endure the reduction of temporary income and bear the criticism of the society", and promote the pformation of Dongguan's economic growth mode with the spirit of the broken arm of the heroic.

In the process of pformation of Dongguan's economic growth mode, Dongguan enterprises, as the main body of pformation, show the most obvious extension of the industrial chain, from simple processing and manufacturing to R & D design and brand marketing.

This is also the most substantial achievement of the pformation of the mode of economic growth.

According to official figures in Dongguan, the proportion of foreign-funded enterprises in Dongguan's independent design and operation (ODM) increased from 23.56% in 2007 to 28.92% in 2009, and the number of registered brands in processing trade enterprises increased by 610 at the end of 2007.

There are 90 new high-tech enterprises and 89 private technology enterprises in the city. The total output value of high-tech products reaches 177 billion 900 million yuan.

Since 2008, there are 67 new R & D centers and 7 technology centers of foreign-funded enterprises in the city.

25 newly added brand names above the provincial level.

R & D, manufacturing and marketing, the middle manufacturing link has the lowest added value, and the added value of R & D and marketing at both ends is high, thus forming a "Smiling Curve" with high ends and low middle levels.

For a long time, Dongguan has been regarded as a representative of manufacturing sector and labeled "low end" and "low added value".

However, if we observe the changes in Dongguan in recent years, we will find that the industrial chain of Dongguan has quietly extended from simple manufacturing to R & D, and some enterprises have begun to test the water of brand marketing.

The "Smiling Curve" of Dongguan is spreading to the world.

　　研發(fā)

Making Dongguan made more high-end

Market changes force enterprises to do research and development

Liang Shaoxi was the first Hong Kong businessman to return to Dongguan to start a furniture factory.

He was not a designer of a professional class. He was only an apprentice in a carpenter's shop before he smuggled to Hongkong.

Perhaps it is this experience that makes his dick furniture always adhere to the concise and practical design style, and refuses red tape.

However, in the production process, there are too many factors that can weaken the value of products, such as paint, hardware, craft and so on.

He dreamed of making 100 points of furniture, but in reality, he often used up 95 points to exhaust his energy.

Before leaving the river, he launched a sprint toward his dream.

In 2010, Dixin furniture R & D center was put into use and became the first foreign invested enterprise R & D center in Houjie Town, Dongguan.

The R & D center does not simply design, but integrates design, structure, process and testing to form a complete R & D chain.

Liang Shaoxi said that the chemicals, metals and paints involved in the production of dicxin furniture must rely on suppliers to provide technical support. Once the data supplied by suppliers are incorrect, it will cause serious consequences to the quality and brand of products.

After the establishment of R & D center, from design to finished products, all the technical links are in their own hands.

"It used to be experience, and now it depends on science and data.

Many standards are qualified rate of 95%, and our concept should be 100%., the goal of our R & D center is to solve 5 points after 95 points.

In fact, after more than 30 years of development, a large number of enterprises in Dongguan are gradually extending from the lowest value-added manufacturing links to R & D links. Liang Shaoxi and his dick furniture are no longer a case.

Daling mountain town, adjacent to Houjie Town, is also famous for its furniture industry.

Lu Yan, a graduate of China Central Academy of Fine Arts, has been working here for 17 years.

Today, he is the general manager and designer of Lin Ge furniture company, the only sofa supplier of the VIP lounge in World Expo, Shanghai.

"A lot of people used to think that selling domestic products is a whole brand. They have to design their own products and sell them for foreigners.

But the financial crisis has reversed this concept.

Foreigners don't have money to design teams. They have no money to invest in research and development. Their roles actually become dealers. Everything is up to you. "

Lu Yan said, it must be exported like domestic sales now.

Because of this, exports depend on the obvious Dongguan, which is quietly leading to a whirlwind of R & D.

In the southern city of Dongguan, Huajian group, China's largest female shoe manufacturer, has built the largest shoe research and development center in China, with more than 2000 R & D personnel.

The world's second largest optical disc equipment manufacturing enterprise Hongwei digital moved the R & D center to Dongguan. The average annual cost of R & D is more than 20%. of sales revenue. In Dongguan Houjie, Chuang Ke group, one of the world's largest home furnishing products, plans to pfer 80% of the researchers from around the world to Houjie, where 1000 engineers will be located.

1 billion every year to help enterprises develop

According to the official data provided by Dongguan, Dongguan has 562 private technology enterprises at the provincial level and 90 R & D institutions in foreign-funded enterprises, respectively, increasing by 57% compared with 2006. The total amount of patent licensing in 900%.2009 ranks second in Guangdong, second only to Shenzhen, exceeding Guangzhou and Foshan.

"Because patents are based on R & D, we can see that we are developing from the original O E M (OEM) to O D M (design and production), and the industrial structure and development mode is changing."

Liang Fengming, deputy director of Dongguan science and Technology Bureau, said.

In different industries, the depth of entry and development links in Dongguan is also different.

Furniture and clothing are the only two independent brand mature industries in Dongguan, and R & D has become an essential part.

In the shoemaking industry, Dongguan's own brand is very small, OEM occupies an absolute mainstream position, but the depth of research and development is shocking, and even many Italy designers come to Dongguan to find jobs.

Dongguan has become a paradise for shoe designers.

This convergence force attracted the AOKANG group in Wenzhou, and attracted the famous enterprises such as Jum P in Taiwan. They moved R & D headquarters to Dongguan, or intended to do so.

With the rise of labor costs, the footwear industry bigwigs even believe that Dongguan has gradually become unsuitable for footwear manufacturing, and will become the shoe research and development center.

In other industries, although R & D coverage varies, but R & D capability is often the most powerful bargaining power for enterprises to take orders and negotiate prices.

"In the past, we only had the ability to manufacture, and we could only take orders with low prices.

Over the years, our R & D capabilities have been strengthened. Now overseas buyers do not need to provide design. We only need to make demands, so we can provide different types of products.

In order to undertake orders, we can undertake higher priced products.

Products that are low in price go to cheaper places like Vietnam. "

Jiang Ling, member of the Standing Committee of the Dongguan Municipal Committee and vice mayor of the Municipal Committee of the CPC, believes that on the one hand, we can digest the pressure brought by the cost increase in the Pearl River Delta enterprises, so that Dongguan can move towards a more high-end direction in the international division of labor. On the other hand, it will make Dongguan's processing trade more vitality.

The policies of the Dongguan government also intend to guide enterprises to take the road of research and development.

Since 2006, Dongguan has launched the "science and technology Dongguan" project, investing 1 billion in five consecutive years to help enterprises make technological innovations.

"In terms of our system design, no matter what type of enterprise is, no matter what stage it is in, there are corresponding policies to support them."

Liang Fengming, deputy director of Dongguan science and Technology Bureau, said.

Jiang Ling, vice mayor of Dongguan, believes that in the "smile curve", Dongguan has more conditions to do R & D design, and it is more difficult to do brand marketing.

"We have taken a very pragmatic approach to support more enterprises in R & D, design and product development."

He also revealed that Dongguan is also preparing to set up an industrial design center.

　　品牌

Fledgling ahead

"Little tiger Han Ni" hard to start

As Jiang Ling, vice mayor of Dongguan, said, Dongguan is relatively mature in R & D, but has great difficulty in brand marketing.

Even in the most mature clothing industry in Dongguan, in the town where Humen is the most concentrated brand, Chen Wenfei wants to make his own brand and has to take a thorny road.

In 1995, Chen Wenfei founded Tai Fei garment factory in Humen town.

Just like its name gives the impression, this is a featureless foundry enterprise.

In the golden age of the manufacturing industry, Chen Wenfei earned the first barrel of gold.

But the sharp change in the market made him scared. He felt that it was not as good as a year to do the foundry.

More and more factories, more and more intense competition, rising costs, a garment can not earn 1 yuan; price can not be raised, profits slowly shrink.

Even the workers are hard to recruit, and many skilled workers jump around when they find an excuse.

The bigger the foundry is, the bottom of the value chain.

In 2007, Chen Wenfei realized that he had to change.

The idea of brand marketing is born, but Chen Wenfei, who has been exporting, has no experience in making brand. The way he thinks of it is to find a trader.

In June 2008, he met Guo Zhigang, a professional manager with over 20 years of experience in clothing design and management and worked in several garment brand enterprises in China.

Two months later, in the sound of the roaring machine at the Tai Fei garment factory, two people finally decided to make a big effort. Yu Shitai Fei garment factory pformed into a brand name "Xiao Hu Ni".

However, when they just embarked on the brand road, the financial crisis broke out.

While peers are shrinking investment because of shrinking orders, Guo Zhigang is ambitious to prepare for a big fight.

In his view, now do not step up production, next year shops may not have clothes to sell.

So when only 20 thousand orders were received, Guo Zhigang delivered 130 thousand production tasks to the factory.

This crazy act frightened Chen Wenfei.

He dare not produce, afraid that if he can't sell it, he will lose hundreds of thousands of dollars.

Chen Wenfei's habit of subcontracting has not been changed. This is a big difference between the brand and the foundry. The OEM is to look at the single production, and the independent brand must be stocked for inventory.

Throughout 2008, "little tiger Han Ni" was struggling.

It was not until March 26, 2009 that the seventeenth China International Clothing and Accessories Fair opened. When hundreds of thousands of exhibitors were discouraged from the exhibition cost, Guo Zhigang insisted on participating in the exhibition.

In the end, only three enterprises in Humen participated in the exhibition, namely "YISHION", "G.I" and "Xiao Hu Ni Ni".

This time, "Xiao Hu Han Ni" has become the representative of the children's clothing industry in Humen. Its status has risen sharply, and has obtained more than 400 clients from all over the country.

By May 2009, there were thirty or forty stores in the country.

Guo Zhigang's original madness proved to be correct.

"Xiao Hu Han Ni" was successful, but Chen Wenfei did not make bold progress.

His foundries are still producing orders, investing in blood pfusion for brand operation.

"A lot of enterprises say the pformation, the original foundry factory removed, this is very wrong.

In order to pursue new things and throw away what was originally large, it can only do more and more die.

He understands that the need to make a brand is not a small sum. So far, he has already smashed tens of millions of dollars for the operation of "little tiger Johnny".

He was grateful for his success, because many businesses in Dongguan had smashed tens of millions of dollars without a sound.

　　品牌路上的孤獨(dú)行者

Chen Wenfei is indeed lucky. His clothing industry is one of the few two mature brands in Dongguan.

The predecessors of "YISHION" and "Song Ying" are all in the same town. Others' experience can make him take less detours.

In other industries, many enterprises that make their own brands have become lonely Pathfinder.

Xiao Senlin is such a lonely person.

In 1999, he founded the Dongguan hassai Toys Industrial Co., Ltd., starting from OEM, and gradually accumulating capital.

The toy industry in Dongguan has a pivotal position in the world, but compared with other industries, the toy industry has a higher proportion of OEM.

Before 2009, the number of famous brands in Dongguan toy industry has been missing. It is the only industry in Dongguan's eight pillar industries.

In such an industry to do their own brand, the risk is self-evident.

Do you want to do it? After several years of ideological struggle, by 2006, Xiao forest was determined to start running his own brand "Ha Yi Dai" toys.

In the next few years, the days of Shaw forest have not been easy.

Like Chen Wenfei, he did not lose the agent, but for several years, the profits of the agent were constantly swallowed by brand marketing.

By 2009, revenue and expenditure will be basically balanced.

When he saw the closure of the Hejun toy factory and heard the suicide of Zhang Shuhong, vice chairman of Lida Toys Co. Ltd. in Foshan, Xiao Senlin felt lucky that he had already got rid of the days of being controlled by others.

"In the face of financial crisis, we feel that we must have our own brand, so that enterprises have stronger ability to resist external risks.

I think it is precisely because we started restructuring in 2006 that we could not be overwhelmed by the great waves of the financial crisis.

Xiao forest rejoice in the early pition before escaping the financial crisis.

And more Dongguan enterprises have chosen a secret way, that is, "go to sea by boat", buyout or lease mature brands.

This seemingly pragmatic approach is equally uneven.

In the footwear industry of Dongguan, Huajian group has introduced "Jackie Chan" and bought "Carver". The Qisheng shoe industry has acquired the famous brand "Dibao A. o" in Italy. After several years of investment, it has not yet come out of the investment period.

Taiwanese footwear factory has been testing its own brand in recent years and has failed to find a way out.

To this day, despite several years of exploration, Dongguan shoe industry still can not find a mature success story.

　　政府出錢推廣品牌

Although the independent brand is not a broad road, but when the industry precipitates to a certain extent, the brand will become a necessity.

The government of Dongguan has not given up its guidance. In recent years, the "brand driven strategy" has been implemented in a big way. The enterprises that have won the title of famous brand names have been rewarded with a maximum reward of 1 million yuan.

On the main roads of Dongguan, Dongguan can often get money to advertise for famous brand enterprises.

According to official data, up to now, Dongguan has 408 famous brand names, including 20 well-known trademarks in China, 18 famous brand products in China, 3 export free commodities in the state, and 1 famous export brands which are mainly cultivated and developed by the Ministry of Commerce.

The number of Chinese brand names ranked 5. in the province.

The desire for brand is not only reflected at the municipal level.

The layout of the "town economy" in Dongguan makes the town street government equally urgent to promote its own brand.

Compared with the Dongguan level, the government of the town street often has its favorite industries.

In the evening of May 26th, the government of the Dongguan Daling mountain town performed the opera "Turandot" named "Daling Shan furniture night" in Dongguan Yulan Grand Theatre, so as to promote the fame of "the first town of Chinese furniture export".

Li Zhongbo, Secretary General of the Da Ling Shan Furniture Association, told the Southern Metropolis Daily that nearly 30 years after the outbreak of the financial crisis, the self created brand of Daling mountain furniture enterprise increased from 98 in 2008 to today.

Jiang Ling, a deputy mayor, encouraged Daling mountain town to turn from "the first town of Chinese furniture export" to "the first town of Chinese furniture".

Dongguan's Dao Jiao Town values their food industry more.

In May of this year, Dao Kau took the host position of the Chinese food festival.

"We need brand promotion very urgently. Why is" Tyrannosaurus "rice noodle sold for more than 4 yuan, Dao Dao rice noodles can only be sold for more than 1 yuan? The key is no brand.

In 2009, we registered Dao Kau's own trademark. Now we urgently need to let the "taste Kun" trademark go out for a walk.

Jia Guibin, mayor of Dao Jiao Town, made no secret of their intention to host the food festival.

He believes that enterprises have gradually had brand awareness, so long as the government guides them, enterprises are willing to cooperate with them.

"Just like learning bicycles, you can only push them, but if you step on them, they will soon follow.

The first step is the most difficult, and we must do it now. We must face it. "

Sample Dongguan today

Dongguan is located in the central and southern part of Guangdong Province, the east coast of the Pearl River Estuary, north to Guangzhou, and south to Shenzhen.

In September 1985, the county was set aside, and in January 1988 it was upgraded to a prefecture level city, under 28 towns, 4 sub district offices, 440 village committees and 156 neighborhood committees.

The total land area of the city is 2465 square kilometers. By the end of 2008, the resident population was 6 million 949 thousand and 800, of which 1 million 748 thousand and 700 were local residents and 5 million 201 thousand and 100 were permanent residents.

In addition, there are about 700000 compatriots from Hong Kong, Macao and Taiwan and about 200000 overseas Chinese.