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    Transformation And Innovation: The Magic Weapon For Upgrading Chinese Enterprises

    2011/3/7 8:49:00 76

    Brand Innovation

    "China can only sell 800 million shirts in exchange for an Airbus."

    This sentence was heard by Bo Xilai, former Minister of Commerce of China, who spoke to the European Union trade representative in Paris in order to smooth down their emotions that were hard to get excited about under the fierce offensive of China's textile exports.

    However, as a Chinese, listening to this is not a pleasant experience.


    As we all know, China is the largest toy producer in the world, but without a worldwide independent brand, the retail price of a Bobbi doll in the US can be sold to US $9.9.

    But in the Pearl River Delta area where Bobbi dolls are the largest, producing a Bobbi doll, Chinese enterprises can only get $0.35 in processing fees, and the owners of the brand get the biggest profit.


    Huge manufacturing capacity did not bring the corresponding huge profits; lighters, leather shoes, color TV and so on.

    trade friction

    In recent years, the problem of "labor shortage" has become increasingly prominent, resulting in an increase in labor costs. To a certain extent, it indicates that the cost of cheap labor in China is gradually disappearing. For laborintensive enterprises, it will face enormous challenges: pformation and independent innovation will become the survival of Chinese Enterprises.


    The only way to enhance international competitiveness.


    Identify the mode of participation in international competition


    Data show that in 2010, China's foreign direct investment in non financial sector amounted to 59 billion US dollars. In the past 8 years, the average annual growth rate of foreign direct investment was 52%, totaling 258 billion 800 million US dollars.

    According to the survey results of the Ministry of Commerce and the National Federation of industry and commerce, in the first half of last year, the total assets of overseas enterprises in China exceeded 1 trillion dollars, private enterprises accounted for more than 30%, the number of overseas investment enterprises and private enterprises accounted for more than 80%, and private enterprises had become an important force for China to implement the strategy of "going global".


    However, it is understood that at present, the export of most enterprises in China is OEM processing. The mode of production is in the process of processing and assembling low value-added and low technology content, and the independent export brands are weak.


    If private enterprises want to occupy a place in international competition, they must emphasize the importance of enterprises.

    innovate

    Status and role in the system.

    "If we do not take the road of independent innovation, the Patriots will die no doubt". This is what Feng Jun, chairman of the CPPCC National Committee and President of Huaqi, said after receiving an exclusive interview with our reporter after China's accession to the WTO.


    The biggest pressure on Feng Jun is the threat posed by Korean digital products to patriots.


    However, after 10 years, Feng Jun recalled how patriots resist "

    Korean wave

    "Experience and experience," he said, rather than die, it is better to go abroad and seek opportunities for overseas market development.

    But when we decide to go abroad, we must consider our strengths and competitiveness, especially in terms of independent innovation.

    Large enterprises have obvious advantages in independent innovation, such as capital, risk of failure and accurate market judgement.

    Therefore, many small and medium-sized enterprises have a wrong understanding that innovation is a matter for big enterprises to consider, and small businesses have no ability nor innovation.

    In fact, small and medium-sized private enterprises also have their own advantages in making innovations, that is, they are responsive to the market, decisive in decision making, flexible in management and fast in implementation. They are more likely to inspire innovation enthusiasm of researchers, and seize opportunities for innovation.


    Feng Jun said, take patriots as an example, we are small and medium-sized private enterprises, and have no strength to buy foreign enterprises, so our idea is very simple, that is, learn the teams in the cross river reconnaissance record, and use snowball to go out in China.

    We need to understand the local needs in the early stage, set up offices in the locals, use China's R & D and local needs to provide products with high quality and high price and good services, and create new value for the whole world under the economic crisis.


    And then earn foreign exchange, stimulate domestic demand and win the trust and respect of global consumers to Chinese brands, Chinese products and Chinese services, which has formed a virtuous circle.


    Therefore, every private enterprise wishing to enter the international market should first identify its own mode of participation in international competition so as to avoid detours and go wrong.


    China's global brand of power grafting


    Unlike Huaqi, Fosun is a leading global private investment group focusing on China's growth momentum.

    How to improve the international competitiveness? Fosun's approach is to actively explore the feasible way of China's dynamic grafting of global brands, and has achieved certain results.


    In March 2010, Fosun and Carlyle Group set up the first Sino foreign joint venture private equity fund company in China.

    In June, Fosun investment, the world's leading tourist resort group, the Mediterranean club, fully interpreted the concept of "Chinese experts and global capabilities" as a star investment and took the first step in global investment.


    In January 2011, Fosun became a strategic cooperative relationship with the US insurance giant Baode XinDa. Baode's letter invested $500 million to become a limited partner of the partnership fund. Fosun invested $100 million in the fund and acted as a general partner responsible for investment decisions.

    This is a major breakthrough in Fosun's integration of global resources, marking the high recognition of famous international institutional investors for Fosun management team, brand, investment capability and standardized operation.


    "For Fosun, it is more important to actively explore how to graft Chinese power into global brands.

    We adopt two basic models: the first is how to graft the Chinese market into the global resources; the second is how to graft Chinese power into global brands. "

    Guo Guangchang, chairman of the National People's Congress and chairman of Fosun Group, said.


    He said frankly that globalization is not always easy.

    But there are several issues that deserve attention.

    First, commitment, persistence and self-discipline.

    After commitment, we must stick to it and not fail to do it because of failure.

    Second, we should first do a good job of Chinese experts, especially in the field of consumption upgrading, so that we can have the opportunity to become the object of attracting international enterprises in the pursuit of China's development.

    Third, we need to enhance our ability to identify and seize overseas investment opportunities overseas and share China's growth opportunities as soon as possible.

    This includes the question of our talents, including how we can use so many partners that we already have, to become a consulting platform after our global investment.

    Fourth, enhance global financing capacity.

    Not only in China, but also in the global market.

    Fifth, develop the global project optimization operation.

    Sixth, since entering the field of globalization, we need to connect with global standards, so that Europeans and Americans can fully understand what we are talking about. Our expression and measurement standards should be exactly the same as those of them. The most important thing is to integrate global resources.


    Talent and business environment are core


    The core of enterprise competition is talent competition.

    In March 28, 2010, China Geely Automobile Group and Ford Motor Co., Ltd. formally signed a 100% purchase of Volvo in Sweden. This is the first comprehensive acquisition of overseas luxury brands by the Chinese auto industry.


    The reason why Geely has such a big hand comes from Li Shufu's confidence in his own strength, especially his confidence in Geely's team.


    "Geely has attached great importance to talent introduction and talent training at the beginning of its business."

    Li Shufu said that they have founded Beijing Geely University, Hainan University Sanya college and Zhejiang Geely Automobile Technology Institute, commissioned by the China Automotive Engineering Society. Geely also founded the Zhejiang Automotive Engineering College, becoming the first graduate school specializing in training Chinese automobile vehicle doctorate and master degree.


    "At present, hundreds of foreign experts from dozens of countries and regions in the world work in Geely.

    Geely is not only an enterprise, but also a school. We advocate that "everyone is a teacher and everyone is a student". We can grow and train a large number of Geely Automobile talents and international talents through the exchange, mutual learning and joint work of experts at home and abroad.

    It is necessary for Geely to participate in international competition and overseas mergers and acquisitions.

    Li Shufu said.


    When it comes to how to attach importance to talents and retain talents, Li Shufu said, "take practical actions instead of just talking on the lips."

    We must let employees see and feel that their work in your enterprise can achieve their own value, and the most important thing is to enable employees to see hope. "


    For example, Geely, even ordinary workers, has opportunities for promotion and learning.

    "I don't care how much I earn," said Xiao Feng, an intern worker in Jili. "I feel that working in Geely can help me see what my future is like, and the most important thing is that I still want to get a chance to study, and Geely will give me such an opportunity."


    In order to retain employees, Geely started building his own public housing estate Geely Garden 6 years ago.

    "We are going to get employees to see in Geely, five or six years, seven or eight years, they can afford to buy a house, see a hope."

    Li Shufu said.


    Because Geely attaches importance to talents and respects employees, Geely has not encountered any crisis when the labor shortage is coming.


    Li Shufu said at the same time: "if Chinese enterprises want to enhance their competitiveness and create world famous brands, enterprises must achieve the goal of pformation and upgrading. First of all, we must solve the social environment and the enterprise environment, especially the rights and interests of workers at the front line, including pension benefits, social insurance, medical system, housing security, skills education and so on.

    Let every employee feel at ease and feel comfortable doing what he wants to do, dedicate himself from his heart, and contribute to the society and enterprise for himself.

    In such a work and living environment, the quality of enterprise products can be guaranteed, and technological progress, scientific development and the construction of innovative countries and the goal of pformation and upgrading of enterprises can be realized.


    Using intellectual property to protect innovation and competitiveness


    If the growing Chinese enterprises, especially the rapidly developing small and medium-sized enterprises, want to gain more advantages and more resources in competition, there is no other way out except innovation. The premise of independent innovation is to protect them by legal and administrative means.

    Chen Zhilie, chairman of the CPPCC National Committee and chairman of the research group, pointed out that


    From the relevant statistics, we can see that in the current global economic situation, those with competitive intellectual property rights, those with competitive competitiveness and independent brands and core technologies generally have a strong ability to resist risks, and have maintained rapid development.


    "Only with independent intellectual property rights can enterprises effectively protect themselves, acquire higher value-added products and enhance their international competitiveness. As a patriot who is committed to the internationalization of national brands, it is particularly sensitive to the role of intellectual property in the process of Chinese enterprises going global."

    Feng Jun said.


    Feng Jun believes that in the field of high technology, it is actually the best opportunity for Chinese to enter the world and participate in international competition, because new technology can often shuffle the cards and create opportunities for young Chinese brands and Chinese enterprises.

    However, the key to building a world-class brand in the field of high technology is also a common challenge China is facing at present, that is, intellectual property rights.

    For the sustainable development of Chinese brands, we must attach importance to intellectual property rights.

    We should not regard intellectual property as an enemy, but regard it as a treasure house for our wealth. When we form our own patent, we can also give full play to the advantages of the world's manufacturing power. Once we take the intellectual property right in our own hands and take these standards to our own hands, we will have the right to speak and the pricing power, and we will remain invincible in the international market competition.

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