After Price War: Chinese Enterprises Choose High-End Breakthrough

It's hard for anyone to see these shoes.

The colorful metal sequins wrapped the whole trapezoid shoe in sequence, and the white beef tendon sole made the ALL STAR LOGO more obvious. Converse's limited edition super flash shoes suddenly became the most desirable thing that young people in this city wanted to have in the new year.

It can match short pants or date cowboys or even with a sling skirt. It is a good pair of canvas sneakers and fashionable accessories for hot grabbing. As advertised, Converse's informal behavior, my imprint, makes a pair of simple canvas shoes an art.

Since it is a work of art, the price of nature is not expensive. People who want to have it are also afraid to spend some money.

But even in recent years, even Moutai has jumped three times, and prices have risen so rapidly that even young people who love beauty and not afraid to spend money are beginning to weigh it up. Although shoes are very beautiful, they will feel bored in a month, and it is worth the cost.

But after all, we can not buy the brand of heart water. After all, people will be disappointed. Is there no remedial measure?

Fortunately, Chinese businesses are beginning to understand their foreign counterparts. The success of the "hot wind" does illustrate some problems.

Similarly, a pair of sequins canvas shoes, in the same block in Xidan, the price of "hot wind" is only 1/3 of Converse. It is also beautiful and beautiful, and can be shown off, but buyers need less money.

Starting from a small business in Shanghai, the business model of "hot wind" is different from the traditional footwear industry, and there is no large-scale manufacturing plant. Instead, it starts with design and is in line with international fashion. But the price is exceptionally low. The purpose is to attract young people who are not too strong in economic strength but like changing styles constantly. The hot air marketing method is also very ingenious. As early as three years ago, it had widely used the fashion magazines to conduct covert marketing.

As we all know, the clothing and matching section of fashion magazines has always been the most popular place for young readers. After reading many gorgeous costumes, the most urgent problem that readers often think of is how to arm themselves. Compared with the price of thousands of international famous brands, the hot-air shoes that the editors try to match are often beautiful and affordable. After seeing such a strong contrast, many customers are trying to figure out what to buy, and when they hear the wind, they can find out where to buy such cheap and fine shoes. "Hot wind" starts from Shanghai and goes all the way to Beijing.

At present, "hot wind" has become a fashion brand widely recognized by young people in the Yangtze River Delta region. This wonderful development idea is also recognized by many industry experts.

From the example of "hot wind", it is easy to recall that Theodore Leavitt once pointed out that in terms of marketing theory, we can conclude that people's fondness for low price, more customized products of high quality will be far better than their love for highly priced customized products.

China's locally produced products can also compete with foreign rivals in design and fashion style, and even occupy the middle end market. This change seems to be different from the impression that China made only cheap and rough impression.

From this perspective, it is easy to see that when the editor of foreign publishing house asked Mr. Zeng ming to write a book about how Chinese enterprises would beat multinationals, his vision was somewhat original and forward-looking.

People's fondness for the "hot wind" and the dependence of global market on Chinese goods make it 30 years after the reform and opening up, we suddenly found that the products made in China have been slowly catching up with those once giants.

After finishing the English version, Zeng Ming rewrote a Chinese version of the prophecy book "Dragon World", trying to tell the readers that the future of China's manufacturing in the next 10 years can be described in one word: great expectations.

Zeng believes that the day of the sight of pnational corporations will not come again. The economic structure of the world is undergoing tremendous changes. Because of the huge liquidity of huge financial capital and human capital in the world, the imitation barriers and monopoly profits that any technological innovation can bring are falling rapidly.

And this relatively homogeneous competition makes low cost a necessary condition for any enterprise to participate in competition, which is also the most fundamental foundation for China's manufacturing future to win.

After all, consumers want to buy more products with as little money as possible, and because of the impact of subprime lending in the United States, American families who have always been spending money on their soft hands are actively buying discounts before and after Christmas. Consumers must consider price factors as a reason why businessmen in the era of globalization can not ignore them. As Kenichi Ohmae pointed out, our society has changed from spindle type to M type, and the decline in purchasing power of the middle class has become an indisputable fact.

And China's manufacturing as the "innovation of the poor" in Zeng's eyes has also gained a unique core advantage.

There is not much money to live and to move forward. This is the reality that Chinese enterprises must first face.

The innovation of the poor has also become their straw and future ladder.

But once they solve the problem of survival, the amazing vitality and creativity that can break out is amazing.

Haier, from washing machine to washing machine without washing powder, then to wine cabinet, desk refrigerator.

Haier replicated the washing machine mode again and again, aiming at the unique needs of one market after another, integrating global resources, and finally forming a strong strength.

華為，利用壓強(qiáng)原理，集中所有資源形成局部突破，逐漸取得技術(shù)的領(lǐng)先和利潤(rùn)空間的擴(kuò)大，10年前華為還沒有多少資本的時(shí)候就開始豪賭3G，每年拿出30％左右的研發(fā)資金用于3G業(yè)務(wù)的開發(fā)，先后耗資50億元人民幣，到現(xiàn)在10年過去了，終于看到了努力的結(jié)果，從2006年初至今，華為已經(jīng)中標(biāo)的12個(gè)3G網(wǎng)絡(luò)項(xiàng)目6個(gè)出自歐洲，其在全球3G領(lǐng)域的份額已經(jīng)達(dá)到了31％，其產(chǎn)品的性價(jià)比位居同行業(yè)前列；比亞迪，中國(guó)也是世界的電池制造大王，當(dāng)初起家時(shí)，甚至連一條自動(dòng)化生產(chǎn)線也買不起，王傳福和他的團(tuán)隊(duì)只能將流程重新設(shè)計(jì)，用半人工半自動(dòng)的方法生產(chǎn)電池，但沒想到這樣一來卻比競(jìng)爭(zhēng)對(duì)手更加靈活，能夠很快導(dǎo)入新研發(fā)的產(chǎn)品，成本也更低廉，在這個(gè)基礎(chǔ)上他們還研制出自己的鋰離子電池生產(chǎn)線，在成本上比日本廠商低了40%，從而最終打敗了競(jìng)爭(zhēng)對(duì)手。

From the above examples of innovation and competition, it is easy to see that the so-called "independent innovation capability" which was called before in Chinese media and society is not the strength of Chinese enterprises. However, no matter what kind of innovation, our initial foundation and foundation are too weak, we need to use time to hone.

After the most brutal price war, the Chinese enterprises that are living are also choosing to break through to the higher end.

Zeng Ming pointed out that in this process, it is not difficult to find that the emerging Chinese enterprises have started low cost innovation. They are no longer simply and low producing clothing, shoes and hats and other low-end products. Instead, they have entered the field of additional value, producing low-cost, high-tech, personalized or specialized products such as cell phones and personal computers.

At the same time, in traditional industries, Chinese enterprises are rapidly expanding from production to high value-added links such as design, research and development, brand and so on. Just like the example of hot air that we just mentioned at the beginning of the article, the products of Chinese enterprises are gradually moving towards the process of refinement and fashion rather than simply imitation, even a pair of ordinary sports shoes.

From the perspective of the whole world economy, the equation of economic value provided to global consumers has been rewritten by Chinese competitors, who provide high-tech, diversified and specialized products at a low price.

The importance of cost performance has been mentioned at an unprecedented level, which is attracting more and more attention to consumers around the world. Zeng believes that the advantages made by China in terms of quantity and scale will help them overcome some hidden champions who are famous for their skills in Europe or Japan. At present, China's domestic manufacturing industry is also seeing such cases in the case of successful foreign mergers. But the more we see these glitzy achievements and the tremendous changes that Chinese enterprises have made in the ten years of excessive gold, Zeng believes that there are many crises and challenges hidden in this great future.

The British financial times once laughed at this: "perhaps in the middle of a prosperous country, China can still work for the global economy with all kinds of dividends, but once China's aging, these dividends will disappear, and who will support China?"

The difficulties faced by China's manufacturing industry include the rise in oil prices, the appreciation of the renminbi, the increase in labor costs, the deterioration of the environment and so on. All these problems will affect whether the future of China's manufacturing can go smoothly.

The debate on these issues has also become a topic of concern for entrepreneurs.

Mr. Niu Gensheng said in his preface to the book "Dragon World", we can "take cost leadership as the guide", but can not "end with cost leadership". At present, even in China's local market, it is not a unilateral competition of a country's enterprise, but a cross competition among the whole ball enterprises. Therefore, to truly catch up with the future, Chinese enterprises must realize the thrill of "made in China" to "create in China" as soon as possible.

And Mr. Liu Chuanzhi also pointed out that Lenovo is coming all the way through "towing water in towels". Such innovation is first and foremost: first, concentrate on the technological innovation at the product level that is easiest to cut into the market, in order to get a continuous market and profit, and accumulate the foundation of survival and development, so that we can get closer to the core technology. However, such innovation should be active, otherwise it will be difficult to win the next round of competition.

Perhaps, like the name of this book, Zeng Ming, the vice president of Alibaba group and President of China YAHOO, wants to tell you exactly that the dragon is soaring in China, but it is sunny or cloudy in the sky. No one can be sure of it yet. But one thing is certain is that in China, the soil that has nurtured world-class enterprises has already emerged. Once such a great enterprise grows and expands, it is also a great rejuvenation of the Chinese nation. This is undoubtedly exciting and exciting, and for every Chinese, it will probably become the best prediction in 2008.

A kind of