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    Shoes And Clothing Manufacturing In The United States Blocked China Made More Attractive

    2012/8/15 13:07:00 35

    FootwearMade In ChinaUSA

    In August 3rd, US Assistant Secretary of state Fernandes said in Hongkong: "expect more Chinese enterprises to invest in the US."

    At the same time, after the financial crisis, many manufacturing giants such as Ford have withdrawn from the US mainland. Not long ago, Adidas was said to be closing its own factory in China by the end of October.


    In the Olympic Games, the American team's uniform was made in China, which caused a public opinion storm in the United States.

    Obama campaign's latest campaign advertisement, based on the opening ceremony of the Olympic Games, sneer at its rival Romney to shift a large number of jobs to China.

    In 2011, China exported $325 billion to the United States, the largest trade flow in the world.

    In August 7th, the US National Trade Commission of the United States issued an annual report that the increase in exports to China from the United States far exceeded that of other countries and regions.


    Thirty years Hedong, thirty years Hexi.

    Back in the past 20 years, few people could predict that the Chinese who sold the coolie to the Americans could finally buy the "boss". Few people could predict that Americans would go back to the traditional manufacturing industry while the hi-tech development was advancing rapidly.


    Since China's accession to the WTO, "made in China" has always been the key word of the world economy. The label of "Madein China" in American supermarkets has brought benefits to the Americans, but they first abandoned the "made in China" crudely, and now emphasized that "Chinese enterprises have taken away our employment opportunities".

    Professor Victor Lippitt of University of California at Riverside, who has studied the Chinese economy for more than 20 years, describes the irrational entanglement of Americans with "love hate interweave".

    In order to solve the problem of employment, the elite of the United States set out the prescription of "return to manufacturing industry" and began to bow down to attract foreign investment.


    When it comes to the "going out" of Chinese enterprises, the financial circles will brush up and mention the Wanxiang Group, headquartered in Xiaoshan, Zhejiang. It is the largest auto parts manufacturer in China.

    This year is the sixteenth year for Wanxiang to enter the US market. In the 16 years, Wanxiang not only registered US companies, but also bought 28 American factories.


    Machines seize job opportunities and officials are keen to attract foreign investment.


    Under the cultural background of mercantilism and light government, the mayor and his colleagues in Elgin, Illinois do not often have the chance to see Ni Fei. I heard that a Chinese reporter went to interview Ni Fei. The mayor of the city specially appointed the head of the chamber of Commerce to take the initiative to promote the local investment environment, and also to take the opportunity to do the same with Ni Fei.


    Ni pin is the general manager of Wanxiang Group American company. Its headquarter is located in Elgin.

    One out of every three cars produced in the United States uses components made in the United States.

    In 2010, the sales volume of US companies reached US $2 billion, of which 90% were "made in the United States". It is worth mentioning that it provided more than 5000 jobs for the United States and had great influence in Elgin and even in the United States.


    From time to time, Americans shouted that "Chinese people have robbed us of employment opportunities." Ni often comforted them: "your job opportunities are not taken away by Chinese people. Technological innovation is the biggest competitor for your employment.

    In the past, when people do things, machines can do it now. People naturally don't have the chance to do it again.

    He believes that the American Employment anxiety is precisely because the United States is too developed, which is exactly the same as that of Professor Lippitt.

    In the United States, some supermarkets have adopted the self service cash register system. When consumers pay their bills, they no longer face cashiers. Instead, they scan the bar code price by themselves, brush their credit cards and check their cards at the exit.

    As a result, a large supermarket has reduced dozens of cashiers' jobs.


    {page_break}


    In the face of the general trend, the United States local parents are deeply aware of complaining that Chinese people are meaningless. They often choose pragmatic countermeasures: attracting foreign investment, attracting Chinese companies to invest, creating jobs for local people and increasing residents' income.

    Mike Kelly, director of the Elgin chamber of Commerce, told reporters that they hope to use Chinese foreign investment to increase the annual income of local workers from US $40 thousand to US $45 thousand.


    Kelly introduced the local "advantaged" investment environment, and its way of speaking is similar to that of China's local officials.

    Ni frequent laughs that the US government is so keen on attracting investment that it is only in recent years that "someone will show you your face" in the past.


    The investment in the United States is very delicate. Ni has visited a certain city in the United States. The local government has prepared a bag for each guest, opening it up and frighten: every guest's interests and hobbies have been recorded.

    "I don't know where they came from, which shows that they have studied every potential investor carefully."

    Ni frequency has been so curious about this matter.


    In addition to local officials, the president of the United States did not dare to slack investment.

    Since the entry into the US market in the 90s of last century, the United States government has focused on universal access. Once a Chinese high-level delegation visits the United States, the White House will send an invitation to the conference.

    In a recent speech by Chinese leaders, Obama highlighted the number of jobs that the United States has solved for the United States.

    The enthusiasm of investment in all levels of government in the United States is mainly based on solving employment rather than increasing revenue.


    Unions may not resist mergers and acquisitions


    Over the past 16 years, Wanxiang has acquired 28 factories in the United States, and their old business owners are rich in Ford and Chrysler industries.

    Overseas mergers and acquisitions have always been a hot topic in China's financial circles. Many people think that this is a difficult task, but Ni doesn't think so: "in the factories we bought, some of them were almost given to us and they needed us."


    He explained that some American factories have deep technical background, but narrow vision, lack of global resources, and lack of financial support to get bogged down in the mire.

    Once they are bought, they will be repositioned in the global industrial chain, so that they will not do useless work, nor will their products sell.


    A few years ago, even a number of American companies offered to give the company the lead.

    This sounds unthinkable, but the economic accounts behind it are very clear: if the company continues to be supported by the original team, the company can make up to only 1 dollars; if the 60% share is sent to the universal market, the company can make 5 dollars, though the 3 dollars will fall into the purse of the universal market, but the original shareholders can be divided into 2 dollars, which is 2 times the original one.


    In the United States, enterprises that are good at organizing strikes are always the "big trouble" of managers.

    On one occasion, he was invited to a factory to negotiate a purchase. The factory owner first greeted him: don't wear a suit, tie or a business card when you come. Don't enter the main entrance after that. He's afraid that the Union will strike after news that the factory will be pferred to the Chinese people.


    The factory owner also taught him "if a worker asked you what to do in the factory, you said you were an insurance company and checked the insurance in the factory."


    Even if he did, when he entered the factory, the members of the trade union had "wrapped up" him.

    When he reached the half way, the foreman pulled him aside and asked him, "when can you finish the job?" Ni Fei was frightened and quickly acted like a fool. "What is it?" "the boss said quietly," buy it quickly! Don't listen to those people talking nonsense. We expect the stars to look forward to your coming! "


    Ni frequently remembered that when the factory was bought by Ford, the voting rate of the trade union was as high as 90%.

    "We took 2/5 off and took a lot of benefits off, but they thought we saved the company."


    {page_break}


    The United States is "the king of low efficiency and efficiency".


    Why do all of us dare to go far and go to the United States to establish factories directly in the recognized high wage countries?

    He calculates simply that although the wages of American workers are 8~10 times that of Chinese workers, the salaries of American managers are not higher than those of Chinese managers.

    (Note: the internal income gap in American factories is not wide, and class differentiation is not as obvious as that of China.

    )


    Despite the high wages, Ni concluded that American workers were "very efficient" because they were 12 times as efficient as Chinese workers.

    "The same process requires 24 workers to work in high intensity in China, and only 2 people in the US factory, in fact, they only modify the structure of the equipment slightly."


    In this way, technology is a double-edged sword. It enables us factories to run efficiently, and at the same time deprives Americans of job opportunities.

    This trend has quietly spread to China. With the rise of labor costs, Wanxiang has set a new rule in China's factories: if you can replace a worker with a device, choose equipment as long as the equipment price is less than 500 thousand yuan.


    In addition to "high efficiency," Ni also believes that the United States is "the king of low cost": "land and houses are cheaper than China, cars and gasoline are cheaper than China, and pork and chicken are cheaper than China."

    "Other costs" are also very few.

    So we can see that Wanxiang's factories in the United States are exporting to China, and 40% of Cleveland's products are sold to China.


    He said frankly that money making in the United States is much faster than making money in China: "we make products in China and make business integration in the United States, making money differently, just like the money earned by Wall Street is different from the money earned in China."


    Wang Wei, general manager of Chigo Air Conditioning North America branch, is very special. He was originally a manager of another Guangdong appliance giant in the United States. He did not go to CHIGO headquarters in the United States for a day, and was directly dug up by CHIGO to build the North American branch.

    At the end of 2010, the North American branch of CHIGO was established in Losangeles. At present, there are 7 employees, all of them in the US.


    Profit commanding point and technical threshold


    As we all know, the domestic air conditioning industry has been entangled in price war for a long time, and has entered a meager profit era. The products sold by CHIGO in the United States are shipped from Guangdong. After that, how can we get "very high" profits? According to the introduction, a Chinese made split air conditioner, which sells 3000 yuan in China, can sell for 1000 dollars, or about 6400 yuan, double the amount of it exported to the United States.


    The price is high and the logistics cost is not expensive. Wang Wei revealed a set of data comparison: "from a South China Sea CHIGO factory to Guangdong, the pport cost is about 12000 yuan; if the air conditioner is shipped to Shenzhen Yantian Port (4.24, -0.09, -2.08%) shipped to Losangeles, the United States will spend more than 10 days on the way, and the total freight plus tariff will be 1800 dollars, slightly less than 12000 yuan RMB." the price is about more than 10 yuan.


    It is not easy for Chinese household electrical appliance enterprises to realize the "American Dream". The first pass is accreditation, and the adoption of UL certification by the United States before entering the US market.

    It is a shortcut to find Wang Wei's "old America" to build a branch company, because the air-conditioning industry in the United States is totally different from China.


    Most Americans live in single family villas, with central air-conditioning installed in the villa, and the central air-conditioning of Chinese brands has little chance of entering the US market at present. The US increased the energy efficiency ratio of the central air conditioning in the first few years. To meet the standards, the compressor manufactured by the United States Valley company must be adopted.

    This technology threshold, Chinese enterprises temporarily difficult to cross.


    {page_break}


    As a result, the Chinese air conditioning enterprises can only focus their attention on the market of the split machine. Under normal circumstances, the middle class families in the United States will only buy the split machine when they build or pform the small room.

    Chinese consumers usually buy fission machines from GOME and Suning Appliance stores, and send them to the store to install them. In the United States, the installation of the split machine is positioned as "Engineering", which is done by professional Seiko.


    These professionals are deeply rooted in the community and serve the residents of the community. They are skilled in their work. After their hands are installed on the wall, they are "no line, no dripping", beautiful and rigorous.

    Residents can trust them. They usually buy their separate machines and ask them to install them. The installation cost is less than two hundred or three hundred dollars, or more than seven hundred or eight hundred dollars, sometimes even more expensive than the air conditioning itself. Labor is very valuable in the United States.


    In other words, the community air conditioner installers have grasped reliable sales channels for the split machines, and they have naturally become the focus of Wang Wei's efforts.

    Wang Wei had some thoughts on this: "as long as the installation workers feel that they are more profitable to sell our products, they are willing to help us."


    He admitted that in the US market, all the home appliance brands and air conditioning brands in China are still not worth mentioning, but the days of making small profits for OEM workers are unsustainable. Enterprises have already had a sense of crisis: "household appliances and air conditioners are not without profits, but profits have been taken away by channel merchants and brand operators.

    Tens of thousands of people do their job for them. They have channels and brands, arrange a few people to control us, everything can not be interrupted by us. What we need to do is deliver goods. As to where and how the goods are sold, it has nothing to do with us.

    This situation must be changed as soon as possible. "


    Look at NBA for industry, miss Jeremy Lin


    "If you take up the market in the North Canton market, you will soon be able to capture the whole country's market.

    If you enter the US market, you will be able to enter the global market immediately.

    PEAK sports North American company CEO Su Jia analyzes the strategic position of the US market.


    The PEAK North American company was founded in 2010. Before that, the grass-roots Fujian enterprise has already gained fame in China by employing NBA star endorsement.

    But the objective condition is very cruel: Nike monopolized the 80% of the sports shoes Market in the United States, and the predecessor "Lining" US strategy has failed. PEAK is in the market.

    U.S.A

    What can we do?


    There is no doubt that PEAK's purpose in setting up a branch in the United States is to facilitate communication with 18 NBA stars and 3 NBA teams signed by the company, but Su said that sales and R & D are equally important to the US branch: "the competition in China's sports shoes market is becoming increasingly fierce, and profit margins and market space are declining, and overseas markets must be expanded.

    The United States is the sports Kingdom, the basketball kingdom, the big market of 100 billion dollars, we must make a break.

    We have opened two stores in Losangeles. We collect the most advanced industry information in the United States to play the headquarters and develop new products locally. "


    Kenny worked at Nike and volunteered to be PEAK's brand director.

    In the United States, sports equipment professionals like him are hard to get ahead of, but for Chinese sports brands, he is really a rare talent.

    He hopes to realize personal value in Chinese enterprises.


    Su Jia, Kenny and his colleagues almost saw NBA as their career. They could see as many games as possible.

    Watching the ball is a gold rush process. They hope to find a few PEAK endorsements in the face of a NBA player. If you can sign a super potential stock at a low price, you can dig gold.

    In the United States, there is no difference between watching NBA and watching NBA in China.


    Before Jeremy Lin became famous, PEAK eyed the "banana man".

    After that, Jeremy Lin became a "zero lose hero". The price rose overnight, and PEAK thought that his performance price ratio was not high enough to give up.


    {page_break}


    Despite the courage to take the "going out" step, objectively speaking,

    Peak

    The benefits of "Jinjiang Gang" from the United States are still concentrated on the "export to domestic sale" of brand marketing. Please invite NBA stars to endorse, and then advertise in China's domestic media to stimulate the domestic market.

    At this level, the "Jinjiang Gang" NBA strategy has been successful, because their brand value has been surged through the marketing platform of the United States.


    It has been revealed that although the product has entered the market of more than 40 countries, PEAK still has 90% of its sales from China.


    "Rules" have changed, and patents and talents have been sold.


    Zhang Yu is the head of Guangzhou Guoguang acoustics American branch. He said that sound is a luxury in some sense. In addition, Guoguang is an export-oriented enterprise, with 70% of its sales from overseas business, and an office in the United States as early as 1996.

    In 2002, the boss of the company thought that a big order was very important. He sent Zhang Yu to the United States to follow up his services to the customers. Zhang Yu didn't expect to go there for 7 years until now.


    In the past 7 years, Zhang Yu's most memorable experience was that in 2010, the company acquired 3 million of Aura's 35% stake and became the largest shareholder. Aura is a well-known audio industry listed company in the United States. Its products are widely used in automobiles, televisions and notebook computers.


    Zhang Yu said, at that time, the Aura business deteriorated, and the acquisition was "copy the bottom".

    Guoguang company valued more than 20 patents, high-quality talents and valuable customer channels of Aura.

    This is a typical "snake swallow elephant". Guoguang sound was once a Aura foundry in China.


    In Zhang Yu's view, the industry's "rules" have changed.

    A few years ago, as a Guoguang manufacturing enterprise, the only thing to do was to work hard. The upstream enterprises told them the configuration and parameters, and it did so; now, the competition is intense, manufacturing enterprises must take the initiative to grasp the latest technology, and recommend it to customers, and discuss the application of customers in new products.

    In this competition, it is particularly important to master important patent technology.


    In addition, Zhang Yu also used the financial crisis in the United States for the company "bottom up" an expert in the field of acoustic research, he plans to "Amoy" several electronic and software integration professionals.

    Even if wages are increased, many American personnel are unwilling to leave their homes and work in China. If they can be allowed to work in the American branch of Chinese enterprises, they will be happy.

    The contribution is the same, but the cost is much smaller. Why not? "Zhang Yu said.


    "Golden sentence" from the United States


    Ni frequency: "Chinese are least good at" eating small profits and making big profits ".

    American customers often complain to me that Chinese factories like excuses when they delay delivery, such as sinking ships, factories being burned, and so on.

    On one occasion, an American customer asked me if I could guarantee that the above things did not happen, and I replied, "no".

    I said, if the ship really sinks, I can't control it; if the factory really fires, I can't control it.

    The client praised me after listening. He said he had asked many Chinese factory owners before, and everyone patted his chest to assure him that he would not "turn over" or "sink".

    I am a timid person, playing cards more frequently than Americans do.


    David Tobin, vice president of international sales, the largest exhibition company in the world, "I have been to China forty or fifty times in the past 12 years, and I think Guangzhou has many advantages to become the most important convention and Exhibition Center.

    Some people say that the rise of e-commerce will severely crack down on the exhibition industry, but from telephone to mobile phone to the Internet, every technological progress will only make communication between people more convenient, but it will never replace face-to-face communication.

    Through exhibitions, we can interact face-to-face, enhance trust and improve products and services in interaction.


    {page_break}


    Wang Wei: "why do Chinese enterprises not do well in Japan and Korea? The huge domestic market has made Chinese bosses too comfortable to sell 50 million air-conditioners a year, even if they earn 50 million yuan a year, they earn money by talking and laughing.

    They had no idea of breaking the world at all. They had difficulty in speaking foreign languages, eating western food and taking long distance flights.

    So when the bosses handed out their export business to Xiao Si, they later realized that this piece was very profitable.


    Su Jia: "according to the Chinese way of thinking, if we can jump from 1 to 3, we will not go 2.

    But the habit of the United States is to go through 2 from 1 to 3. If you don't go through 2, you'll have to go back to make up 2 later, and by that time 2 of the lowercase has become 2 of capital.


    Hu Weiquan, chairman of GMC Alliance: China's "top students" high standard alliance


    Let's go back to the starting point of the problem: what is "made in China"? It is generally believed that production in China is made in China.


    Deep rooted in the United States for many years, Ni Fei does not think so: "this era belongs to multinational companies, and the manufacture of products in what country is not important. According to what standard manufacturing is the root of the problem.

    Wanxiang never highlights itself as "made in China", and we emphasize "universal manufacturing".

    This is just like Apple phone, it is not important to produce in Henan or produce in Guangdong. The important thing is that it is a Apple Corp mobile phone.

    We should set up this concept when analyzing problems.


    The consumer psychology of American consumers conforms to the analysis of Ni frequent. When buying Apple brand phones or Nike sports shoes, these world brand products (which are most likely to be produced in China), Americans will never look at the origin information on product labels; but when buying brand names, they will usually seize the label "made in China" on the products, and then negate the whole Chinese manufacturing industry.


    "A shame and shame", a high quality Chinese manufacturing enterprise has been troubled by miscellaneous cards implicated and powerless.

    Guangzhou's "Thirteen elements", together with Fu Ling's later Ling Feng and his good friend Hu Weiquan, discovered this problem. 16 years ago, they founded the global market company and built the GMC alliance.


    Ling Feng and Hu Weiquan's idea is very simple: to establish strict GMC standards, to absorb high-quality domestic enterprises that meet this set of standards, and to carry out strict late supervision. For some time, the European and American customers of these member enterprises will experience the "GMC standard = high quality trustworthiness", and will be relieved to buy it from now on when they see the label of GMC.

    As a result, the "top students" in Chinese manufacturing enterprises have drawn a clear line with "poor students" and are no longer despised by one size fits all.


    Due to the two pulse of the domestic enterprises, the global market company has been developing rapidly at the speed of "rocket". It has been listed on the London Stock Exchange recently. In Guangzhou, the report on the work of the municipal government in the first half of the year and the arrangement for the second half of the year also mentioned this matter.


    "We can successfully go public because the international economic community has seen the upward trend of" made in China ", and we happen to do so.

    Listing is not for money, we take the initiative to put ourselves in strict supervision of the London Stock Exchange, which helps to further enhance the credibility of the GMC standard.

    Hu Weiquan, general manager of global market and chairman of GMC alliance, told reporters.


    Hu Weiquan said that the characteristics of the Pearl River Delta "world factory" and the status of Guangzhou's capital of Commerce and trade are the important basis for the GMC standard to change from dream to reality.

    At present, thousands of domestic enterprises have joined the GMC standard, and Hu Weiquan has been able to grasp many detailed business data. He said he clearly saw that "made in China" and "made in Guangdong" are going through a round of survival of the fittest. "Every time the macro economy is in a bad mood, the worst cry is those small businesses that are not competitive, and the days of large enterprises and medium-sized enterprises are not bad."


    Whether the Chinese small businesses that have been "abandoned" by the high quality enterprises will come to an end.

    Hu Weiquan did not see this: "this is like the red wine industry. When it comes to Lafite, people praise that it is good wine; further, people think that the red wine from Bordeaux, France is good wine; finally, all the French red wine is followed by the world, and the world generally has a high evaluation of French red wine."


    "Made in China" is also the case. Since there are such deficiencies in reality, we will first integrate the "top student" collective attack to word-of-mouth, and for a long time, foreigners will gradually lay aside.

    Made in China "

    Other Chinese enterprises are also concerned about their prejudices.

    At present, our work has achieved considerable success. "

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