Consumers And Brands Are Changing.

Design, marketing, manufacturing and service will make it possible for enterprises to have a certain fighting capacity in order to better capture the opportunities of Internet + in China's quality transformation. This is a proposal made by Alibaba and Taobao to the enterprises in China's qualitative transformation. We must have a clear understanding and make the necessary preparations and inputs when doing the transformation.

The Summit Forum on transformation and upgrading of China's quality industry was jointly hosted by the AQSIQ, Alibaba and the world's Internet merchants. The vice president of Taobao, Yang Guo, shared the four capabilities of traditional enterprise transformation in Hangzhou Xixi guesthouse.

First, changes in consumption. With the development of e-commerce and penetration, consumers' demand for quality of goods is getting higher and higher. In the new situation, it is difficult to meet the demands of commodity quality and quality simply by cheap and good quality. Chinese consumers are beginning to buy goods overseas. Not only that, there are more and more offline brands entering online channels. With the development of e-commerce today, the driving force of overall upgrading is actually to cater for the changes of the whole consumer group. Therefore, the upgrading of product quality is the choice of consumers, as an electronic business platform is to meet the change of this demand. In my opinion, e-commerce should not be synonymous with low quality, which is from the perspective of consumers.

Second, brand changes. Because of the increase in labor costs in China, more overseas brands have shifted their production bases to places with low labor costs, such as Southeast Asia, so China's consumption has not declined, but its value will slowly shift to other countries. This is a challenge for Chinese manufacturing enterprises to face the hollowness. This is a great pressure on us, which is from the perspective of brand dealers.

In order to meet the transformation of the manufacturing industry, the manufacturers are making three changes: the first is the relocation of factories, and many enterprises are doing foundry work at the Canton Fair. The biggest publicity point is that there are factories in Southeast Asia because of the lower cost; the second one is to invest in automation in some enterprises in Zhejiang or Guangdong, and to invest in robots or new production processes. This is to reduce production costs through new technology investment. The third way is to build China's own brand and to build its own brand. This is a more continuous transformation path, because there is a certain cost advantage for both the relocation and upgrading of technology, and there is always something better to replace the cost advantage. But if you choose to own a brand, this is the longest and the most core, no matter what circumstances can not be replaced. Therefore, the upgrading made in China has a profound impact on the industrial belt of every region, the consumers in China and the retail market in China.

How to make a transformation in China?

This is an opportunity. China's quality creation is a transitional stage created by China. In the long run, we also hope to create China's creation. But today, a large number of industrial belt in China has shifted from foundry to private brand. It needs a transition. In this transitional stage, we hope that every participating enterprise will have a necessary preparation and necessary service. And I think that in order to better catch the opportunity of Internet +, enterprises need at least four abilities.

The first is the ability to design, and must have the corresponding capabilities of product design to meet the needs of consumers. In the past, many enterprises have the ability of ODM, most of which are processed by raw materials and manufactured according to others. In the future, if we turn to online sales, consumers' demands will change faster, and the demand for new models will be even higher. As an enterprise, if there is no strong Design ability It is difficult to meet the needs of online consumers. Therefore, design capability is a must for every enterprise in transition. Whether it is outsourcing or building a team by itself, it must have this ability.

The second is marketing capability. E-commerce or Internet + provides such an opportunity, but in fact, its playing is not the same as offline. for example Putian Many enterprises have realized that they have to make their own brands, but they face many obstacles in line with the channels. If we want to go to the Internet, we need to build another kind of ability of Internet marketing.

Third is quality related processing and manufacturing capabilities. This is a foundation. When consumers buy online, there is a passing line first, and the pass line is the product. quality OK. Product quality comes from our control of production standards, supervision from quality supervision units, and self commitment from enterprises. This is a foundation. Without this basis, design and marketing are empty talk.

Fourth is the ability to serve, and the ability to service needs great changes. The original foundry enterprise is strong in technology and process, but today, facing more dispersed Internet population, it needs more personalized service capabilities.