What Is The Real "Compensation Board" For China's Manufacturing Industry?

Recently, the State Council issued the "on display".

The paper points out that China's brand development is lagging behind economic development.

That's true.

From the perspective of economic volume, China is now the world's second largest economy and the world's largest cargo trading country.

Scale the world first.

But in the 2015 Interbrand global best brand 100 strong list, we only see HUAWEI (eighty-eighth) and Lenovo (100th) two Chinese brands.

Look around us, domestic tourists in Europe and Australia rush to buy milk powder on the media headlines, a year ago, the Chinese tourists to Japan are still buying the toilet lid of Japan, even when the writer Mo Yan went to Germany to meet, he also had to buy a German pressure cooker back.

Why is there a lack of valuable brands in China?

No way? This is the general impression of consumers. The State Council documents also point out that China's "product quality is not high......"

The problem is more prominent, but at the same time, we also see that the smart toilet lid that Chinese tourists rush to buy in Japan is actually made in China, and many international brands are actually manufactured by Chinese factories (although these big international companies have not publicly acknowledged).

That is to say, China has fully possessed the ability to produce first-class products.

Is it because Chinese enterprises do not attach importance to brand building? It seems to be true, but data show that in 2015, the scale of China's advertising market was 41% of that of the United States, but the growth rate was 2.4 times that of the United States.

China is expected to maintain such a growth rate in the next three years. It is estimated that the contribution of China's advertising market in 2018 will surpass that of the United States for the first time.

It can be seen that Chinese enterprises do not attach importance to brand building.

So what makes China's manufacturing industry a lame giant? - the lack of soft wealth thinking.

In the early days of industrial hard wealth, people valued the function of hard wealth itself. In the late period of industrial hard wealth, the huge capacity brought by industrial production has allowed us to enter a "rich society". People pay more attention to the spiritual experience brought by consumption, whether they can add more soft value to industrial hard wealth, and become a battleground for international companies to compete in the world.

Food has long gone beyond the basic effect of starvation, and whether it brings health, health, identity and cultural experience is the deciding factor of whether it is popular.

Clothing also pcends the basic utility of shelter from the cold, whether it can become a symbol of fashion and identity, whether it can realize the value of the fundamental.

As pointed out in the book "soft wealth" by Mr. Teng Tai, "when a country with soft power grasps the trend and dominant power of consumption wealth, manufacturers and labourers who are still full of hard wealth view can only make coolies to earn meager" hard reward ".

So there was the famous saying of Mercedes Benz, "I am making art, but it happens to run."

Only those enterprises that produce hard wealth by thinking of producing soft wealth can win in brand competition.

We see that over 50% of the top 100 brands in the world come from the United States, and nearly 20 of them do not produce tangible industrial hard assets, but only soft wealth companies that provide software, programs or services, such as Google, Accenture, JP.Morgen, MasterCard, Disney, discovery channel, and so on.

These enterprises do not invest in huge factories, do not have a lot of machinery and equipment that depreciate and depreciate every day, and do not have marketing channels all over the city and countryside. They have high-quality R & D, creativity, analysis and design personnel, some are precise grasp of the customer's spiritual needs, and some are brands that influence people's hearts and minds. With the help of these "soft resources" that are out of the earth's mineral resources, the United States can create more than 700 billion US dollars of export volume of service trade (data in 2014, while the total export volume of China in 2015 is US $2 trillion and 210 billion) under the massive pfer of industrial hard assets.

The developed countries in Europe and the United States have entered the mode of soft wealth, and China's economy is accelerating into the era of soft wealth.

If we still hold the outdated concept that only produces industrial hard wealth, China's manufacturing industry will always be a lame giant. Therefore, the real short board of China's manufacturing industry is the lack of soft wealth thinking and soft value creation ability, the development of soft wealth thinking and the promotion of soft value are the real "compensation boards" for China's manufacturing industry.

Of course, excellent hard asset production capacity is the foundation of the soft wealth era. China now has a good foundation. HUAWEI's communications equipment and mobile phones, Dajiang UAV and Haier's white household appliances all have the strength to participate in international competition. At the same time, Tencent, Alibaba and other soft wealth enterprises have gradually developed.

Therefore, there is absolutely no need for China to win the competition by using the business model of "counterfeit quality is not low and price is low".

On the contrary, China should vigorously develop its own ability to create soft wealth. If China's hard wealth manufacturing enterprises have the idea of soft wealth, the giant of China's manufacturing industry will go back and forth again.

In fact, from China's OEM industry, it has also stepped out of its own brand products.

Take the sports shoes industry as an example, China's sports shoes industry was initially manufactured for international brands such as Nike and Adidas. However, since the beginning of twenty-first Century, some domestic manufacturers began to develop their own brands, and gradually emerged a series of local brands. More and more attention was paid to technological R & D and brand building, in fact, it is to cultivate their own new supply creation ability and soft value.

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We say that developing soft wealth thinking and enhancing soft value are the real "compensation boards" for China's manufacturing industry.

What is the key to improving soft value? "Soft wealth" once said: "no matter government or enterprise, we need to grasp the law of soft wealth creation as well as the means of core soft resources as soon as possible."

The most important point is to cultivate the source of soft wealth, soft resources. These core soft resources are no longer productive equipment, no longer land, sometimes not a lot of capital investment, but soft wealth outlook, soft elements, public values, creative thinking, soft wealth path, soft platform strategy, club strategy, precise development of customer demand, soft environment growth replication culture environment, guidance group body cognition ability, suitable information and financial strategy for soft enterprise, and related basic communication, human capital, cultural entertainment environment, free business mode and so on.

From the perspective of human development history, the source of agricultural ecological wealth is constrained by the constraints of the earth's surface ecological environment, the growth of plants and animals, and the physiological needs of people. Its growth prospects are limited. The source of industrial hard wealth is limited by the demand of the earth's non ecological resources and people's needs, and the growth potential of the soft wealth represented by knowledge products, information products and financial products is unlimited.

Only by developing soft wealth and increasing the supply of new products can we constantly optimize the supply structure and create new demand, and guide the economy into a virtuous cycle of supply, employment, demand and innovation.

On the one hand, we need to add more soft value to China's hard wealth manufacturing industry. On the other hand, we must vigorously develop the soft wealth industry, as premier Li Keqiang said, pushing China's development from over reliance on natural resources to more reliance on human resources and innovation driven.

In the structural reform of supply side that is advancing, upgrading enterprise's ability to create soft wealth is also an important measure to stimulate new supply and create new dynamic energy.