2019 New Consumption Observation: "Follow The Wind" Or "Create Wind"?

In the age of PC Internet, if an entrepreneur sees investors, there will be an eternal question: what does BAT do in your field? In the age of no boundaries, latecomers seemed unable to see hope.

But in the mobile Internet era, few investors will stick to this problem. Alibaba and Tencent have formed their own boundless ecosystems. Today, the rise of small giants such as headlines, spells, and fast hands shows that only entrepreneurs who are good at creating wind can survive. In particular, it looks like a lot of things, it looks relatively small, looks like there is no law and regulation, but it catches the demand of the sinking market, a large number of hidden consumption potential is activated, and the possibility of the platform is also rapidly enlarged.

On the whole, the opportunity of new consumption platform should be from the supply side, through the scale economy and the reconstruction of the industrial chain, we can agree with the interests of the new brand, thus forming a moat. For consumer goods enterprises, they often need to design, produce and sell the entire industrial chain, breaking the old old mode and improving efficiency to create barriers.

In October 3rd, Samsung Electronics, a twenty-seven year old Guangdong Huizhou, was officially dissolved. The new foundry will be transferred to Vietnam and India with lower labor costs. Huizhou Samsung is the last generation of Samsung mobile phones in China. Previously, factories in Shenzhen and Tianjin were closed before and after 2018. In fact, it is not just Samsung, but Vietnam has replaced China as the largest foundry of Nike sneakers a few years ago.

Behind the transfer of OEM industry is the influence of external factors such as rising raw material prices, labor costs and trade frictions. Some manufacturing enterprises are beginning to face challenges.

What remains in the factory after losing foreign trade orders? The director of a garment factory outside the outer ring of Minhang District, Shanghai, told the twenty-first Century economic news reporter that even in the suburbs, its labor costs are also facing increasing pressure. "Like many sweaters, we are all artificially woven. The cost of light is two hundred or three hundred. In the first ten years, we gave the brand to the foundry. After ten years, we still wanted to take the road of branding.

In the past few years, the self built brand of this factory has not been improved. Many attempts have been made in shopping malls, online shops, etc., but with little success. High risk and high cost have become obstacles to the branding of traditional manufacturing factories. Take a Logitech mouse with a market price of $40 as an example, Logitech Inc gained $8 profit from the brand and design links, and the supplier of chip technology achieved a profit of 13 dollars, while the Logitech mouse assembly plant in Suzhou, China, only shared 3 dollars, accounting for 7.5% of the total retail price.

In the Fu Ye home textile factory, three hundred or four hundred pieces of factory price towels, after being labeled with the big brand, immediately became 5000 luxury items. One side is the scissors gap between Chinese factories and brands. On the one hand, China has the largest consumer group in the world: Costco has been scramble to restrict its operation in China, and musk has accelerated the construction of Tesla's only overseas super factory in Shanghai, and has spelled over 4 years of over 500 million consumers' super high speed growth. According to the economist, by 2020, China will have the largest middle class in the world -- over 470 million.

In this blue ocean, it is better to create "wind" than "follow the wind". Branding and digitalization are the only way out for China's manufacturing industry. The trend of the new round of industrial revolution has forced the entire traditional manufacturing industry to change. Fortunately, whether Alibaba, Jingdong, strict selection or a lot of spells, they are already exploring the industrial chain, from the deepest anatomy to create blood for China. Great challenges, great opportunities, and opportunities to bridge risks and opportunities will be a test for Chinese factories.