After joining the WTO, China's hardware industry has gained an important position in the world - becoming a recognized "hardware country." Jiangsu is a famous manufacturing province in the country. The manufacturing industry is large in scale, strong in vitality and good in foundation. Since 1986, Jiangsu's manufacturing output has been ranked among the top in the country. However, with the internationalization of domestic trade, world-renowned hardware companies have entered the Chinese market one after another, which has made the Chinese hardware industry enter a challenging era. Jiangsu hardware industry is a microcosm of the national hardware industry, Jiangsu hardware is also facing this grim reality. China's hardware industry is still at the bottom of the global industrial chain.
At present, Chinese hardware companies mainly rely on low labor costs to obtain production orders for international brands. But how much profit can Chinese manufacturers that rely on low-cost labor competition finally earn? Someone has calculated such an account: a kind of hardware children's toys, produced in Chinese companies, material costs, processing fees and processing profits totaled 3 US dollars, after the Singapore trading company changed hands, the retail price in the US market is 100 US dollars. . Domestic producers provide raw materials, production machinery, labor, and the cost of energy consumption and environmental pollution, only 3% of the price of the product, while the remaining 97% are taken by foreign businessmen in the international division of labor. It is.
At present, from a global perspective, hardware companies in Europe and the United States earn high "brand profits", and hardware companies in Japan, South Korea, Singapore, Hong Kong, Taiwan and other countries and regions earn a considerable "circulating profit". That is, the profits of the modern service industry, and most of our domestic enterprises only obtain meager processing. The quality of Chinese hardware products has seriously affected the competitiveness of the hardware industry. Chinese hardware companies lack a strong sense of quality, especially the "do-and-go" phenomenon of small and medium-sized processing enterprises. The lack of quality awareness has seriously restricted the upgrading of China's hardware products. In developed countries such as the United States and Japan, the quality standards required by customers are usually five levels. Enterprises “consciously†reach level 6 in production; while some companies in China tend to have five levels, I am better than level four. Just barely qualified. There is an idiom in China called "Thousands of Hammers and Refinings". A product should have hit 1000 hammers. As a result, if you hit a 999 hammer, it will be a hammer. It seems to be okay to use---but once there is a problem in use, it often comes out. This last hammer.
The insiders deeply feel that when the large enterprises in the European and American manufacturing industries continue to transfer to China, if our company still uses the "do-it-yourself" attitude to grasp the product quality. In this way, the crisis of quality will inevitably lead to the crisis of integrity, and we will never be able to compete and compete with the big companies in Europe and the United States. To this end, Jiangsu hardware industry must strengthen quality awareness, strengthen quality management, enhance design capabilities and improve processing methods, thereby improving product quality and promoting the overall improvement of Jiangsu hardware industry. Jiangsu's heavy production and light circulation "tradition" have led to a lag in the circulation of hardware products. Jiangsu is a large manufacturing province in China. Over the years, due to the tradition of heavy production and light circulation, the development of the modern circulation service industry is relatively lagging behind. In fact, the time when a product is really in the manufacturing process is only a small part. Most of the time is in the stages of R&D, procurement, storage, operation, sales, after-sales service, etc.--The operation of the industrial chain depends more on the production service industry. The efficiency of the service industry has a great impact on the efficiency of the entire chain. At present, the development of the service industry before and after China's domestic production is not sufficient, and a perfect service system has not been formed, which has affected the competitiveness of enterprises. In terms of the circulation of products, according to World Bank estimates, China's current social logistics costs are equivalent to 18% of GDP, while the United States was less than 10% in the mid-1990s. For every 1 percentage point reduction in this ratio, China can reduce logistics costs by more than 100 billion yuan per year.
Taking Jiangsu's hardware industry, the current situation of Jiangsu's current hardware distribution platform is small, scattered and weak, which is extremely incompatible with Jiangsu's huge hardware manufacturing industry. To this end, to create a high-level professional market as an entry point, as an efficient circulation platform, on the basis of building a highly integrated "display platform" and "procurement platform", focus on creating a modern "logistics platform" and "e-commerce platform" At the same time of informationization, give full play to the functions of third-party logistics, become Jiangsu's emerging and efficient production service platform, and provide multi-faceted services such as raw material procurement, product marketing, logistics and e-commerce for Jiangsu hardware manufacturing enterprises. and support. Promote specialized division of labor, reduce operating costs, and achieve an overall improvement in the quality and brand of the Jiangsu hardware industry. At the same time, as the president of Jiangsu Hardware Industry Chamber of Commerce, I will actively encourage, guide and support the production service enterprises serving the vast hardware manufacturing industry, especially for the major hardware industry clusters, to encourage and guide finance, insurance, logistics and education. The production service industry, such as training institutions, is closely integrated with the manufacturing industry to form a service support system for industrial clusters and promote the healthy development of industrial clusters.
In the international hardware market, there are few independent brands of Jiangsu hardware. The independent brand that has not been screamed in the international market has become the weakness of China's hardware industry, as is the Jiangsu hardware industry. As far as Sunan is concerned, a large number of hardware companies have created a brand-name situation. For example, Feida, Tiangong and Jinlu have already created famous domestic brands. For Suzhong and North Jiangsu, they are now entering the transformation of industrial economy. During the period, some hardware companies also lacked the ability to create cards. Therefore, we must play the leading role of the well-known brands and large enterprise groups and the industrial linkage effect, and extend the industrial chain. Vigorously support small and medium-sized hardware enterprises, promote their development in special, special, refined and new directions, cultivate a number of market brands with strong influence, and gradually form a large enterprise as the core, and the structure of large, medium and small enterprises is reasonable. Enterprise groups that compete at the same level and coordinate development, build an industrial chain, form an industrial group, and create regional brands based on the brand of the company. The gap between China's hardware and Europe and the United States continues to widen. How should Jiangsu hardware face it? According to a recent survey in the United States, 90% of European and American multinational companies have integrated innovation into their corporate strategy, 80% of which have established R&D centers, and most companies put at least 10% of their profits into R&D. Most Chinese companies have little investment in R&D, and some SMEs do not even have R&D funds.
Innovative ability is the core competitiveness of an enterprise. Without innovation, it is difficult to gain a foothold in the fierce market competition, let alone expand market share. Lack of innovation will inevitably seriously restrict the improvement of quality. If the quality is not high and the added value is small, it will be difficult to earn profits. Of course, there is no capital invested in research and development to improve quality. The status quo in China is precisely -- many hardware companies are caught in such a vicious circle. Therefore, it is imperative for Jiangsu hardware industry to spare no expense, establish an efficient R&D system, enhance technological innovation capabilities, transform traditional industries, upgrade industry levels, improve product quality, and transform Jiangsu's hardware industry into knowledge-intensive and technology-intensive. Increase the added value of the product. This year, Jiangsu Hardware Industry Association will launch a number of patented products, and our company should actively participate in the "cultivation" and "incubation" of patents.
At present, Chinese hardware companies mainly rely on low labor costs to obtain production orders for international brands. But how much profit can Chinese manufacturers that rely on low-cost labor competition finally earn? Someone has calculated such an account: a kind of hardware children's toys, produced in Chinese companies, material costs, processing fees and processing profits totaled 3 US dollars, after the Singapore trading company changed hands, the retail price in the US market is 100 US dollars. . Domestic producers provide raw materials, production machinery, labor, and the cost of energy consumption and environmental pollution, only 3% of the price of the product, while the remaining 97% are taken by foreign businessmen in the international division of labor. It is.
At present, from a global perspective, hardware companies in Europe and the United States earn high "brand profits", and hardware companies in Japan, South Korea, Singapore, Hong Kong, Taiwan and other countries and regions earn a considerable "circulating profit". That is, the profits of the modern service industry, and most of our domestic enterprises only obtain meager processing. The quality of Chinese hardware products has seriously affected the competitiveness of the hardware industry. Chinese hardware companies lack a strong sense of quality, especially the "do-and-go" phenomenon of small and medium-sized processing enterprises. The lack of quality awareness has seriously restricted the upgrading of China's hardware products. In developed countries such as the United States and Japan, the quality standards required by customers are usually five levels. Enterprises “consciously†reach level 6 in production; while some companies in China tend to have five levels, I am better than level four. Just barely qualified. There is an idiom in China called "Thousands of Hammers and Refinings". A product should have hit 1000 hammers. As a result, if you hit a 999 hammer, it will be a hammer. It seems to be okay to use---but once there is a problem in use, it often comes out. This last hammer.
The insiders deeply feel that when the large enterprises in the European and American manufacturing industries continue to transfer to China, if our company still uses the "do-it-yourself" attitude to grasp the product quality. In this way, the crisis of quality will inevitably lead to the crisis of integrity, and we will never be able to compete and compete with the big companies in Europe and the United States. To this end, Jiangsu hardware industry must strengthen quality awareness, strengthen quality management, enhance design capabilities and improve processing methods, thereby improving product quality and promoting the overall improvement of Jiangsu hardware industry. Jiangsu's heavy production and light circulation "tradition" have led to a lag in the circulation of hardware products. Jiangsu is a large manufacturing province in China. Over the years, due to the tradition of heavy production and light circulation, the development of the modern circulation service industry is relatively lagging behind. In fact, the time when a product is really in the manufacturing process is only a small part. Most of the time is in the stages of R&D, procurement, storage, operation, sales, after-sales service, etc.--The operation of the industrial chain depends more on the production service industry. The efficiency of the service industry has a great impact on the efficiency of the entire chain. At present, the development of the service industry before and after China's domestic production is not sufficient, and a perfect service system has not been formed, which has affected the competitiveness of enterprises. In terms of the circulation of products, according to World Bank estimates, China's current social logistics costs are equivalent to 18% of GDP, while the United States was less than 10% in the mid-1990s. For every 1 percentage point reduction in this ratio, China can reduce logistics costs by more than 100 billion yuan per year.
Taking Jiangsu's hardware industry, the current situation of Jiangsu's current hardware distribution platform is small, scattered and weak, which is extremely incompatible with Jiangsu's huge hardware manufacturing industry. To this end, to create a high-level professional market as an entry point, as an efficient circulation platform, on the basis of building a highly integrated "display platform" and "procurement platform", focus on creating a modern "logistics platform" and "e-commerce platform" At the same time of informationization, give full play to the functions of third-party logistics, become Jiangsu's emerging and efficient production service platform, and provide multi-faceted services such as raw material procurement, product marketing, logistics and e-commerce for Jiangsu hardware manufacturing enterprises. and support. Promote specialized division of labor, reduce operating costs, and achieve an overall improvement in the quality and brand of the Jiangsu hardware industry. At the same time, as the president of Jiangsu Hardware Industry Chamber of Commerce, I will actively encourage, guide and support the production service enterprises serving the vast hardware manufacturing industry, especially for the major hardware industry clusters, to encourage and guide finance, insurance, logistics and education. The production service industry, such as training institutions, is closely integrated with the manufacturing industry to form a service support system for industrial clusters and promote the healthy development of industrial clusters.
In the international hardware market, there are few independent brands of Jiangsu hardware. The independent brand that has not been screamed in the international market has become the weakness of China's hardware industry, as is the Jiangsu hardware industry. As far as Sunan is concerned, a large number of hardware companies have created a brand-name situation. For example, Feida, Tiangong and Jinlu have already created famous domestic brands. For Suzhong and North Jiangsu, they are now entering the transformation of industrial economy. During the period, some hardware companies also lacked the ability to create cards. Therefore, we must play the leading role of the well-known brands and large enterprise groups and the industrial linkage effect, and extend the industrial chain. Vigorously support small and medium-sized hardware enterprises, promote their development in special, special, refined and new directions, cultivate a number of market brands with strong influence, and gradually form a large enterprise as the core, and the structure of large, medium and small enterprises is reasonable. Enterprise groups that compete at the same level and coordinate development, build an industrial chain, form an industrial group, and create regional brands based on the brand of the company. The gap between China's hardware and Europe and the United States continues to widen. How should Jiangsu hardware face it? According to a recent survey in the United States, 90% of European and American multinational companies have integrated innovation into their corporate strategy, 80% of which have established R&D centers, and most companies put at least 10% of their profits into R&D. Most Chinese companies have little investment in R&D, and some SMEs do not even have R&D funds.
Innovative ability is the core competitiveness of an enterprise. Without innovation, it is difficult to gain a foothold in the fierce market competition, let alone expand market share. Lack of innovation will inevitably seriously restrict the improvement of quality. If the quality is not high and the added value is small, it will be difficult to earn profits. Of course, there is no capital invested in research and development to improve quality. The status quo in China is precisely -- many hardware companies are caught in such a vicious circle. Therefore, it is imperative for Jiangsu hardware industry to spare no expense, establish an efficient R&D system, enhance technological innovation capabilities, transform traditional industries, upgrade industry levels, improve product quality, and transform Jiangsu's hardware industry into knowledge-intensive and technology-intensive. Increase the added value of the product. This year, Jiangsu Hardware Industry Association will launch a number of patented products, and our company should actively participate in the "cultivation" and "incubation" of patents.
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