Why Is The "made In China" Is Not "made In China"-oem, Odm, Chinese Home

Chinese-made products in the world have been occupying a pivotal position

, including home appliances, medicine, electronics and other manufacturing industries, including 10 total output of more than 80 product groups ranked first in the world. In 2000 the added value of a breakthrough in China 3 trillion yuan in gross domestic product accounted for more than 34.4%, in the proportion of total world manufacturing more than 5%, ranking fourth in the world. Japan's "Sankei Shimbun" also published an article a row, that "in the manufacturing sector, China has become the world factory." Numerous "MADEINCHINA" (in China), with its cheap goods keep leaving their country, "conquer" the world, so we are intoxicated with the "World Factory" and "manufacturing country" full of joy and confidence. But in China, low quality products in the world has been unable to erase the image of cheap, harsh reality of being awaken us, we just "manufacturing country" rather than "creative power" and even it can not be a manufacturing country, more and Brand missed the big powers.

The U.S. "Business Week" launched in conjunction with the Interbrand Corporation annual "Top 100 Best Global Brands" in China has been no brand presence. Latest issue (No. 9 of 2006), "Business Week" published "Top 100 Best Global Brands" and "Top 20 Chinese brands" of information, though both China Mobile to 25.11 billion U.S. dollars brand value ranked the best in China brand leader, but less than "the world's best brands hundred List" bring up the rear 1.7 billion U.S. dollars, but only top of the Coca-Cola 67 billion U.S. dollars of 37%, and the "Top 20 Chinese Brands" in almost all state-owned enterprises.

In the past, "Business Week" has revealed that hundreds of million of Chinese manufacturing enterprises, but do tens of thousands of OEM's, ODM's, but thousands can do, not only do ODM, but there are dozens of its own brand home. Even claims to the highest level of technology, the most competitive in the Chinese home appliance industry, the real percentage of firms can do ODM but also 1 / 5, can do only little 45 brand only!

Even more frustrating is that the Chinese products are only in the most profitable low-end chain. If every Chinese companies export a DVD, priced at 32 U.S. dollars, to the foreign patent fee is 18 U.S. dollars, the cost of 13 U.S. dollars, can only earn one U.S. dollar of profit; a price of 79 U.S. dollars in the domestic MP3, foreign to took 45 U.S. dollars in royalty fees and manufacturing costs to 32.5 U.S. dollars, Chinese companies access to the net profit is only 1.5 U.S. dollars. Even China's largest microwave oven brand Glanz, its profit margin is as low as 3 to 5%. Profit making business difficult for low abundant accumulation of funds in technology research and development, not technology research and development, can only engage in low-level assembly process, access to low-margin, low-level circulation that can never lead to the evolution of Chinese enterprises to upgrade, difficult to form and long-term maintain world-class brands.

In fact, we have too much emphasis on the introduction of new equipment and technology to create new products and labor, raw materials and other resources Cost of comparative advantage, so we only put emphasis on production and processing capacity, rather than R & D investment in innovation and brand building. Reality has been cruel to tell us?? These can not win in the future for Chinese enterprises.

How the "Made in China" to "Created in China" to form a world-class brand, many experts and scholars made a number of opinions, but I believe that the most important ideas and to remove institutional barriers.

Factor price distortions

Factors of production, including land, capital and manpower resources, because China's transition to a market-oriented reform process, factors of production remained in the past system of non-market input prices for the Chinese domestic enterprise to provide low cost advantage such as land allocation and preferential policies for the administration of low land price; deposit and lending rates by administrative control, passing the bank was lower than the price of the funds used; country's export policy has long been the formation of export subsidies and advantages of the low exchange rate of RMB; restrictions on urban-rural dual structure of the labor movement to open an enormous gap of cheap labor resources, but long-term low-wage, no real growth in recent years, and long on the "migrant workers" and even all the rural residents in social security debts, etc. .

by: gaga

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