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No more If low-price and low-quality products are purchased, China’s manufacturing industry will only have a dead end if it continues! To be honest, good products should have good prices. Only with good prices can we have good profits. Only with good profits can we have good R&D. Only with good R&D can we have better products. commodity. No Fortune 500 company in the world has made its fortune by relying on profits, and no country has prospered by relying on profits. Stop hyping Internet+ all day long. For the manufacturing industry, you can only focus on research and development. Whether it is the Internet or Internet+, it is just a channel for the manufacturing industry, nothing more!
In the mid-1990s, I went to Wenzhou to investigate the lighter industry. Wenzhou people spread more than a dozen spare parts on the table, picked them up one by one, and told me the price difference between those made in Wenzhou and those made in Japan (Japan): electronic ignition The cost of the device is 1.1 yuan from Japan (Japan) and 0.2 yuan for Wenzhou people; the cost of the sealing ring is 0.2 yuan from Japan (Japan) and Wenzhou LR Escorts0.01 Yuan for people from Wenzhou; plastic parts cost 0.6 Yuan for Japan (Japan) and 0.08 Yuan for Wenzhou people. In addition, the monthly salary of Wenzhou workers is 20 times lower than that of Japan (Japan) workers.
After calculating the cost, the young Wenzhou boss patted the table very heroically: “The wholesale price of a lighter made in Japan is one dollar, and the one made in Wenzhou is one yuan. Look. We don’t want to kill Japan (Japan)! “When he said this loudly, there were more than 3,000 lighter factories in Wenzhou, with an annual output of 2 billion pieces, ranking first in the world.
How did the myth of Made in China come about?
p> In the past history of the rise of Chinese enterprises, this phenomenon has never been unfamiliar. For the same product, our entrepreneurs have amazing capital control capabilities-including raw material costs, manufacturing process costs, labor costs, Land costs, tax costs, land costs, surrounding environmental management costs, marketing costs, etc., have abruptly defeated international competitors in one field after another, creating the myth of Made in China
It has become the oldest in China. Ni Runfeng, chairman of Sichuan Changhong Color TV Factory, even summed up a “30% life and death line” competition law: under the premise of the same performance, Changhong color TV must be cheaper than Japan (Japan) and European brands LR Escorts Thirty percent, this is the “life and death line” that must be guarded. We have guarded this “life and death line” for thirty years.
As of today, it seems that we should answer this question: Can we hold on to this “life and death line”? Should we still hold on to this “life and death line”?
Let’s talk about that again? Just a lighter.
Just when the young Wenzhou boss was patting the table heroically, I picked up his lighter and hit it three times before it started to light up, but the thin piece of steel almost fell off. He explained to me calmly: “This is a disposable lighterLiberians Escort. Many people use it a few times and then throw it away. , there is no need to be as tough as Japanese people. ”
This detail implies the fact that the huge price advantage of Wenzhou lighters, in addition to various cost differences, actually also comes from the quality of accessories and the decline in user experience. In addition, as an industry Those who simulate latecomers do not need to invest in technology iterations.
Therefore, the so-called “cheap and good quality” is rigid, but “good quality” is not necessarily true.
The “myth” disintegrated under internal and external attacks
Starting around 2003, with the development of international raw materials and leisureInterest costs have been declining in turn, and Wenzhou lighter factories are under increasing pressure. The industry’s average profit margin has dropped to the unfortunate level of 2%. A large number of factories have closed down and converted to production. More than 3,000 companies have shrunk to more than 100, and all LR Escorts has been struggling for a long time, and in these years, Wenzhou people have been interested in making fireLiberia The contribution of technological iterative improvements in the Sugarmachine industry is almost zero.
A small lighter is a small microcosm, from which the ambition, expenditure and limitations of a generation can be read.
The manufacturing industry can be said to be the foundation of China’s economy, and its sustainable growth depends on the balanced progress of quantity and quality. Over the past thirty years, our manufacturing capacity has achieved unprecedented improvements. From buttons and home appliances to cars and mobile phones, everything ranks first in the world. However, the cost advantage we rely on to win has been unknowingly evaporated. The clouds have disappeared, so the space of “cheap and good quality” has actually been extremely squashed.
More importantly, there are hundreds of millions of middle-class people in China today. They have begun to seriously track the quality and performance of products and tools. This group has four obvious consumption characteristics.
First, they are typical Liberians Sugardaddy functional preference. Even if they go to buy a pair of sports shoes, they also clearly understand whether they need jogging shoes, casual shoes, or hiking shoes. When they open their wardrobe, they will find a dozen fresh and refreshing shirts for different ages. There are differences, formal and casual must be distinguished, subdivision means grade, grade appeals to quality, quality points to brandLR Escorts;
Second, they are savvy marketing discerners. Vulgar, melatonin-style brainwashing marketing seems to them to be an insult to IQ. They experience science and are more willing to trust word-of-mouth spread from a unified aesthetic level. It is difficult for them to identify with a brand, but once they have a good eye, they will become continuous consumers and generous distributors;
Third, they are willing to pay for high quality. They believe that good products should have matching prices. This is not only respect and reward for the product suppliers Liberians Sugardaddy, but also for themselves. A recognition of taste, the necessity of consumption behavior gives way to aesthetics, they are willing to pay for services, pay for design, pay for technology, pay for popular elements, every specialty of the product supplierIt is worth spending more money to confirm;
Fourth, the pricing of goods is related to cost, but depends on the value recognition of consumers’ psychology. Whether a Xiaokun bag is made of real leather or natural leather is related to whether its price tag is 30,000 yuan or 1,000 yuan. Those who order 1 Liberians EscortAn early adopter of an Apple smart watch worth 20,000 yuan, has no interest in the manufacturing cost of watch accessories.
These new consumption characteristics are a symbol of the era of material abundance and represent changes in the new mainstream consumption concept, and they are all abandoning the concept of “cheap and good quality”.
The era of “cheap and good quality” may be over
What is a little disappointing is that most manufacturers in the world today have not noticed this change in trends, even in the emerging Internet industry. Here, what we are still witnessing is the continuation of the old “cheap and good” strategy.
We saw some cutting-edge entrepreneurs, wearing Steve Jobs-style jeans, standing in front of a huge LED screen, telling the audience in great detail that their upcoming shirts were made from the world’s The best cotton thread, the best printing and dyeing process, the best no-iron Liberians Escort skills, no matter from the quality to the appearance of the things, From comfort to appearance, it is comparable to all the shirts in Shin Kong Department Store that sell for several thousand yuan, but the price is only 129 yuan.
I often see such speech scenes, and I can’t help but think of the Wenzhou boss and Ni Runfeng back then. I trust his sincerity, but I really don’t trust his future.
I would rather believe that good products should have good prices. Only with good prices can we have good profits. Only with good profits can we have good research and development. Only with good research and development can we have good products. There are better products.
The so-called “cheap and good quality” can exist as a marketing concept, and even as a periodic promotional attack strategy, it is worth trying, but it should no longer be the killer of “Made in China” Technology, let alone bring “Made in China” to a new level of upgrade.
I would rather believe that the middle-class people who once appeared in the market are willing to pay good prices for good products. They want the companies they trust to prosper and have higher profitsLiberia Sugar and price-earnings ratio, use more investment to provide them with better products.
The stars change and everything changes. In today’s Chinese market, the “30% life and death line” is not only untenable, but also no longer necessary. In this sense, the era of “cheap and good quality” can really come to an end.
Free editor: lq
Original title:Made in China is raising prices for low prices!
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