China Can Only Earn A Little Bit Of Processing Fees?

Speeding up the pformation of economic development mode and focusing on independent brands

The Bobbi dolls, which are popular with children, are almost entirely produced and processed in China.

"Brand pain" made in China

The "brand pain" made in China is so real.

One of the brands of China's clothing industry: the red bean group is processing OEM for Armani.

According to statistics from China, from clothing to steel, China exports $100 million worth of "made in China" to the world every hour.

But most of these products are OEM and are at the lowest end of the international industrial chain. China can only earn a little bit of processing fees.

"The game rule of global production is like this.

This kind of processing is the main trade.

Sheng Guangzu, director general of the General Administration of customs, said that foreign invested enterprises are the main beneficiaries of the trade surplus. They make use of China's cheap labor force and other production factors to engage in processing trade and get most of their profits.

Huo Jianguo, President of the Ministry of Commerce, said that the lack of independent brands in China's foreign trade has much to do with the lack of China's well-known multinational enterprises.

Despite the progress made in the independent brands of foreign trade these years, progress in the construction of well known brands and famous products is still slow.

The creation of an independent brand must undergo labor pains.

"The creation of independent brands and pformation of enterprises must undergo short-term pains."

Zhuang Jianhua, vice president of household cleaning and electrical appliances manufacturing company in Suzhou, said frankly.

Zhuang Jianhua described the "pain" of enterprises in creating their own brands: a large amount of capital and resources must be faced with competition from production capacity, technological R & D, and brand marketing capabilities. In the short term, the profitability of enterprises may be weakened.

However, "facts have proved that our efforts to develop our own brand have gone the right way."

Zhuang Jianhua said.

With more than ten years of accumulated experience in the field of OEM for international famous enterprises, Suzhou household cleaning and electrical appliances manufacturing company invested nearly ten million yuan in technology research and development in recent years. Since 2008, it has consciously built its own brand in the domestic and foreign markets, and has recruited local brand agents in France, Italy, Malaysia and Czech.

Through years of brand cultivation, the domestic sales of independent brands in the first half of the year increased by 200% compared with the same period last year, and international sales started from scratch. In 2010, it is expected to exceed 10 million dollars.

The sudden arrival of the international financial crisis has brought China's foreign trade to severe winter, and foreign trade enterprises that rely on cheap labor and cost advantages have closed down.

The external demand is uncertain, and the pressure of rising domestic raw materials and manpower costs will create an upside down trend for enterprises. Enterprises must pfer to the high-end industrial chain with higher profit margins and higher profit margins.

Foreign trade experts say that the value of Chinese brands is improving at the right time.

Huo Jianguo said that after years of development, China has obvious advantages in the manufacturing sector, and is now in the process of extending to the two ends of the manufacturing chain, namely, upstream R & D, raw material procurement, downstream logistics and sales network.

Zhang Yansheng said that in the context of global competition, large and ambitious enterprises must consider the strategy of brand expansion, enhance their control ability and influence on the industry chain, otherwise they will be in a passive situation in the global fierce market competition.

Government enterprises should join hands in {page_break}

"Brand allows us to go further in international competition."

Suzhou newei valve Limited by Share Ltd deputy general manager Yao Jiong said.

The company is the largest industrial valve manufacturer in the country. It has been independent research and development and independent brand for many years. Its products have been recognized and recognized by the top ten energy companies in the world.

Yao Jiong depicted the blueprint for the future development of the company: from the lowest part of the industry to the parts, the OEM, to the second level of the single product export, the future direction is to sell the overall system plan, including the package project contract, involving the selection of product mix, the later stage construction, installation and commissioning, and later operation; and then from the single physical paction to the combined product of physical and technical services.

This is also the core competitiveness of the "made in China" future.

China is no longer satisfied with the world's manufacturing factories and has no status of discourse power. It is trying to promote the pformation and upgrading of processing trade.

Huo Jianguo said that the government needs to release more visible signals to the enterprises in the direction of foreign trade policy, and guide enterprises to develop towards high-end and high added value through credit support, information services, technical support and examination and approval.