From high-speed rail to C919 big plane, China made overcoming difficulties to upgrade



From high-speed rail to C919 aircraft, China Manufacturing has played an increasingly important role in the international arena. With the promotion and upgrading of “Made in China 2025”, the manufacturing industry has once again been on the cusp.

      China's manufacturing industry, which has experienced numerous challenges and opportunities, will also make more responses, changes and attempts in the new situation. Today, when industrialization is mature, how can China's manufacturing industry continue to break through and strengthen its competitiveness. At the First Financial 2017 Technology and Innovation Conference, Gao Zhendong, President of the Group, shared his experience and described the difficult upgrade path for Chinese manufacturing companies.

     From channel to manufacturing

     Founded in 1994, Bao Shide was the first to do international trade. Starting from four employees and an apartment, it began its arduous exploration of Chinese companies going out. Gao Zhendong said that the model at that time seemed to be like a pie falling from the sky. 'One is to buy in and sell it. Just know that the price of selling is higher than the price of buying it. Second, the buyer at that time did not. Know where the seller is, the seller does not know where the buyer is, as long as you can make money in the middle of the match.'

     With the gradual improvement of social information, the 'first jump' of Gao Zhendong's transformation is to enter the manufacturing industry. At that time, China's manufacturing industry was still in the initial stage of prosperity. The disorder and chaos of the market were the primary problems encountered in the transformation process. The phenomenon of opportunism, malicious competition, and lack of regulation were intensifying. The manufacturing of heavy assets also brought great operational pressure to Gao Zhendong – Bao Shide had been losing money for three consecutive years.

   'After three years of loss, we decided to do the OEM.' Gao Zhendong recalled the scene to the reporter. From trade to manufacturing, Gao Zhendong relied on low-cost manufacturing advantages and won a large number of OEM orders. Gao Zhendong and his treasures gradually grew.

   “Doing OEM is to manage the factory, you can do it with the best quality and the lowest cost. But can China always have the lowest cost? Can you always have the lowest cost?” Under the wave of manufacturing and brand upgrading, high Zhendong’s ambitions have led to concerns about the sustainability of the OEM model and the long-term development of the company.

   How to learn from advanced manufacturing, how to make products acceptable to the market, where are the channels, and where are the talents coming? These problems have plagued Gao Zhendong for six years – six years since Bao Shi had prepared his brand strategy.

   For Gao Zhendong and his Bao Shide, the biggest difficulty is that customers become competitors, and it is common to withdraw orders and suppress each other. In the war between the giants, price wars often occur. In the process of low-price competition, the cost of acquiring users and the cycle are lengthened, the viscosity is low, and the vicious competition is intensified.

   However, Gao Zhendong also has a response. 'For example, we have a series of good products, only choose one of them, give them exclusive. My products are no worse than others, they do not need to give others a price war, the opportunity for cooperation comes. Bold assumptions, careful verification, and finally take the chance.'

   In 2004, the company's own brand WORX Wicks power tools brand officially promoted the overseas market for the first time, and their German branch was established. In 2007, Baoshi had to use the international market to feed back the country, and the WORX Wicks brand returned to China smoothly. It eventually became one of the largest manufacturers and exporters of power tools in mainland China.

  'Intelligence' is not 'substitution'

     As the proponent and advocate of “Industry 4.0”, Germany is in a leading position in manufacturing equipment, industrial automation, industrial software, etc., and strengthens “hard manufacturing” through the coordination of all industrial systems (research institutions, associations, universities, etc.). Advantages, while expanding the 'soft service' capabilities. These will give Germany and even Europe an additional value of 200 billion to 300 billion euros, and the radical changes brought about by Industry 4.0 will also be revealed in the future.

     Compared with German Industry 4.0, which emphasizes technology and model, China has also launched “Made in China 2025”. It has also made overall plans for the transformation and upgrading of manufacturing industry from the perspective of industry and policy. The similarities between the two are to achieve smart manufacturing. .

     Gao Zhendong told the First Financial Reporter that it is not necessary to emphasize the gap too much. Although there are gaps in parts and components, it is not so important under the background of international production integration. 'The significance of strong alliance is to take advantage of each other's strengths, and there is no need to entangle too much.'

     In fact, in Industry 4.0, it doesn't just mean a simple 'machine substitution.' Zhang Zhen, the general manager of Wanteng Technology, said that many industrial enterprises have no software to operate after they have the most advanced software; or they can only operate and cannot exert greater efficiency. In the end, they ignore the 'smart manufacturing' people. The role.

  'It is undoubted that the absolute role of people in manufacturing is undoubted. The role of people must be continually strengthened. Although the basic work components will be continuously diluted, everyone can become a system developer and product designer. This is a new trend in the new era and the new situation,' Gao Zhendong said.

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From high-speed rail to C919 big plane, China made overcoming difficulties to upgrade