The industrial tablet PC manufacturing industry is in a downward trend again, with reports of "wage arrears" and "collapses" one after another, leading to the saying that "China's manufacturing industry is in a cold winter", and traditional industries bear the brunt. However, in such a cold wave, there are still a number of trend-setters in the traditional industry. When the industry is in recession, a series of effective transformation methods have been used to maintain stable performance and even achieve growth. When the industry as a whole is regressing, Standing on your feet is progress. Below, let’s take a look at the transformation methods that can gain a firm foothold in traditional industries.
1. Hug together for warmth
In the cold winter, group heating is a very effective means of overwintering. In 2015, there were many industry-related expositions, exhibitions and industry summits, and many new industry alliances were established, all for the purpose of group heating. Group heating, also known as cluster effect, through the establishment of industrial clusters, to achieve effective performance of industry members. In fact, whether it is an emerging industry or a traditional industry, efforts are being made to establish industrial alliances. This section only briefly introduces traditional industries.
Looking at the situation of the textile industry with industrial tablet computers, according to statistics, from January to September, the total profit of the manufacturing industry was 3,693.44 billion yuan, an increase of 4.1%. Textile industry profits increased by 7.8%, significantly above average.
Take the shoe and apparel industry as an example, by adjusting the product structure, strengthening internal management, and holding a group for heating, the shoe industry in Suzhou, Anhui has achieved growth against the trend. From January to August, the shoe city Suzhou achieved a total industrial output value of about 3.35 billion yuan, a year-on-year increase of 14.3%; realized an industrial added value of about 880 million yuan, a year-on-year increase of 13%; fixed asset investment completed 2.854 billion yuan; 100 million yuan, a year-on-year increase of 10.26%.
This is just an example of achieving performance growth through group heating. In this cold winter, those companies that took the lead to achieve group heating have achieved performance growth against the trend. So, what other industries can companies achieve growth in this way? Finding the answer to this question requires not only local government planning, but also a consensus within the industry.
2. Cross-border cooperation
Cross-border is a bad word in recent years, and various cross-border cooperation emerges one after another. For the transformation of traditional manufacturing, cross-border cooperation is a good method. Enterprises can often achieve good results through cross-border cooperation and sharing market resources. Cross-border cooperation is sometimes used as a group to warm up. In industrial clusters, there may be cross-border cooperation objects in its external market. More often, cross-border cooperation mainly exists between two production units in different industries or industries.
Here, take the cross-border cooperation between the home appliance industry and e-commerce as an example. In the first three quarters of 2015, Gree Electric's operating income declined due to factors such as market weakness and air-conditioning inventory digestion. After entering the fourth quarter, in order to make up for the lost performance in the first three quarters, Gree made great efforts to first hold large-scale factory direct sales activities across the country, and then set a total sales of over 250 million yuan on Tmall on the "Double Eleven" day. It is through the cross-border cooperation of "Internet +" that Gree easily achieved good sales results.
In addition to Gree Electric Appliances, the cases of cross-border cooperation between traditional home appliance companies and Internet companies include Midea and Xiaomi, Suning and Ali, and LeTV and TCL.
The shoe and apparel industry is an obvious case of achieving performance growth through the Internet. It is reported that Li Ning, a smart shoe sold through the Xiaomi model, sold 6,000 pairs of online sales in 4 hours, an enviable achievement.
In fact, with the further development of "Internet +", cross-border cooperation between traditional enterprises will become more convenient and urgent. On the one hand, traditional industries are actively moving towards the Internet, and traditional enterprises have cooperated with Internet companies to transform into the Internet field; On the one hand, Internet companies are accelerating their forays into traditional industries.
3. Diversified layout
Diversified layout is an important means to deal with market instability. In the current cold winter of manufacturing, diversifying the market, diversifying products, and diversifying the industrial chain can make enterprises more stable in the market. All eggs in one basket".
In traditional industries, there are some cases of achieving performance growth by extending the industrial chain. For example, Baoshan Iron and Steel Co., Ltd. (“Baosteel Co., Ltd.”) in the steel industry is the largest and most modern steel conglomerate in China. The current predicament of the steel industry is overcapacity, high cost and low efficiency. In order to solve this dilemma, Baosteel has built its own procurement e-commerce platform, which can provide online information, capital, and logistics "three-stream" whole-process services. 10 million tons. "Baosteel hopes to establish a system above the system, standing at the height of the industry, to open up the boundaries between upstream suppliers and downstream user systems. When the steel industry is in the overall downturn, Baosteel's diversified layout is undoubtedly an effective transformation. method.
The above experience of Baosteel has the shadow of vertical integration, which can be said to be a diversified layout of the industrial chain. In addition to vertical integration, diversified layout can also be carried out in the direction of horizontal integration, or even direct cross-border layout of new industries.
For example, in the electronics industry, according to The Wall Street Journal, Foxconn, the world's largest electronics manufacturer, will cooperate with American medical equipment manufacturers to enter the Chinese medical market. The profit margin of medical equipment foundry business is as high as 23%-25%, much higher than the 4%-7% of consumer electronics products. Driven by China's rapidly growing health demand, Foxconn's health business revenue in 2020 is expected to increase from US$20 million (approximately RMB 120 million) in 2014 to US$200 million (approximately RMB 1.2 billion). In this way, Foxconn is equivalent to opening up an emerging market alone.
In addition to manufacturing enterprises, manufacturing equipment channel providers are also faced with diversified choices. Agents of one product or multiple products. The profit margin of each product brand and the market stability formed by the proportion of each brand have become a must for many managers. Facing and thinking about problems.
4. Management innovation
Management innovation is an important aspect of increasing production and efficiency of enterprises. Many long-lasting companies in the world have achieved continuous breakthrough growth in performance through management innovation, and have formed many management models that are worth learning from other companies. The poor performance of many companies, in addition to the sluggish external market, is due to excessive internal friction and excessive management costs. Through management innovation, reducing unnecessary management costs and saving production resources, performance improvement can often be achieved within a certain period of time.
In order to achieve the growth of performance in the manufacturing industry, in addition to technological innovation, a more important aspect is to carry out management innovation. In 2015, some companies achieved good results in performance through management innovation.
Haier's "Innovation Platform" is a good attempt at management innovation. Haier is developing itself into an entrepreneurial platform serving hundreds of "small and micro enterprises". In the process, Haier cut its full-time workforce from more than 80,000 to just 60,000, including 10,000 mid-level workers.
From 2005 to 2015, Haier achieved performance growth for ten consecutive years, and made great contributions to management innovation. Going deep into Haier's manufacturing system, the introduction of a large number of intelligent and automated equipment, the informatization interconnection of supply chain, manufacturing, logistics and distribution systems, and the construction of interactive platforms with users, R&D resources, and supplier resources are all cost-intensive. It will be the foundation to support Haier's future intelligent manufacturing.
The transformation of traditional industries is generally carried out in these four aspects, but for a single enterprise, the problems faced by managers will be more specific. In 2015, the manufacturing industry encountered a cold winter. In 2016, can the manufacturing industry break the ice and how long will the cold winter in the manufacturing industry last? Are all walks of life in manufacturing ready for winter?
In 2015, China's manufacturing industry went down again, "wage arrears" and "collapse" have been reported in succession, and then there is a saying that "China's manufacturing industry is a cold winter", and the traditional industry bears the brunt. However, in such a cold wave, there are still a number of trend-setters in the traditional industry. When the industry is in recession, a series of effective transformation methods have been used to maintain stable performance and even achieve growth. When the industry as a whole is regressing, Standing on your feet is progress. Below, let’s take a look at the transformation methods that can gain a firm foothold in traditional industries.
1. Hug together for warmth
In the cold winter, group heating is a very effective means of overwintering. In 2015, there were many industry-related expositions, exhibitions and industry summits, and many new industry alliances were established, all for the purpose of group heating. Group heating, also known as cluster effect, through the establishment of industrial clusters, to achieve effective performance of industry members. In fact, whether it is an emerging industry or a traditional industry, efforts are being made to establish industrial alliances. This section only briefly introduces traditional industries.
Looking at the situation of the textile industry, according to statistics, from January to September, the total profit of the manufacturing industry was 3,693.44 billion yuan, an increase of 4.1%. Textile industry profits increased by 7.8%, significantly above average.
Take the shoe and apparel industry as an example, by adjusting the product structure, strengthening internal management, and holding a group for heating, the shoe industry in Suzhou, Anhui has achieved growth against the trend. From January to August, the shoe city Suzhou achieved a total industrial output value of about 3.35 billion yuan, a year-on-year increase of 14.3%; realized an industrial added value of about 880 million yuan, a year-on-year increase of 13%; fixed asset investment completed 2.854 billion yuan; 100 million yuan, a year-on-year increase of 10.26%.
This is just an example of achieving performance growth through group heating. In this cold winter, those companies that took the lead to achieve group heating have achieved performance growth against the trend. So, what other industries can companies achieve growth in this way? Finding the answer to this question requires not only local government planning, but also a consensus within the industry.
2. Cross-border cooperation
Cross-border is a bad word in recent years, and various cross-border cooperation emerges one after another. For the transformation of traditional manufacturing, cross-border cooperation is a good method. Enterprises can often achieve good results through cross-border cooperation and sharing market resources. Cross-border cooperation is sometimes used as a group to warm up. In industrial clusters, there may be cross-border cooperation objects in its external market. More often, cross-border cooperation mainly exists between two production units in different industries or industries.
Here, take the cross-border cooperation between the home appliance industry and e-commerce as an example. In the first three quarters of 2015, Gree Electric's operating income declined due to factors such as market weakness and air-conditioning inventory digestion. After entering the fourth quarter, in order to make up for the lost performance in the first three quarters, Gree made great efforts to first hold large-scale factory direct sales activities across the country, and then set a total sales of over 250 million yuan on Tmall on the "Double Eleven" day. It is through the cross-border cooperation of "Internet +" that Gree easily achieved good sales results.
In addition to Gree Electric Appliances, the cases of cross-border cooperation between traditional home appliance companies and Internet companies include Midea and Xiaomi, Suning and Ali, and LeTV and TCL.
The shoe and apparel industry is an obvious case of achieving performance growth through the Internet. It is reported that Li Ning, a smart shoe sold through the Xiaomi model, sold 6,000 pairs of online sales in 4 hours, an enviable achievement.
In fact, with the further development of "Internet +", cross-border cooperation between traditional enterprises will become more convenient and urgent. On the one hand, traditional industries are actively moving towards the Internet, and traditional enterprises have cooperated with Internet companies to transform into the Internet field; On the one hand, Internet companies are accelerating their forays into traditional industries.
