Wang Donglei talk about manufacturing transformation: a large number of SMEs will die

Sina finance news, "the twenty-fourth session of Chinese and foreign management university industry forum and'15 '2015 star hit off the summit held in Beijing in November 7, 2015 -9. NVC Holdings Limited chairman Wang Donglei attended the meeting and speech.

Wang Donglei said that after the manufacturing labor cost advantage in China leading towards the middle-income countries, the cost advantage gradually disappear, moreover, is not only the labor cost and other cost factors in large scale rise, "the cost is not China manufacturing killer, is still one of our advantages". Wang Donglei analysts said, due to the monopoly of the upper reaches of large companies, domestic resources, such as products, compared to the world is not cheap, but also one of the factors of rising manufacturing costs.

For the high cost, the manufacturing sector is still in a field off cause price war, Wang Donglei analysis said, "what kind of consumer makes what kind of entrepreneurs", because Chinese consumers are more sensitive to price, so the price competition is still the best means. High end consumers or the middle class is still growing, so the pressure of industrial restructuring is also great, do not sell the product on the tall".

When it comes to global competition, Wang Donglei said, the United States has more than half of clothing products from Bangladesh, Turkey and other countries, because of their lower cost. After the small and medium-sized enterprise loses the cost superiority, has not established the innovation technology for the brand competitive power".

For how to crack the dilemma now, Wang Donglei believes that first of all, companies need to focus and focus. Small household electrical appliance sector, we have hired 30 thousand people, made a total of more than and 100 product lines, and then we gradually compressed, only to do the top ranked in the world's top three product lines, the 30 thousand people into the 5000 person, the profit is better". "The only thing to do is to focus more on what others can't do, and do it better, and it will be better".

Secondly, there must be innovation driven, to adhere to the global technology leadership, it is possible to win the market and customers, quality is the cornerstone.

In addition, Wang Donglei suggested that enterprises to the German, Japanese learning. "Over the past 35 years, a gust of wind blowing, the pig can fly in the air. But the air is less and less, in addition to the mobile Internet outlet, may also see more air, more people still have to focus, seriously, especially the manufacturing industry, do what you can do good things. Follow the air go, ten thousand people can become the flying pig on one, the remaining 9999 will fall down and die".

Adhere to the brand line in Wang Donglei seems equally important, it also needs to adhere to. It also warned entrepreneurs, the transformation of the manufacturing sector to have the determination to fight the battle and the preparation of a protracted war. In the transition, there will be a large number of small and medium enterprises die, you can do is to focus on their own areas, so irreplaceable". Of course, it is also important to maintain the forward-looking.

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