There are three months in the small business, and Mr. Lv ronghuan, the general manager, told us that "business is a crime when you don't make money." ; I had been unable to understand until this time I read an article and finally understood: what can you do to research and develop without making money? What is the pursuit of quality? What are we going to pay for our suppliers and our employees?
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Below to reprint an article is well worth pondering after reading you can understand, why are there so many people worship things, why haven't made in China on the international status, to entrepreneurs to thinking.
The following is reproduced in "business and management".
Ren zhengfei, head of huawei, said: "you can't fool Chinese consumers. What "cheap", what "let consumers enjoy low price" and so on. These things are unreliable. Improving product quality requires enormous investment and determination, and requires decades of thick and thin hair.
You always have a low price and you don't have a good product. And consumer root demand is good product, is high quality product. Companies can't meet their needs, so they push them out of China and into countries such as Japan.
In recent years, news such as "collapse", "closure", "bankruptcy", "default wage", "declining performance" and "loss" have shaken people's hearts. Because of overcapacity in the country, many businesses are either out of business or subsist on low profits.
In addition to the external environment, the inherent malignancy is also eating into the good times of manufacturing. In order to maintain customers and ensure that there is business to do, some companies are willing to sell goods in "baoben" attitude, increasing the risk of more and more small and medium-sized factories.
"A lot of cheap business people do it!" It now seems more frightening than the "collapse" of "cheap competition".
In buying and selling in the market, to buy things, want to choose cheap to buy, of course, it is the key issue, in the customer can't identify the quality of product, the seller without the bottom line of business, ultimately disrupt the market, a starved to death, dead tired oneself, pit die enterprise error phenomenon.
1. Starve to death
In the same area, for example, there are 50 manufacturers of the same type, and the needs of 50 dealers are in the same region, if there is a factory to fix the 10 dealers at a lower price, then the rest of the 49 only 40 chance, don't get the order it directly to starve to death. In the long run, markets have been disrupted.
Killing yourself
The manufacturer's gross margin control is in the normal range of 20%, but in fact some manufacturers are doing business for the business, and the gross profit margin is also being connected, some 2% or even lower. After receiving the order, of course, the small workshop was busy working day and night, and the Marketing Department was busy issuing orders and arranging the delivery.
In the face of the prosperity, is the factory life really good? To the end of a reckoning, remove the worker's wages, rent, utilities, marketing cost, logistics cost, health fee, Internet fee, telephone charges, all kinds of fine, alas, working for a year, in the end that left three melon two dates, it is better to give others to work to earn more, why bother?
In recent times, a growing number of corporate executives have complained that low price competition has disrupted the normal order of the industry. "No matter what kind of product, there will always be a cheaper product. No matter how low the price is given by the downstream user, someone will pick up the bill. From a production point of view, such prices can't guarantee profit margins at all, and if they can do it, it must be cutting corners on raw materials and craftsmanship." In the long run, the health of the industry will be threatened, and the impact of China's manufacturing will surely decline.
3. Ditch the downstream customers
There is a phrase "bought and never sold", not the people who never know how deep the water is. The buyer thought it was a big bargain, but they didn't know what to cry about. We often hear all kinds of customers complain about the problem, but they don't know that the cost of raw materials is going up seriously, the cost is high in all aspects, so what kind of high-quality products can be bought at such a low price? It is in their own interests that the greed for cheap ends.
The client thought it was a big bargain, and it was the proprietor himself that was the most likely to cry. Two months ago, small make up to a guest in the shop and said: I bought it last year, a toilet, in the year to now, just four months time blocked three times, please master maintenance dredging alone has spent 180 yuan, call I go to for help and see what the problem is. I went to, see, this toilet quality is not general poor, the surface also looks past, but the key local water tank and the drain mouth look is rubbish goods. In less than one year, the water tank was leaking, and the drain was not only a 200mm small diameter, but not the glaze. Finally, we removed the toilet and found three sewage outlets. Such a closestool is not blocked just strange! I ask him: how much money do you buy this toilet? He told me and asked me if it was expensive. I said, you take advantage of big, you do this price, we do it according to the standard, even not enough raw materials and artificial cost, don't say advertising, sales and installation, let alone profit. Finally, we removed the new one from the normal price.
China's business will lose its future
-- consumption upgrading, China's pan-middle class is on the rise, cheap and cheap to lose the future
Chinese consumers in the upgrade, China is no longer at the beginning of the reform and opening up, the overall income and consumption ability is lower than the state, after 30 years of development, China has become the world's second-largest economy, per capita income is more improved than before, the Chinese even bought 46% of the world's luxury goods in 2014, 2014, 100 million Chinese citizens outbound tourism breakthrough, consumption abroad, more than 1 trillion Chinese people became abroad cannot be ignored consumer groups, and even some stores are specially introduced a policy for Chinese consumers, and even guide in specialized services.
All this suggests that China's consumption is no longer the consumption state of the past, which has been greatly upgraded, and China's pan-middle class is on the rise.
In the face of the impact, if China's enterprises are not the promotion of the competitiveness of the products and brands, increase the added value, will lose the Chinese market, Chinese consumers purchasing overseas spending proved that China is not a lack of spending power, but "China's product does not meet the Chinese consumer demand growth, promote", if cannot ascend, will lose the Chinese market, if can't launch high-quality, competitive products, such as such as ren said, will lose the future strategic competitiveness.
Low price competition means that companies don't have enough money in research and development, design, manufacture, the lack of the research and development, design, enterprises can lose competitiveness in the key link of the industrial chain, can affect the quality of the products and quality, will form a bad impression in the consumers' mind, will continue to drag down the image of made in China, driving consumers to purchase products abroad.
In the past two years, huawei, as a Chinese private enterprise and a leading technology company in China, has been a huge success, because huawei has come to the present day to provide a good product. For this reason, we have been spending billions of dollars on research and development every year for decades. Over the past decade, huawei has invested 240 billion yuan in research and development, compared with 45 percent of its 170,000 employees. Huawei has established 16 r&d centers and 31 joint innovation centers around the world, joining more than 170 other prospective organizations and open source organizations. As of December 3, 2015, huawei has received 50,337 patents. The world's leading mathematicians, physicists and chemists flocked to huawei.
2016 frequently mentioned in the "supply side" adjustment, strengthening on the supply side, it is to make a forward-looking countermeasures on this trend, miit will reform on the supply side, increasing variety, quality, creates the brand as the main line, to carry out the special action to improve consumer goods supply, promote light industry, textile, food, medicine, such as intelligent hardware industry innovation and development.
