The Chinese Academy of Engineering gao-feng zhu view of 'made in China' is 'converting is big, but the value is not high.
And for a long time, China's manufacturing sector also tend to be a foreigner, is often regarded as a rough, low grade of products.
Is seen as a rough, low grade of products, of course, can not sell a good price, so only the quantity made in China.
Why Chinese companies can only quantity?
Investigate the root cause is the idea of 'small profits' already deeply rooted in the Chinese mind.
Meager profit but high turnover is a lot of the magic weapon of the enterprise, because the meager profit but high turnover let us a lot of enterprises in China to the international market.
A high-volume, low-margin business thinking is deeply rooted in China, some scholars think, meager profit but high turnover of thinking is deeply rooted in the Chinese stems mainly from China for thousands of years of feudal rule.
As is known to all, since in 221 BC, the qin unified the six countries, the xinhai revolution in 1911, the feudal ideas for ruled China for over 2000 years.
And that more than 2000 years, China has been mainly small-scale peasant economy.
The small-scale peasant economy is what?
The small-scale peasant economy is self-sufficient, without too much economic value of the transaction, also means that the social productivity is very low.
According to statistics, this for more than 2000 years of China's labor productivity increased only 4 times.
For an example of the simplest, with cultivated land use was used for thousands of years, so basically no industrial products.
That is to say, in the feudal society, the homogeneity of goods extremely.
Your home selling steamed bread, his family also selling steamed bread, steamed bread and steamed bread have little different, so consumers who buy basically is to see who it is cheap.
Therefore, between merchants and merchants began to play the price war, finally can only to go to get more profits.
The end result is led to 'the meager profit but high turnover' thinking deeply rooted in the concept of the Chinese.
Meager profit but high turnover hurt how many smart lock
enterprise ', 'thinking in the intelligent lock
industry is also very popular, not letter you open a treasure, for a few hundred yuan smart locks everywhere, in more than one TTF attending the meeting, and even some enterprises of the low price of $399.
It is reported, intelligent lock manufacturer gross margins around 20% belong to the normal range, but as a matter of fact some manufacturer in order to have business to do, gross margin in 5% of single pick, some single gross profit even as low as 2%.
So in order to improve the shipments, each big market in terminal intelligent lock companies continue to hold down prices, do you sell 1000, I will sell for 800 a.
Of course, selling cheap manufacturers, sales are better than others.
Sell 1000 could earn 300, and sold 800 can earn a maximum of 100.
So cheap smart locks only by a larger quantity for a profit.
But sales of big, to the end of a reckoning, remove the worker's wages, rent, utilities, marketing cost, logistics cost, health costs, network fee, telephone, the remaining profits but not much.
Said again, the current domestic market intelligence lock haven't go to the amount of phase, so the intelligent locks enterprises to 'the meager profit but high turnover' thinking, the way only one, that is: close the door closed.
Why talk to high-end profits, low end of the talk about sales at home, you'll find one at the end of this year, companies always try on sales in the year-end summary.
In external publicity, also always for monthly sales or annual sales first stunt.
Especially in the automotive industry, always proud of sales of the first domestic automobile enterprises, and high-end brands such as BMW, Rolls-Royce, mercedes-benz, porsche, the propaganda but to take the experience, quality win, science and technology.
In fact high-end brands such as BMW, Rolls-Royce, mercedes-benz, porsche is not as good as a domestic sales of ling, a SUV brand, but their profits but several street domestic brands.
The same is true in the intelligent lock industry.
When the low-end brand publicity, always was sold on the basis of how much years pin lock intelligence, and the conditions how to use the experience brand high-end smart locks, function, key points of quality as propaganda.
But don't look at those sales high low-end intelligent lock brands, surface figure is very good-looking, but remove the cost is not a few money left.
Those qualified high-end brand quantity not big, but profit is absolutely higher than low-end brand.
How to solve?
Low price competition, means can only earn more meager profits to reduce costs.
But in general, with lower cost and is a decline in the quality.
So the end of the low price competition is only one: pit dead party a, starve to death, killed himself.
We want to live a good, don't go with those shameless, not desperately to compete, we want to create their own differences to create your own value, finally realizes the profit many pin!
Intelligent lock enterprise, therefore, in order to get long-term development, we must abandon the meager profit but high turnover 'thinking, focus on improving experience and quality products.
To improve product added value, is the future of development.
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