Hello, can you be more specific about the crisis response? Like OEM-type enterprises should be more mainly to what?

Zhou Chunbing: OEM enterprises out of the way?

Traditional OEM enterprises breakthrough path

For traditional OEM enterprises, in addition to creating their own brands, to improve value-added capabilities and core competitiveness of the breakthrough path are the following:

1. From OEM to ODM, from the "world processing plant" to the "world design studio". From OEM to ODM, from "world processing factory" to "world design office". Many industries in Taiwan started as OEMs, but with the shift of global manufacturing centers to the mainland, Taiwanese manufacturers have begun to take the initiative to break out: one is to follow the trend of industrial transfer and move production plants to the mainland, where costs are lower; one is to upgrade the value chain, not only to help companies with OEMs but also to take the initiative to study the market demand for the development of new products and to help their customers to meet the market's needs.

2. Expand upstream and extend the industrial chain to seize scarce resources. For example, some enterprises engaged in garment OEM processing, in the case of fierce competition and thinning profits, take the initiative to enter the upper reaches of the development and production of high-grade fabrics, in order to obtain higher profits.

3. OEM horizontal expansion, product association and diversification. This can not only significantly reduce the risk of production and sales, rich product line can also create a brand for the future to lay a solid product foundation.

4. Reverse OEM mode, the buyer from the customer into a partner. 2000 the end of Zhejiang Wanxiang Group as a strategic investor in the U.S. UAI company, with a price of 2.8 million U.S. dollars to buy 21% of the shares of the UAI company, the company's largest shareholder. After completing the acquisition, Wanxiang became the most important OEM supplier of UAI, and UAI had to buy 25 million dollars of brakes from Wanxiang every year. This approach, known as the "reverse OEM model," in which a buyer is acquired and then OEMs for it, provides OEMs with mature, advanced technology and stable customer relationships and sales channels in mainstream markets.

5. To build the core competitiveness of enterprises, such as patented technology, key components, flexible production lines. Patented technology development must be highly valued, such as the microwave oven has a number of patented technologies. Flexible production line is a flexible manufacturing system to meet the diversified needs of today's market, which can reduce the input of production equipment and personnel and thus greatly reduce costs. All of these may become the core competitive ability of the enterprise.

Faced with the new market environment, the key to the future success of OEM enterprises is: Is there a technological foundation? Is there any technological content? Is there value creation? Is there systematic cooperation? Is there a global operational capability? If you don't have all this, you are doomed to be eliminated!

*The author is a well-known OEM research expert, researcher of China International OEM Cooperation and Promotion Center