the revolutionary rise of the chinese brand - home appliances manufacturers in china

When China became the global industrial center for the first time, it was known for contract manufacturing, OEMs, mean knocking
And the entire producer ecosystem, they fill the world market in a low-cost, cost-free way.
Names of electronic products, textiles and other goods.
However, the game has changed for many manufacturers in China;
It is no longer just production, but innovative design, iconic products and brand logos.
This has caused a revolutionary change in business model and a huge paradigm shift in "Made in China.
But how did this transition start and why did it start?
On the far edge of Shenzhen, in the old pit industrial zone of Pingshan New Town, there are pink spots --
Gao Yu electronics is a relatively small manufacturer of cooling technology for electronic equipment.
The company is not prominent among many other similar manufacturers in the Shenzhen industrial belt and is a good example of the transformation that many people are experiencing.
15 years ago, Gao Yu electronics began producing cooling fans for the local market.
"At the beginning, we just made DC fans and radiators for Huaqiang North, and then they put the computers together.
Aaron Yu, the sales manager of the company, told me the story of his humble employer.
However, in the past few years, Gao Yu electronics has grown and finally started to sign contracts for companies such as Cisco, Google and even Foxconn.
As the company continues to grow, it starts to surpass just producing products for other companies, and in 2014, Daewoo Electronics launched its own brand: Ecotherm.
Ecotherm is a label for Daewoo Electronics that currently sells its most innovative products.
These include a DC fan that can stay in operation even after the device is powered off and various types of smart technology.
Of the company's 200 employees, 20 are engineers involved in R & D.
Over the past 10 or 20 years, manufacturers in various industries in China have gradually increased the complexity and revenue potential of their operations.
Many are Originally manufacturers of contracts or original equipment (OEM)
Produce products or components that have been designed for the products of other companies.
Then, as many manufacturers begin to develop more complex products, they begin to develop to the original design manufacturer (ODM)--
This means that they start to deal with many aspects of the entire manufacturing and design process, usually to make complete products, and other companies will only put their own brand names on these products before retail.
"This has happened in all industries," David Lee, founder of Shenzhen's famous Shenzhen Open Innovation Lab
According to makerspace.
"The factory has been transitioning from OEM to ODM for a long time, especially in the past decade.
It happens in the textile industry, in shoes, in fashion, and in electronics.
Li Keqiang explained that following the outbreak of the European crisis, the demand for Chinese products in the international market began to decrease.
This caused the knee.
This upset many Chinese manufacturers who began to find themselves lacking contracts for production design and unsold inventory.
One solution is to start typing your own name on your product and then unloading it on the domestic market yourself.
This is the beginning of a movement that is about to penetrate into all sectors of the Chinese manufacturing empire, from the cottage factory that once wanted to make handbags look as Gucci as possible, to the huge high
Shipping tens of millions of no-tech companies
Order mobile phones from markets around the world.
"As more and more manufacturers come in and global demand slows, profits from traditional OEM manufacturers are getting squeezed," explains Mark Tanna, director of skinny China in Shanghai.
Market research company.
"They are looking for inspiration from pins --
Well-known brands such as Xiaomi, Haier and Lenovo have much higher margins and are more in line with their conditions than being whipping like OEMs.
"This is a strategy that is not only proven to be a sufficient contingency plan at a critical moment, but also a new business model that can compete successfully in China and abroad. “The [profit]margin of self-
Brand products are 10 times higher than the products you sell to Chinese factories through US channels, "Gao
Technology innovators who have participated in projects such as Novena, the world's first open source laptop.
"So at the end of the day, this brand has a lot of value.
"This fact can be seen from the mobile phone market in Huaqiang North, the commercial center of Shenzhen electronics industry.
Signs that new brands such as Laimi, Skyhan, Umi and NO are sprouting
1 everywhere, everyone is pushing their latest feature phone to compete to become the next Huawei.
The Chinese central government has also largely dominated the shift, pushing its manufacturers to be more innovative and create their own brands.
Including top-strategy
Senior officials talk about innovation through public speaking, publicity and prominent visits to factories and makerspace, creating preferential economic policies for domestic companies, using the official media to fund public sentiment from foreign brands, especially for innovation initiatives.
"There are a lot of incentives for brands that belong to their [category]
Central government
This will bring high value jobs and build Chinese companies.
"Global brands," said Tanner.
"Many people in Beijing are not satisfied with the purchase of Japanese toilet seats and rice cookers because" supply --
Hope to solve the problem of the capital reform buzzwords.
Li Na, a trade fashion designer currently working at Shenzhen Institute of Industrial Design (SIDA)
Saw this shift directly.
She told me that there was once a large contract manufacturer who found her and offered a position for them to design their clothing.
At first, she was confused because the factory made millions of dollars every year by producing designs for big Western brands.
"We have to change our model," the factory explained . ".
"Now, the local community, the local government no longer say that, you need to have your own brand," Li said . ".
"You can't just copy them using designs from abroad, Zara or H & M and sell them here for a cheaper price.
You can't do this anymore. you have to build a new brand.
"While there are no policies currently requiring factory-owned brands, the government is particularly influential.
"There is no law, but they are pushing," Li said . ".
"Believe me, the industry listens when the government pushes.
"There are a lot of patterns in Ecotherm's ambition right now.
Huawei is also the world's largest telecom infrastructure provider. Lenovo is the world's best-selling laptop brand. Haier is one of the world's most dynamic home appliance manufacturers, among the world's top ten smartphone brands, seven are Chinese brands.