Brand companies join forces to become industry partners or suppliers

Abstract Xie Guo, general manager of Sichuan Gurui Industrial Co., Ltd., is facing a situation of excessive competition in the domestic products industry. For example, the plane abrasive cloth wheel, in the absence of research and development, is currently very competitive. As far as Guru is concerned, although it is not as good as the high director just said that the profit is 5 cents, it is true...

Xie Guo, General Manager of Sichuan Gu Rui Industrial Co., Ltd.
At present, the domestic products industry is facing excessive competition. For example, the plane abrasive cloth wheel, in the absence of research and development, is currently very competitive. As far as Guru is concerned, although it is not as good as the high-ranking director just said that the profit is 5 cents, it is indeed very difficult. Compared with the early days, the amount is now large, and the price is similar to the past, but the profits of the company have not increased. This is because the company's R&D investment is large, the cost is increased, and it is not easy to keep the original price. There are three main reasons for this situation: First, the product companies themselves are not fast enough in research and development; second, there is a serious overcapacity; third, there is no brand awareness.

From the actual situation of our company, some of us are doing OEM, which is to OEM some of the "R&D-sales" curve. Why is the OEM? Because our industry is overcapacity, such as large rolls. We develop products and find them in the big roll factory. Let's digest them; we process them into the hundred-page wheels we need, and we sell them. This is "R & D + sales", we call OEM. In the past, we mainly cooperated with the top three international companies such as 3M and Saint-Gobain. At present, we have cooperated with the top ten companies in the world. We help them OEM and sell them to the international market. In China, the prices of products are all pressing, but the foreign model is not like this. For example, there is a product that is sold to foreign investors at 1.8 yuan/piece, and foreigners can be turned over to 3.2 yuan/piece. In China, we gave him 1.5 yuan / month, he sold it 1.55, and then went back and said to me: ah, thank you, this product does not make money at all! What he saw was just friendship, not the brand and service of this product.

Just now, Mr. Gao said that the "Anti-Unfair Competition Convention", he hopes that everyone will be strict and self-disciplined, and each will manage each other, thereby enhancing our living space and letting ourselves survive. This is of course the most ideal state. The industry has come to this day, just like the ace Wang always said, through multiple rounds of competition and elimination, let the research and development, service, strength, and product safety stay. This should be a positive ending, but it is still far from reaching this ideal state. In the face of the current situation, I would like to appeal to everyone that competition among enterprises is normal, but everyone must be self-disciplined and not to cut corners from the materials used, which is conducive to the credibility of the entire industry. In fact, the cost models of different enterprises are different. Management, equipment, technology research and development, product mix, etc. are different. In terms of material optimization, such as size and materials, products can be made smaller, but the products must be done. It's safer, because the speed of thousands of pages and hundreds of pages is very fast. Recently, some large domestic enterprises or wholly foreign-owned enterprises have basically refused to use domestic products. This is because we have made the safety standards of our products too bad, and people shake their heads when they hear about domestic products. There are very few companies that can now be certified by the ousr or en standard. This one can't, two can't, people think that all the domestic products can't work, it seems that they are far away from abroad, so we have broken our own brand and lowered our position, of course our products. Also can't sell.

At this year's expert committee, everyone proposed that the coated abrasive industry could draft standards by itself. Secretary-General Wang hopes that Guru will take the lead in drafting standards and use industry standards to drive industry standards. I think this is a good measure. The National Standards Committee has stipulated that manufacturers with a resin cutting disc diameter of 400 or more must have a production license. Can we refer to this regulation to issue a production license for the coated abrasive manufacturing enterprise? At least your product safety is guaranteed. Our domestic products are slightly slap in the face.

Why do you compete so fiercely for hundreds of pages and thousands of pages? Everyone knows that homogenization is too serious. There is no difference in the products of various manufacturers. There is no difference in appearance, shape, performance and service. The only difference is left. The price is up. I hereby appeal to all manufacturers to differentiate products according to the classification of the grinding workpieces. Domestic companies are very indifferent to the brand. For example, a family of hardware and general supplies is placed there, and one family picks it up. The final decision is the price. There are countless small brands that have joined the price war in this context. I appeal to everyone to change the mindset. It is possible to unite several brands, select several end users, not over-press the price of suppliers, and bind their products to them through sales, to be the supplier or supplier of the industry. . It takes several years to get together to form a climate. In this process, everyone should not go over-competition, carefully select a brand, and slowly operate, it will be effective. For example, the top ten companies in the world, the reason why they can turn our "OEM" products one or two times the price, the key is the role of the brand. This is the gold content of the brand and the gold content of the service.

In short, I hope that our domestic products will have brand awareness on the premise of ensuring safety, differentiated in performance, differentiated in service, and differentiated in price, and then we will survive. (Speech at the Nanchang Industry Conference Products Committee)

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