One in four computers in the world comes from China; but from each computer produced, China earns only what 10 apples are worth. I read this in People’ Daily not long ago. While the force of globalization has spread Chinese-made products all over the world and earned China the name “world’s factory”, China earns very little profits from this kind of low-cost production. It’s even been said that China has to export 800 million shirts to get an airplane.
The problem is, China has involved in countless processes of production, but doesn’t necessarily have the intellectual property rights. If all we can be is part of the low-cost, labor-oriented production process, we’ll remain in a passive, disadvantaged position and gradually lose our competitive edge in the global arena. To develop China’s creative industry, transforming products from "made in China" to "created in China" has become one of China’s major tasks.
This transformation will be no less like a marathon, requiring much effort especially that from Chinese enterprises, the major force in Chinese economy. Though there’ s no one in front leading us which direction to run, there’s much to learn from some Chinese enterprises that have already found the right strategies and are shining on the global stage. These strategies involve brand identity establishment, technological innovation and modern management system.
Firstly, the brand that I mentioned above is an intangible yet most valuable asset to a company. It gains credibility from consumers, thus constituting the reason for consumers to buy habitually. Tong Ren Tang, the largest producer of traditional Chinese medicine, remains one of the oldest surviving brand names. The credibility that it gained through quality products has made its name known worldwide and maintains its recognized brand.
The second strategy is innovation of technology, which helps enterprises gain its core competency. In the global era where technology emerges at a rapid speed, one has to adopt the latest technology, and also to compete for the speed of developing new ones. The success of Haier, the third largest household appliances manufacturer in the world, lies in its constant innovation. Over the past 16 years, Haier has invested a total of 7 billion RMB in technological development, using 6 percent of its income for scientific research and the development of new products. At present, Haier's development operational speed is turning out 1.3 new products a day, maintaining its upper-hand in the fierce competition.
The third strategy is the establishment of modern management system. New Hope Group, the National Leading Enterprise for Agriculture, started from family-owned business. When the business was soaring and situation was changing, the family members had divergent views of management. To make sure of the development of their business, they decided to turn their company into a limited liability one, distributing property rights efficiently. Because of this, the company increased its competitiveness rapidly. Establishing a modern management system will lead to efficient levels of division of labor and efficient patterns in the business cycle.
With brand identity, technology and flexibility, China’s creative industries will blossom and give China the cutting edge in the fierce global competition. One day, China will stand firm and proud, with national brands thriving on the global markets, and with millions of products tagged “created in China”, instead of “made in China”.
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