Core Tip: After the financial crisis swept across the world, China's hardware industry was not spared. Some weak and low tech enterprises went bankrupt and switched to other industries. The Hardware Industry Chamber of Commerce has held various forms of seminars, and industry media have called for discussions from different perspectives
After the financial crisis swept across the world, the Chinese hardware industry was not spared. Some weak and low tech enterprises went bankrupt and switched to other industries. The Hardware Industry Chamber of Commerce has held various forms of seminars, and industry media have called for the rescue of those 'poor enterprises' from different perspectives.
The collective loss and abnormality of China's hardware and electrical industry
The subprime crisis in the United States has spread like a plague to every corner of the world, and China has not been spared either. The Chinese government announced that the growth rate of GDP slowed down, the United States and Europeans tightened their belts and reduced the use of Chinese cheap products. When Mr. Ma Yun, the landmark figure of Chinese Internet marketing, shouted "winter" to Chinese SMEs, the Chinese hardware and electrical industry seemed to lose its direction overnight, and became a slave to the environment as a whole. What a pity!
Industry business associations have held various forms of seminars and hired so-called well-known experts to "preach" on the spot. These are normal phenomena, which is understandable. However, what I saw in the Chinese hardware and electrical enterprise owners was mostly panic, like a headless fly bumping around. Where are the so-called entrepreneurs who usually act as if they are stable as Mount Tai, where are the usual rhetoric, and where are the usual management methods? I can't help but ask.
As a medium, it should play the role and function of objective reporting and correct guidance. But many of our industry media almost unanimously believe that we should save those 'poor enterprises'! But they never analyze it from the perspective of economic laws. This phenomenon is just a negative manifestation of the economic cycle and will definitely eliminate some enterprises. Enterprises should take advantage of such challenges to improve themselves. If a company is struggling to cope, why not think about others' companies being safe and sound while one's own company is in danger? It's time to reflect on oneself.
Gao Wenguang, Chairman of Tianjin Wenguang Group, has set a great example for China's hardware and electrical industry. He told reporters, "When others lower the salaries of employees, I raise them; when others lay off employees, I expand the scale and recruit new people." Such bold words and actions are rare, at least in the hardware and electrical industry; At the same time, this sentence dealt a blow to Chinese hardware colleagues. What is needed for winter is storage before the cold winter, not last-minute cramming.
As the Chinese government, there is an indescribable sense of helplessness towards Chinese enterprises (including Chinese hardware and electrical enterprises). For China's hardware and electrical industry, from the perspective of solving the employment of ordinary Chinese labor, the government naturally needs a large number of Chinese hardware and electrical enterprises that can provide a large number of ordinary job positions and continue to develop. On the other hand, the backward technology, low value-added products, and overcapacity in China's hardware and electrical industry are quite serious; In the long run, these labor-intensive and resource consuming enterprises will hinder the overall upgrading of China's hardware and electrical industry, reduce the competitiveness of Chinese products in the international market. Therefore, the government reduced the export tax rebate for some products in 2007, clearly expressing its determination to eliminate some backward enterprises.
Recently, Guangdong Provincial Party Secretary Wang Yang harshly slapped Chinese enterprises with a harsh remark, which was' we will never save backward enterprises'. The Guangdong Provincial Government's statement shows its determination and courage. The development of China's market economy to this day cannot allow anyone to become a hindrance, even if employment issues are used as a shield.
The financial crisis has lifted the veil of backwardness in China's hardware and electrical industry
From the rise in raw material prices to the appreciation of the Chinese yuan, from the promulgation of the new Labor Contract Law to the reduction of export tax rebates, to the current financial crisis and even economic crisis, Chinese hardware and electrical enterprises have experienced unprecedented fluctuations in just one or two years. Some of these changes in economic environment and policies are sudden, while others are foreseeable.
Before the financial crisis, Chinese hardware and electrical enterprises could barely breathe normally under the "four major pressures". However, the arrival of this financial crisis is like a thunderbolt, shaking the foundation of many enterprises and hurting the feelings of many so-called entrepreneurs. It can only be described as "miserable".
Nearly one-third of hardware manufacturing enterprises in Guangdong, Jiangsu, Zhejiang, and Shanghai have gone bankrupt, and workers have left the factories where they have worked for many years with sad eyes; The business owner was saddened, some ran away, some fled. Some enterprises operate with negative profits, while well-known foreign enterprises and high-quality domestic enterprises are not significantly affected. Zhejiang Boda Electric Appliance Co., Ltd., which has been awarded the title of Chinese Famous Brand, experienced a slight decline in sales in the first half of 2008, while Maitai Bao China's performance grew at a rate of 40% annually. Bosch Power Tools took advantage of this crisis to rise against the tide. While others were greatly reducing their expenses, they increased their brand marketing efforts and placed advertisements for power tools on multiple TV stations to promote sales. I believe that for Bosch, this financial crisis is the best opportunity to compete with its peers. Why panic like domestic companies.
Therefore, in the crisis, many of our enterprises have been eliminated, some enterprises are still persevering, and some enterprises are limited by its impact. My conclusion is that those who fall behind will be eliminated, and the overall backwardness of China's hardware and electrical industry will move forward under heavy pressure. The crisis has lifted the veil of backwardness in China's hardware and electrical industry, and it is always painful to uncover the scars. However, in the long run, the benefits outweigh the drawbacks.
There is no need to pity backward hardware companies, they should hit the dog in pain
The Chinese hardware and electrical industry, which is in dire straits, needs not pity, but survival of the fittest. From the perspective of political economy, it is difficult for government departments to abandon backward enterprises; From the perspective of the laws of the market economy and the overall industrial upgrading of the industry, since we cannot actively eliminate these enterprises, we will inevitably eliminate those backward enterprises that should die with the help of this financial crisis. From the long-term perspective of the Chinese economy, labor-intensive and resource consuming enterprises must upgrade to technology and capital intensive enterprises. Therefore, let us be ruthless, abandon pity, and beat down the falling companies, because fundamentally, they must die. Only in this way can the Chinese hardware and electrical industry completely break free from the stage of imitation and low price competition, and move towards the era of high added value and technological innovation in brand marketing.