Looking back to recent thirty years’ “made in China” — from the Era of Europe and US to that of China

2017-10-17 13:35:00 source: China net

As the saying goes, people who have their wish frustrated laugh at ups and downs for thirty years.
In recent years, we are increasingly witnessing China to take off with more advanced technology and mode and emerge as a big power as powerful as the United States.
Undoubtedly, this is the pride and glory of every Chinese. However, it is said that the global development of Chinese economy represents the success of Internet in China and amazing wind gap of the emerging economic pattern. These may be right. But in my opinion, the maturity of Chinese economy may rely more on the position of made in China and upgraded wisdom in China in the global mainstream market.
Historically, the Canton Fair existed as long as 61 years may be the largest and farthest window to the outside world in China, showing the rapidly developed economic resilience, creative spirit and technical impetus of the Chinese people to the world. To our greatest pride, world attention and recognition are being paid to the intelligent living pattern dominated by Chinese enterprises.
This year, Guangzhou hosted the 122nd session of the Canton Fair, for which Haier has participated for 30 consecutive years as a representative player for transition from made in China. This represents not only a wonderful resolution, but also the boldness to always walk at the front end of market tide.
Today, I would like to share with you my comprehension on how made in China would gradually lead the world in the next thirty years and where the impetus and advantages of Chinese enterprises to go overseas could be found.

 [Technology output: the ultimate power to compete for global discourse power]
Not long ago, our ancestors shouted the slogan of "learning from foreign fortes on technology to restrict foreign". After several years of shouting for independent research and development, "oriental wisdom" and "oriental technology" finally get to express themselves for foreign export.
Private enterprise Haier headquartered in Qingdao, Shandong Province and private enterprise Huawei headquartered in Shenzhen have continuously established the reputation of "made in China", beating previous foreign rivals and consolidating the position of China in high-end manufacturing field.
 
There are little industries in China that can formulate fundamental rules worldwide, including home appliance industry. Such global industrial advantages may result from rapid development of manufacturing industry and industrial technology in China as well as the leading advantages of Chinese enterprises in technical fields, such as Internet of Things and artificial intelligence.
Home appliance industry has developed from "the Era of Europe and US" (before 1970) and "the Era of Japan and Korea" (1970-2000) to the universally acknowledged "Chinese Era" (since 2000). In the field of manufacturing, the supporting power behind US, Germany and Japan is being gradually surpassed by China.
On the technical-oriented battlefield, he who mastered advanced technology would obtain the initiative for global battles. Such technical innovation would start from the source to formulate industry regulations again instead of simply relying on modification of marketing or "micro-innovation".
I have witnessed Haier to occupy a technical position aggressively. In addition to the state-of-the-art technical breakthrough made in full product line such as refrigerator, washer and smart kitchen, Haier also represents the first and only Chinese brand of home appliances in the world to dominate the formulation of preservation standard for international refrigerators. This means the right of leadership and discourse in the market will be formulated by Chinese enterprises. From a larger perspective, this has changed made in China and national image fundamentally.
Just last month, the Global Development Conference and Global Leading Innovation Summit of Haier Smart Family were held successively, during which makers from the innovation system of Haier shared their development and innovation results to the world. Moreover, Haier will demonstrate the scaled and unheard black technology at the Canton Fair.
Based on practice of Haier Group, made in China centers on the mature industrial chain created through struggles of domestic and overseas markets for several years and dominant position in advanced technology. Only be activating such items can Haier gain its place in global competition.
[Product evolution: global deep upgrade rooted in made in China]
I was attracted to an interesting contrast at the Canton Fair this year. Thirty years ago, Haier held a booth of less than 5 square meters at the Canton Fair with refrigerators as the only exhibition product. However, Haier released several products in the exhibition area this year, including common home appliances with average price more than 20,000 RMB.
Without any exaggeration, the accumulation of technology and production capacity was not enough to turn Haier into a benchmark for Chinese enterprises to go overseas. All strength must be placed on product ultimately to bring value to users.
As I stretch the timeline of history, it turns out that Haier is taking on a road of innovation driven by product.
In 1985, Haier created the first four-star refrigerator in Asia. In 1993, Haier introduced the first variable frequency air conditioner in China. In 1997, China's first digital television was born in Haier, and the first anti electric wall heater was born in 2002. In 2012, Haier replaced the traditional belt motor with direct drive motors. In 2016, Haier introduced artificial intelligence and voice interaction into smart home appliances.
Through application of disruptive leading technologies in home appliances from global first separate preservation technology with precise control to original synchronous flexible technology, Internet of Things, artificial intelligence and voice recognition, Haier could always receive "Praise of China" from overseas market with disruptive products leading the industry at the previous sessions of the Canton Fair.
Based on technical differences and customer demand-oriented design of products, Haier tore a gap among the formidable overseas markets dominated by European and American brands.
At the current session of the Canton Fair, it can be said that Haier would only release high-end products. Under such product pattern, technology and customer demands would be integrated deeply to bring more innovative experience to consumers with global first products. For instance, Haier F+ Free Built-in Refrigerator can meet the requirements of cell-level preservation and effective volume for high-end users and fiber washing machine can automatically identify clothes through RFID.
The innovation of product dimension promotes continuous development of Chinese enterprises. As we all know, Haier Refrigerator has dominated the first place of global market share for nine consecutive years, which reflects the recognition of global consumers to Haier brand.
Since trade barrier seems to be higher due to the larger overseas markets, Haier takes root in the essential value of products to consumers. Therefore, Chinese enterprises must learn from great success of Haier in global markets.
[Harmony and symbiosis: from made in China to global creation]
From previous experience for the last few decades, we have come to know that the second-line and third-line products could only turn "made in China" into a synonym for crude manufacturing. Therefore, a real Chinese brand can only be created by integrating into the first line and learning from foreign enterprises.
The correct way to open an overseas market is to cultivate and operate it as a market in front of our house, and create a larger value chain, upstream and downstream systems with overseas partners.
For example, Haier can not only sell self-created products to overseas markets, but also realize the globalization of industrial and value ecology.
 
Everyone must be familiar with the global cooperation layout of Haier Group. The "three-in-one" cooperation layout can not only effectively and accurately grasp the requirements of each sub-divisional regional market to make major breakthroughs, but also promote innovation of Haier products through resource sharing and platform cooperation.
As a result, global research centers can be regarded as a connector and amplifier for Haier, which can not only form a relation of industrial symbiosis with innovative partners in local market, but also become an important channel to gather potential consumers and fans and allow users to participate in the whole process.
As a global model for Chinese enterprises, the development of Haier has illustrated that the international competitiveness can be used to integrate resources from a global view, namely from technology to product, from business partner to user, and from manufacturing to development.

[Conclusion]
In the past, made in China always remind you of copycatting or plagiarizing. Today, made in China can finally appear in front of the world in a different way.
Enterprises like Haier have come into the international arena and become a global leader in the whole industry due to made in China. Therefore, Haier represents the future of Chinese enterprises and a batch of excellent enterprises going overseas.
To a certain extent, these enterprises represents not only future technology of "made in China", but also a national card for Chinese wisdom.


Copyright 2017 GE Appliances, a Haier Company
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