Photovoltaic industry must strengthen brand awareness if it wants to stand firm

"Shuipai pay." Wang Ming (a pseudonym) reluctantly said that the project's plan for additional capital investment will be frustrated.

For Wang Ming, who is also responsible for a polysilicon company and two textile mills, the operating pressure is particularly evident this year. Wang Ming stated that according to last year’s plan, the company’s polysilicon project will require additional investment this year, but now the market is sluggish, and product prices have greatly declined. After repeated considerations, plans for additional investment have been suspended. “It is basically using the profits of the textile mills to support the company’s new energy industry. This is a capital investment for the photovoltaic industry.” Wang Ming said.

However, regarding the market prospect of the photovoltaic industry, Wang Ming has always been optimistic: “The company has only encountered some difficulties in the transition from the traditional industry to the new energy industry. The difficulties are only temporary.”

In fact, the transformation of Wang Ming Company is just a microcosm of China's Yangtze River Delta industry transformation and upgrading.

Following the joint issuance of the "Guiding Opinions on the Establishment of National Demonstration Zones for Transformation and Upgrading of Processing Trade in the Pearl River Delta Region" by the three ministries and commissions of the General Administration of Customs and the Ministry of Commerce (hereinafter referred to as the "Opinions"), the General Administration of Customs and the Jiangsu Provincial People's Government recently signed a memorandum. The two sides decided to establish a close cooperation mechanism, increase support for the "pilot cities" in transformation and upgrading of processing trade in Jiangsu Province, and promote the transformation and upgrading of foreign trade enterprises.

It is understood that several provincial and municipal authorities have successively introduced supporting policies to support the industrial transformation and upgrading of enterprises in the province. A transitional upgrade exam is being swept away.

Transformation experience encounter pain Since the reform and opening up more than 30 years ago, the coastal provinces and cities, especially the Guangdong Province, took "three to one supplements" as the breakthrough point and focal point for economic development. The processing trade industry has once become the "vane indicator" of China's economy.

However, with the development of the market economy, simply relying on OEM processing can no longer meet the needs of China's economic development. The company's profits have also been eroded by the original low cost of pride, and corporate transformation and upgrading is imminent.

The "low threshold" photovoltaic industry has become the preferred target for the upgrading of SMEs. Wang Ming’s company’s cross-industry development is also born in this context.

Wang Ming said: "I see many companies have added codes to the photovoltaic industry. In order not to lose at the starting line, in April of last year, we invested 10 million yuan to establish a polysilicon company in an effort to make a difference in the photovoltaic industry."

According to statistics from Zhejiang Solar Energy Industry Association, there are currently more than 200 photovoltaic companies in Zhejiang, of which, at the end of last year alone, more than 60 small and medium-sized enterprises (SMEs) were flooding into the photovoltaic industry, among which the majority were small-scale photovoltaic companies.

Wang Ming said: "Actually, after June of last year, it was apparent that many companies switched to the photovoltaic industry. Now the market is already saturated and there is a serious excess of production capacity."

The reason why companies are so rampant is that, apart from the prospect of the industrial market, it is not unrelated to the government's guiding policy.

Hu Yongqiang, deputy general manager of Zhejiang Efficient Energy Technology Co., said in an interview that “the reason why so many companies are entering the photovoltaic industry is largely due to the government's policy orientation.”

Zhejiang EFE Energy Technology Co., Ltd. is a subsidiary of Wenzhou Baoyi Group. Last March, this private valve group with a history of more than 20 years began to enter the photovoltaic industry.

Hu Yongqiang said that the most direct manifestation of the upsurge of traditional enterprise transformation as a photovoltaic industry is that in the signboards of industrial enterprises, “Leather shoes, leather, and leather goods” are written on the left and “Polysilicon rods and silicon wafers” are written on the right.

Wang Ming said: "With the price of raw materials falling from the highest 300 million yuan per ton to 380,000 yuan per ton, the price of end-products has also fallen significantly, which has greatly dampened the enthusiasm of the company."

In recent years, the advantages of traditional industries in coastal provinces and cities have gradually disappeared. The costs of raw materials and labor have eroded most of the company’s profits, and many companies have been difficult to survive.

However, even so, there are still many small and medium-sized enterprises who are not tired of planning to change jobs.

Wang Ming said that traditional industries have thin profits and even if the new energy industry is saturated, the industry still has higher profits, much higher than traditional manufacturing.

And Wang Ming holds the same point of view as the deputy secretary-general of the Haining Furniture Industry Association.

Mr. Tan said that as a traditional industry, the transformation and upgrading of domestic sofa manufacturers has just begun. Although some companies have done relatively outstanding aspects in transition, the industry as a whole is still at the initial stage of transformation.

Zhou Dewen, president of the Zhejiang Small and Medium Enterprises Promotion Association, believes that if the SMEs are blindly transformed and the company develops across industries, not only will the effect of transformation and upgrading not be obvious, but it may increase the risk of the company and accelerate the collapse of the company.

Because of this, after the "Opinions" have been issued, there will be a number of measures to help companies through the transformation and upgrading exam.

It is reported that the "Opinions" pointed out that there are 13 major measures to promote the construction of demonstration areas, including the management of innovative processing trade, optimizing the distribution of processing trade, accelerating the transformation of processing trade mode, promoting processing trade, extending the industrial chain, and strengthening the transformation and upgrading of financing insurance. Support and encourage processing trade enterprises to expand the domestic market.

By e-commerce, Jie Jie said that 87% of Haining sofa products are exported to the North American market, of which the US market is the main one. However, starting last year, due to the weak recovery of the US economy, more and more companies are exporting domestic products to Haining. Two legs "walking allows companies to walk more steadily.

According to reports, as a sofa industry in Haining, a major characteristic industry, in April, the China Furniture Association and the Haining Municipal People's Government signed an agreement to build a "Chinese export sofa industry base," and awarded Haining the "China Export Sofa Industry Base."

Tan Jie said: "Each year Haining sofa exports account for half of the province's exports, due to the lack of strength in overseas markets, and domestic self-owned brands, companies are facing too high a cost, which requires the government, associations and companies and other parties Work together to actively promote the transformation and upgrading of the company."

Where is it difficult to transform traditional industries? In the opinion of Tan Jie, prior to this, foreign trade companies only needed several salesmen, bosses, and factory workers to do a good job on products according to orders. In order to transform and upgrade to the domestic market, companies need not only to start from scratch in accordance with domestic demand, but also A large amount of capital has been invested in the establishment of corporate brands, sales channels, and promotion of foreign companies. Over-high-pressure companies have become overwhelmed.

For this reason, many companies have chosen e-commerce as a new business model for cost savings.

In the first half of this year, the town of Heining Xieqiao revolved around the economic transformation and upgrading, invested 300 million yuan to build an e-commerce and logistics information center project, and prepared to introduce more than 100 e-commerce companies to enter the city, laying a foundation for the integration of e-commerce, manufacturing, and logistics. basis.

Strengthen the brand awareness For the enterprise how to carry out transformation and upgrading, people in the business community also expressed their opinions and suggestions. Relevant person in charge of the domestic industrial e-commerce company Le Bai provided an interview with a reporter from the China Enterprise News. “Many of the processing and trading companies are based on OEMs. They not only do not have their own brands, and they do not even have a perfect sales. The team and the procurement team.Once the fixed OEM brands do not have orders or the raw material costs increase, they are likely to have no source of funds or make ends meet, or even have to pay wages, and struggle on the edge of life and death. It is necessary to carry out transformation and upgrading, make preparations for a rainy day, and open up its own product sales market."

The above-mentioned person in charge stated that the brand awareness of the processing and trading enterprises in China is very weak, and they are unable to adapt to the fiercely competitive sales environment. Lebai is used as a professional platform for industrial product purchase and sales, and passes the “brand display” and “recommended experience” on two legs. In the form of walking, it helps SMEs build their brands and transform and upgrade.

Not only has the local government introduced a number of measures to promote the transformation and upgrading of foreign trade enterprises, but the related industry auxiliary departments have also joined the team supporting the transformation of enterprises without exception.

According to the Guangdong Huangpu Customs, the Huangpu Customs has introduced a number of policies and measures to support the transformation and upgrading of enterprises and continuously improve the "soft environment" of Dongguan's processing trade development.

The "opinions" pointed out that to promote the construction of the demonstration area, we must encourage the transformation of illegal processing plants into independent legal person companies.

The relevant person in charge of the Huangpu Customs stated that the Huangpu Customs successfully explored a mode of “non-stop production transition in place” for the processing enterprises of incoming materials in accordance with the actual situation, allowing processing enterprises with “unqualified qualifications” for a certain period of time and having “legal status”. The sole proprietorship "co-existence of double numbers" allows the company to transform on the spot.

As of the first half of this year, more than 2,700 processing companies in Dongguan transformed themselves into wholly-owned enterprises.

“But as far as sofa companies are concerned, Haining Carson Group has 38 franchised stores in China at the moment.” Tan Jie told reporters that Carson Group is an enterprise that has embarked on the brand road earlier in the country. Previously, Carson mainly used OEMs. OEM (manufacturing) business is the main business. Since last year, Carson began to shift from OEM to OBM.

Tan Jie said: "It is expected that after 2-3 years, the transformation and upgrading of domestic sofa companies will show remarkable results."


Brightenlux Electric Appliance Co., Ltd ,

Posted on