LIU Run: the sea is the next wave of growth in the manufacturing sector dividend

I have a basic judgment about the next 5-10 years, the incremental market will become the stock market. Incremental era, the gold all over the floor, not yours is mine. Harmonious and friendly, polite humility. The stock of the world, brutal fight, began Wujin purse, look tight pockets, even the eyes to see each other lightly. Many companies are faced with such a “dilemma”: the stock of the world, how to find new incremental? Not long ago, I am concerned about some phenomena, such as Cao Dewang and Fuyao to his Ohio plant, the documentary “American factory” to tell the story. And Musk and Tesla went to his factories in Shanghai, China, is about to end volume production. Behind these phenomena, reflecting a significant trend. Sea Control Engineering Copyright , perhaps a new round of growth dividend
why “sea” may be a new round of growth in dividends? Want to answer this question, we must first understand the changes taking place, a bad news, good news. The bad news is, we must recognize that the supply side of the demographic dividend is about to disappear. Over the past 40 years, China has become a “Made in China” is because of the unique demographic dividend. We rely on abundant and cheap supply of labor, forming a huge comparative advantage, grab a position in the development of globalization, has become a “world factory.” That era, also sprung up to Lenovo, Haier, represented by a group of outstanding enterprises. But now the supply side of the demographic dividend gradually disappear, increasing lack of labor force, leading to more expensive labor costs, many factories no one can move. Many factories can not afford the high cost of dying. Cost, cost, or cost, they anxiously asked: how do? But the good news is that advances in technology, fast speed, large-scale emergence of robotics and automation, have the opportunity to reduce the cost of the plant. BMW’s assembly plant for example, no lights Haier workshop, it is typical of the use of automation. The rapid development of technology, will make use of technology and cost reduction threshold , and these technologies will greatly reduce the expensive labor costs. Cost, or cost, as long as the cost of solving the problem, these plants have the opportunity revitalized. Understand these two changes, we can understand why the “sea” may be the bonus. Because the “cost” is the mostSub-enterprise “business line between life,” “success winning hand”, entrepreneurs and entrepreneurs to keep afterwards, accounts can be considered flat, have the opportunity to profit, otherwise make ends meet, there is a crisis. Cao Dewang, is obviously a good actuary. In the “Dialogue” column, he interviewed Chen Weihong, and when it comes to why he had to go to Ohio , investment in the construction “American factories.” A seven-year-old man, counting down the upsides are so thin, amazing. In the United States, almost anything cheaper than China, only labor costs, more expensive than China. But just mentioned, the advent of large-scale automation will greatly reduce labor costs, you say the “wily” actuary, will build a factory where? So CONTROL ENGINEERING China Copyright , at varying times, the sea might mean more profits and bigger market, more rational choice. The sea can build factories in the country market destination What does it mean? We often say, invest and build factories generally have three options: the first is based on the producers of raw materials. There is rich resources such as bauxite mine in some countries, some countries such as beans and rubber. The second is the establishment of third-party manufacturers in the middle of the country. The raw materials shipped to third countries, and then shipped around the world to complete the process. The third market is built on the destination country. Built directly in the target market customers are located. China belongs to the last second, belongs to a third party the country of manufacture. Because labor costs are cheaper, we found that the raw materials shipped to China, the manufacturing process is completed and then shipped to the total cost of the world, may be the lowest. However, due to automation just mentioned, labor costs will no longer be a decisive constraints, there will be more factories built directly in the destination country market, which will help respond quickly to market, but also conducive to the fastest transportation and sale of the finished products. Such as Cao Dewang and Fuyao him. Fuyao a major customer in the United States, is General Motors. The glass of this product is extremely difficult transportation, construction market in the destination country, saving costs and improve efficiency. As another example, Musker and his Tesla. A large part of Tesla customers in China. In the first half of this year, Tesla retail sales in China reached about 25,000. This is almost equivalent to Wei, the Weimaraner, total sales in the first half of the three Xiaopengwith. In this way, we can understand why the two men to set up factories abroad, they are not on their “no confidence”, but not “sick”, probably just because overseas factories more cost-effective, closer to the target user. Behind companies have “sea”, it is the historic opportunity for development. Why? If globalization originator and recipient, then China in the past has been the recipient. But with China’s strong economy, enterprises continue to sea Control Engineering Copyright , globalization actually become China’s internationalization. Microsoft in the past is to build China subsidiary, BMW China to build factories, now we own businesses and factories overseas to do. “Along the way” for the national strategy on behalf of Control Engineering Copyright , the macro level reflected China to gradually become a global leader. And at the micro level, a series of supporting policies, corporate dividend sea. We can use their own production capacity, technology, products in exchange for a broader market and opportunities. This is incremental. It is getting cold environment, a warm spring breeze. How can we do better next time out to sea? In the past we often say that foreign enterprises to invest in China easily agitated, such as Best Buy retail industry, such as the Internet industry, Ebay, Uber …… we say others should respect China’s national conditions, customs, habits …… So, now it’s our turn to sea [123 ] control Engineering Copyright , how do? Talked about the problems of globalization, we often when it comes to saying: “Globalization is localization” – “globalization is localization.” Globalization, is to respect other people’s habit to accept, to achieve localization in the local. China has a company called acoustic technology, has done particularly well at this point. When I went climbing Kilimanjaro in Africa, it found that black wizard is to use a technology called acoustic TECNO phone. This is a function of machine looks cheap, but the guide says that this is China’s largest mobile phone brand. I was shocked, never heard of, how this is China’s largest mobile phone brand? But I found a check, TECNO in Africa account for most of the market share, the sponsor of many sporting events are TECNO. The phone is also sold only in Africa. Why is it selling so well, that it makes Africans believe that this is China’s largest handBrand? It meets the local specific needs. For example, photographs of black issues. If the lighting is dim, especially at night, black friends may not even take pictures of people are not clear, leaving only white teeth …… so acoustic mobile phone camera function optimization, regardless of day and night, taking pictures very clear. Another example, TECNO phone to have a powerful magic, I opened the wizard of the phone, it is incredible, actually found inside a cell phone SIM card inserted four. Dual card dual standby Is not that enough? Even a cell phone for four cards? Yes, because Africans are often several people share a cell phone, so they want the phone not too expensive, and hope we can be more than the card. Acoustic technology, also developed for this multi-card multi-standby mobile phone, also sold particularly cheap. So CONTROL ENGINEERING China Copyright , in fact, globalization is localization, accept different tolerant of others, respect, understanding other people’s habits. Last words now, many companies stand at a crossroads, in the cruel world of the stock of the fight, where to look for new incremental? Sea Control Engineering Copyright , is the next wave of growth in dividends. Supply side of the demographic dividend is gone, automated come of age, there was a historic opportunity, intertwined collision with these changes, the timing also to the sea. In the past, we have by virtue of courage and guts, into the sea. The future, we rely on the wisdom and cooperation in the sea. We do not seize the initiative, we grab, it is timing.


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