Abrasives and abrasives companies, don't let the transformation and upgrade go wrong

In the post-crisis era, if the business owner does not hang on to the transformation and upgrading of the enterprise, there will be no pattern. If the leader does not mention the industrial transformation and upgrading, it seems that it is not enough to worry about the country and the people. Since 2008, "transformation and upgrading" has replaced the "Made in China" that was once widely praised as the "life-saving straw" of the industry and even the national economy. “Transformation and upgrading” and “Made in China” were originally the right strategies. How many companies can understand the true meaning of industrial transformation and upgrading, instead of blindly following the trend of “Made in China”, falling behind the rudeness and a pile of bubbles?

It is a pity that although the transformation and upgrading has been called for four or five years, the abrasives and abrasives enterprises have undergone very little transformation in the right direction, and the transformation and upgrading is becoming another fashionable version of the “Made in China”. History is always strikingly similar. Most companies treat transformation and upgrading just like Chinese manufacturing: independent brands (or production lines), try their best to expand production capacity, super hard prospects are super hard, develop high-end product lines, and sell well. Products, and more. When everyone is rushing to a place (assuming that they are squeezed in), when the profit margin is squeezed out, the production capacity is excessive and the quality will be ignored. The misguided transformation and upgrading will become a big head at the expense of resources like “Made in China”. More importantly, companies have missed an opportunity in an economic era.

Let me talk about the brand first. Most companies believe that it is called a brand to operate their own brands, intellectual property rights, and self-built production lines. What needs to be corrected is that the brand is not only a specific product and trademark, it can be any link and service in the industry operation and economic behavior. As long as these links and services are refined, it can become a brand. Throughout the entire industrial chain of abrasives, it is a sigh that service brands with large market space have not been developed, such as: research and development of new brands, OEM brands, inspection and testing brands, standard service brands, channel brands, etc. These brands are not inferior to the brand of physical products, and even have more say in the industry. Many companies only see the high added value of the physical product brand, but forget the company's own system support and high investment. There is no shortage of product brands in the industry. If we blindly understand this as a transformation and upgrading, we will only go a long way.

Let's talk about positioning. Many companies understand transformation and upgrading as adding: developing products, expanding production capacity, entering super-hard or other fields, and following the hot-selling products. In fact, finding the right position for subtraction is more conducive to the smooth transformation and upgrading in the post-crisis era. Cut down the business, market, and even sacrifice some of the customers that are not good at the company, and then re-send the product or service to a precise positioning, and firmly hold the market segment. For example, if the company has done a lot of work, it will stabilize the quality, reduce the cost and improve the efficiency, and become a foundry brand.

The industrial chain integrates division of labor. Brand operations and production services have always been two different things. Brand operation is a costly job, and production is a money-saving job. The difference in ideas and concepts alone will make many bosses not adapt to the role. The abrasives industry urgently needs the integration and division of labor in the industry chain, so that the most professional companies can do the most professional things. Brand-operating enterprises blindly building capacity will increase brand equity and liabilities, dragging brands into low-price competition. However, blind investment in production brands will lose manufacturing advantages, and finally rely on the "cottage" brand to eat some leftovers, which is difficult to achieve. A reasonable division of labor, earning the most easy money to earn, the entire industry has established a multi-level and multi-link product chain. In this way, each link will provide a good environment for the brand's growth, this industry will be renewed, and it is also a real transformation and upgrading of the abrasives industry.

The key to transformation and upgrading lies in the upgrading of ideas. The bosses must realize that the era of the seller's market has passed, and “changing slowly and slowly” has changed the competition situation of “taking big and eating small”, so that it can be fully attacked, a set of advanced ideas, and three or five guns can also Game with big companies. If you can't adapt, handing over the scepter to the successor or professional manager is also a good strategy for transformation and upgrading. (Text / Fu Guangyu)

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