Consumer electronics companies transition from low-cost strategies to brand operations

Recently, the "Global Electronics Products and Parts Sourcing Fair" held in Shanghai has become a big stage for the debut of a Shenzhen electronics company. This reporter learned that this exhibition has attracted many buyers from all over the world and China, and Shenzhen, known for its electronics industry, has become the largest "exhibitor" of the exhibition.

The reporter found that at the exhibition site of nearly 600 booths, more than 90% of exhibitors had their own brands. Ren Lifeng, vice president of the Global Resources Development Department of Domestic Trade, told reporters, “China’s electronics companies have gradually shaken off the shackles of low-end manufacturing, and have been vigorously expanding into the upstream of the industry chain. They rely on product R&D and brand marketing services, relying on the brand’s Charm clings to the R&D and market at both ends of the value chain, which is the most lucrative area."

"More than half of the companies in this exhibition come from Shenzhen and Guangdong. They all face a common problem: "How do my products stand here? How do I find distributors and find my platform?" Ren Lifeng told reporters that although Shenzhen It is the nation's consumer electronics manufacturing base, but the reason why the exhibition is located in Shanghai is because it is a commercial center of China. Shenzhen enterprises need to step out of the Pearl River Delta and come here to find business opportunities.

The recovery and turnaround of overseas markets have not been able to meet the expectations of domestic companies, but the domestic consumer electronics market has been rather active. In the past three years, the domestic demand for consumer electronics in China has grown by more than 20% annually.

The blue ocean of domestic demand looks large, but it does seem to be just that, although the growth is huge but the space for enterprise development is getting narrower and narrower. The important reason is the endless low-price competition strategy. "The sooner or later, the number of competition is to be replaced by quality competition. If we do not pay attention to quality and innovation, the production of electronic products is only a simple task." "Low prices are a must, but they should not be the only ones." "The Brand Channel Summit Forum", President of Global Sources Corporate Affairs and Publisher of "World Manager," said that electronic companies should jump out of the vicious circle of price wars. The vast blue ocean that electronic companies are looking for should be dominated by brand management. He believes that in addition to relying on the design and innovation of the product itself, the branding of e-businesses also depends on services, logistics, and channels.

In a recent brand survey, Konka, Huawei, Lenovo, and Changhong were ranked as the top ten most popular consumer electronics brands in China. It is worth noting that Huawei’s most attractive feature in the past was its professional products such as telecommunications equipment. But why can it be selected as the most popular consumer electronics product? Keke believes that the answer is still the power of the brand. He said, “At present, China's foreign trade companies are at an important stage of transition. The challenge they face is how to present the company’s overall image, product features, production capabilities, and value-added services provided by buyers. At the same time, overseas buyers are even more challenging. The emphasis is on the uniqueness of the product and the brand reputation, so the brand strategy is the inevitable path for these companies."