How China become to OBM?

Probably, this is a main issue for China in next few years. how to change from the world factory to a big OBM country?
In my opinion, except enterprise innovation, the government should do some push on it, like do some policy for encouraging. for example, a short list of prospective brand company can be announced every year, then government provide some preferental policy etc....

To change OEM to ODM to OBM is a long journey. First of all, it need time to build the name espencially when a company want to be a hundreds years enterprise. Chinese old saying" long journey start from the first step" . Apply to brand buiding, small segement and solid quality and service should be contribute. Once it has a brand value, it can expand its segmentation and distribution area. However, innovatoin and customer orientation should always the concern during the progress.

From OEM to OBM, the Chinese company must have the key technology or global vision which could be accepted by foreigners.
OEM company advantage: low costs
This kind low costs consisted by three types. 1. Land (low price or low lents) 2. Labour cost( low salary/hour comparing with average salary/hour) 3. Energy cost, Water cost, Enviroment cost ( Low price of resources)

OBM company advantage: Core technology holder
Brand image or company vision accepted by most people in the world

OEM company have to rely on the money which it accumulated by hard working many years to inncubate new well educated people. Such
well educated people enter to industries to do more technology or innovative actions to get core advantage of OBM company.

Now, the government levies heavy tax on OEM company. OEM company do not have enough money to employ well educated people. What is more, the government do not offer enough good(lower than average international level) education to its new generation.
Another problem is that the culture of China is hirarchy and young people are heavily relied on their fathers not on their own abilities.

qiying_2011962423 wrote:Probably, this is a main issue for China in next few years. how to change from the world factory to a big OBM country?
In my opinion, except enterprise innovation, the government should do some push on it, like do some policy for encouraging. for example, a short list of prospective brand company can be announced every year, then government provide some preferental policy etc....

Actually the Chinese goverment has made great efforts to push the transformation from ODM to OBM in terms of policy, propoganda, etc. And Chinese people also realized the extrem importance of the brand identity. However, few companies except for Huawei and Haier achieved success. In my opinion,this should be related to not only the big enterprise enviroment, but also the entrepreneuship. As for the big enterprise enviroment, in the past years, the low labour cost dominated the advantages of Chinese enterprises. Nowadays, this advantage is disappearing, which in turn will push Chinese companies to re-think of its advantage and turn to OBM. As for the enterperneuship, China need have a well established education systme to culculate it or provide one fertile soil for it. The exsiting education system is frustrated.

It's a big and tough topic, and needs comprehensive efforts from all parties. Government should protect intelligent property in a more positive way. The national education system should be modified to foster more creative persons. And each enterprises, the main actors in the market, should not only complain the adverse external environment, but also change the internal mindset. Whether these enterprises really put business innovation in the same position of profit?

qiying_2011962423 wrote:Probably, this is a main issue for China in next few years. how to change from the world factory to a big OBM country?
In my opinion, except enterprise innovation, the government should do some push on it, like do some policy for encouraging. for example, a short list of prospective brand company can be announced every year, then government provide some preferental policy etc....

agreed, the government should play the most important role in this course

qiying_2011962423 wrote:Probably, this is a main issue for China in next few years. how to change from the world factory to a big OBM country?
In my opinion, except enterprise innovation, the government should do some push on it, like do some policy for encouraging. for example, a short list of prospective brand company can be announced every year, then government provide some preferental policy etc....

I guess the problem is that China Government has pushed too much. I believe we need to let market itself to push instead of the government efforts. Only in this way, Chinese enterprises will face strong pressure from heavy competition and will have to do some innovation to survive.

OBM is new to me... So out...

qiying_2011962423 wrote:Probably, this is a main issue for China in next few years. how to change from the world factory to a big OBM country?
In my opinion, except enterprise innovation, the government should do some push on it, like do some policy for encouraging. for example, a short list of prospective brand company can be announced every year, then government provide some preferental policy etc....

From today news, I heard some American company transfer their OEM or factory back to American again because of cost up in China.
If our ecnomics go on growing faster and mass spending more, China will be the biggest comsume market
Then MNC or OEM's own brand will establish R&D or Marketing team here in order to understand Chinese like what or dislike what!
OBM will be prevail here.