Hardware bearing industry to create brand competition

China's hardware bearing industry is growing rapidly with an average annual double-digit growth rate. However, in the era of brand survival in the industry to survive and survive, many companies in China's bearing industry are also ready to meet the "brand era" to prepare for the arrival? Let us listen to Wang Qingqing, executive vice chairman of China Bearing Industry Association.

What is a brand?

Doing a good job will give you value for money, and doing a good job will give you value for money!

This is a "brand era". If we say that we have been laying the foundation for product quality in the first ten years, then we should do branding on the basis of the product at a later time. Otherwise, the enterprise will not have a competitive advantage and the profit rate will be better than others. . We must know that the average profit rate of the bearing industry in China is only about 5%.

Reviewing the history of the development of the bearing industry in China, during the “10th Five-Year Plan” and “Eleventh Five-Year Plan” period, the technical progress of the entire industry was very obvious. In addition, the Bearing Industry Association carried out a technical research in the entire industry to make the product life, reliability and noise. The materials and other technologies have made great progress, especially for small and miniature bearings. The small and miniature bearings produced in Jiangsu and Zhejiang provinces are comparable to Japan's. But later, due to the increasingly fierce competition among enterprises, some companies are not willing to share special technologies with their peers, and progress is slower.

In 2012, the slump in the construction machinery market had a significant impact on bearings. From January to December, sales in China's bearing industry fell by 6%, and profits dropped by 25%. However, the economic crisis is also an opportunity. Many companies began to abandon low-end products since 2009, and they are developing large-scale bearings in their hands. For example, the people, the products have been exported to Japan and the United States, November 2012 sales increased by 19.96%; again like the new torch, with the upgrading of the national brand of cars, its wheel bearings are gradually upgraded, sales from 2009 The 520 million yuan has been 860 million in 2011, and the sales in January-November 2012 increased by 14.56%. In addition to supporting future development through technological innovation and equipment transformation, some companies have also integrated services into production. . Zhongshan Yingke is a typical example. Although the scale of the company is not large, they also provide solutions to customers in addition to selling bearings.

Manufacturing services will become a trend in the future. According to the planning of China's bearing industry, by the end of the “Twelfth Five-year Plan”, the revenue from services will account for about 25% of the main business revenue. From product development to the provision of equipment and sales services, this is a big chain. However, at present, bearing companies value this piece of processing and manufacturing, and they lack the awareness of "branding." This is also where our association needs to work hard: to promote powerful companies to do services, to play brands, to compete with the giants on the international market. It should be noted that at present, the eight transnational corporations have built 43 bearing factories in China. These factories originally produced high-end bearings and are now gradually extending to the mid-end, using lower labor costs in China, plus the original brand advantages and domestic bearing companies. Form a direct collision. In China, more than 1,400 bearing companies do not have a well-known international brand. When competing with large multinational companies, they have a competitive disadvantage in terms of brand, and the profit rate is relatively low.

However, after many years of development, some bearing companies in China have initially had the ability to build an international brand. For example, Rui Gu Technology specializes in copper cages for bearings. In terms of railways and wind power, its level has met the requirements of SKF and has become the designated purchasing unit of SKF. All equipment used by Ruigu Technology is imported from abroad. In addition, they also send their engineering and technical personnel to Gothenburg for training. They also invite SKF experts to enter the factory for training. The starting point is very high. They do The level of copper cage has reached the first in the country. There are many such companies in our country. For example, the Wazhousha, Luoxi, and Tianma all have this condition. They all have a good product base, have a good support for brand building, and can go one step further to become a world-renowned brand. The brand is well-made, and the pricing power comes naturally to their own hands.