As the foundation of the founding of the country, the instrument of rejuvenating the country, and the foundation of a strong country, the importance of manufacturing is self-evident. The technology research and development and product production of the manufacturing industry need to invest a lot of money, while the low profit means that the manufacturing enterprises have less liquidity, the profits are declining, and the research and development costs and product inventory will also decrease.
At the end of April, at the launch conference of Xiaomi Mobile, Lei Jun said: "The comprehensive net profit margin of Xiaomi's mobile phone will never exceed 5%."
What is the concept of 5%? The data shows that Samsung, also a smart mobile terminal company, has a net profit margin of approximately 19.3% and Apple's approximately 22.6%. Compared with these figures, 5% is really low and can't be lower.
As a result, many netizens praised: "Millet is really conscience, the profit is so low", but people in the manufacturing industry have heard this, but they can't help but scream: "Can manufacturing really only take such a profit?"
Heart is higher than the sky, Libby paper thinAs far as the current domestic manufacturing industry is concerned, “the net profit margin of Xiaomi hardware does not exceed 5%†is more like a propaganda gimmick, because in fact it is not just Xiaomi’s family, most of the domestic manufacturing enterprises are almost always operating at low profit. status.
—— Shenyang Machine Tool, the largest machine tool enterprise in China, has a weighted average return on net assets of only 1.47% in the first quarter of 2018. Although it is meager, it has increased by 52.35% compared with the same period of last year.
——In China's home appliance industry, in addition to adhering to the Gree of high profit margin principle, several major power giants Haier, TCL and Hisense have maintained a net profit margin of between 2% and 4%.
—— Car enterprise index data shows that the net profit of well-known domestic car companies such as Great Wall, BYD and Jianghuai in 2017 was 4.97%, 3.84% and 0.8% respectively.
Overall, China's auto, machine tools and home appliances manufacturing industries have a net profit margin of more than 5%, and more than 10% are few. However, in other industries, the net profit margin is higher than that of the manufacturing industry.
—— According to the “Securities Daily†data, in 2017, in the pharmaceutical industry in China, 272 of the 279 listed companies achieved profitability, and over 90% of the company achieved profitability. Among them, there are 27 companies with net profit exceeding 1 billion yuan, 158 companies with net profit exceeding 100 million yuan, and 26 companies with double net profit.
——In the real estate industry, the statistics of Zhongyuan Real Estate show that the average net profit rate of mainstream enterprises in the real estate industry in 2017 was as high as 12.4%.
It is no wonder that Li Shufu, the chairman of Zhejiang Geely Holding Group, was heartbroken: "The profit of manufacturing industry is already thinner than the blade."
Many people think that the low price brought by low profits has facilitated consumers, so commodities should keep low profits. In fact, this idea is one-sided. Everything has its two sides. The excessive pursuit of low profits by enterprises will destroy the market and hinder the long-term development of the industry, especially the manufacturing industry.
As the foundation of the founding of the country, the instrument of rejuvenating the country, and the foundation of a strong country, the importance of manufacturing is self-evident. The technology research and development and product production of the manufacturing industry need to invest a lot of money, while the low profit means that the manufacturing enterprises have less liquidity, the profits are declining, and the research and development costs and product inventory will also decrease.
For example, the "chip" incident that has been widely concerned in the past time, when we blindly accused domestic companies of not developing chips, they did not see the R&D investment of foreign companies on the chip. IC Insights showed in a February report that Intel's R&D spending in 2017 was $13.1 billion, accounting for 36% of the group's total spending; while another giant Qualcomm's chip research and development investment was $3.7 billion, and R&D expenses accounted for sales. The amount is 23.1%. Such a large amount of research and development funds is beyond the support of most manufacturing enterprises in China.
In addition, low profits also increase the “vulnerability†of enterprises, making enterprises extremely vulnerable to the global economic situation, and the performance of enterprises will fluctuate with the fluctuation of the economic cycle. This point is very obvious in China's machine tool industry. In the past few years, the global economy has declined, China's economic growth has slowed down, and China's machine tool industry has been in cold, and a large number of machine tool companies have been dying. With the recovery of China's economic growth last year, the machine tool industry began to gradually pick up. Between this economic ups and downs, many machine tool companies have fallen into losses and even declared bankruptcy.
Therefore, blind pursuit of low profits is actually not a wise choice.
But today, China's manufacturing industry has always maintained low profits, which is more like a helpless move.
Manufacturing dilemmaI don't know if you have found it, we occasionally see such a scene. The boss of a domestic enterprise stood up with a big belly and a belly. He stood on the stage and said: "Our products are not only of good quality, but more importantly, they are cheap. Others sell one hundred, we only need thirty. Not for anything else. Just make friends with everyone."
However, this situation is rarely seen in foreign companies. Cook will not hold the latest Apple mobile phone and say: "Our mobile phone only sells 998, only sells 998. If you miss today, you have to wait another year... ..."
Why does the price seem to be the most magic weapon for domestic companies? Why are our cars at a low price, and our machine tools have been in the low-end field? Why has the manufacturing industry been unable to raise prices?
First, the lack of technological innovation. Throughout the world's manufacturing powers - Germany, Japan, the United States, are all countries with developed technology. Relying on a sound industrial system and continuous scientific innovation, the products of these countries are sold all over the world. Many of our companies do not want to innovate, dare to innovate, and even think that innovation is not as good as "copying new", blindly imitating, copying, paying attention to the market and not paying attention to technology. Without technical support, the product can only be reduced to "flower shelf."
Second, the lack of brand building. The same low-tech, low-cost products, the profits of domestic companies are meager, but posted a foreign brand, the price will be a few times or even more than a dozen, this is the role of the brand. The brand strengthens people's awareness and recognition of products. At present, China's manufacturing brand market has low recognition and weak competitiveness. There are only 31 of the world's top 500 brands and only 7 of the top 100 brands. Coupled with a large number of counterfeit and shoddy products seriously affect the credibility of domestic brands and undermine consumer confidence in Chinese manufacturing, it can be said that the domestic brand market environment is relatively harsh.
Third, the service system is not perfect. Today, the foreign manufacturing industry attaches great importance to the construction of the “manufacturing service industryâ€. For example, machine tool manufacturers should not only consider how to effectively sell machine tools, but also know how to provide a high level of solutions. When customers are concerned about whether a machine tool can be successfully applied to its own production line, international companies will eliminate customer concerns by providing an integrated approach from design to production, especially simulation tools; when customers are financially constrained By delaying investment, international companies provide attractive financing services to their clients. Chinese manufacturing companies are still relatively new and weak in these areas.
Finally, the low profit of the manufacturing industry can help the product maintain a certain degree of competitiveness, but in the long run, the development of the manufacturing industry cannot rely solely on the control of prices. Because when the real wave of innovation comes, these unchanging companies will sink into the sea like the setting sun.
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