What is the way out for the brand-building era security and security foundry?

From a recent interview with Luo Jing, the general manager of Shenzhen Boshen Electronics, we learned that Boshen has established a dedicated ODM business unit in the second half of 2011, and hopes that ODM business can become a new growth of corporate profits. point.


How to Create a Brand Security Enterprise

When many monitoring companies were in deep fear of reshuffle, Bo deep shouted out the slogan of ODM and had to surprise the industry. Whether ODM business could become a new growth of the company's profits as requested by Luo Jing, general manager. point? ODM has much market potential in the end? A series of questions began to appear, but all this must be discussed from the production of OEM.

OEM production in the country called OEM or production outsourcing, in essence, refers to companies with advantageous brands in order to reduce equipment investment, reduce costs, seize the market and other purposes and entrust other companies to carry out production and processing. With the continuous deepening of reform and opening up, due to the attractive conditions of human resources, policy preferences and many other unique advantages, many foreign security companies moved their production centers into China, and also brought many OEM opportunities for domestic security companies. Because China's security business started late, most companies are still in the stage of initial accumulation of capital, the technical foundation is weak, the funds are insufficient, and the development of enterprises is faced with many problems. The accumulation of capital and technical support are urgently needed. Therefore, in the domestic security industry, The phenomenon of industrial production is very prominent. In Guangdong, there are few companies that do not produce OEM products. Many companies still rely on OEM production.

All things have advantages and disadvantages, security products OEM production for the domestic security companies have brought a lot of benefits, such as foreign security companies can learn advanced technology and management experience, capital accumulation, through the analysis of orders can also understand the market demand structure. At the same time, the drawbacks also began to appear. Enterprises engaged in OEM business for a long time will lose their sense of urgency. They always feel that they are behind the front line rather than the frontier of the market, losing the ability to develop the market and causing excessive reliance on OEM business. This reminds me of the salmon effect. According to legend, Norway is rich in sardines. However, due to the laziness of sardines and the small space in the fishing boat cabin, many sardines will die each time they are brought back to the dock. Later, the Norwegians put a few squids into the fish tanks. When they saw the fierce squid, the sardines began to become tense and they continued to swim because of fear. As a result, most of the shores survived. This is the "squid effect." The catfish effect tells the story of survival and competition. Companies lacking a sense of urgency and a spirit of competition also face a sardine-type test without the threat of squid. On the other hand, long-term engagement in such business will also result in the loss of the core competitiveness of enterprises, lack of market development capabilities, resulting in companies lacking their own brand, which is like a disabled person walking on one leg. Once the foundry business is lost, the company will want to Faced with the difficult reality of survival, and due to the lack of technical constraints on the entrusting parties for OEMs, coupled with the gradual increase in domestic personnel costs in recent years, and fierce competition, the possibility of business loss will be very high. In recent years, some foreign-funded enterprises have gradually transferred their production centers to countries such as Vietnam, Laos, the Philippines, and Thailand. This is a living example. This is also one of the reasons why many Chinese security companies have not been able to become bigger and stronger.

However, this does not mean that companies will not be successful in doing OEM and ODM business. Galanz is a typical successful case. Galanz started by relying on OEM. However, Galanz pays more attention to building its own brand while doing OEM for foreign companies. In the production process, Galanz constantly absorbs advanced technologies and business models of others, and builds its own brand. In the total export volume of the company's products, the proportion of Galanz's own brand is also increasing year by year, from the initial 1/9. By now 2/3, the company has finally achieved a rapid development. There are also many examples of such success in the security industry. Suzhou Taike was originally a security company engaged in the foundry business. However, in the production process, the company pays great attention to the study and digestion of technology and continuously accumulates technical experience. The brand was ready to be born and time proved their success. Taiko successfully created its own brand while working on OEM. The success of Galanz and Suzhou Taike has set an example for how security companies can create their own brands while producing OEM products. It also proves that “under the big tree, it is easy to enjoy the cool, but when others cool down under the trees, they always bow their heads. Or to cultivate a tree by yourself, it is best to feel at ease under the shade of your own tree."

The success of Galanz and Suzhou Taike undoubtedly made many security foundry companies excited. They pointed out two clear roads for the latecomers: First, the business of OEM can be done, but it must be done professionally, pay attention to absorbing others Advanced technologies and concepts lay the foundation for the creation of independent brands; while doing OEM, we must not forget our mission and focus on building our own brands.

Luo Jing said that after analyzing the financial statements, she discovered that many local sales agents who had small agency sales would improve their performance by looking for ODMs. This means that the company's ODMs are plentiful and the market potential is still huge. At the same time, she emphasized: The company's future thinking is to drive ODM business by brand, but brand building is still the focus, the company will refine the department, separate the company's own brand and ODM business, the salesman can not do the brand ODM, which specializes in the medical industry, will form an independent and good posture for ODM. From Luo's conversation record, we can clearly see that she has seen the importance of parallel development of ODM business development and brand building, and realized the importance of independent brand building. We believe that as an upcoming ODM business. The decision maker of the security company, in terms of decision-making, she has taken the first step to success.

When General Secretary Hu once inspected a company in Zhuhai, he repeatedly criticized people in the business community and must focus on developing the company's ability to innovate. This is the time for China to create a leap-forward development for China. I think the general secretary's embarrassment is also of great significance to security companies. It is time for Chinese security companies to take off the hats of OEM production and display their own brands.