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In the new century, the Chinese auto industry has embarked on the fast track of development. In the five years after China’s accession to the WTO, China’s automobile production and sales actually increased threefold. Last year, the national automobile production and sales exceeded 7.2 million vehicles, rising to the top 3 in the world.
For a long time, people are worried that the Chinese auto industry is so "infant" that once the country joins the WTO, the "national car industry" that loses its "care" will face a crisis of survival. However, when we look at the history of joining the WTO for more than five years, we are pleasantly surprised to see that as long as we make full use of both domestic and international resources and seek and play a competitive advantage in opening up, the prospects of the Chinese auto industry are not pessimistic. On the contrary, as long as our institutional and policy adjustments are in place, the automobile industry can not only become one of the most promising and dynamic growth points in China's economic development in the future, but it can also become a new force in the global automobile industry.
It is an indisputable fact that China is a big country in the world's automobile production and sales. However, China is still a weak country in the automotive industry. Careful study can be found in such large countries as the production and sales of cars, but such a small amount of car import and export in the world is almost unique. With such a large-scale automobile industry, independent intellectual property rights and independent brands are so weak that this is rare in the world.
In the rapid development of the Chinese auto industry, it must complete the transformation from a big automobile manufacturing country to a powerful automobile country. To this end, two major historical missions must be fulfilled during the important period of the development of the automobile industry: one is to cultivate a strong independent innovation capability; the other is to cultivate a globally competitive automobile company.
Judging from the development experience, as long as there is market demand, production and scale expansion is relatively easy, but to become a powerful automobile country, in addition to the need to overcome the constraints of institutional mechanisms, the lack of independent research and development capabilities, the lack of soft power is a fatal weakness of Chinese auto companies.
First, make great efforts to cultivate independent innovation capabilities
After the reform and opening up, the country put forward the technology development line of "introduction, digestion, absorption, and innovation". This is a very important technological leapfrogging strategy. Through the introduction, digestion, and absorption of the Chinese auto industry, the product and production levels have reached a large level, laying the foundation for today's glory. However, when people re-examined the course of “market-for-technologyâ€, it was found that many domestic companies had given up the market and even granted some of their ownership, but they did not in exchange for independent technological innovation capabilities and did not establish themselves. The core technology, some of the technical capabilities are actually in decline.
According to statistics, during the introduction of technology in Japan, it took an average of one US dollar to introduce, and it took about US$7 for digestion, absorption, and innovation. The purpose is to chew through the introduced technology, thoroughly complete a process of technological learning, and embark on a new technology platform. From a short period of 30 years from the 50's to the 80's, Japan has gone through the process from introduction to innovation and has entered the ranks of technology exporting countries. South Korea is also roughly similar.
Since the reform and opening up, the number of projects and total expenditures for the introduction of technology in China may be even larger than the sum of Japan and South Korea. However, in the case of re-introduction, application, light digestion, and re-innovation, the process of technological learning has not been seriously completed, making us The technical capabilities always lag behind the technologies that are being introduced and are being applied. When these applied technologies need to be updated, they can only be introduced. As a result, the total amount of our technical expenses was not small, but most of them were handed to foreigners and did not nurture their own technical strength.
In the continuous cycle of introduction-backward-re-introduction, domestic technicians are actually marginalized; in joint ventures, joint venture partners are the main source of technology, and it is difficult for Chinese technicians to have a large application. Even if there are new models emerging on the market, there is no practical opportunity for domestic technical personnel to innovate.
The concept that needs clarification is that the introduction of technology does not mean that there is a technological capability; the level of introduction of technology is not its own level of technological innovation; the level of joint venture products mainly represents the level of technology suppliers; even if it can be commissioned to develop Such as "buy out" technology, but if you do not complete the process of technical learning, it can only end up with "property rights, no knowledge; technology, incompetence." Technology can be purchased but technical capabilities cannot be bought. The importance of technology introduction is that it is possible to shorten the process of technological learning; and whether or not the learning process can be completed depends on the company's strategy and learners' dedication.
One thought-provoking phenomenon is that any technology that cannot be imported from abroad, such as spacecraft, nuclear submarines, and J-10 aircraft, has been developed with great efforts; in the automotive industry, it was once entered into a separate volume, or it could not enter the mainstream and was not introduced. Chery, Geely, Great Wall, BYD and other companies with joint venture conditions have instead come to the fore in gathering R&D talent, independent innovation and independent brands. Companies that used to be the main force in the automotive industry should admit that they have lagged behind in these areas.
In this fiercely competitive world, there is no free lunch. The core technology is the essence of core competitiveness, which company will not transfer. The core competitiveness of Chinese companies can only rely on their own hard accumulation.
In the case of the country’s advocacy of self-owned brand cars, some large auto companies have begun to organize their own branded cars outside the joint venture company. This is a gratifying phenomenon.
Second, break through the bottleneck of "soft power"
Chinese companies are growing rapidly. However, in order to nurture a globally competitive automobile company, in addition to the constant expansion of its hard power, it must pay great attention to strengthening soft power construction.
Compared with outstanding multinational corporations, Chinese enterprises not only have a large gap in their hard power, but also are more difficult to overcome than the gap in "soft power."
Corporate hard power mainly refers to the materialized capabilities of capital, plant, equipment and production and operation facilities. Soft power refers to corporate purposes, values, innovation mechanisms, social responsibility awareness and the resultant social reputation, market credit and brand influence. Broadly speaking, it should also include corporate governance structure, marketing network, supply chain system and so on.
In the global industrial division of labor system, if the "hard power" of operating facilities and production capacity, including capital, is more easily copied and replaced, then "soft power" shows some characteristics of "culture". Many reflect a kind of social identity and affinity of the company and society. These are difficult to duplicate. This is the most difficult part for latecomers to surpass the former.
Affected by the receptor system and development stage, Chinese companies have always had a tendency to focus on hardware, software, heavy scale expansion, and light technology innovation. Many enterprises' soft power and hard power are not coordinated, and soft power has become the weakness of the company. Strengthening soft power is exactly the lesson that many Chinese companies must try to supplement.
The brand is the intangible asset of the company and the high-end "soft power" of the enterprise. Nowadays, China has become a big country in terms of clothing, home appliances and IT, but it is still a small country of brands. The auto industry seems to repeat this scenario again. In recent years, the automotive industry has shown great enthusiasm for nurturing its own brands. This shows that Chinese auto companies have begun to dissatisfied with the "production and manufacturing" only for a while, but have to have their own place in the auto industry. This is a leap in the business philosophy of Chinese auto companies.
The independent brand is a kind of market creativity based on innovation ability, independent intellectual property rights and corporate culture. It is a social recognition of the value of manufacturers and products after the market comparison of similar products and services by users, and thus constitutes the company’s trademark reputation. Automobiles are complex products. Users and manufacturers have a high degree of asymmetry in product information. Therefore, users often choose the manufacturers when they choose products. This objectively strengthens the brand influence of automotive products.
Automobile is a highly internationalized industry. Facing the powerful brand manufacturers in the world, it is extremely difficult to "take risks" to develop new brands and obtain widespread consumer acceptance. Chinese companies must understand that creating their own brands is based on the company's long-term strategy. Brand building is far more difficult than the expansion of production capacity. However, if the brand is concerned, it can never enter the global automobile industry club independently.
There are many ways to create your own brand, but there are no shortcuts. Although the corporate brand strategy is different, the core should be to create the soft power that can support excellent brands. Including market positioning, technical characteristics, cultural tastes, marketing strategies, service styles, corporate values, and social responsibility awareness.
Cultivating brands to promote, and sometimes also need to "build momentum", but the "propaganda campaign strategy" as a brand strategy, it entered the misunderstanding. Without the accumulation of independent innovation capabilities, core technologies, and good cultural connotations, even if a brand is “evaluated†or “madeâ€, it can only be a flash in the pan.
The period of rapid industrialization and economic growth is the most favorable period for cultivating industries and companies with global competitiveness. The continuous and huge growth potential of the Chinese auto market has provided historical opportunities for cultivating China's world-class auto companies. Now or never. Chinese auto companies have a long way to go.
Third, cherish the good situation of commercial vehicle exports
In terms of commercial vehicles, China has a long period of accumulation in design, manufacturing, and marketing. After the reform and opening up, it has also introduced advanced technologies. This has led to independent intellectual property rights and independent brands of commercial vehicles with a good price/performance ratio in the domestic market. Always firmly occupy the dominant position. The baptism of the domestic huge market as the backing and the competition between the domestic market and the world's strongest players have made preliminary preparations for China's commercial vehicles to enter the international market. This makes commercial vehicles become an entry point for Chinese cars to enter the global market, and has achieved good results for several years. This is encouraging.
After 20 years of retrogression, who believes that China's TV sets, refrigerators, Chinese-made mobile phones and notebook computers can occupy the world market? The global commercial vehicle market is huge and the demand varies. We can prudently predict that after a period of tempering and preparation, not only will the "Made in China" commercial vehicles squeeze into the international market, but also the Chinese-brand commercial vehicles. Gradually gain world recognition.
The international automobile market is a mature market. The market segmentation has long been formed. As a new entrant, you will encounter great difficulties and risks. This involves complex issues such as the selection of export regions, legal environmental measures, market demand surveys, selection of potential users, competitors' research, marketing strategies, brand strategies, and the cultivation of sales and after-sales service agents. Whether manufacturers should enter the international market or when to enter, etc., should be used as a major business strategy of the company, conducting in-depth investigation and research, and careful decision-making. The export must not be used as a short-term opportunity to make money; "a single shot for a place" will block one's future road.
China's motorcycle industry has "going out" to expand market space. However, the result of "infighting out of guilty" not only made China's motorcycles quickly become a "dealing goods", export companies are not profitable, and it has caused the entire Chinese motorcycle industry's international image to be greatly hurt and against China. The further development of motorcycles in the international market created obstacles. Eating a long shot, wisdom, history can not be simply repeated. This must be paid attention to when China's commercial vehicle exports begin.
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