China Shoes And Garment Manufacturing Industry Should Adhere To The Industrial Pformation With Scientific And Technological Innovation As The Key Link.

The recent survey of DDT's competitiveness in China's manufacturing industry released in 2011 indicates that China's manufacturing industry is in the process of strategic pformation.

Manufacturing enterprises need to take a long-term view and analyze future trends towards themselves.

DDT believes that China's low-cost leading edge is facing challenges.

From the perspective of development history, China's manufacturing industry is generally developed on the basis of low cost strategy. "Made in China" (made in China) has swept the globe, and China's economy has also maintained a large scale.

In knowledge intensive industries, "made in China" still has a high performance price ratio, especially in some manufacturing industries, such as machinery manufacturing, electronic communications and wind power equipment.

But in terms of core technologies and patents, China is still in a passive position. China will face challenges in the competition of science and technology with the advantage of low cost.

DDT believes that China's manufacturing industry should adhere to the strategic pformation of industry based on scientific and technological innovation.

Since the low cost industry strategy is facing challenges, the differentiated competition strategy is promoted to the desktop.

The difference is that China needs to get rid of the competition of low-end products and rely on technological innovation to take a new road of industrial development.

In spite of the goal of building an innovative country in 2006, the Chinese government clearly put forward the requirements for upgrading the industrial structure in the 12th Five-Year development plan.

But from the reality of DDT research, there is a gap between the government's goals and the implementation of enterprises.

Although the number of PCT patent applications of Chinese enterprises continues to rise, the distribution of patent applicants is extremely uneven.

According to the World Intellectual Property Organization (2010) data, the patent applications of the top two companies in China's PCT patent application account for 30% of the total PCT patent applications in the year, while third of the companies accounted for only 1%, while the top ten companies in the United States accounted for 12% of the total number of PCT patent applications in the United States, except for the first Qualcomm Corp accounted for 4%, while other 9 companies were around 1%.

China's technological innovation is only a few companies concentrated in a few fields, and has not yet formed a system in the whole society.

Although the government has set a series of industrial development goals, it proposes independent innovation, and requires large enterprises to achieve 3% R & D investment.

However, at the executive level, the effectiveness of R & D investment in large-scale manufacturing industry lacks specific assessment objectives.

In the process of interviews with senior executives, we learned that some enterprises only used R & D funds to buy prototypes and conduct peripheral tests, while the real core technology systems were very few, so the R & D effectiveness and technology conversion rate of these enterprises were still very low.

The Yangtze River Delta will become more and more important.

DDT believes that the Yangtze River Delta will further strengthen its position in China's future manufacturing industry.

Although the Chinese government has proposed a strategy to develop into the central and western regions, we find that more enterprises are still willing to expand their businesses in the eastern region or in the prosperous market areas.

In the survey, the first choice for new factories is the Yangtze River Delta, followed by Bohai rim and central China.

In the interview, business executives appreciated the business environment of the Yangtze River Delta region.

They believe that the Yangtze River Delta region has excellent infrastructure, convenient logistics system, perfect matching capabilities and good business environment, and even in the labor price aspect, the Yangtze River Delta region is better than some western provinces.

The advantages of Bohai rim and central China are good logistics base and talent pool, both of which have been supported by the government.

The charm of the Pearl River Delta region, which used to drive the development of China's manufacturing industry, has been greatly fading.

93.6% of China's exports are manufactured products, so to some extent, the change of the proportion of exports in different regions of China also reflects the development trend of the focus of China's manufacturing industry.

Since 2003, the proportion of Guangdong's exports has been decreasing year by year, while the Yangtze River Delta region is growing at a rate of one percentage point a year, and now occupies 41% of the export share.

In addition, the 12th Five-Year national planning policy puts forward new directions for the development of manufacturing industry.

The national policy continues to promote the development of China's manufacturing industry. In view of the fact that government actions play a key role in the competitiveness of the country, DDT has investigated the views of manufacturing executives on China's policies.

Nearly 70% of respondents believe that the support policy of the Chinese government is the key factor to promote the development of their manufacturing industry. 62% of the respondents believe that China's trade policy and economic development policy have played a positive role in the development of manufacturing industry.

Then it is the support of technology and innovation, the investment in infrastructure construction and the economic strategy of sustainable development.

But at the same time, 21% of respondents thought that the law of corporate tax and intellectual property protection were not enough, making manufacturing competition inferior in these areas.

Seven strategic emerging industries are new directions.

All countries in the world are looking for the driving force for the next round of economic growth, and begin to pay close attention to the cultivation of strategic emerging industries which have great influence on national economic development and national security.

The Obama administration of the United States attaches great importance to the technological development and industrial development of new energy, stem cells, aerospace and broadband networks. Japan has focused on the emerging industries such as the commercial aerospace market, information technology applications, new cars, low-carbon industries, medical care and new energy.

In the 12th Five-Year plan issued by the Chinese government, it explicitly proposed that energy saving and environmental protection, new generation of information technology, biology, high-end equipment manufacturing, new energy, new materials and new energy vehicles and other industries should be taken as seven major emerging strategic industries of the country. In the decision of the state Council on accelerating the nurturing and development of strategic emerging industries, it was proposed that in the Seven World War of 2015, the added value of slightly emerging industries will account for about 8% of GDP. By 2020, the added value of strategic emerging industries will account for about 15% of GDP.

The essence of the seven strategic emerging industries is that the state has put forward the direction of new manufacturing development.

Whether it is a pillar industry, energy conservation, environmental protection, new generation of information technology, biology, high-end equipment manufacturing industry, or new energy, new materials and new energy automobile industry as the leading industry, are closely related to the manufacturing industry chain, and it is also a new direction and new field for the upgrading and development of manufacturing industry.

The success of China's future development in these seven industries will become one of the key factors in deciding China to move from manufacturing power to manufacturing power.

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Further integration into the global economic system

With the strengthening of the trend of world economic integration, the Chinese government put forward the goal of "further strengthening the international competitiveness of Chinese enterprises, optimizing the structure of export products and strengthening the use of foreign capital to integrate into the global economic system" in the 12th Five-Year plan.

It is not difficult to see that in the next five years, the Chinese government will advocate two aspects in the trend of Globalization:

First, industrial pfer, that is, to pfer domestic labor-intensive and low value-added industries to low cost countries; from developed countries, to introduce capital, technology intensive industries, high technology and high value-added industries.

In this survey, nearly 12% of enterprises expressed their intention to invest and build factories overseas, and the regions were mainly concentrated in Vietnam, India, Kampuchea, Indonesia and other countries with cheaper labor costs, while Vietnam was the most popular investment destination.

According to industry analysis, the consumer goods manufacturing industry (Textile / clothing / Shoes / hat manufacturing) has a relatively strong desire to invest abroad, and 20% of the surveyed consumer goods manufacturers plan to invest in overseas factories.

Manpower cost is one of the most important components of the cost of consumer goods manufacturing. At present, the cost of labor in most Southeast Asian countries is about 50% of that in China.

Taking into account the rise in China's RMB exchange rate and the contention of China's domestic service industries and other industries to the already reduced low end labor force, some low tech consumer goods manufacturing industries have gradually shifted to other emerging countries, and we think this trend will become more and more obvious.

Two is to strengthen capital utilization, that is, to support Chinese enterprises in cross-border investment in machinery, ships, railways and other industries.

At present, China has a large number of capital rich enterprises to enter the international market to acquire global technology, brand and market channels, and with the Chinese currency playing an increasingly important role in the international market, the purchasing power of Chinese manufacturing enterprises will further strengthen in the future.

According to Dealogic, a London consultant company, the total investment in Europe was only $853 million in 2003-2005 years, and up to 43 billion 900 million US dollars in 2008-2010 years.

At present, the overseas mergers and acquisitions of Chinese private enterprises have gradually become a new highlight of cross-border mergers and Acquisitions: Geely's 1 billion 800 million dollar acquisition of Volvo has opened up the way for Chinese enterprises to acquire high-end brands in Europe. As one of the flagship enterprises in China's machinery industry, the 31 group is about to become China's first construction machinery company in Germany, indicating that China's rapidly developing industrial enterprises are beginning to march into the European construction machinery market.

China, as an economic powerhouse striding forward from developing countries to developed countries, will take advantage of its unique advantages and historic opportunities to go out and set up international leading enterprises. It will be one of the keys to the sustained and rapid development of China's economy. In 2011, Chinese enterprises overseas will continue to maintain steady growth.