However, the price war will always make their products fall into the low-end, and under the thin profits, it is difficult for enterprises to invest huge amounts of money in research and development, so they cannot make good products and cannot achieve rapid iteration.

This will fall into a vicious circle, a large number of well-known electronic product design and manufacturing enterprises in history are quickly in trouble, in just a few years, from high-speed growth to serious losses, and even rapid bankruptcy and bankruptcy.

For a domestic second-tier electronics manufacturer like Paper Communication, this crisis is imminent.

"At present, the domestic market has further opened up, and the pace of entry of large international companies has begun to accelerate, which is especially reflected in the electronic product industry. Because the international giants have the advantage of technology, their products far surpass our domestic brands in terms of function and design, and we have no competitive advantage at all. Zhou Qingqing said, "Even large companies like Jiahe Electronics are currently growing sluggishly, and they have tried to increase their market share through acquisitions, but now they have completely shrunk the front and begun to spend the winter." ”

"Then what are your plans next?" Li Feng was eager to hear Zhou Qingqing's opinion.

"I think it's still from the perspective of reducing operating costs, compressing our business and seizing the main profit points. Zhou Qingqing said, "At present, we still have a certain profitability in the mobile phone business, and we also have a certain market in some small electronic products." It's just that our brand has not been built strong enough, resulting in us not being able to find the market positioning. So next, I think it's very important to manage our brand culture. ”

At present, the main development strategy of domestic enterprises is to take the price route to expand sales, and to achieve lower procurement costs with high sales. This kind of 'running volume' thinking has been dominating the entire industry, making everyone pay less attention to technology research and development and brand building. Li Feng said, "So for enterprises, if they fall into the quagmire of price wars, they will lock themselves in the low end and never get ahead." Only by starting from brand building, improving the credibility of the enterprise little by little, and gathering users, can we establish a benign ecosystem. This point is consistent with the development ideas of Internet companies. ”

"What are your top thoughts on brand building?" Zhou Qingqing asked.

"I can't talk about it, but from my experience of running the 'Happy Planet' plush toy brand, I have to work brand positioning and cultural implantation in the early days. Only when the early effort is done enough, the brand is born naturally. Li Feng said.

"For those of us in the manufacturing industry, what is missing is culture. Products that meet such needs are often only designed according to market demand, without starting from a cultural perspective, resulting in a vague product image, insufficient user stickiness, and unclear price positioning range. Zhou Qingqing said, "Li Feng, as you say this, the crux of the problem that our company is currently facing is almost found." ”

"I think it's imperative for Paper Communication to completely separate the two parts of design, R&D and manufacturing. Li Feng said.

"Oh, what do you mean by that?" Zhou Qingqing asked.

"The value of the manufacturing side is relatively low, as long as you have the technology at hand and design the product, you can find a foundry to manufacture it. Li Feng said, "But design and development are different, it is the core competitiveness of the enterprise, and it is also the source of building a brand." Therefore, by separating these two businesses, we can sort out the relationship well and find the right focus. ”

"Do you mean to weaken the manufacturing side and strengthen the design and development side?" Zhou Qingqing said.

"Yes, the production capacity can be leased, as long as I have drawings in hand, I can find a foundry to help me produce, throw out the order of the self-purchased quantity, and naturally someone will rush to pick it up. Li Feng said, "When Jiahe Electronics was in a hurry to acquire you, it made a strategic mistake. Because the acquisition of you is only to expand the production capacity, for them, the help in R&D and design is not great, and it cannot provide new brand value. ”

"Yes, the production capacity can be completely outsourced, and you don't need to work so hard to build the production line yourself. Moreover, the cost of introducing advanced production lines is very high, which will eventually drag down the company's cash flow and make the R&D side lack sufficient funds. Zhou Qingqing said, "It seems that we can only focus on one thing, either with high power research and development, and play our own brand, or concentrate on production and make the technology more refined." ”

"Sister Qingqing, you already fully understand what I mean. Li Feng said with a smile, "In the future, Paper Communication Technology must be transformed, and the sooner this transformation is made, the better." As for the choice to follow that principle, you still have to think carefully. ”

Historically, Paper Communication's subsequent transformation was forced, and due to the continuous decline in market performance, Paper Communication Technology eventually abandoned its own brand and no longer designed and developed its own products, but became a foundry, specializing in manufacturing.

This path cannot be said to be wrong, but it is certainly not the best. After all, manufacturing is at the low end of the industrial chain, the profit is relatively low, and what is done is behind the scenes, and the money earned is hard money.

But engaging in design and research is different, as long as you master the new technology, it can produce a fairly high premium rate.

And with the accumulation of technology, the value of the brand will continue to increase, which can create more value for the enterprise.

Therefore, the truly successful enterprises are all in the process of transformation smoothly on the design and development side, or even if they only go to the design side, it is more profitable than engaging in production.

For Zhou Qingqing, she is obviously unwilling to make Paper Communication Technology a foundry, so it is the king to strive for the company to accumulate technology and embark on the road of design and development.

It's just that this road is very difficult, and if you don't do it well, you may face a crisis at any time, or even go bankrupt, compared with the low risk of production, design and development is a high-risk field.

After ending the exchange with Zhou Qingqing, Li Feng returned to Julong Academy.

It's almost the end of the year, and Li Feng promised Lin Yuting that he would go to the United States, but he has not been able to make the trip. At present, the investment business of the United States has been carried out, and although Jin Wenyan has handled it well, Li Feng's overall control is still needed in some general directions.

Therefore, it is necessary to leave as soon as possible and go to the United States to guide the investment work of Dream Company.

Li Feng looked at the calendar and planned to leave in the middle of this month to finish the work before Christmas.