China: Changing the Vector of Development.
While everyone knows the phrase «Made in China», the Chinese security industry is moving towards its own developments by leaps and bounds.
Today, out of more than 5,000 products widely sold around the world, the share of those exported by China is more than 2,000.
Moreover, for 200 of them, China is one of the five largest manufacturers, and for 80, it is the largest. 70% of goods sold in the USA are made in China.
Due to favorable market conditions at that time, China's turnover with foreign countries reached 1.5 trillion dollars by the end of 2007.
Thus, answering questions from the Internet site asmag, the vice president of Hikvision Znehg Yibo noted that China has long been established as a world center of production.
There are several reasons for this. First, increased foreign investment and commercial expansion create the necessary conditions for the continuous development of Chinese industry.
Second, China has the largest labor market, which allows for low wages.
Third, China has a very large domestic market.
Fourth, the Chinese nation has a large number of qualified engineers, specialists and managers.
As an integral part of the country's economy, the Chinese security industry is developing, and its export share is increasing.
Today, many experts are observing a change in the vector of development of the Chinese economy.
Chinese industry is shifting from simple manufacturing of goods to their design and development. Production is moving away from low-profit and low-margin tasks to high-profit ones.
In a broad sense, the term «Designed in China» includes the entire production cycle from R&D to sales and marketing. In a narrow sense, it includes manufacturing.
But it should be noted, says Znehg Yibo, that despite its success, China still has a long way to go to catch up with Japan, Korea and Taiwan.
To succeed, a company must have a clear development strategy.
These must be integrated plans that clearly define the tasks and details of the development process, and the efficient use of resources.
For a business, this means understanding how to properly use its scientific and production potential, technology, investments, and marketing campaigns.
For example, the same Hikvision company was relatively recently a subsidiary laboratory of the China Scientific Research Institute of Electronics No. 52.
Engaged in research and development in the field of IT technologies, it has accumulated certain experience, which allowed the newly created structure to successfully engage not only in the production of computer printed circuit boards and encoding/decoding boards, but also in the development of network technologies, operating systems and digital video surveillance systems.
This example clearly demonstrates the importance of development and transition through engineering, technological and manufacturing breakthroughs from meager profits obtained in private workshops to a “creative” industry.
Creativity requires not only the involvement of basic technologies.
The concept of “Designed in China” also means a change in the business model.
According to Znehg Yibo, the successful implementation of the new vector of development of the security industry will certainly be facilitated by such factors as flexibility in production and industrial support, obvious advantages in human capital compared to all other countries.
In addition, the Chinese have settled all over the world, and this provides excellent opportunities for entering new markets.
Chinese corporations are accumulating technology, capital and distribution channels.
Today it is already obvious:Chinese manufacturers are gradually moving from copying and mass production to real developments.
One of the confirmations of this process is the fact that Chinese companies are increasingly patenting their achievements.
Which industries show the greatest potential?
Znehg Yibo believes that Chinese companies can develop security products and systems, including software and applications, well.
However, foreign software companies have long dominated the Chinese market.
The vice president of a Chinese company believes that this is a serious problem that will require a lot of work and effort to solve.
In fact, 70% of product quality depends on the quality of development.
It is also necessary to change production concepts.
Even a successfully developed solution can only capture the target market for a while, but competition will not allow developers to rest on their laurels.
To remain competitive, companies need to create teams, technology platforms and progressive management methods.
What else needs to be done to implement the new vector of economic development?
Answering this question, the Chinese businessman highlights the following main tasks:
— strengthening the national creative idea, protecting intellectual property and combating piracy;
— creating optimal international business tools;
— ensuring quality while reducing costs and expenses;
— understanding the needs of foreign buyers;
— using foreign marketing experience.