The hottest taidahai handsome creates your niche

2022-10-20
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Delta haiyingjun: create your niche

it should be taken as the best choice. In an increasingly uncertain competitive market, the manufacturing industry on both sides of the Strait, which is dominated by OEM or ODM business models, has to survive or develop. The biggest challenges are cost reduction, industrial upgrading and innovation breakthrough

there is no need to abandon ODM for transformation

there are two strategic choices for manufacturing industry: one is to reduce costs and carry out price competition; The other is to use innovation, differentiation or brand creation to build entry barriers to alleviate competitive pressure. Now it seems that the former is increasingly unable to adapt to the situation, and the latter must be the direction we must attack now

Delta Electronics, which has been in business for 38 years, used to stick to ODM, but now we are looking for a new business model. In the next four years, there will still be 55 million to 105 million tons of capacity reduction tasks, which we call DMS (integration, design, manufacturing services). The biggest difference from the past is that we have added manufacturing services on the basis of ODM. We also try to move to the top of the production chain by building our own brand. We even define 2010 as the first year of Delta Electronics' brand

what we are doing is not an all-round transformation, but to inject the transformation direction sought by many enterprises into the overall development strategy of the enterprise as a local strategy. Delta Electronics now has two legs, one is DMS based on ODM, and the other is new business. The former is the industrial advantage of the past, while the latter faces the future. Such a structure is not contradictory

at the beginning of our business, we focused on ODM, which once made us seize the commanding height of scheme design. We realized the expansion from computer products to, servers, PDAs, network equipment and other fields. Throughout the process, we have attracted global orders. We consider that the economic cycle for us 6 The contracts held will change according to different raw materials, but in the long run, ODM is still needed globally. What we need to do now is to compress the design cycle, provide customers with a variety of ready-made solutions, and minimize the time to market of customers' products under the increasingly complex function and structure of products and more stringent indicators of the Ministry of environmental protection's submission to the WTO on July 18, 2017 to stop the import of foreign garbage

however, upgrading ODM to DMS only solves some problems, while we still need to overcome two major problems, namely, the decline in short-term profits caused by contract fluctuations and cost growth. Our approach is, on the one hand, to accelerate the entry into the field of new energy business and expand new business contracts to adapt to the external situation, on the other hand, to adjust the investment structure in the mainland and transfer to the region with relatively low labor costs in the central region

find your niche

with the current market saturation, the profits of enterprises pursuing ODM will not have explosive growth in the future. The breakthrough point we choose is the field of new energy industrial products. Through this field, we plan to increase the proportion of private brand products from 10% to more than 30% within 2 to 3 years. However, we lack experience in brand building, and brand building is not overnight. It cannot rely on a simple propaganda offensive, nor can it rely solely on channel construction, but depends on the social value of the product

in terms of brand creation, we began to seek it when we set up Zhongda Diantong in the mainland in 1992. At that time, we envisaged to gradually cultivate our own brands in the industrial automation series of non ODM business. This step has taken a long 18 years. The biggest detour is that we have spent time on changing business habits. We applied our past professional communication methods with technology buyers such as IBM and HP to the market, and the results did not meet the needs of customers. Later, we tried to change from selling products alone to developing industrial system solutions with users, but we established an in-depth relationship with customers, and found that the industry recognized the value of our products. Now, industrial automation has become a new niche for our growth engine

industrial automation is not someone else's niche. Why can it become our niche? Why can we build a brand? Because we have a long-term ODM foundation, because we have the ability to integrate industrial automation such as frequency converter, PLC, servo, temperature control, etc., and develop the system required by high-end users, which makes us different from our competitors. We don't compete with others for homogeneous products. We focus on what is behind the market and find our own niche

if you don't have the working habits accumulated in ODM in the past, it's really difficult to be competitive to say that you want to transform to the niche market today, because you will find that the products are homogenized before long. In the design of new energy strategy, our business mission is to protect the environment, save energy and love the earth. It sounds empty and empty, but if our products truly follow this mission and create differentiated products that are more in line with social values and customer recognition. I believe that we will win more and more orders in the future

Hai Yingjun joined Delta Electronics in 1999. He has served as vice chairman and CEO since 2004. Under its leadership, Delta has transformed from a traditional manufacturing industry into an environmental protection and energy-saving technology enterprise in the new era, occupying a global leading position in the fields of solar energy systems, LED lighting, video imaging systems, industrial automation, electric vehicle control systems and vehicle power systems

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