Nowadays, the sensor sanitary ware enterprises have extended their reach to Southeast Asia, Africa, the Middle East, Europe and the United States, and the total amount of foreign trade exports has also increased year by year. OEM has become the main hero, but the entrepreneurs' eyes are not just here. Under the multiple pressures of the financial crisis, the European debt crisis and the increase in domestic labor costs, they are turning their attention to creating foreign trade independent brands. Develop foreign marketing channels.
According to international sanitary trade statistics, China's induction sensor sanitary ware enterprises have been at the lowest end of the global industrial chain, and their profits are relatively low. In the global industrial chain, the profits from the high-end segment account for 90%-95% of the total product profit, while the low-end segment accounts for only 5%-10%. The data also shows that the OEM production method has the lowest profit margin of only 10%, while the ODM (independent design) and OBM (own brand) production methods can achieve a profit margin of more than 35%. After the financial crisis in 2008, in the domestic sanitary ware industry, Guangdong became the hardest hit area, a total of 15,661 SMEs closed down, and many induction sanitary ware enterprises were also affected. The original OEM method was also threatened. The industry believes that the main reason for this phenomenon is the decline in foreign orders and the decline in production costs.
The cruel facts made the sensor sanitary ware enterprises start to seek more breakthroughs. They began to understand that complete OEM processing does not bring lasting vitality to the enterprise. "The OEM method has its advantages and disadvantages, just like making a wedding dress for others. Nowadays, the sensor sanitary ware industry is fiercely competitive, everyone is vying for control, and it is a long-term solution to have a voice in the independent brand."
To create a self-owned brand, most of the sensor sanitary ware companies choose the general agent approach instead of opening up their own direct channels. They will choose local merchants as general agents, and they will be responsible for supply, store guidance and business training.
Opening the market in the form of a general agent can take advantage of the local advantages of local people, which can save costs and reduce risks, and is a more stable way to promote the brand.
When choosing a general agent, companies generally choose to work in the local sanitary ware industry, or other industry partners with considerable influence and sales channels. Project bidding has also become another channel that the sensor sanitary ware enterprises have focused on after accumulating a certain brand awareness.
In addition, participating in the exhibition has become the only way for all enterprises to go abroad. At the international exhibitions such as the Frankfurt International Bathroom Exhibition and the Bologna International Ceramics Sanitary Ware Exhibition in Italy, we can see the gorgeous appearance of the first-line enterprises of sensor sanitary ware. This year, GIBO will participate in the Kitchen & Bath China in Shanghai. The center pavilion will allow us to fully demonstrate our own advantages. This is the preparation of GIBO in 2019 for the international market of large-span marching.
Whether it is the general agent, or the project bidding, exhibition effect, the launch of the independent brand has gradually become the channel for the sensor sanitary ware enterprises to enter the domestic market. From the OEM to the promotion of independent brands, the sensor sanitary ware enterprises to enter the international market is a long accumulation process.
Creating a brand independently is not just about setting up a storefront. To truly promote branding, we must also pay attention to the protection of independent intellectual property rights.
Sensor sanitary ware companies have a strong sense of protection in intellectual property, so respecting each other's culture becomes a more important part when exploring the international market. To understand and respect the culture and habits of others, to promote the brand in the language and manner of the other party is the need for enterprises to focus on learning, which is why the general agent route will become the preferred channel for enterprises.