Lx Communications Cable Company Obm Marketing Strategy

With the development of economic globalization and the strengthen trend towards the international production, processing trade has become one of the common international trade patterns. After 20 years of development, China's processing trade has achieved great success. However, low value-added, little domestic procurement, short industry chain, and heavy dependence on the foreign companies in the development of our processing trade should never be ignored. Quicken as the pace of globalization is, the comparative advantage of low cost Chinese labor weakened continually, the disadvantage of OEM/ODM has been gradual cognized. One of the main reasons for the disadvantage is the poor, even no, marketing capability of most of our processing-trade enterprises. How to solve this problem and enable our processing-trade enterprises to make greater contributions to the sustained economic development of our country? According to the economic theory, the industrial structure of a region's (or countries) evolutions inhere certain economic development laws, progressing towards an advanced configuration with the alternative of the leading industry. The evolution of industry has its own law which usually displayed as developing from the labor-intensive to capital-intensive, from the capital-intensive to technology-intensive and knowledge-intensive, transferring from the traditional industries to the new industries, from the primary industry to the secondary industry and the tertiary industry, the fourth industrial and from low value added industries to high value-added, even higher value-added industries. Industrial transfer is a common phenomenon of modern international economic. The transferring is mainly from developed regions'(or countries') traditional industries to the less developed regions (or countries). Now Chinese companies have acquired comparative cost advantage derived from global production, more attention should be paid to the differentiate strategy, especially for the processing trade enterprises who want to maintain distinct differences from others in products and services, enjoying inimitable main attributions in the industry. Learning industry upgrade experience from developed industrial countries (or regions),such as the United States, Europe, Japan, South Korea and Taiwan, the major trading countries and regions, leading by to the United States, European Union, Japan, have paid much attention to the protection of Intellectual property rights and brands rights in the international division of labor and industrial layout adjustment, creating its own brand by OBM marketing strategy and control the international distribution channels and the end markets, extending to the high-end of industry chain. In this paper, we take Asia's largest data communications cable processing trade enterprise-LX Communications cable enterprise for example, considering industrial upgrade process of different countries, to discuss the possible marketing strategies for our processing trade enterprise transferring from OEM/ODM upgrade to OBM in the new environment, both domestic and overseas. We suggest that the ideal OEM/ODM model for China's processing trade enterprises should be persisting in its own brand building while doing OEM/ODM for their complementary attribution. Implementation of OBM marketing strategy parallel with OEM/ODM business can bring competitiveness by sharing the product capacity and reducing costs. Even a processing trade enterprise can ensure have OEM/ODM business during its life time, its own brand is still needed. OEM/ODM and OBM marketing strategy promote each other bringing more learning, assimilating and innovation opportunities to the processing trade enterprise. And eventually, though innovative integration, establish new global industrial chain centered by Chinese multinational corporations. Thus will enable us to make better use of resources and markets both domestic and overseas, maximizing our capital accumulation and social welfare.