Path To Upgrade OEM-ODM-OBM Private Manufacturing Enterprises In Jiangsu

Since reform and opening up, Jiangsu’s economy has been a rapid development due to those advantages of geography, opening policy and industrial base. Especially from the year of2005, Along with the perfection of market economic system private enterprises in Jiangsu province has developed very fast, and Jiangsu’s economic structure into a comprehensive upgrading and transition. Private economy in Jiangsu province to realize the added value of2.16trillion RMB at the year of2010, accounted for52.8percent of the province’s annual GDP. At the same time, there is no denying that the vast majority of private enterprises in Jiangsu province are mainly manufacturing, and closely linked with overseas enterprise, most are doing OEM for overseas companies, is the main force of the global industrial chain manufacturing. We can call these companies private OEM enterprises. OEM model was contributing to the economy booming in Jiangsu province, at the same time also makes many brand enterprise gain generous profit. In the process of integration in the global economy, OEM enterprises in Jiangsu province and even in the whole Chinese are facing a huge challenge, the advantages of low labor and resource has gradually disappeared. Low level of technology, management and capability and meager profit are the great obstacles to the development of private OEM enterprises, some of those enterprises even had closed down in the financial crisis, which made us to know more about the low resistance risk ability of OEM pattern. These bloody lessons make us more urgently need to find a solution to the local private OEM enterprise transition path of sustainable development. Therefore this article research is of great importance.The basic idea of this article is:OEM-ODM-OBM path is a sustainable sound development of effective path for Private OEM enterprises in Jiangsu and coastal region. Around this theme, in addition to the introduction, the full text mainly analyzes from the following three parts. The first part is chapter2, is about the relevant theoretical basis. Firstly, the author defines the private contract enterprises and OEM ODM OBM and related concepts. The basic theories of the relationship between the OEM, ODM and OBM, their progressive transition and upgrading path has been introduced in chapter2, such as the enterprise life cycle theory, product life cycle theory, the value chain, the industry chain, the smile curve theory, enterprise growth of internal theory and external theory, etc. These theories constitute a solid foundation for the article analysis. The experiences of the successful transition at home and abroad are introduced at the end of chapter2. The second part is chapter3, in this part the author has introduced overview of OEM-ODM-OBM transition and upgrading of private OEM enterprises in Jiangsu. and summed up their general implementation mechanisms and the practice as following, firstly, to achieve capital accumulation though the scale management strategy; secondly, to enhance core competitiveness though digestion and absorption; thirdly, to go step by step; fourthly, to construct marketing channels and realize the brand management. The third part is chapter4, the author analyzes and summarizes how Jiangsu AH private OEM enterprises (hereinafter referred to as the AH company) achieved OEM-ODM-OBM transition and upgrading. At first, there is the produce and development of the enterprise, and resources and capacity of enterprise in transition period, the author also pointed out that AH company’s transition steps are clearly according to the OEM-ODM-OBM path, is still in the diversified business model at present, in addition to the production of own brand products, there are part of the OEM business, not fully transformed into OBM brands. Secondly, to analyze the implementation mechanisms of OEM-ODM-OBM transition of AH company from the following six aspects:to define product differentiation strategy:to improve the technical core competitiveness though digestion and absorption:to introduce the mature OEM quality management system to production management of OBM; to use the sales channels of international brand to realize the sales of own brand products; to resist pressing at the top of the supply chain with their excellent quality of their own brand:to adopt common management mode to deal with the difficulty of management to upgrade. Thirdly, to summarize the success factors of AH company’s transition from internal and external. Lastly, the author has pointed that enterprise brand strategy is the first priority to further complete the OBM transition and upgrading for AH company, the branding strategy should focused on brand reputation, market promotion, planning of product line, marketing channel construction and management of marketing team. Finally, there are summarization and prospection.The innovations of this article are as following:(1) New topic Angle, to analyze and study tentatively the transition and upgrading of OEM-ODM-OBM from the point of view of enterprise micro level of private OEM enterprise;(2) to analyze and summarize the practical case of the determinants and implementation mechanisms of OEM-ODM-OBM transition of private OEM enterprise in Jiangsu represented by AH company.