From OEM To Independent Brands:the Case Study Of Transformation And Upgrading Of Group Company T

In the early years of its opening-up and reform,private enterprises spring up like mushrooms.Compare with developed countries,China was characterized by dense labor force and low labor cost at that time,which created opportunities for manufacturing industry.T is a member of multitudinous manufacturing enterprises born in the 1990's.T gradually become the industrial leader by providing ODM/OEM services to IKEA and METRO.After the year of 2000,as the concept of global brand continues to strengthen,trade barriers are rising in Europe and United States.In addition to this,the labor costs as well as the costs of raw material are rising,the OEM industry has gradually entered the era of meager profit.The profits of enterprises whose main business is ODM and OEM are constantly diluted.As a result,the size of many enterprises has been greatly reduced,some enterprises even facing bankruptcy,the industry as a whole is also constrained.Relying on production technology and cost advantages,Group Company T survived the winter of the meager profit era.However,if Group Company T continue to focus on ODM and OEM as the main business,it may lose customers and be replaced by competitors.Thinking about the long term development,Group Company T determined to upgrade,add value to the product,improve the profit margin and establish an independent brand.This paper will turn the story of T into a case.Through the case of enterprise diagnose and analysis,provide solutions for the main problems that the enterprise faces at the present stage.This paper will provide solutions of brand promotion as well as the help of transformation and upgrading to the enterprise.The main content of the paper can be divided into three parts.Firstly,the case body of enterprise transformation and upgrading.Secondly,the diagnosis and analysis of the predicament that the enterprise is facing at present.Last but not least,the solution of the predicament.It is hoped that this paper can provide reference for the transformation of aroma candle manufacturing enterprises.