Over the past 8 years, Double 11 marketing has created one dazzling peak of prosperity after another; in those 8 years, record after record that leaves the world agape has come to the fore.

What is even more concerning is that the road of "Created in China" may from now on falter…

As the saying goes, what is visible is the system, what is invisible is the direction. The two core competencies of shopping festivals: marketing capability and price-war capability may lead to low-level repetition, a lack of core competition, and misjudgment of trends.

Double 11 Shopping Spree

What profound impact does it have on manufacturing?

In recent years, a wave of bankruptcies has begun to break out, leaving everyone on edge. In response, many entrepreneurs believe that the current predicament of China’s manufacturing industry is caused by e-commerce, and some even complain that e-commerce has led everyone into a trap.

Not quite. As an inevitable trend of a new global business model, e-commerce has been developing in China for over a decade, seizing half of the retail market, and still maintains rapid growth. The tide of e-commerce overturning traditional business models cannot be reversed. With unique strategic foresight, the Alibaba team keenly seized the first-mover advantage—which precisely represents the most advanced productive force among China’s private enterprises.

Where Is the Way Out for China’s Manufacturing Industry?

The development of e-commerce brings challenges to manufacturing, but also opportunities.

The development of e-commerce has brought new opportunities to manufacturing.

Rapid information transmission allows order data to be returned quickly and in a timely manner; production can be arranged based on orders, reducing the blindness of production and lowering inventory levels, cutting inventory costs; reducing sales links, lowering distribution expenses, and avoiding the middle tiers carving up profits, thereby raising sales profit margins; for sales conducted via e-commerce, payment collection is relatively faster, and more secured, thereby saving settlement capital. Thus, e-commerce presents an opportunity for manufacturing to improve efficiency.

Reinventing Traditional Enterprises via the Internet

Raising Company Valuation, Expanding Brand Influence

The clear direction for the development of traditional manufacturing: Original Equipment Manufacturer (OEM) – Original Design Manufacturer (ODM) – Original Brand Manufacturer (OBM)

For manufacturing enterprises to achieve a successful transformation, they need strong innovation capabilities. Besides the ability to imitate and innovate, they must also possess capabilities in independent innovation, marketing, and brand building—a long-term and arduous process of learning and practice.

The O2O Model Is the Future Development Trend

In fact, manufacturing has never been in decline. Many excellent private manufacturing enterprises in China have already weathered the once cold winter and marched into spring: Longchuan, Haier, Huawei, Gree, Midea, Wanda, ZTE, Galanz… In truth, brick-and-mortar business has always been there; it is only that in different eras and environments, we must use different methods and means to do business, which requires us to have long-term vision and market strategy.