Can China show itself to be an Industry Leader in Product Innovation
Can China show itself to be an Industry Leader in Product Innovation?
In the span of history, Imperial China was regarded as a culture of high-end. It was also the epicenter of scientific and technological development. The Middle Kingdom is not known as a technologically-driven leader, but it is one that is driven by technological innovation. China lost its ability to lead the world in this area of development because of several foreign invasions which were followed by economic collapse. China is well-known as an era of "copycats" and a nation that has mastered the reproduction of concepts and ideas that are already in use however lacks the originality and inventiveness required to design and develop the next generation.
We have seen another story unfold throughout the region of the far east. The world is witnessing the evolution of China from an agricultural nation to an industrial superpower, as ink is drying on the very first pages of the 21st century. China's story is continuing to unfold. It's now a cost-effective manufacturing hub that has become an innovative, value-added provider to the global economy.
China has put more emphasis on innovation in recent times. It has invested heavily in research and development and significantly improved its technology. China is an ideal area to come up with innovative products. But is it able to become a global innovator in the field of product innovation? Let's take a look at the areas where China has improved in order to be a more innovative market leader in the development of products.
Manufacturing Capabilities Expanding into New Industries
As the largest producer in the world, China possesses an array of factories with manufacturing capabilities and product offerings are diversified across a variety of industries. China is taking on new growth strategies and sectors to stay afloat in the face of current economic difficulties. China is transitioning from a highly labor-intensive, commoditized, and lower-skilled manufacturing base to a more innovation-driven economy that utilizes innovations, expertise, and software, as well as IT and marketing. These are the sectors that will drive the next phase of growth in China. They concentrate on highly specialized, creative production in these areas:
China is expected to be a major supplier of high-end equipment and parts. In the same way, a shift in electronic components has led to an increase in the trade of higher-tech components and products.
Mobile technology China is the biggest mobile phone user worldwide. Chinese innovation in mobile gaming and communications, e-commerce, and shopping apps and services has huge potential to increase the nation's competitiveness and spur new industries based on mobile technology.
Logistics and other services: Shifting to innovative and specialized manufacturing opens up opportunities for businesses to make money on the aftermarket of goods after production. The distribution industry is poised to grow rapidly by incorporating cloud computing and data analysis into business processes.
Energy: China's rapid growth and development have created a demand for more innovative and environmentally-friendly energy policies. The need for China to become more environmentally conscientious creates opportunities for China to combat the rising global pollutant levels as well as greenhouse gas emissions while fueling economic growth.
Better Product Solution Providers
Chinese project managers and Chinese workers are known for being extremely strict in their adherence to the instructions. They don't think creatively or stray too far from the facts. In the context of culture, this is well-established. It is a fact that the Chinese have always maintained the hierarchy of family, community, and business. Someone is always in charge, whether it's the head of the PRC or a family patriarch, or a factory boss. And one wouldn't dare challenge that authority or challenge the system. This is the case for reading and following written instructions. "Paint train blue" means to paint train blue. It doesn't infer teal sky blue, aqua, or teal. It doesn't mention parts per million in allowable lead content.
The past two decades have seen the Chinese exposed to working with the West and, through a bit of cooperation and osmosis, the Chinese are now recognizing that creativity, initiative, and self-confidence are qualities that can be rewarded. One client of ours had us make aluminum mailboxes that look like those in the arched, plain U.S. Mail receptacles found all across the nation from the sea to the shining sea. A 40-foot container can hold 3000 mailboxes at $1.50 each in freight. Our project manager was watching the boxes being loaded and had an idea. If the client could accept a slightly smaller model and the same one, they could squeeze the 6,000 units into one container and cut the cost of shipping by half. This is something that nobody had thought of before.
Improved efficiency
Manufacturing companies in China are experiencing declining profits due to rising labor costs. The owners of factories are searching for ways to generate more money from less. What is the result? Chinese factories are cutting costs and increasing efficiency by using automation to raise productivity. This allows manufacturing firms to remain competitive in cost and maintain their position in the market. However, the fact that the wages in China are rising doesn't mean that sourcing managers are ready to quit.
Robotics is set to revolutionize business in China as well as around the world. China is predicted to have the highest number of industrial robots working in factories around the world in the next few years. While the ratio of laborers and industrial robots in China is not yet high, it is rapidly changing. China is known for its low-cost manual work. However, the price of automation is dropping and wages are rising, making industrial automation increasingly attractive. The growth of robotics isn't only a means of protecting against the rising cost of labor but also serves as a catalyst to China becoming a world leader in advanced manufacturing innovation.
Creativity is transferred into Improved Packaging
Asian packaging has always been easy to spot. Corrugate that cracks open when you open a box packaging designs that are popular for their vibrant cats and characters with just eyes. Investment and sophistication have resulted in an improvement in Chinese packaging capabilities. Thanks to technology it is possible to get the same quality digital art illustrator (AI) images printed on a range of different media.
Making the most of the Technology Learning Curve
Over the past couple of decades, China has closely examined, studied, and embraced the flood of technological advancements that have come into the country through years of joint ventures, licensing agreements, and FDI by Western corporations. China's government has put a large importance on scientific and technological advancement through funding reform that puts higher social importance on research and development. China is now considered a top performer in certain areas such as high-tech manufacturing, patents, and commercial applications.
China's next move is to increasingly target indigenous technology as it seeks to eliminate any weaknesses remaining in the technological advancement. Chinese businesses tend to favor foreign technology over-investing in technology when they are facing fierce competition. China's top-down hierarchy where authority is revered and distrusted has been accused to stifle creative development. China has been successful in making small, innovative changes to its existing designs. While this might not lead to revolutionary items, it does show that China is committed to improving its technology and innovation capabilities when developing new products.
About Author: Steven Cheng, the founder of Topworks Plastic Mold, a China injection molding company with the most complete services, from design to production. Topworks provides customers with a one-stop service for Polycarbonate injection molding and ABS injection molding. The company's professional team has excellent product knowledge of the plastics industry, which enables it to provide customers with quick responses and high-quality service.
