China's SMEs do not have to fight multinational corporations

Recently, a site in Alibaba's "cloud plan" website from Foshan, Guangdong Andes Metal Products Co., Ltd. Ms. Xiao reflects the domestic furniture hardware industry, a phenomenon: the domestic furniture hardware accessories variety of products, not one It is generally accepted that the industry standard, manufacturers are their own business, custom models and standards, the measurement of the chaos caused a serious market differentiation. A few years ago, an Austrian hardware brand entered China and suddenly took over 60% of the domestic high-end market.

Faced with internal and external problems, Ms. Xiao issued a "distress alert" on the "Cloud Plan." In the face of such a severe situation, how can SMEs, as domestic SMEs, not wait for their benign growth?

Alibaba CEO Wei Zhe gave a very insightful answer: the standard is invisible things, the industry standard is how to come, with more people is the standard, SMEs do not and multinational corporations, "Star Wars", to go non-standard Custom featured road.

A company to become the industry leader, it must have market share, you occupy a large share, we all use your product, your standard has naturally become the industry standard. Instead of having industry standards first, "people who used it" were first. Wei Zhe said that under the traditional economy is a national standard, it is now used by many people is the standard. Multinational corporations came in, not because he had a standard, but because 60% of the people used it, it became the standard.

Of course, asking our SME products occupy 60% of the market, become the industry standard, really difficult. So, like Ms. Xiao furniture hardware manufacturers, as a SME there is no room for survival and development yet?

Wei Zhe gives a very clear answer: "No."

He said that if SMEs take the opposite course, in fact, they have great room for survival and development. For their own characteristics, SMEs can give full play to the advantages they can customize on-demand in the non-standard areas.

Because non-standard non-standard features, if you think they can not contend with the standard, then go to highlight their non-standard customized capabilities. The standard thing is to be commercialized, Austrian hardware company has a 60% share, many companies may go to his standard to produce. If this is the case, you will only get caught up in the misunderstanding of the Star Wars that multinational corporations are willing to fight. When he occupies 60% of the total, you have no alternative but to go his standard.

At the same time, Wei Zhe remind SMEs, leading to chaos in the market non-standard is not what we want, to solve the problem of non-standard customer segmentation products, is the survival and development of SMEs, it is precisely the characteristics of SMEs. For example, if you want to compete with Wal-Mart, Wal-Mart has made standardized shopping malls, if you open exactly the same shop will definitely die, can only go to the husband and wife to compete with it.

In fact, furniture hardware accessories, itself requires personalized, there is no standard at all. Wei Zhe said that he used to be the industry, furniture hardware is a B2B2C products, it is not for consumers, there is no need to do national standards or brands, furniture is to be a national brand, furniture factory know you are Do hardware accessories on it, do not need to let consumers know.

Cloud plans (yun.1688.com) - advocated small business sharing platform for business, is Ma in May 2010 Alibaba shareholders meeting was held to share business management experience and ideas, Help small businesses grow together.

At present, yun.1688.com home page click rate has exceeded 1.4 million, Jack Ma, as chief mentor and Wei Zhe, composed of mentors, with the majority of small business entrepreneurs and personal network operators to take the form of interactive questions and answers online exchange and sharing .