Mr Gou: Huawei must work with Foxconn to win over Cisco

Newspaper reporter Chuhuihui Shenzhen report left?　　Go right?　　The global financial crisis has accelerated the beginning of cooperation between the two companies that once adhered to the two diametrically opposed concepts, Foxconn, a technology company, and Huawei, a foundry. The head of Foxconn Group, Terry Gou, recently disclosed a meeting with Mr. Ren, president of China's top technology company Huawei Technology Co., at an internal meeting of Foxconn's group of companies, and two companies are now working on the design and manufacture of switches, data communications and other related equipment. In the meeting, Mr Gou also publicly expressed his determination to compete for more "big clients" such as Huawei, which has to contend with Foxconn in order to beat Cisco.　　"Mr Gou is here to motivate employees frustrated by the slump in performance," he said. to the primary road. Foxconn, a global financial tsunami, is radically changing the path and fate of all parties involved in "Made in China": The morning of April 16 this year, the Foxconn parent company Taiwan Hon Hai (2317,TW) held a shareholder meeting, The head of the boss, Terry Gou, has the first recession in 35 years: Hon Hai last year's revenue of 1 trillion 950.481 billion NT dollars, the growth of only 14.2% in 2007, the after-tax net profit of NT $55.133 billion, compared to the 2007 77.69 billion yuan recession 29.03%--accustomed to play "China's export champion"　　, with an expansion of 30% speed, expansion of Foxconn, has to begin to face the fact that the industrial chain at the end of the industry, has touched the market capacity of the "ceiling." Contrary to the situation, Huawei and Foxconn Shenzhen Longhua Technology Park all the way from the company in 2008 to continue to increase the annual income of 36%, overseas market earnings reached 70%, the global patent application number one, and successfully entered the global communications equipment "top three" dazzling performance,　　It is proved that China's high-tech industry in the global reverse growth and rapid rise.　　"We are in an era of excess electronics, and a glut of goods that will never be sold again" – In May 2008, Ren warned before the financial crisis worsened that higher talent costs, lower profit margins – would be the inevitable challenge for all electronics makers. Such early warning, at the end of the industrial chain, has always relied on "large-scale, low-cost, low profit" model to win the Foxconn, it seems more practical significance.　　When the overseas market increment disappears, the low cost advantage is challenged repeatedly, the transformation can only be the inevitable road of low-end manufacturing.　　In June this year, Foxconn began launching a localized campaign targeting "technology" and "domestic demand markets", Foxconn has made it clear that the "hard" parts of manufacturing to the "soft" parts of the development tilt, from relying on "Taiwan stem" to support the "salaries" transformation from exports to attack the domestic demand market, the overall transformation of the road. "In the past 20 years, Foxconn has grasped the trend of the eastward shift of international manufacturing industry, and combined with the policy incentives and cost advantages of the mainland, to become the best speaker in the world for" made in China. TodayWith China's national policy orientation of ' scientific development and harmonious progress ', Foxconn will write new articles in the fields of software, health, environmental protection, new energy and materials, and has the ability to be the best speaker in the world for the future ' Chinese creation '.　　"The slogan that Foxconn is using to motivate employees to" win the mainland in the golden decade "is rather resistant to inspiring.　　In fact, Foxconn's turn represents the majority of participants in the "Made in China" chain, and their path to primary has begun. Foxconn exports more than $ tens of billions of a year, contributing more than 15% of its exports to Shenzhen every year. For Shenzhen, which accounted for more than 50% of GDP in the electronic information industry, since the middle of the 90 's, it has actually started its long "industrial upgrading" road, until the financial crisis, in the real background of the shortage of land resources and increasing cost,　　Shenzhen has also begun to encourage manufacturing companies, including Foxconn, to move their low-end manufacturing links into more high-end, less energy-efficient research and design.　　Advantage Change: "Research and development costs" instead of "manufacturing costs" Chen Deming, China's commerce minister, said in a press conference this year that Huawei, for example, could still maintain a 90% growth in its 2009-year performance, and Huawei's success story "adds a little hope and spring to the mist-shrouded economic climate".　　Looking back 20 years, Huawei's growth path presents a perfect and rapid way to get to the beginning: he was the first small company in Shenzhen, a proxy switch, and then gradually entered the fixed network, data, mobile communications research and production, each step on the global economy and the development of global telecommunications drums and rhythm. In particular, since 2003, China's two telecommunications equipment companies, Huawei and ZTE from the international communications market, the three-stream manufacturers to enter the first camp of the pace, is a sigh.　　Huawei and ZTE have actually successfully progressed to the world's third and fifth place in the global system equipment business, in the haze of the sunset of Nokia and Siemens, Alcatel and Lucent, in 2009, when the telecoms giant Nortel filed for bankruptcy.　　It is far from enough to explain the changing role of China's Huawei and ZTE in the global industrial chain in the competition of talent reserve, industrial chain, technology accumulation and so on. In fact, as early as the financial crisis triggered the global "overproduction, product surplus" crash, on behalf of the Pearl River Delta manufacturing industry at the forefront of ZTE, Huawei has realized that telecommunications equipment, which represents the world's most competitive industry, has changed from a technology-driven industry to a service,　　Efficient research and development cost competition as the core competitiveness of the industry.　　They believe that the telecommunications industry, and even the electronic information industry, its technical trend is more and more platform, standardization, resulting in the reduction of technical threshold, to the rapid service capacity, firm implementation capacity, and efficient research and development cost competitiveness of the higher requirements. The decline of European and American giants, the actualThe financial crisis is only a fuse, the root cause is their stubborn technical guidance and strategic mistakes, as well as the high cost of research and development. The cost formula that can be compared is ZTE, Huawei in research and development investment, has been actually flat with the North American countries (more than 10% of the annual sales), research and development personnel accounted for, or even more than the proportion of staff in North America (Huawei is 43%, motorcycle 42%), but the individual research and development personnel pay cost ratio,　　The gap between mainland China and North America is as high as 1:4-1:5--North America has actually become the world's most expensive technology innovation center. Huawei, ZTE's success, represents the Pearl River delta Electronic Information industry chain competitiveness in the global rapid rise, industry insiders believe that, if the past, the Pearl River delta bearing the "Made in China" is to "manufacturing cost" advantage, now the competitive advantage, has been to "research and development costs"　　As well as the overall competitiveness of the industry chain transition: For example, more and more experienced engineers, Pearl River Delta from design-manufacturing-logistics and transportation and other aspects of the efficient supply chain coordination system, as well as more and more global operational experience and service capabilities. How many Huawei and ZTE can there be in Guangdong when the industrial chain is optimized?　　Such questioning, will inevitably haunt Guangdong, and even China's next golden decade. It is noteworthy that the "China-made" industrial chain is being further optimized in the global financial crisis.　　In fact, with Foxconn, Flextronics, the global generation of industrial giants as the focus, they used to focus on Hewlett-Packard, Dell, Motorola, Apple, Nokia and other overseas giants, but the domestic customers blind. This shows that overseas manufacturers to the global market monopoly advantage, on the other hand, also shows that Chinese brand manufacturers in the past to use and participate in the Global industrial Division of labor is too low.　　Manufacturing enterprises in Mainland China, for example, Haier, Lenovo, Tcl and so on, from its operating mode, almost swept the production, manufacturing, marketing, logistics and all the links-this mode of competitiveness must be more focused on the primary production cost management, and can not more effectively improve research and development, design and service capabilities.　　This situation will change because of the shift of the foundry giants and the changes in the industrial chain relationship.　　In fact, for example, Foxconn's determination to engage in domestic demand has come from pressure from overseas markets and, on the other hand, has raised the awareness of domestic brands to accelerate their integration into the global "outsourcing" bandwagon under cost pressures.　　Zhang, chief executive of Haier Group, announced this year Haier will be from the manufacturing industry to the "manufacturing services" transformation, the specific approach is to the company's operating center of gravity from manufacturing to product design, research and development, brand management, marketing and service direction, originally produced by Haier products, will be outsourced to the professional generation of factories. In fact, with Huawei, ZTE nearly half of the situation of research and development staff is different, Haier, TCL, Konka and other domestic brand manufacturers, about half of the production staff, from manufacturing enterprises to service enterprises turn-this is made in China to the primaryThe beginning.　　In addition, the optimization of the industrial chain is also obvious to enhance the overall competitiveness of the PRD. Taiwan manufacturers believe that TCL, Haier, Konka transformation, will give Foxconn, Quanta, Heshuo, sound Bao, crown Czech and other opportunities to bring more domestic market, at the same time, Taiwan-funded enterprises will also change their mainland management model and employment policy, will be more research and development, design links, and high-end service chain to the mainland, while　　, we will pay more attention to the cultivation and opening of high-end talents in mainland China. This is an all-round upgrade to the ecology of Taiwan-funded enterprises in China and the efficiency of the whole industrial chain.