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[High-tech Conference] Huatian Weiye Hong Jinwen: "Heaven" has changed, SMEs breakout strategy and power supply selection
With the growing concentration of industries and the increasing investment by large enterprises, the operational space for small and medium-sized enterprises (SMEs) has become increasingly limited. This year, many companies have faced serious business challenges, signaling a significant shift in the industry landscape.
In such a tough competitive environment, how can SMEs achieve a swift and effective breakthrough? At the 2017 High-tech LED Annual Meeting, Hong Jinwen, General Manager of Huatian Weiye, delivered a keynote speech titled “Heaven,†offering valuable insights on how SMEs can break through in today’s challenging market. He discussed the current industrial situation and provided strategic guidance for SMEs to adapt and thrive.
Hong Jinwen highlighted six major changes shaping the current market:
1. **Product Evolution**: The product life cycle is shrinking rapidly, with new products constantly emerging. Companies must think ahead about what they will offer next year.
2. **Market Dynamics**: The speed at which prices change is accelerating. Customer relationships are becoming more unstable, and resources are being reorganized continuously.
3. **Management Challenges**: Talent management has become more difficult, with rising turnover and declining stability.
4. **Cost Pressures**: Labor, housing, and tax costs are rising, along with material cost fluctuations, making profit control increasingly complex.
5. **Capital Market Trends**: Over the past decade, China’s capital market has been highly active. High-quality enterprises that have accessed the capital market now enjoy significant advantages, leading to a widening gap between strong and weak players.
6. **Regulatory Burden**: Corporate social responsibility is growing heavier. Compliance with laws such as commercial law, tax law, labor law, environmental protection, and fire safety is becoming increasingly difficult for businesses.
According to Hong Jinwen, these changes stem from several key factors:
- The national policy of "mass entrepreneurship and innovation" has boosted supply capacity, but market demand hasn't kept up, leading to intense competition.
- The rapid development of the Internet has made customer-supply chain relationships more transparent, accelerating price changes.
- With abundant employment and entrepreneurial opportunities, talent is being diverted, especially in manufacturing.
- As living standards improve, corporate social responsibility grows, and the survival of the fittest becomes the norm.
- China’s supporting industries are well-developed, with many sectors having low technological barriers, making it easier for new entrants.
Given this evolving market environment, Hong Jinwen proposed three strategies for SMEs to break through and survive better:
1. **Rebuild the Strategic System**: A company’s strategy should balance the interests of customers, employees, suppliers, and society. In a more regulated environment, clear strategic positioning is essential for long-term success.
2. **Redefine Profit Models and Core Competitiveness**: Understanding where profits come from—whether from capital, brand, or industry influence—is crucial for every entrepreneur.
3. **Establish a Customer-Centric Approach**: Customers are not just the market; building a focused, value-driven customer model helps reduce complexity and build stronger relationships.
As the business landscape continues to evolve, SMEs must adapt quickly, rethink their strategies, and focus on delivering real value. By doing so, they can not only survive but also thrive in an increasingly competitive world.