How Could World Famous Brands Make Money
Among Fortune Global 500 companies, Shanghai Automotive Group ranked the first 130 among manufacturing enterprises. Its business revenue was 67.254 billion dollars, the net profit rate was just 3.128 billion dollars, moreover, its net profit margin was 4.65 percent. Lenovo Group, which was technology manufacturing enterprises' model, ranked 370. Its operating income was 29.574 billion dollar, the net profit was 473 million dollars, and also its particular net profit margin was 1.6 percent.
For the automobile manufacturers, because of Germany Volkswagen Company's strong research and development capabilities, its operation revenue was 221.55 billion dollars. About net profits, it was 214.25 billion dollars, in addition, its net profit margin was approximate ten percent. Items business income; Samsung Electronics' was 148.944 billion us dollars. Its net profit was 120.59 billion dollars, it's net profit margin was eight percent. Apple Company, a representative of creation, its operating income was more exaggerated, which was 108.249 billion dollars. Since profit of Apple Enterprise was up to 259.22 billion dollars, and its net profit rate was very staging, which was twenty-four percent.
This was the gap, and where the essence of 'Made in China' . To say it honestly, there was cheaper manpower cost. Thus, it became a world's factory, which was a global famous brand who transferred its backward productive aids. What was the reason that why China was chosen by Nike to build plants. The reason was that the labor costs in China were cheap. In addition, its design headquarter will, no doubt not move to China based websites.
A pair of Nike shoes which needed 800 Yuan RMB, however, no more than one hundred Yuan are paid for material run. Its channel cost was less than 300 Yuan, and Nike Company will earn 400 Yuan. But as for production plant in China, they only will earn less than twenty Yuan. Yes, we are able to solve the problem of several affluent labors during the OEM. In the followed ODM (original design manufacture), they can copy individual brand, however, it had not been a successful thing.