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Era of little profit to profit
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Era of little profit to profit
China’s economic growth slowdown, raw material prices remain high, consumers are increasingly rational, product innovation and the difficulty is increasing, and the terminal more and more strong, cost of sales continued to rise ... ... all of these from the macro to the micro-elements of change in continuous operation to remind people of one thing: the manufacturing sector is entering the era of little profit!
Acknowledged worth mentioning, does not recognize the worth mentioning, at least for now before us certain facts have to prove: corporate profits increasingly difficult. For example, the appliance industry in 2005 industry-wide profits fell 37%, mobile phone manufacturing industry, represented by sales of communications products increased by 8%, 39% drop in profits; There are far more brutal, such as the pharmaceutical industry average profit decreased by 45%, beer industry industry-wide profits of more than 500 companies that only 30 million with a loss of more than 50%, microwave ovens and other small household electrical appliance industry has tended to zero profits!
Test of the face of such low-profit business enterprises to use the traditional way of thinking, to stay profitable in the original model is no way out, no future, regardless of whether you are willing, as its raison d’etre for profit enterprise, from now on, must be from the following two aspect of finishing now, face the future.
First, find ways to increase revenue
‘Volume is equal to the profit’, ‘the size of a profit’ the laws ineffective. Low-profit era enterprises, first and foremost task is to find profitable areas, find ways to live in the profit zone. In this sense, the traditional means of raising revenue is gradually lose their effectiveness and aura. For example, relying on promotions to increase revenue, increase the number of products to increase revenue, through advertising bombardment visibility driving sales, bubbl
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