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release time:2022-04-06Author source:Song ShiqiangBrowse:5443
Both Shenzhen SlkorMicro Semicon Co., Ltd. & Shenzhen Kinghelm Electronics Co., Ltd. have ushered favorable development recently. Kinghelm’s Beidou navigation and positioning antenna microwave RF connector and Slkor’s semiconductor diodes, transistors and field effect transistor stand out in the “domestication”, which contributes to a higher popularity of Kinghelm and Slkor. What’s the essential reason for their fast development? What’re the secrets of success the founder Song Shiqiang has mastered? What is the underlying logic of brand building?
Mr. Song sees brand building a crucial element. He once said, “We shall make good use of the internet in this era of information and data. Online publicizing and promoting are superior in many aspects, such as low marginal cost, accurate information docking, high transmission speed, high conversion rate and wide coverage. Online information can accumulate strength of popularity and contribute to scale effect quickly. Online publicizing and promotion actually revolutionize our traditional offline mode substantially. Thus, as long as the company masters the underlying logic of brand building on the Internet, we can finish many things with half the effort.”
Song Shiqiang, GM of Slkor and Kinghelm
VI. Brand means value creation
A good brand brings the right of price and premium. In today’s society, excessive production capacity can be basically found in each industry, where products are also highly homogenized. Therefore, manufacturers all use ads to sell their products better. To realize premium, some manufacturers lay emphasis on routine publicity ways, such as highlighting concept and package and supplying products at an extremely low price. The throat-cutting competition within the industry only ends up with the failure of both parties in the competition. By contrast, products from a famous brand can be sold well, which naturally gives birth to a higher profit. This is actually the direct value of the brand.
Taking the peer of Slkor (www.slkormicro.com) in electronic component industry as an example, Leshan Radio Factory, whose brand is LRC, is mainly specialized in the manufacturing of diodes, transistors, low pressure pipes, etc. It was the OEM factory of one Japanese semiconductor plant whose product price was very high. However, at first, the exactly same product with the trademark “LRC” were unsalable, even with a low price. Actually, products of LRC and Japanese brand are the same in terms of raw materials, technique, workers, organizational system, machinery equipment, management mode and production procedures and even their quality. The situation above also occurs to the OEM sporting shoes factories in Zhejiang Province and Dongguan City. They were the OEM factories for overseas brands such as Nike, Adidas and PUMA. But creating their own brands, they basically followed the same situation and could do nothing but served as OEM factories once again.
Then let’s focus on our local brands. I used to work in real estate in industry, so I name myself as a house expert. Taking my former employer Vanke as an example, Vanke is a well-known brand in real estate industry and its real estate projects not only sell well at a price that is about 10% higher than those developed by other brands with the same grade and location. In addition, the price and supporting conditions that the government offers are also much more favorable when Vanke procures land. It is similar to Gree in household appliance industry. Its air conditioners sell much more than those of other brands in this industry with a higher price. Those unable to operate and manage a brand only end with merger or bankruptcy, even they could supply high quality products. The situation above is quite common in the industries with full competition such as TV, refrigerator and mobile phone industries during the transition from an unbalanced market to a saturated balanced market.
(To be continued)
Corporate culture of Kinghelm (www.bds666.com)/SlkorMicro (www.slkormicro.com)
Mr. Song, GM of Slkor and Kinghelm
About the author
On top of being a private economic researcher of the Economic Development Center of the State Council, Song Shiqiang is also a member of the electronic information expert database of China Association for Science and Technology, and a commercial research expert of Huaqiang North. Mr. Song was the former CEO of an international real estate listed company. He has invested and managed a list of companies such as Shenzhen SlkorMicro Semicon Co., Ltd. and Shenzhen Kinghelm Electronics Co., Ltd., building the "Slkor" and "Kinghelm" brands. Both "Slkor" and "Kinghelm" are national high-tech companies and they have obtained dozens of invention patents and software copyrights. In addition, Slkor is one of the fastest-growing semiconductor companies in China, and its vision is to become "the leader of the domestic semiconductor manufacturing industry".
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