Race dragon why | 'sudden death', can not ignore the ODM business itself

Once the ODM star enterprise Shenzhen Xuelong 'tax evasion of 339 million', the founder of the small right was sentenced, the enterprise almost bankrupt. Although the other side of the Communist Party of China gave a very different argument, but because of the difference between the two sides too large , The case in the trial process, the truth of the incident can only be left to follow-up investigation.

However, the details of the cast aside, the public opinion will be the death of the dragon died one side of the blame in the Green City is wrong.Through the fact that yesterday's giant night collapse is not day and night of the power, its own is bound to exist for some cause, For example, ODM companies short board.

Shenzhen Sailong is an ODM (Original design manufacturing) foundry business, for overseas and domestic mobile phone brands to provide research and development and production programs. Customers are all on the list of Motorola, Huawei and other well-known brands.

However, ODM is the same as OEM (Original Equipment / Entrusted Manufacture), and OEMs are OEMs who do not directly produce their products, but rather use their own key core technology Design and development of new products, control sales 'channel', ordered by way of contract to commission other similar products manufacturers, the product of low-priced buyout, and directly paste their own brand logo.

ODM refers to a company according to another company's specifications to design and produce a product, with some original design capabilities, but also because of this, it is difficult to avoid the 'out of the embarrassment' - the market outside, the brand outside. OEM model, ODM mode, although there is a corresponding technical autonomy, but still highly dependent on external orders, there is no own brand, for the market terminal also lack of control. Report can also be seen, the founder of Shenzhen, Running around the world, is to fight for all kinds of orders.

Not only that, compared to the OEM model, ODM involved in more design research and development links, capital investment, also need more financing credit from the information provided by the Communist Youth League, the dragon has been profitable or even at a loss, If these data is true, then the race itself is not the growth of the growth of their own problems difficult to avoid.

In recent years, handset ODM industry reshuffling process is accelerating, intelligent machine shipping rankings, Wen Tai, Hua Qin, Long Flag, and Germany and Tian Long companies occupy ODM TOP5, ODM market competition intensified, but also makes the second echelon ODM enterprises are facing higher initial investment and lower profit return, and the drop in input-output ratio will inevitably lead to a high degree of tension in the capital chain. Once a certain part of the financial problems arise, it may trigger a chain reaction.

Media reports that the Communist Youth League financial institutions to Xialong company orders for the reasons for the sudden tightening of loans, a total of 'thunder line company' 500 million yuan loan, which is the Shenzhen war dragon crisis of the fuse. City officials said that Shenzhen Sai Long has long been a low-cost single, profits decline year by year, even the loss of the phenomenon can be said that if the report is true, it is precisely the focus of exposure of the company as the ODM enterprises weakness - Enough of its own funds, the proportion of enterprises operating external financing is high, the loan once the 'stop', overseas orders can not be completed, the value of nearly 500 million yuan of raw materials paralyzed in the plant, eventually leading to a comprehensive collapse.

It is true that there are many factors that may influence the death of Sai Long, but it is bound to expose the shortcomings of ODM companies. Although we are aware of the ecological limitations of design, R & D and outsourcing manufacturing, we try to seek to complete the research and development, design, Manufacturing mass production of the entire industry chain closed-loop, and then become a mobile phone and other smart terminal R & D and manufacturing giant.However, the relevant reports also admit that this goal is achieved, the need for land, capital, labor, taxation and other asset injection and good policy support.Once the above Links are no longer positive factors, then Shenzhen Tyrone may encounter a crisis.

□ Bi 舸

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