Li Jikai: China's tire industry needs to respond to the "new normal"

In recent years, China's tire industry has been affected by the rapid expansion of domestic production capacity and the impact of changes in the international market. Problems have arisen such as overcapacity, rising costs, falling profits, and difficulties in business operations. Under the current situation, the tire industry needs to accelerate the pace of transformation and upgrading, and achieve innovation and development in order to resolve the current development and survival crisis.

Secretary of the Ministry of Industry and the Ministry of Industry of Tire Industry Transformation, Upgrading, Innovation and Development, and Director of Industrial Economic Research Institute of Northeast Asia Development Institute Li Jikai
Secretary of the Ministry of Industry and the Ministry of Industry of Tire Industry Transformation, Upgrading, Innovation and Development, and Director of Industrial Economic Research Institute of Northeast Asia Development Institute Li Jikai

Li Jikai, Team Leader of the Tire Industry Transformation, Upgrading, Innovation and Development Research Group of the Ministry of Industry and Information Technology and Director of the Institute of Industrial Economics, Northeast Asia Development Institute, pointed out how to achieve innovation and development in China's tire industry under the current situation. Director Li Jikai made the following suggestions:

First, tire development should focus on open "three channels"

The first is the channel between industry and policy, such as the construction of national R&D platforms and the construction of industry association alliances. Then it is to open up the channel between production and the market, use the Internet means to innovate the marketing model and business model, and finally to open up the channels and channels between the enterprise and the market, to resolve the current tire business heavy production light sales, heavy front-end light back-end, heavy Problems such as low-end value added value, through various forms, a variety of links of innovation, to establish a smooth channel with the market. In order to bridge the gap between industry and capital, industrial companies should adopt industrial financial innovations and adopt various means such as industry restructuring, strategic cooperation, capital listing, and fund construction to attract capital from within and outside the region, from inside and outside the industry, to industrial clustering, and to crack industries and enterprises. Develop demand for funds.

Second, the development of the tire industry should pay attention to "three roles."

To give play to the guiding role of the government, especially under the new normal state of the current industry, the government should do a good job in industrial guidance, financial support, and the improvement of enterprise decision-making management, and promote the sustained and healthy development of industrial enterprises. Second, to play a coalition of resources The industrial coalition or association is not only a collaboration and cooperation organization between industrial enterprises, but also a bridge and link between the government and the market, policy and industry. It also creates or joins various industrial innovation and development alliances or associations. It is not only connecting, undertaking, and assuming policies and markets, but also forming alliances among enterprises within the industry. In the end, we must use the docking of platform resources. Whether it is national policy resources or market capital resources such as raw materials, we need a variety of platforms and carriers to gather, undertake, and integrate.

Third, the development of the tire industry should strengthen the "three awareness."

To strengthen the awareness of product quality, China has entered the new development stage of the “quality era”. China's tire industry enterprises should focus on strengthening product quality awareness and rely on excellent quality and performance to increase product competitiveness. The brand awareness should also be strengthened. The future development of the tire industry must strengthen product brand building, continuously increase product value, and establish a group of national industrial brands with international influence and competitiveness. Finally, to strengthen the awareness of new functionalities, China's tire companies should increase technological innovation and focus on the development of green industries and green products that are energy-efficient, environmentally friendly, safe, and highly efficient. While reducing energy consumption per unit of production, they also focus on improving the low consumption and ecology of product use. performance. For example, developing ecological tires, green tires, and energy-saving tires are all good forms.

Fourth, the tire industry should pay attention to the construction of "three chains."

Firstly, the industrial chain forms the industrial chain relationship between supply and demand “upstream and downstream” around the leading products and supporting products of the tire industry. Upstream and downstream enterprises form a close strategic relationship, and whether there is mutual innovation through technology, through upstream and downstream companies Work together to accelerate the development of the tire industry. The second is the competition between value chain companies and enterprises. It is not only the competition of a certain link, but the competition of the entire value chain, and the comprehensive competitiveness of the entire value chain determines the competitiveness of the enterprise. Finally, the current industrial development of the resource chain gradually shifts from hard resources to soft resources as the king. Soft resources include policies, strategies, entrepreneurial qualities and decision-making capabilities, etc. Industrial enterprises are attracting hard resources such as capital, raw materials, talent, and technology. At the same time as gathering, we should do a good job of designing the entire resource chain based on the characteristics of the industry and the company, and do a good job in the integrity integration of the entire resource chain.

Fifth, tire companies should focus on playing "three cards"

The first is to make a difference between the brand tire companies through the product price positioning, technology, features, culture and other forms of differentiation, through the use of alternate vertical and horizontal differences in the two methods used to successfully launch their own brand, in the same market The company distinguishes itself from other companies and competes for market competition on the basis of product differentiation. The second is to lay a good international license. Under the background of China's One Belt One Road International Strategy, the development of international capacity cooperation, global markets, and resource integration has become an important means for China to transform its production capacity and promote transformation and upgrading. Tire industry enterprises should further study the international and domestic situation. To seize opportunities for development, coordinate the allocation of two domestic and international markets and two resources, and form the brand of our national industry. Finally, to create a good innovation, not only technological innovation, but should include the development of ideas, organizational construction, management, sales model, service, investment and financing and other aspects, the majority of industrial enterprises should be important for innovative design and application. Make innovation become a tool and means for industrial development and business growth.

The tire industry needs to deal with the "new normal"
The tire industry needs to deal with the "new normal"

Director Li Jikai finally stated that although China’s tires are facing internal and external pressures, they are still subject to greater development potential and space due to the rapid development of the auto industry and the prospects of the international market. It is impossible to simply understand or position the tire industry as an excess industry. We must also attach great importance to the problems and challenges faced by the current industry, and adopt innovative measures to integrate the industrial chain, capital chain, resource chain, and value chain to realize the transformation and upgrading of China's tire industry.

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