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Consumer electronics industry still has a long way to go

By Du Xiaoli (chinadaily.com.cn)
Updated: 2008-08-12 17:43

China's consumer electronics industry has witnessed rapid development in recent years and has gradually formed an industrial system with complete industry categories and solid technical strength.

But how to improve the competitiveness of Chinese enterprises and narrow the gaps between Chinese enterprises and global giants is still an issue to be considered, according to the website Chinanews.com.

On one hand, the scale of the Chinese consumer electronics industry is large and China is the major producer and exporter of color TVs and mobile phones in the world. On the other hand, RMB appreciation, rising prices of raw materials and price declines of traditional commodities all limit the development of China's consumer electronics industry.

Heightened environmental and intellectual property rights (IPRs) consciousness also poses new challenges for China's consumer electronics enterprise. Chinese enterprises still have gaps in terms of systematic management, resource integration and brand influence compared to that of foreign brands.

Currently China's consumer electronics industry doesn't have many globally well-known brands. Most enterprises are still in the phase of low price competition and grasp world market shares by relying on low cost manufacturing. Compared to consumer electronics enterprises in Europe, the United States, Japan and South Korea, Chinese enterprises lack core technologies. The sector is at the end of the global industrial chain and facing structural upgrade.

China's consumer electronics industry should strengthen technology research and development and combine technology standards and self-innovation to promote the formation of industrial technology innovation mechanisms. Chinese enterprises should develop products with internal IPRs to gradually complete the transition from made-in-China to created-in-China.

It's not enough to only depend on enterprises to further improve the competitiveness of the domestic consumer electronics industry, according to a report of consultancy Mckinsey & Co. Much support is needed to promote adjustment and optimization of industrial structure.. In addition, relevant departments should also strengthen policy support for industrial technology research and development.