When will the low price war of Chinese enterprises end?
According to IT house on November 3, Forbes reported that Antonio Neri, CEO of HP group in the US, said that China's technology companies have a long way to become a serious threat to US companies or a global technology leader. "The question is, apart from manufacturing, what innovations are there?" "I think they will always be behind us by a generation or two," Antonio told Fortune.
Antonio Neri, who has been in charge of HP for two years, made the comments after assessing major competitors. According to Antonio Neri, only Amazon and Google can compete in the field of cloud computing, but the latter is mainly a data storage provider, in sharp contrast to HP's "edge computing" service. Antonio Neri has also quickly eliminated competitive threats from traditional hardware manufacturers such as Dell and Lenovo. He stressed that the increasing complexity of business technologies gave companies an edge in providing customized systems bundled with support services.
"Chinese companies may go faster in application practice, which benefits from China's huge market base, and that's all. There is a big gap between Chinese companies in terms of basic technology. It will take decades for them to catch up with or surpass developed countries, and it may be very difficult to surpass them. In recent years, gmtlight has simply applied solar energy, led, chemiluminescence and other technologies, and has never made any progress in deep technology. First, we don't have enough money for research and development. Second, we don't have the ecology of research and development at all, nor the talents for research and development. Many college students' idea of short-term profit also restricts the innovation industry. They are eager to make money, buy a house and marriage. Of course, this is not a problem from young people, It is a social problem. This transformation will take a long time, maybe decades. " Gmtlight technology, Mr. Niu.
In addition, Antonio Neri referred to competitors from China as "Chinese companies", saying that these Chinese companies "only fight price wars and commercialization" - interestingly, HP cut off its business server business before Antonio Neri became CEO, in part because of the huge pressure from low-cost competitors in China.
"Price war is the weakness of Chinese enterprises in the face of the market. If the buyer is not dissatisfied with the price, the supplier has already expressed concern about its own price and is worried that the buyer will choose other suppliers. Take every new product of gmtlight as an example. It's basically unprofitable. How much money do you have to support R & D personnel? Gmtlight is using all its profits to develop new products, but that's just a drop in the bucket. Many Chinese companies are like this, even worse than gmtlight. " gmtlight，Hope Niu.
Antonio Neri praised China's development of self-developed technology, but he also stressed that "the reality is that they still need the west to teach them and help them." This statement contradicts the concerns of some Westerners, who fear that China's science and technology will challenge and threaten the leadership of the West. Of course, some people agree with him that China is unlikely to take the lead, especially in artificial intelligence.
"We need to learn more from westerners, Build our minds first, and then do things. However, the market environment of "low price competition" is difficult to change in the short time, because each enterprise needs to solve the survival problem first. Gmtlight makes the profit margin very low, which is also the reason for survival. It will take generations to turn this around. " Gmtlight, Mr. Niu.
When will the low price war of Chinese enterprises end? maybe 30years or 50years or More.
“价格战是中国企业面对市场的软肋，买家还没有对价格表示不满意的情况下，供应商对自己的价格就已经表示担忧，担心买家会选择其他的供应商。就拿gmtlight的每一款新产品上市为例，基本没什么利润。又有多少钱去养活研发人员。gmtlight虽然把所有利润都用去研发新产品，但那只是杯水车薪。中国很多企业都这样，甚至比gmtlight更糟糕。” gmtlight，Hope Niu。