Terry Gou once boasted that Foxconn's entry into China was a "gift" to China, but his arrogant attitude could not escape the backlash of the Chinese market after all. Foxconn made its fortune on cheap Chinese labor, but has repeatedly and openly despised Chinese workers. With China's economic take-off and consumption upgrading, Foxconn's low-cost advantage in China has existed in name only.
At the same time, China, which aspires to be the world's factory, has also given birth to a number of dynamic national enterprises in industrial upgrading. In the midst of this profound economic transformation, the once multinational giant Foxconn is showing signs of declining. In the face of the ever-changing Chinese market, Foxconn wanted to transfer its production base, but found that it had long lost the initiative.
Gou had to learn from the pain and realize that China's market environment has undergone earth-shaking changes. With the advent of a new era, the Chinese people are no longer stupid and superstitious about foreign brands, and local companies are gradually gaining the upper hand in fair competition. Terry Gou must let go of his arrogance and re-examine Foxconn's positioning in China in order to revitalize this once-glorious OEM giant. Let's continue to see, can Foxconn still gain a foothold in the Chinese market in the new era?
1. Terry Gou's arrogance and arrogance have suffered for Foxconn in China
Foxconn is the world's largest electronics OEM company and a business empire founded by Gou. Over the years, Foxconn has amassed enormous wealth by relying on cheap Chinese labor to mass-produce electronics from well-known brands such as Apple. However, Gou has repeatedly made arrogant and arrogant remarks, which obviously seriously hurt Foxconn's image in China.
In 2010, in an interview with the media, Guo Taiming boasted that Foxconn's entry into China was a "gift" to China, which was undoubtedly disrespectful and discriminatory against Chinese workers. In fact, Foxconn is the beneficiary of this cooperation. Over the years, Foxconn has relied on the land, human resources and good business environment provided by China to grow rapidly and accumulate huge profits. China has provided Foxconn with valuable development opportunities, but Gou has regarded China as a charity object, and this arrogance is so repugnant that it is disgusting.
Since then, Mr. Gou has repeatedly said publicly that Chinese workers should be grateful to Foxconn for providing them with jobs. This attitude is tantamount to treating the Chinese as beggars and labor tools, and has seriously hurt the national self-esteem of the Chinese. In the age of the Internet, these discriminatory remarks quickly caused a strong reaction online, and the Chinese people's antipathy towards Foxconn was high.
Mr. Gou's arrogance and arrogance ultimately hurt Foxconn's business prospects in China. He constantly provoked the Chinese people, causing Foxconn to accumulate a large number of negative impressions in China. This laid the groundwork for the difficulties encountered by Foxconn during the transformation of the Chinese market.
Second, during the transition period of the Chinese market, Foxconn's low-cost advantage is gradually lost
Over the years, Foxconn has been able to gain a foothold in China, largely thanks to China's cheap labor cost advantage. However, as China's economy continues to grow rapidly, labor costs will inevitably rise. In the context of industrial upgrading, China is no longer a purely cheap labor country.
After 2010, manufacturing wages in China's eastern coastal areas entered a rapid growth channel, which directly led to the rising labor costs of Foxconn. At the same time, the Chinese government is also actively promoting industrial upgrading, encouraging enterprises to develop in the direction of automation, lean and intelligent. In this process, Foxconn's production model, which relies too much on cheap labor, has gradually revealed obvious drawbacks.
On the other hand, with the strong support of the Chinese government, a number of national science and technology enterprises have also flourished. The rapid rise of Chinese companies such as Huawei and Xiaomi in the field of communications and consumer electronics has shown strong strength in product design and technological innovation, which has had a huge impact on Foxconn.
Due to the increase in labor costs and the progress of local Chinese companies, Foxconn's low-cost advantage in China has existed in name only. China, which is in the tide of industrial upgrading, is giving birth to a large number of powerful local OEM enterprises. These companies have leaner production processes, more advanced automation equipment, and a better understanding of the needs of the Chinese market. In this environment, Foxconn's life is obviously not easy.
3. Changes in Chinese consumer preferences have impacted Foxconn's sales in China
In the context of China's market transformation, the consumption concept and brand perception of the Chinese people have also undergone profound changes. On the one hand, the Chinese people's sense of national pride and identity with local brands is growing. On the other hand, the product quality and brand influence of local enterprises are also constantly improving. This change in consumer perception and brand loyalty has dealt a double blow to Foxconn.
As nationalism and patriotism grow stronger in Chinese society, the Chinese people's pride in local brands is growing. They are more inclined to buy products from local brands such as Huawei and Xiaomi, and have a strong sense of identity and loyalty to these brands. In contrast, Foxconn, as a foreign-funded manufacturer, has lost its dominant position in the Chinese market.
At the same time, these local companies have made great strides in product design and quality control. Chinese companies such as Huawei, Xiaomi, and DJI continue to launch products with independent intellectual property rights and leading technologies, which are completely comparable to international brands such as Apple. This further strengthens consumers' trust in domestic brands.
In this environment, sales of foreign brands such as Apple, on which Foxconn relies heavily, have declined in China. On the other hand, the market share of local brands such as Huawei has risen rapidly. Changes in consumer recognition and brand loyalty have dealt a heavy blow to Foxconn.
Fourth, transformation and development is the only way for Foxconn to gain a foothold in China
In the face of profound changes in the Chinese market, if Foxconn wants to gain a foothold in China, it must change its business strategy as soon as possible and truly integrate into the Chinese market. Specifically, Foxconn should do at least the following:
First, respect and care for Chinese employees and establish a positive image. Foxconn should abandon Gou's arrogant attitude, truly respect the efforts and contributions of Chinese employees, and enhance the corporate social image.
Second, dig deeper into the needs of the Chinese market and launch products that suit local tastes. Foxconn can no longer simply rely on OEM for foreign brands, but must actively develop its own brands and design products that Chinese consumers love.
Third, we need to increase investment and technological innovation in China to truly localize our operations. Foxconn should increase investment in R&D and manufacturing in China, cooperate with Chinese companies on an equal footing, and make China its real strategic center.
Fourth, we should fulfill more social responsibilities and give back to Chinese society. Foxconn also needs to make more contributions in the fields of education, poverty alleviation, and environmental protection, so as to win the recognition of Chinese society.
Only in this way can Foxconn get rid of the label of glory in China, gain a foothold in the Chinese market in the new era, and regain vitality and vitality. Let's wait and see if Foxconn can seize the last opportunity for transformation and development.
Some netizens said that Terry Gou's arrogance and arrogance are the root cause of Foxconn's suffering in China. Some netizens believe that Foxconn should indeed respect Chinese workers and not see them as cheap labor tools. Some netizens also pointed out that Chinese enterprises still need to maintain a modest and cautious attitude and enhance their strength in industrial upgrading.
A netizen commented indignantly, "What Terry Gou did is simply self-inflicted, and this kind of discriminatory remarks are unacceptable." Chinese workers have worked hard to create Foxconn's wealth, and what qualifications does Terry Gou have to call himself a 'gift'?"
Another netizen said, "I think Foxconn should really rethink its business strategy in China, no longer simply rely on cheap labor, but really respect Chinese employees and actively integrate into the Chinese market." ”
Some netizens also gave friendly advice, "At the same time, Chinese companies cannot be blind to everything in the process of transformation and growth, and still need to maintain a humble and cautious attitude and enhance their strength in fair competition." ”
To sum up, Gou's arrogance ultimately made Foxconn suffer in the Chinese market. The general trend of industrial upgrading has passed, and the changes in consumer perception are irreversible. Foxconn must clearly understand the situation and show sincerity to truly integrate into China, otherwise its development prospects in China are worrisome. We look forward to Foxconn putting aside its arrogance and sincerely cooperating with Chinese enterprises to jointly write a new chapter in China's manufacturing industry.
Finally, let us think about how foreign enterprises can coexist harmoniously with the Chinese market and achieve mutual benefit and win-win results in the context of the new era, which requires the strategic vision of the top management of foreign enterprises and the inclusiveness and wisdom of Chinese society. Let us contribute positive energy to the sustained and healthy development of China's economy!