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Model Aircraft Industry

    China is already the world's largest producer and exporter of models, occupies more than half of the international market share. China Economic Times reporter for this is not known to the industry, most people were surveyed. It is reported that China is already the world's largest producer and exporter of models, occupies over half of the international market share. In the weak economic backdrop, this make most people feel a bit strange and curious about how the industry in the end the status quo? With some Xuxin Qi, China Economic Times reporter made a multi-faceted its investigation.
    Investigation including the status of development of the model industry, market conditions, the difficulties faced by the vision of the future development and other issues, the number of cities involved in related businesses. Here the "model" refers to the internal combustion engine or a battery, such as its own power source with "HM" based electronic machinery remote control model.
Survey shows that Chinese model industry has had relatively strong processing base, there are certain international influence and possession of a larger international market, or soon will enter a critical period of transition to a higher stage. The difficulties faced by the industry nowadays include: design innovation lag, lack of professional high-end designers; corporate conflicts, lower prices, lack of coordination, the industry as a whole less competitive within the industry; addition, access to information needs to be broadened .
According to industry experts pointed out that the status quo model, model industry if you want a higher level, in addition to good play to their comparative advantages, but also the need to enhance coordination and planning of the development and growth with strategic vision, a strong influence of the information provided and industry analysts.

Model not just as a child's toy

Domestic model industry professional enough, is still in the initial stages, mostly made toys and other industries run models, industry consolidation is difficult to do, "model professional model sinks national chain" East Branch and Central Branch official told China economic Times reporter, "model aircraft industry in a foreign country is a competitive industry, regularly organizes sports competitions and exchange activities, the school also use it as extra-curricular activities, but also to encourage the elderly to play HM outdoor activities, but the lack of recognition in the country, is as children's toys. "
The general manager of a company in Shenzhen, told the China Economic Times reporter, model aircraft industry in the country has a certain foundation.
"Although the Chinese model aircraft industry than the larger, but not cutting-edge technologies in the country. Brands, design, technology and marketing core concepts are relatively backward, the added value is not high." Production model is equipped with a battery Xiansefu Energy Technology Co., Ltd. Vice Wang said the general manager of the China economic Times reporter.
According to the China Market Research Center "2009-2010 Chinese model aircraft market research report" published information, the Chinese model aircraft industry is in the uneven distribution, competition is more intense phase, 68% of model aircraft manufacturer located in South China, East China 22%, the rest of the sum is about 10%.

Sales of low-end model to get out of trouble

The reporter survey found that Chinese model industry formed a domestic - foreign, low-end - end groups compared to the market structure and associated: the foreign market is much larger than the domestic market; big impact on the market of low-end products, high-end market little influence; high quality model exported abroad, the domestic sales of low-end models tend to take other characteristics.
"By spending capacity constraints, domestic sales in the low-end model is based. Only a few brands have a certain international influence.
Because it is not a necessity, there is a certain economic base of the middle class is more potential customers, promote the need for targeted and related facilities soundness also factors. Currently in the larger cities, there have been relatively stable customer base.
"Although the property market in recent years, the model slightly expanded, but still a very small scale. Helicopters play a variety of low-end investment have thousands of pieces, a little better to get on the ten thousand, or even tens of thousands. Working class will not be considered play this, too much time and money. do not is because the lack of economic fundamentals, but also because the OEM factories to help foreign domestic oversupply, only rely on sales to foreign countries in order to ensure the foundry. "domestic economic strength of the proportion of people play model small, people's ability and desire to practice so strong like a foreigner, foreigners play model from parts playing different leisure habits.
According to "China Exhibition Network" to provide information, China is the world's largest toy producer and exporter, accounting for more than 70% of the world toy market share. 2011 exports amounted to only toys Guangdong Province reached 14.983 billion U.S. dollars, an increase of 15.8%. The toy manufacturing industry is closely related with the model, the latter the former is often important and direct participants.


Chinese model prices in the international market do?

"China exports a lot of models, at least to account for more than half the market share of the international model aircraft, and we participate in a variety of large-scale models fairs over the years, a variety of color, often dealing with each country and abroad. Foreign large-scale model of the scene is really shocking exhibition domestic exhibition lags far behind. "a manager responsible for corporate overseas sales, said.
Operation model supporting industries, but also to a certain extent that the market situation.
Engaged in the production and operation of the battery model kit 王申明 said most models on the world market batteries are made in China, to discuss foreign lot.
The company has passed ISO9001: 2008 certification, providing fiber profiles as a model industry JINWANG Fiber Co., Ltd., general manager of Dongguan City, Lee Sheping told the China Economic Times reporter that his company is to provide profiles for model aircraft shell, domestic and foreign customers have felt market gradually expanding.
"Various models of large export volume of China, more than 80% -90% of the products are exported. Lot of product packaging, labeling instructions in a foreign language is to take care of foreign clients more than the status quo." Model of gear involved in micro-parts industry, said Hu .
The reporter was in the "2012 Beijing The 11th China Model Exposition" on some domestic manufacturers to negotiate with foreign businessmen conducted exchanges, a businessmen from Australia, said the low prices of Chinese products attracted him; one from the Arab region Chinese merchants feeling extensive range of products, do more choice; whereas a merchant from India believe that the quality of Chinese products and complete categories can meet his needs.
Ningbo Xiangshan dry Feng model Co. salesman said to the reporter, they mainly do like the propeller parts, exported abroad, with many things abroad are made in China. China's product quality is uneven quality than not, the key to see how much money you are willing to buy.

Which model industry nowadays face a market test it?

Brand management awareness is not enough, and European companies are more backward. Economic downturn and foreign trade has shrunk the number of model aircraft industry will be affected.
Domestic products there are some deficiencies in the service. In addition, in recent years the number of foreign domestic models show no increase, big businesses more afraid design was copied less. Price advantage and convenient service is mainly relying on the competitiveness of domestic brands, the industry can not be maintained if the model is good service, and that competitiveness will be significantly compromised. Even cutting-edge technology to keep up, because low prices, adequate human resources constitute a fast, attentive maintenance system, the product can not strive in the local competition.
"Domestic high-end professional gamers recognize foreign brands, domestic high-quality accessories and more shipped abroad because foreign model industry well. Domestic market, although the model is rising, but understand not many people in this industry, although some Chinese brands the international community has been relatively loud. "
According to the supplier blog "Chinese toy industry 2010-2015 Forecast and Investment Risk Report" provides information on domestic urban children toys consumption per capita per year to about 35 yuan, 10 yuan less than rural children, urban adults $ 12 RMB, rural adults are less. Compared to other countries, the low per capita domestic consumption of toys, toys consumption per capita in some developed countries reached $ 340, $ 144 for the European countries, Asian countries is $ 13. Future market toys not in Europe, but in China, India and Brazil. Industry as a high-end model "toys", with the future market development potential.
China is not without good models, but businessmen in order to earn higher interest, will be sent abroad for good quality, large number of people to order, prices for manufacturers satisfaction; rather stay in a foreign country is not on the selling price of low-end goods, so in the domestic sales of the model becomes poor quality, Hu micro believes that "it is also willing to buy cheap goods with domestic spending habits. like to see robots as very cheap but really high quality model aircraft , price is generally more than 5000 yuan. "
Newspaper reporters this year on some model aircraft shops or model exhibition site visits over electric remote control robot model, found that different businesses a cheaper price and more electric robot model in a thousand or so.
China Market Research Center "2011-2012 Chinese learning model aircraft industry research report" forecast, 2011-2013 Chinese learning model aircraft production average annual growth rate of not less than 10%.
"Superior technical quality model aircraft is not able to, but concerns about domestic consumers can accept Chinese brands involved in the high-priced products, the cost of business investment is worthwhile. Domestic customer base for quality requirements are often not high, but price-sensitive, resulting in market competition is very fierce. playing to the top of the model of the brand, high quality requirements, preferences, foreign brands, even slightly better quality of Chinese products the same price point, or equivalent quality and price is slightly cheaper, still must get the high-end gamers of all ages. to do brand long way to go. "
Relatively large domestic suppliers only a few models, to suppress price competition with each other badly, but fortunately not affect the international market, both domestic FIT, mostly foreign-ordering larger quantities, relatively stable foreign markets, mainly in potential can dig the domestic market, the above-mentioned a Mr. said, "China model industry market may be experiencing the past history of the United States, a small factory to be eliminated, a number of large businesses to establish their several branches nationwide, with regular chain model development we are also expanding chains, in cooperation with vocational schools, both graduates to find internships, but also to compensate for lack of Direct franchise expansion phase in technology, sales, finance and other aspects of personnel. "
Professor of Operations Management, School of Economics and Management, Shanghai Jiaotong University, told this reporter Wu Di, usually an industry through competition, the final assembly of the terminal in only a few large companies have their own brands, which eventually stabilize market companies through survival of the fittest, will form a relatively balanced market. And small parts processing enterprises, large enterprises are running around, the formation of industrial system.


Light cost price advantage is difficult to sit in the world

Comparative advantage of Chinese products in what?

----- Cost, relative to foreign products have the same level of price advantage. Domestic brands have international impact from a technical and performance point of view is not the best, but have a comparative advantage, such as cost, the design is also well done. "
------ Higher labor costs in developed countries, assuming that China is a model of labor cost 300 yuan, the foreign may be 300 dollars. "
------ Battery technology China can basically close to the world-class level, the advantages of the whole model industry is price.
-------- Battery technology is leading this uncertain, but production is certainly the first. Due to the low production costs in China, foreign low-end model industry can not do so, only a few high-end still in production
--------- Model industry accessories, materials used are basically domestic manufacturing, only a very small part of the technical stuff is the top foreign developers, high precision parts, if not, there are basic domestic, "China does not higher fine line with the domestic consumer attitudes have a great relationship, we all like cheap stuff, but the price is very cheap quality is uncompromised. "
-------- "Foreign advanced technology and design in a more advanced, but subject to manufacturing structures, labor costs and other factors, not mass production, so the transfer to Chinese foundry. Strong Chinese manufacturing capacity abroad very advanced design to get China to manufacture large can meet customer demand. "Lisa said.
------- "Our own design, not for others foundry, the products are exported around the world and some manufacturers in this industry is no longer the franchise contract, and China is not the lack of technology companies.
"A competitive advantage, usually in the high-tech, low-cost, or have their own characteristics can complement the market gap. Adopt specialization, corporate procurement by the terminal assembly, can reduce costs and ensure efficiency." Professor Wu Di said.

High-precision technology design capabilities lag

Many of the well-known model of foreign brands produced in China, but this does not mean that China has a relatively high level model of industry, and in the design of multi-imitation, lack of innovative intellectual property rights, Wangshen Ming said, "The key is not to manufacture the model , but that the design is that the grasp of aerodynamics and other professional skills. trendsetting, have a greater market value of the design mostly originating from abroad and then come to imitate, or in succession on the basis of the whole concept of making changes. "
"Abroad or to master the core technology of high precision level. Foreign brands in the stability of the product and the standard is better than the domestic, ordinary domestic product defect rate assumption may have 5%, while NPL ratio of foreign advanced model aircraft industry may be 1%. precision demanding high-end players, preferring to spend more money to buy brand goods also. "Liu Li Chan said.
"Do the design is relatively large initial investment, so we like 'cottage' domestic model plant into small-scale, mostly small factories, not a few have the strength to engage in design. So what good things on the market, they will learn about . "ZHANG Bing dry analysis of the design aspects of the overall lag reasons.
China Market Research Center "2009-2010 Chinese model aircraft market research report" message provides the current model of the world's leading industry countries are Germany, Japan, Hong Kong, Taiwan and the United States.
"Model industry with world-class standards may have gaps decade. Foreign well-known manufacturers and some reluctance to Chinese exhibitors, fear of Chinese counterfeit latest styles, high imitation manufactured way most domestic manufacturers are counterfeit, low-cost do, engage design of this cost is too high, the market space is small, basically no hope. "Ren Hui said.
Zhou Ying believes that in China a competitive industry, mainly designed mostly Chinese people, perhaps in the design of model aircraft industry as a whole has not formed a breakthrough.


Lack of appropriate sectoral coordination mechanisms

"Merchants like price competition, everyone in the low-end of the fight." Liu Li-sheng deeply helpless.
ZHANG Bing dry believe that some of the problems difficult constraint, because many small domestic manufacturers, small living space, think outside the box to give them too afraid to bite the bullet. Small manufacturers are not professional to do this trip, I feel there are profits to come, when no profit to jump away.
"Corporate normal part of operations, which is the pursuit of profit autonomous behavior unprofitable businesses will naturally make way; .. If devote worth will naturally put money into the franchise industry investment in an industry that is often technical and funding two thresholds, if investment funds operating model and technological barriers parts are not high, some companies operate part-time no harm. subcontracting cooperation is common mode processing industry, a business can not produce anything by parts procurement, assembled , degree of specialization and fluency parts production increased more than a business to do all their high efficiency, and low cost. "Professor Wu Di said.
"China model industry is still relatively complex, filled with low-end sales mainly disorderly competition, chowder supermarkets like world model aircraft industry and our gear to the model not only industry, but also to other industries." Hu Wei said.
"Hong Kong and developed countries have a lot of associations, organizations many activities and games, our products are exported to them are two large sites and a continental Beijing influential magazine, there are some regional or HM Association a special, but the influence is not enough. HM belong to sports, the State Sports General Administration has associations, but not the business association. "Mr. Song said above.
Wu Di believes that internal defeating each other, would damage the interests of disorderly competition, industry associations or something. Government through policy support, macro guidance, follow the market rules in the context of a service enterprise support, coordination to help businesses develop. Some companies may also be led by the formation of a joint research institute supported by all participating members.

Model industry expectations macro guidance

"China model industry messy, there is no competitive products, although some large companies have their own designs, but the core technology is mainly foreign control." Hu micro expect China to overcome existing weaknesses in the model industry, higher level.
"Many countries regard China as their plants, they are responsible for the sales side. Chinese products mainly rely on price advantage." Woo Man Chi vision to change the Chinese model of cost-competitive industry relies mainly one-way street.
"A lot of models have been transferred to the extraterritorial processing orders production, such as Thailand, Vietnam became the new base model aircraft production, the cost is lower than the Chinese domestic processing costs increasing in recent years, manufacturers or models will be out of a group. Models the key in the design industry, it would not be occupied by no design of this industry Heights. "Ren Hui talk about the need to upgrade the industry model from a cost advantage weakening and industrial transfer in the background.
Reporters from the survey feedback model industry point of view, Chinese model and the industrial sector due to the increased cost transfer or consolidation phase will usher in the industry as a whole, whether there is a reasonable guide perhaps more important.
"National attention enough. Government the United States, Australia is more support, and the construction of venues, model good areas to carry out the crime rate dropped, people go outside because the constitution also improved. Nowadays, Guangzhou, Beijing doing fairly well, Guangzhou planning and venues to keep up. "Sung mentioned above expectations to promote a more favorable atmosphere.
Not previously affected industries nationwide organization may not be subject to the domestic industry in the climate models, few players are now gradually expand the domestic market, the players on the rise, perhaps to the norms and rules of trade associations will request Wangxiu Jing said, "industry although the association is how to coordinate the problem, but can recommend good things come in time, effective sharing of valuable information, accurate pulse of industry trends. currently insiders individual forums, because it can bring newer news and industry trends, our there is help. participation in government might make some equality of opportunity, otherwise businesses in command afraid to focus only on their own commercial interests, to benefit the individual companies. "
"The government and industry associations in this guide can help businesses cope with less force things, particularly beneficial to SMEs, such companies do not have enough information on a wide range of ability and effort to collect the latest market trends, industry trends, strategic development planning and other issues. could have a national impact of the formation of guilds or commercial organizations to help achieve these ideals. "Wu Di said that large companies can submit an application to the government, the lead organization chambers of commerce, of course, can be made of what probably need to accumulate experience and practice tests.

Source: China Economic News - China Economic Times Editor: Zhang Limin