Recently, the Ministry of Industry and Information Technology (MIIT) together with the China Federation of Industrial Economics (CFIE) have organized the selection of the seventh batch of manufacturing champions of individual fields and the review work for the champions of the first and the fourth batch. According to the list, Shunde enterprises including GALANZ and VANWARD were selected.
What makes a manufacturing champion of individual fields? According to the definition by MIIT, it refers to enterprises that have been working on certain specific product segments in the manufacturing industry. With leading technology or craftsmanship in the world, the share of products also need to rank at the top of the world.
Regarding the seventh batch of the champions or products, 9 model enterprises and 18 single champion products of individual fields were awarded in Guangdong (excluding Shenzhen). Specifically in Shunde, GALANZ, whose main products are microwave ovens, was selected as one of the model enterprises. Gas water heater from VANWARD and electric fan from Midea were selected as champion products.
It is noteworthy that the selection has stringent criteria, requiring enterprises to focus on a certain part of the industry chain or a certain product field for 10 years or more, as well as to have a strong market position and a high market share, with a single product market share among the top 3 in the world. The model enterprise should also meet the requirement that the sales revenue of the product accounts for 70 percent or more of the enterprises main business revenue.
Research by China Machinery Industry Information Institute indicates that with a 0.03 percent share of the number of enterprises, the champion enterprises created 0.51 percent of the main business revenue and 0.98 percent of the corporate profit of the above-standard industrial enterprises in China, with an average corporate profit margin of over 10 percent, more than twice that of ordinary industrial enterprises.
The cultivation of manufacturing champion enterprises of individual fields has been incorporated into the national "14th Five-Year Plan" strategy for a strong manufacturing country. It’s also a crucial part of the gradient cultivation of high-quality enterprises, aiming to promote the capabilities of industrial infrastructure and industrial chain modernization level.
Author | Linn
Revisor | Eleanor, May