Sharpe closed its factory and fell to the altar wi

Sharp closed its factory with OEM made in Japan and fell to the altar

recently, sharp announced that it would close the Bawei factory (located in Bawei City, Osaka Prefecture) that produces refrigerators at the end of September 2019 and stop producing white appliances in Japan. In the future, it will transform to overseas production that can take advantage of the parent company Hon Hai Precision Industrial production base to improve cost competitiveness. In addition, the LCD TV production of Tochigi factory (located in yaban City, Tochigi county) will also be stopped in 2018

Dai Zhengwu said that the closure of the plant is to consider the issue of cost competitiveness in order to further improve the global market share

made in Japan fell to the altar

in the 1980s, Japanese electronic products began to be popular in China. Until today, when it comes to made in Japan, it is called fine and rigorous. Sony, Panasonic, Toshiba, sharp, Toyota and other brands have also become synonymous with durable and reliable made in Japan

however, in recent years, these famous Japanese enterprises have stepped down from the altar. Toshiba had to break its arms to survive and sell flash memory business due to insolvency, while Panasonic, Sony, Sanyo, Toshiba and other enterprises fell into the quagmire of losing money and selling their wealth. Before Foxconn's acquisition, sharp 7 estimated that whether the design product could have excellent performance in practical application was also in a state of loss

2017, with the help of Foxconn, sharp gained market share through low-cost operation and low price, showing signs of recovery in the market, and finally turned losses into profits after four years. Of course, this is closely related to the substantial rise in the price of the panel and sharp's price for volume. However, sharp's practice of overdrawing the market through price reduction is not a long-term solution. With the weak global TV sales, China's LCD panel manufacturers continue to expand production capacity, resulting in an oversupply of LCD panels, and the risk of continued price decline is increased

this time, Foxconn led sharp to close its production plant in Japan, which is precisely to continue to reduce its own operating costs and solve the problem of space and ability to participate in market competition in the future. It also reflects the loss of advantages and market shrinkage of Japanese household appliance manufacturing under the global industrial chain competition, and the situation is difficult to reverse

the same is true. With the increasingly fierce competition in the global market, sharp's production equipment is aging, the labor cost is high, and the innovation efficiency is low. The combination of small tonnage experimental field with variable functions is becoming increasingly prominent, and its competitiveness is gradually declining. It is simply unable to compete with Haier, Midea, Samsung and other Chinese and Korean enterprises. In the field of household appliances, the brilliance of made in Japan and Japanese brands is in the past, and they are gradually defeated in the competition between the global market and emerging forces such as made in China, which forces them to re plan the layout of the industrial chain from a new perspective, optimize the industrial structure and adapt to the needs of competition

although Japanese household appliances are difficult to fight back in the consumer market in a short time, the hat that Chinese household appliances rely on scale and price to win has not been completely removed. The transformation and upgrading of the manufacturing system is only concentrated on top brands, and a large number of core technologies in the upper reaches of the industry are still in the hands of enterprises such as Japan and South Korea. For example, Foxconn is constantly tightening its control over the upper reaches of the television industry

on the basis of strengthening the first mover advantage of manufacturing costs, it is inevitable for made in China to accelerate the occupation of the high-end market and speed up the layout to the core areas such as upstream industrial panels and chips. This will be the way that made in China can't bypass in the next round of competition to continue to catch up with and surpass made in Japan

Foxconn accelerates Sharp's strategic transformation

from the substantial price reduction and promotion of black TV sets to the ice washing and other products of white TV stop being produced in Japan, and comprehensively shift to low-cost manufacturing in other overseas places, so as to reduce operating costs

since it was taken over by Foxconn in 2016, sharp has made a series of changes. Although its performance has recovered rapidly, Foxconn's strategy change of "noble or not expensive" for the external display of sharp brand has also caused a lot of controversy. At the same time, under Hon Hai's strategy of exploring the transformation of household appliances, sharp is also accelerating the restructuring, this time to reduce costs and transfer overseas production

for sharp, this is a big step in strategic transformation. In the past, statistics show that sharp has been in a deep loss for several years. The losses in 2014 and 2015 were as high as 222.3 billion yen and 255.9 billion yen respectively, which finally led to sharp's insolvency and forced it to be acquired by Hon Hai in August 2016

after being acquired by Foxconn, sharp bid farewell to its high-end market positioning in its TV business and adopted a "low price" development strategy, which also achieved good results. In the second quarter of this year, sharp's net profit increased by 32.6% year-on-year after its profit in fiscal 2017, which has achieved certain results

as a subsidiary of Foxconn, sharp is bound to close its production plants in Japan in order to maintain profitability and reduce operating costs. After all, for Foxconn, sharp's significance of being made in Japan is weakening day by day, and it is more important to maintain sustainable profitability

for Foxconn itself, in fact, it has been trying to transform itself, trying to get rid of the current situation of relying too much on OEM business. The profit of OEM business is too low due to its wide range of applications, and its major customer Apple has been trying to reduce the OEM price by introducing more OEM factories to compete with Foxconn. Its acquisition of sharp is one of the ways to transform, hoping to improve its technology and industrial chain strength, At the same time, develop their own brand business

after closing the Japanese factory in the future, sharp's home appliance orders can be handed over to other overseas production bases of Foxconn Group. Because the overseas manufacturing costs and transportation costs are lower, it can also bring greater profit space, reduce costs and improve product price competitiveness. It seems that this is a good deal