Chinese OEM Manufacturing Roadmap

Abstract

This study seeks to explore the strategic alternatives for the many small and medium-sized manufacturing firms in China that play an OEM role in the global value chain. Declining margins due to rising production costs and intense competition from emerging manufacturing industries in Southeast Asia necessitates the transformation of China's traditional manufacturing industry. The result is opportunities for the creation and manufacturing of domestic brands. A multiple-case study methodology is used with primary data collection through in-depth interviews, supported by secondary data on the subject firms. The findings reveal an awareness of the opportunities afforded by the trend towards the development of domestic brands as well as the vision, strategy, tactics, and forecasting related to a transition to brand creation. This chapter could be of interest to those with an interest in manufacturing transition, brand development, and providing direction to OEM SMEs in China that seek to develop a strategic roadmap during the imminent industrial evolution and transformation.