China giving new meaning to 'world factory' (2)

2012 annual report of Gree Electric Appliances shows that the company's annual turnover exceeded 100 billion yuan, which makes it by far the world's first appliance brand to rely on a single category (air conditioning) and exceeded 100 billion.

"The grim situation of the market is undeniable, the desire for consumption at home and abroad are reduced. Only by adhering to independent innovation can enterprise make it through such situation, and can domestic brands to have a place in the world competition," said Dong Mingzhu, president of Gree Electric Appliances.

She said "Gree demonstrates that not only can it play the role of the 'manufacturer', in the field of independent innovation especially in core technology innovation, Gree can become strong force in the world and won respect. " It is reported that Gree made annual investment of more than 3 billion yuan in research.

Innovation will not only allow Chinese companies have a say in product pricing and developing trend in global competition, it will also bring profits.

"At present, based on continuous innovation platform, the new product has become the Midea Group's 'profits cow'. In 2011, Midea Group launched over 1,000 new products in total, and created more than 50 percent of the total sales revenue, more than 65 percent of the profit contribution," Midea Group director and vice-president Yuan Liqun said.

She told reporters that in the past five years, Midea Group spent over 10 billion yuan of investment in science and technology. During the 12th Five-Year period, the group plans to put 3 percent of the annual revenue into research and development.

"Taking into account the changes in the internal and external world, China should actively cultivate a new international competitive advantage, giving the 'world's factory' new connotation," said Pei Changhong, Director of Institute of Finance & Trading of China Academy of Social Science.

He mentioned that China should start from improving technological innovation capability and product research and development capabilities of enterprises, actively involved in the development of international standards, cultivate brand of products on the basis of technical innovation, and improve brand competitiveness of export products.