Transformation and upgrading process, many companies from technology research and development, product design, brand promotion and other aspects to enhance competitiveness. And Foshan City, Mendel Precision Oral Medical Devices Co., Ltd. (hereinafter referred to as "Mendel"), while the appropriate business layout to enhance product value, marginal profit, in a competitive environment to broaden the market space.

High value-added product strategy

Mendel is a manufacturer and exporter of precision dental medical equipment approved by the Guangdong Provincial Food and Drug Administration. It has established a production base in Foshan since 1989. It is mainly engaged in the research and development, production and sales of dental medical equipment. Mendel pointed out to the HKTDC's economic and trade research that the company's core strengths include precision components and equipment R & D design and production capacity, and can meet customers and related health regulatory authorities, technical standards.

Mendel said the company's parts and equipment are high-tech and high value-added products, market competition key factors include product technology, quality, reliability and brand, and lack of certification, non-professional medical products at low cost, low price promotion The strategy of snatching the market is quite different. Therefore, the company's current development strategy is to improve the quality and precision of the product, and improve the market value of the product, rather than transfer production to reduce costs.

The company has a research and development base in Foshan and Henan Province, and continue to invest in strengthening the strength of R & D team, in addition to enhance the functionality of existing products, in the next 5 years will further develop more high-end and high value-added products, including dental laser cutting equipment, Treatment equipment, surgical craniotomy machine, surgical precision orthopedic surgical treatment equipment.

Mendel has only factory facilities in Foshan, China, and has imported all kinds of automatic production equipment from Japan, Germany and Sweden, including computer numerical control machine (CNC) for precision production, and set relevant testing equipment to ensure product High quality level. The plant currently employs about 120 workshop workers, mostly technicians, responsible for the operation of the production equipment, while the low-skilled workers only a small proportion of the staff.

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Enhance brand and product value

Mendel also focused on the development of brand business. In addition to general publicity activities, to participate in large-scale exhibitions in the Mainland and overseas, the company set up factories in Gyeonggi-do in Gyeonggi Province in 2013, from the Mainland to the core components produced in Foshan to South Korea, with local procurement of industrial products and in line with South Korea Origin of the provisions of the high-end oral medical equipment products. Moder pointed out that some companies in the Mainland focus on low-cost strategy, but the product design and quality varies greatly, a direct impact on China's product image. In order to avoid the impact of the situation, Moder use Korea as a springboard to South Korea to create an image of the international market, enhance product value, while the establishment of Moder's brand business, expand the marginal profit.

Mendel products include titanium and copper chrome high-speed mobile phones, low-speed dental drill, electric motors without carbon brush and wireless root canal and other dental medical equipment, 60% of the business is well-known brands around the customer to provide original production (OEM) services, and 40 % Is the original design (ODM) or its own brand products. At present, about 80% of the company's products are for export to overseas markets and the rest are mainly sold in the Mainland. All products meet the hygienic and technical specifications of the relevant regulatory authorities in different sales markets and are certified by the US FDA and the European Union CE standards. On the other hand, the company has offices in Hong Kong, in addition to the Hong Kong market, the main deal with the company's overseas investment, sales, procurement and other business and related financial arrangements.

(Note: The above is the Hong Kong Trade Development Council and the Guangdong Provincial Department of Commerce Cooperative Research project global supply chain transfer and Guangdong and Hong Kong industrial development relationship between the business case. For more details, please refer to the aforementioned study.