Chinese companies in the eyes of Japanese: Die too soon!
First of all, you must know a basic fact: the average lifespan of Chinese small and medium-sized enterprises is only 2.5 years, and the average lifespan of Chinese group companies is only 7-8 years, which is different from the average lifespan of European and American companies of 40 years and the average lifespan of Japanese companies. Compared to 1958, there is a world of difference.
Data from the Tokyo Shoko Research Institute, a Japanese research company, show that there are as many as 21,666 companies in Japan with a history of more than 150 years, and 4,850 more companies will turn 150 next year. The year after next, there will be another 7,568 companies turning 150 years old...
In China, the oldest company is Liubiju, which was founded in 1538, followed by Zhang Xiaoquan, the time-honored scissors brand in 1663. Together with Chenliji, Guangzhou Tongrentang Pharmaceutical and Wanglaoji, there are only five old stores with a history of more than 150 years in China. After the changes during the planned economy period, the inheritance of its brand name has actually been greatly reduced.
The average lifespan of Chinese small and medium-sized enterprises is only 2.5 years, and the average lifespan of group companies is only 7 to 8 years. Compared with the average lifespan of European and American companies of 40 years and the average lifespan of Japanese companies of 58 years, they are far behind.
Japan is known as the "country of craftsmen". The technical structure of its enterprise group is like a "pyramid". The base is a large number of outstanding small and medium-sized enterprises with hundreds of years of history, each with its own specialties. These companies may have less than a hundred employees, but they have long provided high-tech, high-quality parts and raw materials to large companies. Many small and medium-sized enterprises hold an absolute share of certain intermediate products and intermediate technologies in the world market, and some are even unique.
Japanese people are naturally pursuing the ultimate in perfection, rigor, persistence, and excellence. They will not take action when they think their technology is not perfect enough. In terms of technology research and development, Japan ranks first in the world in three indicators: first, the ratio of R&D expenditures to GDP ranks first in the world; second, the ratio of enterprise-led R&D expenditures to total R&D expenditures ranks first in the world; third, Japan’s core Science and technology patents account for more than 80% of the world's top positions.
This means that the entire country of Japan attaches great importance to technology research and development, and it also tells us why Japanese technology is unique in the world. There is more to the economy than simply building factories and running them efficiently. There is still a big gap between China and Japan in terms of economic foundation construction. Japanese companies are not just Toyota, Panasonic, Sony, Canon, Hitachi... but more "invisible kings" in many fields in the international market.
China still has a long, long way to go before becoming a powerful country. If it wants to become a real economic power, it cannot rely on real estate speculation, financial speculation, and IT bubbles. It also needs to learn a pragmatic spirit from Japan. , supported by being down-to-earth and cultivating solid industry.
There are many reasons for the longevity of Japanese companies. Japanese longevity companies do better than European and American companies. Japanese companies pay attention to strategy when investing, focusing on long-term investment and profit returns. Every time they invest, they consider the market positioning and changes in the next few decades.