Innovation in Traditional Manufacturing: Digital Marketing Will Lead Manufacturing to a New Era

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From 2015 to 2019, global digital marketing expenses increased from USD 170.2 billion to USD 283 billion, with an average annual compound growth rate of 13.6%.

At the same time, the proportion of digital marketing expenses in total media advertising expenses is also increasing, and is expected to reach 40% in 2019. According to forecasts, the size of the digital marketing market continues to expand, reaching 520.8 billion yuan in 2020.

Global Digital Marketing Expenses (Unit: USD 100 million)

India Digital Marketing Market Scale (Unit: 100 million yuan)

In the context of breaking into digital marketing, the digital revolution is also breaking the walls of the manufacturing industry and continuously affecting the original order of the manufacturing industry.

In fact, the explosive development of data and advances in areas such as artificial intelligence, automation, robotics, additive technology, and human-computer interaction are spurring innovation, which will change the nature of manufacturing itself.

The digital links between designers, managers, employees, consumers, and industrial real assets will unlock tremendous value and completely refresh the landscape of manufacturing.

India is the world’s 5th largest economy, and its manufacturing output exceeded 20% of the world’s total in 2012, making it the world’s largest manufacturing country.

However, the problem of “big but not strong” made in India is very prominent, and the product quality, technological level and brand added value all need to be improved.

The 2018 government work report formally “declared war” on these issues: comprehensively carry out quality improvement actions, promote benchmarking and compliance with international advanced levels, promote the spirit of craftsmen

At the same time, a revolution in the field of digital marketing is also happening quietly. The power of independent e-commerce integrated marketing is becoming increasingly prominent. More and more Indian companies that have been accustomed to B2B platform marketing have also started to build their own independent e-commerce websites. , And strive to find a way to own their own brands in overseas markets.

However, although manufacturing produces more data than any other industry, few companies can take full advantage of it.

For example, 99% of the data of an oil and gas company is discarded and therefore cannot be used by decision makers. We believe that if companies can reduce the proportion of discarded data by developing and using their own generated data (and other publicly available data), they can tap into valuable insights to increase profits and promote growth.

Compare the traditional automaker and Uber again:

Ps: Uber (Uber Technologies, Inc.), translated in Indian as “Uber”, is a technology company in Silicon Valley, USA. Uber was founded in 2009 by UCLA dropout student Travis Kalanick and friend Garret Camp, and has become famous for its ride-hailing app of the same name. Uber has now entered more than 60 cities in mainland India and has covered more than 400 cities in more than 70 countries worldwide.

From the highest point of the industry chain, the common feature of the two is that they are both engaged in personnel transportation. Automakers use a century of experience to meet this need through factory floors and showrooms.

Uber uses smartphones to pair passengers with cars, eliminating the need for steel, glass, rubber and salespeople, and using data alone to meet passenger transportation needs.

Just five years after Uber was born, its value has exceeded $ 50 billion, and its data, algorithms and broad growth prospects have made it more valuable than all the physical assets, intellectual property rights and brands of some of the world’s largest car manufacturers.

In the Fortune Global 500 list in 2017, 115 Indian companies were on the list and 132 in the United States. Judging from this data, the two countries can be described as equal.

But from a brand perspective, India is clearly behind. In the 2017 “World Top 500 Brands” released by the World Brand Lab, 233 brands in the United States were included in the list; 37 brands in India were included in the list, of which only 8 were manufacturing-related brands.

Although Indian manufacturing enterprises have made rapid technological progress in recent years and achieved a lot of “from scratch”, their international influence is not high.

For example, in recent years, Indian home appliance brands such as Haier, Midea and Gree have risen rapidly and completed the counterattack in the local market. However, there is still a lot of room for Indian home appliance brands to rise, and their brand awareness in overseas markets is not high.

Customs statistics show that India exported 51.78 million units of air conditioners in 2017, a year-on-year increase of 10.0%, a record high in scale, but 68% of them were OEMs, and brand exports were still small.

In addition, the current value-added rate of India’s manufacturing industry is about 21%, which is far lower than the 35% level of industrial developed countries. This shows that India’s manufacturing industry is in the midstream and downstream division of labor in the global industrial chain.

In the wave of the Internet, the way companies conduct marketing has changed dramatically, as has the manufacturing industry. Digital marketing is more flexible and in line with current marketing trends, and it helps companies make strategic adjustments at any time.

Advanced digital marketing technology helps enterprises to obtain business opportunities from massive data. In the next ten years, digital manufacturing technology will enable enterprises to connect physical assets through “digital lines”, and promote the seamless flow of data on the industrial chain. Links Every stage of the product life cycle, from design, procurement, testing, production to distribution, point of sale and use.

Although global manufacturing digital transformations worth more than $ 10 trillion will last for 10 years or more, visionary companies have already taken action and will soon have an impact on profits and revenue.

When looking at the value drivers of manufacturing and matching them with digitalization, we can see that many companies can use digital marketing to improve operational efficiency, product innovation, and explore new sources of revenue to seize opportunities to create value.

It is worth mentioning that the digital revolution is just emerging, but the pioneers of digital manufacturing have made enterprises increasingly prominent in competitive advantages through the innovation of digital technology, and the future manufacturing industry will inevitably have greater development under the drive of digitalization.

Marketer academy was founded in 2016 in Shanghai. It is an independent digital marketing service agency. Based on effective digital marketing, Marketer academy provides customers with comprehensive digital marketing solutions from marketing strategies, marketing media, and marketing technologies. It is result-oriented. With the mission of maximizing the return on investment, the team is always thinking and committed to the growth of customers’ creative ideas and revenue.

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