BIZCHINA / Weekly Roundup
Cutting edge
By LI WEITAO (China Daily)
Updated: 2006-04-05 09:57
Many elderly Chinese might have vivid memories of Wang Mazi Scissors.
For centuries, the brand, which means "Pockmarked King," was a
"must-have" for many housewives.
Yet Beijing-based Wang Mazi Scissors Plant, the oldest factory in China,
went bust in 2004 after 353 years in operation.
Many explanations have been offered for its demise, such as intense
competition and mismanagement.
In the end, it all boils down to design, says Song Weizu, deputy
secretary-general of the China Industrial Design Association.
"For centuries, scissors made by Wang Mazi always came in the same shape
and boring black appearance," says Song.
It was not a lack of quality. The Wang Mazi Scissors Plant - which
produced swords for armies in the Qing Dynasty (1644-1911) - used
superior steel, which made its knives and scissors incredibly sharp.
"That was 'high-tech' in older times. But now design matters more," says
Song.
In contrast to Wang Mazi's misfortune is the runaway success of Swiss
Army Brands, distributor of Swiss Army timepieces and Victorinox
multi-purpose tools, cutlery, travel gear and apparel.
Victorinox, whose first factory was set up two centuries ago, "has been
thriving largely on innovative designs, producing knives and
multi-purpose tools in various shapes and bold colours," says Song.
Underscoring Victorinox's innovations is its latest Swiss Army knife,
which skilfully combines a digital MP3 player, a two-inch blade, a pair
of mini-scissors and a nail file.
Perhaps companies like Wang Mazi were too old to adapt to the changing
times, but an increasing number of Chinese manufacturers, especially
those in the technology sector, are now quick to embrace the value of
design.
In 2000, when Li Xiaozhong took over as president of Chinese home
appliance and consumer electronics maker Amoisonic, the Shanghai-listed
firm was on the brink of bankruptcy.
Li decided to buy a handset design from a South Korean firm with the
little cash that was left.
With it, Amoisonic, now renamed Amoi, launched its stylish A8 mobile
phone model, which was a hit in China.
"A single A8 handset model saved Amoi," says Pang Jun, an analyst with
data tracking firm GFK China.
In 2002, the A8 was the best-selling model in China's high-end handset
market, with a 12 per cent share, according to GFK China. A Motorola
model was the second hottest with 9.6 per cent.
"Fashionable design and polyphonic features made the A8 a truly big
success story," says Pang.
The A8 model helped Amoi's profit margins in the mobile phone business,
chalking up a whopping 48 per cent.
The instant success of the A8 encouraged Amoi to make a big push into
research and development (R&D).
The firm now has a 1,200-strong R&D staff designing and developing a wide
range of products, from flat-panel TVs to computers and mobile phones.
"A great number of Chinese companies, especially those making end-user
products, are realizing that industrial design, which is a combination of
art and technology, has become an integral part of innovation," says Song.
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