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Impact: don't take OEM into hit
Source:China fertilizer   Time:2014-08-26   Read:537second  
From August 1st onwards, OEM fertilizer packaging must also indicate the entrusted enterprise and was commissioned by the two enterprises with information, but before this only marked enterprise information. The new regulations to promote transparency of product identity, but also to the fertilizer enterprises sounded the alarm: regulatory blind OEM is eliminating, carefully weighed on risk prevention must be OEM may exist, OEM into hit. Party a powerful alliances do OEM According to the State Quality Supervision, inspection and Quarantine promulgated the "Regulations for the implementation of industrial products production license management approach" of the people's Republic of China, from this month onwards, commissioned to take the way of processing the production of the products listed in the catalog, enterprises should be in the product or its packaging, instructions marked on the entrusted enterprise name, residence, and the name, the entrusted enterprise home, the symbol of the production license and serial number. A brand symbol behind often has a close connection with the origin, and were often consumers as important basis for judging product quality and authenticity, such is based on consumer psychology, OEM processing enterprises do not want to be real production address publicly, the new regulations explicitly stipulated mark true origin, is undoubtedly the respect and the protection of consumer right to know. Fertilizer industry OEM is in recent years practice, but due to the lack of regulation, once become the heavy disaster area of fraud. Recent media exposure in Henan a large state-owned enterprises, product quality problems, the reason lies in the small factory authorized the use of its brand and selling substandard products, resulting in the agricultural production seriously damaged. Carding in recent years publicly reported fertilizer fraud case, relates to the OEM processing field are not uncommon. Generally speaking, OEM processing fertilizer industry has two kinds of situations: one is the circulation enterprises have brand effect and market certain network, to extend upstream, commissioned the production enterprises in the production of own brand products; is a large cross regional production enterprises in order to enlarge the sales radius, commissioned the production of local enterprises oem. In the two case, if the entrusted party is large and the integrity of corporate enterprises, quality has safeguard relatively; but if it is a small local enterprises credit record is not good, because of the lack of detection conditions, production technology, and illegal profit impulse, it is prone to quality problems, once the accident, the impact on brand should not be underestimated. Despite the existence of a variety of risk generation process, but as a kind of social division of labor, it realizes the reasonable allocation of resources optimization, to the production enterprises, OEM processing is to achieve the most economical and efficient way to expand. New regulations enacted by the State Quality Inspection Administration, makes the product identity information more transparent, I predict, future demand for OEM enterprises in the selection of general processing enterprises more cautious, cooperation between the brand and the brand will become mainstream, because the generation of processing mode, not only greatly reduces the risk of fraud, but also the formation of superimposed effect of brand, both sides would benefit from such collaboration. Party B OEM processing not far away Although the OEM processing has many advantages, but on the whole, OEM only fertilizer industry the phenomenon of phase, from the fertilizer industry development trend, through the production of OEM fertilizer on behalf of processing will be less and less. These years we see not hard, more and more cases show that OEM to brand shaping the disadvantages outweigh the advantages. The brand enterprises, through OEM processing appropriate to achieve the purpose of quick to seize the market, many enterprises in the past is the national label, it is out of the need to expand the market layout and accelerate the growth of the brand, but the integration of fertilizer industry in recent two years has entered a new stage, after the early market development, more and more enterprises tendency in the direct construction of mature regional or mergers and acquisitions, rather than blindly OEM, is difficult to monitor, even heteronomy. From the protection of brand point of view, this way is naturally the most insurance. Fertilizer is a special commodity, it is directly related to food safety and public health, especially in the food safety is highly concerned by the whole society, its supervision will be more and more normative, OEM processing as one of the hardest hit areas of fertilizer of fraud, it will be more and more constrained trust. For example, in 2012, Ministry of Agriculture issued regulations, shall register the fertilizer products shall not be commissioned processing, otherwise shall be dealt with in accordance with the "measures" provisions of the administration of registration of the first item twenty-seventh fertilizer. Moreover, according to the ongoing revision of the "food safety law", not to entrust, OEM, packing mode of production of infant formula milk powder. Therefore, from a long-term point of view, OEM for fertilizer enterprises is not a suitable choice.
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