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The smile curve of the bearing industry

The smile curve of the bearing industry

2021-04-07

In 1992, a president in Taiwan proposed the famous "smile curve". The horizontal axis of the curve was divided into three sections from left to right: the left section was technology and patents;The middle section is assembly and manufacturing;The right section is brand and service, and the vertical axis is value added, which represents profit margin.For the traditional manufacturing service industry, it can be seen from the smile curve that the two ends bring higher added value to the enterprise, while the manufacturing in the middle is the link with the lowest added value.

If we look at the bearing industry as a branch of the traditional manufacturing service industry, the "smile curve" 20 years ago was relatively flat. Many of our private bearing enterprises were founded and developed in that period of time. On the one hand, the production and manufacturing have high added value.On the other hand, due to insufficient competition among domestic enterprises, product prices could easily be maintained at a high level. For corporate profits, it was really a wonderful and irreplaceable period.

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