Recently, MIIT released the Digital Development Action Plan for the Consumer Goods Industry from Three Perspectives (2022-2025) (Draft for Comments) (hereinafter referred to as the "Plan"), which intends to increase product varieties, improve product quality, and build product brands. MIIT expects China to build 200 intelligent manufacturing demonstration factories and nurture 200 well-known brands with a value of 10 billion in food, household appliances, cosmetics, clothing, home textiles, electronic products, and other consumer goods before 2025.
To increase product varieties, MIIT encourages stakeholders to launch more innovative products to comply with the trend of consumption upgrading, cultivate smart consumer goods, enrich and subdivide product categories, and accelerate new product development. In the meantime, it will carry out the establishment of intellectual property service platform based on blockchain and artificial intelligence technology to serve industries such as clothing, home textiles, household appliances, winemaking, shoemaking, clocks, etc. MIIT also supports promoting customized production and expects companies can develop new products based on consumption data collection and analysis, as well as the mining of users' personalized needs. Also, MIIT encourages the development, application, and promotion of intelligent, energy-saving, water-saving, and consumption-reducing technologies, as well as green and low-carbon products. Accordingly MIIT proposes a digital green synergy capacity improvement project.
To improve product quality, MIIT expects to support manufacturers in building a group of intelligent manufacturing demonstration factories with quality control in the full life cycle, agile demand perception and production as well as sales coordination in the fields of textiles, household appliances, furniture, leather, paper, lighting appliances, bicycles, sewing machinery, watches, dairy products, wine, beverages, APIs, etc. In the meantime, MIIT supports building a quality traceability system to strengthen the quality control of products, especially in infant formula, salt, meat products, liquor, medicine, household appliances, furniture, etc.
To build product brands, MIIT encourages players to use digital technology, take advantage of of digital transformation trend to cultivate cutting-edge boutiques, and leverage public service agencies to promote advantages for local brands. MIIT also expects companies to explore more Chinese-related elements, including Chinese culture, Chinese collective memory, and time-honored Chinese brands, to promote Guochao (Chinese fashion) brand and understand diversified markets.
MIIT’s notice shows the Chinese government’s determination to realize industry upgrades and nurture big brands. No matter whether domestic players or overseas players, everyone who wants to build their brands can benefit from this new policy. There are some points worthy of specific attention in this notice.
Digitalization has undoubtedly become a popular trend in product R&D, manufacturing, and quality traceability systems.
As more consumers pursue unique services and products, customized services and products will become more popular. Luckily, this trend is now supported by the policy.
Chinese fashion has risen because of the pursuit of young consumers, but it now has gotten official support. Brands that can creatively use Chinese fashion element has great potential in the future.