Good Design Makes Companies Outstanding

“Many Chinese companies focus on price rather than quality, which is not a long term solution,” In recent exclusive interview at China International Design Business Week, Prof. Peter Zach, initiator and CEO of German red dot design award, told China’s Foreign Trade that Chinese enterprises should focus on design and convert it into the core competitiveness of enterprises, then good design will lead them out of price war.

Chinese designers close to red dot

“In recent years, more and more Chinese companies and designers take part in the red dot award. The design level has greatly improved than ever, featuring international trend. Four or five years ago, Chinese works appeared rarely.” Mr. Ken Koo, president of the red dot in Asia witnessed the development of Chinese design. However he pointed out that in the terms of application of hi-tech, Chinese designers need to improve.

The red dot design award is one of the most internationally acclaimed competitions and is known as “the academy award” in the world of design. The award attracts many excellent designers. In 2011, more than 14,000 entries from over 70 countries attended the competition. The red dot seal of quality acts as a memorable marketing tool that they can use to communicate their design quality effectively. Now, the red dot is participating for the first time in China International Design Business Week, gathering top designers from all over the world to discuss Chinese industrial design and how Chinese enterprises realize the transition to becoming recognized for their design.

As a renowned port city, Xiamen has been awarded the UN Habitat Scroll of Honor and the best city for investment by governing bodies and multinational companies. After the development over 30 years, many cultural and creative industries such as industrial design, animation and internet gaming are developing rapidly. Mr. Ye Chonggeng, Publicity Minister in Xiamen said that red dot in Xiamen brought in more free and open design spirit with broader leading international design trends. This in turn could help Xiamen strengthen the cooperation with the international creative industry and design industry, increasing the innovation capability and brand value of the enterprises by means of creative design.

The cooperation between the red dot and Xiamen is based on the surrounding industry which is flourishing. Mr. Zhang Jie, vice president of the China Light Industry Arts & Crafts Import and Export Chamber of Commerce, told China’s Foreign Trade that Xiamen lies in special geographic position, surrounded by many industrial areas, such production of bags, footwear, furniture, and a number of national export bases. He said that the event could help Chinese enterprises in transform and upgrade, and contact with international excellent designers. This is a platform for Chinese designers and the companies.

For this cooperation, General Manager of the red dot, Mr. Vito Orazhem was excited. He said more jury members are from China and tell the world what the excellent designs are in their eyes. This is one shot, but not just one attempt. I look forward to more cooperation in the future.

Good design is good business

Prof. Peter Zack believes that good design pays off financially. Consumers are more likely to buy products that have won the award, while designers who have won the award are more likely to be commissioned for new business and companies that have won the award have yet another reason not to have to get involved in a price war for their product with the competition.

The red dot award includes three parts such as product design, communication design and design concept. In which, the product design is one of the internationally most acclaimed product competitions. In 2012 alone, roughly 1,800 companies and designers from 58 countries seized the opportunity to prove their design ability in an international comparison. The creative works submitted are assessed and selected by internationally renowned designer experts. Every year, red dot also announces a design team of the year. Past winners include Porsche, Bose, BMW, Grohe, LG Electronics, Adidas, Pininfarina, Apple, Mercedes-Benz and Audi. Prof. Zec thought that companies that participate in the red dot design award are using design as a distinguishing feature. They make a targeted investment in design because they can use it to set themselves apart from their competitors, such as Audi and Bose where design takes account for over 70 percent in their value. Through the outstanding design, the value of brands will enhance continually.

Prof. Stefan Diez as the wellknown German designer cooperated with Chinese companies in recent year. He told China’s Foreign Trade that it is a different experience in the process of cooperation with Chinese and European companies. He said: “The European companies express more messages from brand to the customers. In China, many companies make products for the European brands, and they have high experience in manufacturing. However, both sides don’t communicate fully, which needs a change now. The European companies should learn more from China in terms of manufacture then rediscover the source of innovation. And Chinese companies should attach importance to the role of design in the production, so that enterprises could get more profit in the market.”

Mr. Constantinos Hoursoglou, from Switzerland, one of the winners of this year’s red dot design awards, told China’s Foreign Trade that many Chinese want to go out and wish to understand the needs of overseas markets. But in his view, China market is so large with great room to explore in the future. Companies or designers should understand what the needs of domestic consumers are and what kind of product they like. When the price is no longer competitive, design becomes more important. The quality of products is the key to win the market.

Without design, Chinese companies couldn’t realize the transition successfully

With over forty years of work experience in the fields of design, Prof. Gorden Bruce is consultant with many leading companies such as Samsung, IBM, and Mobil Oil and many other enterprises. He compared himself as a witness, over the past years, he witnessed that many small companies developed into multi-national companies.

“Now China is undergoing a process of transition, and the timing is very important. Those companies should have the firm belief of change. He gave an example. In 1990s, he helped Samsung to innovate. CEO of Samsung Lee Kun-hee in Los Angeles saw the electronic products of Samsung were placed in inconspicuous corner with thick layer of duck. He realized that it’s time to change. After the reform, Samsung became one of the leading companies in the world.

In the past twelve years, he also cooperated with many Chinese enterprises, including Lenovo and Huawei. He told China’s Foreign Trade that China have many excellent talents. How to manage and what the ultimate goal is, Chinese companies are not clear, although they wish to innovate. The collaboration of design and company is not enough.

“Without design, Chinese companies couldn’t realize the transition.” Prod. Bruce said. He mentioned the example of Samsung. Before Apple swept the market, Samsung was the leader of the market. The key to success was that they completely changed the original structure of the company. The design department had a priority and was given a position at the top of the company directly under the management of the Samsung president, which led to Samsung outstanding the market.

Later, however, Samsung returned to the original management and then Apple overtook the position of Samsung. Last month, it is reported that the California federal court made a judgment that Samsung Electronics was identified to infringe a number of Apple’s design patents, and the compensation is US$1.05 billion. On that day, Samsung’s stock market value shrunk more than US$10 billion. He wished the companies should notice the important of design. And in China, many companies don’t focus on the design as part of the structure and culture of these companies, the production and sales department are regarded higher than the design department. This situation should be changed.

During the interview, Mr. Yang Jiong, a new designer awarded the red dot award in 2012, echoed this view that a successful business transition should focus on not only the design capabilities and the improvement of technique but also the enterprise’s structure. Design is not just a simple change in form, but relates with the development strategy of the companies.

Regarding the view that “Made in China” should turn into “Created in China”, Mr. Orazhem agreed with the thought. He mentioned another word“Made in Germany”, which is not only a designation of origin, but even more a quality seal which became a symbol for high-class engineers’ work and quality products. It celebrates its birthday of 125 years in 2012. Consumers appreciate it as a proof of very high product quality today — although it was initiated to preserve British consumers from “inferior”products and copies from Germany at that time. “I think the transition from made-in-China to createdin-China still needs a long time, but it will not take 125 years,” he said.