1. Value-added products refer to products that have greatly increased their value through techniques, technologies, services and even brands in the process of product processing, rather than the materialized value formed by simple factor input. As long as there are high value-added links in the processing of labor-intensive products, they can be described as such high value-added products.
2. Value-added products usually refer to products with high input-output ratio. Its technical content and cultural value are much higher than those of ordinary products, so the market appreciation space is large and the profit is high.
3. Value-added products cannot be equated with high-tech, high-consumption and high-grade products, and the latter can only be called high value-added products if they become efficient products. The overall characteristics of high value-added products are high technical content, large market demand, high brand awareness, excellent product quality and good economic benefits.
Definition of added value:
Excess income obtained by enterprises because products create and meet customers' higher-level needs. In other words, the difference between the price paid by consumers for products or services and the cost paid by enterprises for products is added value. The greater the price difference, the higher the added value the enterprise obtains.
A. W.Rucker, an American business consultant, put forward the concept of added value of products earlier. He pointed out: "Output value is the added value attached to raw materials by enterprise production activities, that is, the added value obtained by subtracting raw materials, power and consumables from total sales." The output value here is actually added value. From the definition of Raqqa, we can see that the added value is the value attached to raw materials and labor, and it is the surplus after deducting a series of expenses from total sales.
Different from Laca's breakthrough point, another founder of the value-added theory, M.R.Lehman, defined the added value by "addition" and called it "created value", believing that it is composed of the sum of wages, allowances, transaction tax, business tax, capital interest and free capital income. In fact, the added value defined by Lehman is the sum of wages, interest and taxes. The main difference between Lehman's definition and Raqqa's definition is that the former replaces the total sales volume with the total production volume and regards the depreciation expense as non-added value.
The compromise definition of added value between Raqqa and Lehman was put forward by Japanese expert Masanori Takeyama, who believed that added value was added to the value purchased outside the enterprise and the value created by his own company. Zhushan Zhengxian also calculates the added value in the form of subtraction: added value = sales (or production)-external purchase value (non-added value). The compromise between Laka's and Lehman's definitions is manifested in the concepts of "coarse added value" and "pure added value" proposed by Zhushan Zhengxian. The so-called "pure added value" is the sum of wages, interest and tax incentives, which conforms to Lehman's definition, while "crude added value" is based on "pure added value" plus depreciation expenses, which conforms to Raqqa's definition.
At present, the widely used concept of added value was put forward by the famous American management scientist P.F. Drucker from the perspective of marketing. He called the added value "contribution value", that is, the difference between the total income of products or services produced by enterprises and the purchase amount of raw materials or services purchased from outside. Drucker clearly introduced intangible products such as services into the definition of added value, which is very important for analyzing the added value of the tertiary industry. At the same time, Drucker emphasized that the added value created by enterprises is the contribution of enterprises to society: from a macro perspective, the total contribution of enterprises to the whole society can reflect the national income of the country; Microscopically, the contribution value directly reflects the profit and loss of the enterprise.