Viewing the transformation and upgrading of traditional manufacturing industry from Gree Electric appliances

If an enterprise can control the whole industrial chain from design and manufacture to the channel, its competition with other enterprises is the competition of the system, and it has the right of speech in the industry. China's home appliances industry for decades of ups and downs, witnessed the Chinese manufacturing from small to large development process.　　And at a time when more and more companies are complaining about rising costs and manufacturing has become less profitable or even unprofitable, how can traditional manufacturing go next?　　Over the past 20 years, Guangdong Zhuhai Gree Electric Appliance Co., Ltd. from manufacturing to creation, from low-end to high-end, 16 consecutive years to obtain air-conditioning industry production and Sales Championship, the realization of household air-conditioning production and sales for 6 consecutive years ranked first in the world's performance, to China's manufacturing industry transformation and upgrade provided a case. Specialization？　　Diversified？ --focus on professional, forced out of the innovation in 1991, Guangdong Zhuhai Small Factory-Gree began to build air-conditioning, 20 years later, with more than 60 billion yuan operating income gree continue to do air-conditioning.　　And the same period of many home appliances enterprises have been involved in real estate, electronic consumption, modern services and many other forms of business. "To do a diversified investment, gree in the funds have already had the conditions, but I think, to engage in diversification, capital operation, the mentality is easy to impetuous." Want to have cutting-edge technology, enterprises must calm down to do research, more need to withstand loneliness, resist all kinds of temptation. "Gree Electric appliances President Mingzhu said, the first two years of the international financial crisis, there have been companies to put the factory white to Gree, Gree also did not accept." "That factory is not suitable for the development of Gree. "The choice of specialization means that the enterprise always has only one road ahead, there is no retreat."　　"Gree Electrical Appliances Vice President Wang Jing East told reporters, professional pour gree constantly innovate, thus get more high value-added products, occupy the market initiative." In the Gree Products Exhibition hall, from the characteristics of the home air-conditioning units, such as space cabin air conditioning, propane air-conditioning, solar energy-frequency air-conditioning, to a variety of air-conditioning parts-efficient centrifuge, ultra-high-efficiency fixed-speed compressor, or even small to a power plug, all show gree in the air-conditioning industry plowing--on the surface, although the product is single,　　But from the point of view of industrial chain, it realizes the development mode of the whole industry chain of key equipment, core technology, design, production and sale. If an enterprise can realize the whole industry chain control from design, manufacture to channel, its competition with other enterprises is a system competition, not a product competition, also not a certain cost competition, the enterprise has the right of discourse in the industry.　　Professor Zhang Weixian, deputy dean of Ceibs, says this requires strong innovation and capital investment. Create what?　　 Make what? --cumulative, grinding out of the innovation in the super quiet environment, "listen" air-conditioning sound, in the cold, stormy weather and other extreme adverse climate "challenge" air-conditioning vitality ... Into the Gree Noise Laboratory, environmental Laboratory, the reporter experienced a very interesting variety of experiments. Behind it, is a year 3 billion yuan research investment, more than 4,500 research and development personnel, more than 300 laboratory support strength. "Gree Transformation isA cumulative process.　　Gree Central air-conditioning director Tan Jianming said. 2000, Gree got a "1 mainframe with 4 extension" project, want to go to foreign manufacturers to buy related technology. Can go abroad, people say the most advanced technology can not get to China.　　Because of that project, Gree lost hundreds of thousands of yuan, also from then on, Gree every year to take out 1.5 billion yuan to 2 billion yuan to engage in research and development. 10, grinding a sword, brought about from quantitative to qualitative change of great changes. 2010, with G10 low frequency control technology, ultra-efficient fixed-speed compressors, high-efficiency centrifugal chillers Three core technologies, Gree led the Chinese air-conditioning into the world high-end; by virtue of the air conditioning comfort, energy saving, environmental protection, the persistent pursuit of the 2011 German IFA Berlin Electronic exhibition, Gree 1 Hertz ultra-thin WALL-mounted inverter air conditioning was　　"Home Appliances Technology innovation" award ... There are signs that Gree has finished the beautiful turn from manufacturing to creation. But surprisingly, in the march towards the creation of the big, the independent brand of Gree is still doing the OEM and other "low-end manufacturing" jobs.　　2010, Gree and Japan's great Gold Industry Co., Ltd. to form a joint venture, although by Gree Holdings, but OEM production of large gold air-conditioning sold to Japan, and some of the U.S. brand OEM. "The OEM, the joint venture is not equal to the low-end." Mingzhu explains that for internationally renowned brands, although the profit is limited, there is another value.　　As in developed countries, "made in China" basically is a synonym for low-grade goods, vigorously promote the independent brand conditions are not very mature, through the OEM to enter the international market, can cultivate foreign distributors of gree quality recognition, and so on ripe, and then vigorously develop their own brands, better realize the internationalization of Chinese brands. " High cost?　　Low cost? --willing to cost, in return for high value-added innovation front-line workers annual income of 40,000 yuan, skilled workers annual salary of more than 100,000 yuan, scientific research funds are not capped ... Diversified compensation and welfare, development platform and first-class scientific research, manufacturing, production and living environment, show gree Electric power to pay for human cost.　　This respect, but also won the staff with practical professionalism dedicated to technical innovation, management innovation, marketing innovation. Zhang Shuyuan has been no technical general front-line workers, currently for Gree research and production of more than 40 sets of instruments and equipment; Liu, from 2003 into Gree's young engineers, to lead the team to develop "gree high-efficiency centrifugal chillers" core technology ...　　Similar growth experience, digestion of other manufacturers appear in the "labor shortage", but also in practice, the increase in labor costs in favor of enterprises to achieve leapfrog development. This "regardless of cost" style, but also reflected in the quality of raw materials for excellence. For example, in order to ensure first-class quality, gree abandoned the use of relatively low-cost air-conditioning company to take over-copper and aluminum pipe, but the price of several times the pure copper tube. Many of the high cost of expenditure, not to let people worry about the reasonable profits of enterprises can not be achieved. "Only through strict control of management costs, increase the details of management." "Mingzhu said. Gree to the management cost of high demand, as the enterpriseIndustry boss, her main energy is to manage a good one and a small thing. In the house and between, Gree in exchange for different input-output ratio. Annual report shows that 2010 Gree electric appliances to achieve business income of 60.807 billion yuan, an increase of 42.6%; net profit of 4.276 billion yuan, an increase of 46.8% per cent. Compared to other household appliances enterprises less than 5% of the profit level, Gree 7% net profit margin, deduce the cultivation of high-quality talent-to create core technology-have the right to pricing products-to form a benign competitive advantage of high profit margin.