I still remember the "Dong Jie dinner" that caused a sensation during the two sessions. Not long ago, Gree’s performance led by Dong Jie announced that the net profit attributable to shareholders of the listed company in 2015 was 12.532 billion yuan, down 11.46% from the previous year. Nearly 30%. This is really jaw-dropping. I have vaguely remembered that at the beginning of 2015, Dong Mingzhu had firmly stated that Gree’s annual growth target of 20 billion yuan remained unchanged. In June, it also expressed its intention to abandon the annual increase of 20 billion yuan, but still said that there might be surprises at the end of the year. However, the truth is now, and the annual growth of 20 billion has become empty talk.
According to industry analysts, during the period when Dong Mingzhu was in charge of Gree, the deep reasons for the decline in Gree's performance, first of all, the lack of innovation in products, the failure of diversification and transformation, and relatively late; secondly, the product pricing is too high, but the quality and technical advantages have been beautiful, Haier and other brands do not have much difference; at the same time, in all well-known brands have achieved nationwide warranty, after-sales and sales separation to improve service quality, Gree is still who sells who repairs, is simply a wonderful. As the head of the host, Miss Dong, for her own product endorsement, opened the media, set up the Hongyan Club, the phone is turned into their own avatar, speeching their own success.... Focus on creating personal worship.
In contrast, the LED display industry, including many "Dong Mingzhu"-style entrepreneurs.
As we all know, LED display industry's high profit and low threshold is the original driving force to promote enterprises to enter the industry. However, with the increase of entering the enterprise, the industry is fiercely competitive. Some unskilled SMEs begin to save all the links that can be saved, and delete everything. Removed features that reduce the cost of everything that can be reduced. Technology research and development links, abandon! Exterior design links, imitation! Manufacturing and manufacturing links, indiscriminate! Brand building links, no! This has caused serious overcapacity, product homogenization is also quite serious.
At the same time, the LEDs in the price war show the Red Sea, many companies failed to adhere to the bottom line of the price, although not as Gree, pricing exceeds the actual affordability of customers, but it is the other extreme of the price. The price phenomenon of the whole industry is: you are low, I am lower than you. Therefore, in the environment of reduced profits, quality and service are naturally not guaranteed, and various problems such as squatting, fire, and short circuit are coming.
Secondly, the profits are high, and the industrial line is paved; the profit is low, the scale is expanded, and the scale benefits are sought. Since the development of the LED industry, in some respects, it can be described as barbaric growth. Many companies are coming in to “sell goldâ€. They neither engage in scientific research and development, nor engage in product innovation. It is their primary goal to follow suit and worship big companies. There is nothing wrong with following the trend. After all, if there is profit, it will follow the trend. However, regardless of its own technology and financial constraints, it will blindly copy the experience of large enterprises based on large enterprises, and the same as the positioning of large enterprises, the result will certainly not be worth the loss. Zhongxiang Innovation and Light Energy Technology are typical examples.
Therefore, the old saying goes: Cheng also Xiao He, defeat also Xiao He, whether it is Gree or the LED industry, the reason for a company's success will often become the curse of its future failure. The environment is changing, the cause and effect are changing, and the business management strategy is changing all the time! Especially in the era when the change is chasing people and the urine is almost out of time, every enterprise and entrepreneur should always have a sense of innovation and ready.
The more a company and an individual are in a chaotic industrial environment, the more they have to think about it and warn themselves: how can innovation stay here for a long time, and then continue to develop, and continue to find a new one when the performance parabola begins to decline. Start the curve and resume new growth. Otherwise, if you don't take the initiative to change, the market will force you to be eliminated.
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