To create unexpected global consumer demand

On November 1, the National Bureau of Statistics released the October manufacturing purchasing managers index (PMI) was 50.2%, indicating that manufacturing activity in China and the economic activity appears stabilized to pick up signs. This relatively optimistic signal to long the pressure manufacturing enterprises bring confidence. In recent years, due to the decline in external demand, weak domestic demand, rising production costs such as labor and raw materials of various factors, China's manufacturing enterprises operating difficulties, lower profits. From January to September, the national-scale industrial enterprises realized profits down 1.8%.

The multi-disciplinary data analysis, China's economy is still facing difficulties, but has stabilized warming trend. PMI convey back to the expansion trend in manufacturing in September, the national industrial enterprises above designated size to achieve profit growth of 7.8%, which shows that the Chinese economy mode, adjusting structure achieved positive results.

Some industries and enterprises for economic recovery, which makes clear the macroeconomic towards getting better and better. October 30 the Gree (000,651, stock it) released three quarterly 2012: Gree third quarter total revenue of 28.86 billion yuan, a year-on-year growth of 21.09%; net profit of 2.46 billion yuan, a year-on-year growth of 57.25%.

In the case of weak market demand this year, severe economic environment, the results of the first three quarters of the Gree exceeded market expectations, achieved total revenue of 77.16 billion yuan, a year-on-year growth of 20.43%; net profit of 5.33 billion yuan, a year-on-year growth of 41.34%.

"Not only want to win the market to meet consumer demand, but also to create and lead consumers to think of the needs, the only way to be invincible in the fierce market competition." Dong Mingzhu, Gree, chairman and president, said, Gree electrical long-term increase investment in research, adhere to independent innovation, focusing on product quality, and pay close attention to management, give full play to the company's production capacity, logistics and layout, scale advantages, and increasing efforts to export its own brand, so as to enhance the overall profitability of the company capacity.

Good product

"Financial State Week": some industries and enterprises operating difficulties, the analysis of multi-attributed to the unfavorable external environment, how do you see this problem?

Dong Mingzhu: I think the industry is not good or bad view from a certain time period, from a development perspective. There will always be a weak market, this time may become prominent and that periods less prominent. For some products no technical content businesses, weak market pressure will be even greater.

For example: the European market, we think that the situation is still very grim, reduce consumers' desire to buy. If an enterprise product in this industry which is doing the best, despite the weak market, sales of the overall decline, but the market share of the product will not change. Because this time more consumers at the time of purchase will be more rational and selective. More money to buy things are rush to snap up, the less money the time to carefully pick a pick, then the higher requirements for product quality.

Therefore, enterprises in the crisis how development, I do not think it requires all external changes, but recourse to its own change, technology or management or, eventually settled in the products to the consumers to bring new ideas to bring life on the improvement.

"Financial State Week": This is the Gree three quarterly in the case of the downturn in the industry as a whole appears to be a dazzling reason, right?

Dong Mingzhu: We expect operating income of over a thousand billion this year, no problem. I always say, any case, do not complain about something outside, the outside we will definitely be effective, we have the external impact as a pressure, even power, forcing us to go further, even ahead of the service for consumers, this time before the ability to really deal with the crisis.

Innovation is fundamental

"National Financial Weekly: You often put forward the concept of the ultimate in product technology R & D.

Dong Mingzhu: I said, Gree air-conditioning industry will always be a leader, you can learn from others, but not go beyond, and some people think I'm overbearing, in fact, this reflects the pursuit of belief, only with a firm belief in order to work hard innovative efforts, not absolute goal just a struggle.

R & D staff to consider how innovative. Inherent thinking feel, product positioning, better than others, is the goal. I think this is a mistake, our goal is to create products should be brought to the consumer never think of the ultimate enjoyment, this is valuable.

Any one of the products should be the pursuit of perfection, and perfection is infinite, even today a product reaches the the leading point where can I think that there will be insufficient, but also again across.

I hope Gree future design there is no wind, air-conditioned, will not have air conditioning air conditioning disease. Are considered, according to consumer demand might consumers I have not thought of, but we have to create such a market, rather than simply to cater to the market.

"Financial State Week": from the national level to the enterprise level, emphasis on innovation, you think, the innovation in the end depend on what to achieve?

Dong Mingzhu: not willing to throw money will be able to achieve innovation, is not with the people will be able to achieve, the key is there any innovative concepts and ideas, which is the core. There are some innovations do not necessarily spend a lot of money. Sometimes is a matter of determination, heart and how much, the pace of innovation is as big, last occupied market there is much.

Innovation is the intention of doing things. Forced to do things and the intention of doing things different, force might well done, but the heart will continue to optimize and continuously perfect. Level employees on the production line a little improvement, R & D personnel across all innovation.

Said it is very easy, and we talk about innovation, what enterprises are innovative, but how innovative, to come up with measures to meet their own business development, not blindly imitate. The experience of others, and of others learned it from him, I think not innovation, must be self change is innovation.

Still has great potential

"Financial State Week": Gree air-conditioning industry is already the leading enterprises in the next five-year plan to reach 200 billion yuan in revenue, market capacity so? Also enhance the potential?

Dong Mingzhu: Some say Gree successful because of the emphasis on technology, I think that the incomplete. An excellent enterprise can not rely solely on a point to achieve success, but every link attaches great importance to the in surface development effort,. Example: the technology developed, produce workers not seriously, the product will not be good; if the sales service is not good, the product also can not sell.

Competition in the market, excellent corporate should be like during the track and field competition, jump higher, run faster and will be able to gain greater market share, should not be like a boxing match, try to turn the opponent overthrow is rolled.

Market share is to get through consumer voting, why consumers choose you? Because you give people to bring a change brought improvement to the lives of others.

For example: Gree 1 Hz frequency conversion air-conditioning technology R & D, to bring consumers not only electricity bill savings, or changes in the environment. In the bedroom, and as long as the flow of air is less frequent, the door is not often open to open to the power consumption of only 30 watts, down only a day and a night kilowatt. In addition, consumers no temperature difference between feelings and very comfortable.

Brand Globalization

"Financial State Week": Chinese enterprises to go out to the accelerated pace in recent years, a lot of M & A cases, success, failure, how do you think the international and overseas mergers and acquisitions?

Dong Mingzhu: the one hand, the international product going out, on the one hand is the brand to go out. The former is a low level of going out, the latter is a real go out. For example: Mercedes-Benz is a world-renowned brand, some cars are produced in Germany, and some cars are not produced in Germany, but they are Mercedes-Benz.

Therefore, the expansion of overseas markets, allow the product to go out, not to foreign consumers recognize the advantages of the product can not be achieved brand go out, in the process of going out, we gradually develop the foreign distributors, to establish foreign channels. We are not to engage in mergers and acquisitions, but suddenly imperceptibly gradual route.

China's market economy only 30 years ago, "Company Law" introduced in 1990, Gree was established in 1991, to all of a sudden people hundreds of years of accumulation Lianguo Duan out is impossible to manage foreign enterprises have to have enough experience and accumulation. Ready did not do a good job, and I prefer stable.

"Financial State Week": Japanese home appliance once glorious moment, but in today's global home appliances territory shrinking overall rising Chinese home appliance industry, with a fall what?

Dong Mingzhu: air conditioning in China for so many years, the overall level of improved quickly, almost with the international level. Chinese home appliance industry in the world, the rise of the first reliable technical advantages. Refrigeration industry in China was first starting out from the field of home air conditioning, home air conditioning is a relatively simple, independent research and development, Gree is the first step to grasp the quality of OEM parts assembled, then the first step to focus on technology, the achievements of the rise of home air conditioning industry.

Central air-conditioning as well, the beginning of foreign brands occupy the mainstream of the Chinese market, our quality, process, technology is really not as good as the others, after years of accumulation, we are in many ways beyond. Large units of quality has been the trust of domestic consumers, the channels also very powerful, fully prepared, so to say, is these two aspects of technology and channels to support the high-speed growth of Chinese home appliance.