Source: IT Times
Edit: 挨 kick sister
In 1985, a brand new factory was set up on a wasteland in Gongbei, Zhuhai. The name of the new factory is Guanxiong Plastic Factory. The owner of the factory is Zhuhai Special Economic Zone Industrial Development Corporation. In that year, the annual output of China's electric fans reached 30 million units, ranking first in the world.
In 1988, Zhu Jianghong, a technician, left Guangxi and transferred from Baise Mining Machinery Factory to Zhuhai, where he was the general manager of Guanxiong Plastic Factory. Obviously, this is not a good errand. Before Zhu Jianghong arrived, Guanxiong had experienced a decline in the past three years, and the debt was high. In the present words, the capital chain is on the verge of breaking.
With the 200,000 loans given by the Agricultural Bank, Zhu Jianghong and Guan Xiong are back on track. Guanxiong’s first barrel of gold is to produce electric fans. In August 1991, Guanxiong, a well-established industry in the industry, and another brother factory affiliated to Zhuhai Special Economic Zone Industrial Development Corporation —— Haili Air Conditioner Factory announced the merger, called “Gree” ;, on November 18th, the foundation stone project of Gree air conditioner was laid.
Today, the officially certified Gree birthday is November 18.
In the past 28 years, Gree has become a world-class enterprise from a small factory with 10 years of technology behind the assembly line and an annual output of 20,000 air conditioners. There is a saying inside Gree: "With Zhu Jianghong, Gree will not be poor; with Dong Mingzhu, Gree will not lose. ”“Zhu Dongpei” The era laid the Gree of today.
Yesterday, 28-year-old Gree released the 2018 financial report. According to the report, in 2018, the company achieved a total operating income of RMB 20.024 billion, a year-on-year increase of 33.33%.
This is still more than 400 billion yuan, which is the two current Gree, which Dong Mingzhu proposed at the end of 2018 to realize the revenue of 600 billion yuan in revenue.
"The road she walked through, the grass is not born", the media and the industry's so sharp evaluation is only in charge of Gree Electric for 7 years "Iron Lady", Dong Mingzhu is worthy.
In 2013, she and Lei Jun set a 1 billion gamble because of a debate on the financial channel awards ceremony.
In 2018, the domineering female president again said: "600 billion is just our little dream. ”
But even if there is a "air-conditioner sister", Gree's good ambiguity will be reduced to a "daydream" in the face of the depressed market and the price of the opponent.
Some market participants pointed out that the entire Chinese air-conditioning market (domestic air-conditioning + commercial air-conditioning) is about 300 billion yuan, and even if this cake is all Gree, it only accounts for half of the 600 billion grand blueprint. Looking at the income structure of Gree Electric Appliances, it is almost relying on air-conditioning “one leg”; walking in the first half of 2018 shows that the contribution of single air-conditioning to revenue is as high as 83.34%. In 2018, Gree once triumphed toward the revenue target of 200 billion yuan. With the strong dependence of air conditioners on climatic conditions and the real estate market, it is not known whether this year's success can be achieved.
“Last year, the air-conditioning market was almost in short supply, and even the installation could not be done. It can be said that the sales of this part of the year were overdrafted. The family who bought the air conditioner basically bought it. ” Zhang Shaoshuo, founder of Home Appliances Distributors, told IT Times that in the summer of 2018, the country experienced unbearable high temperature torture, and the stimulation of the air conditioner market was beyond the expectations of dealers. After all, for household air conditioners, the demand for purchase is nothing more than improving living conditions and the use of new homes. The shipments are concentrated in the rural and township markets that are not saturated. “Some rural families have poor economic conditions and want to rely on fans. One support, but the weather is too hot, causing the air conditioner to reach the point of buying. ”
According to the “2018-2019 China Real Estate Market Report” released by REICO Studio, the sales growth of commercial housing in the eastern, central and western regions continued to decline in 2018, with the negative growth of commercial housing sales in the eastern region. The thin real estate market space directly limits the growth of household air conditioners, and the increase in material costs, the gross profit margin is going all the way down.
A former Gree air-conditioner dealer told the IT Times reporter that when the air-conditioning market was not mature enough in the early years, the profit margin could be as high as 20%, but now it is probably less than 10 points, and it is difficult to make money. Zhang Shaoshuo also pointed out the dilemma of low gross profit in the air-conditioning industry. “The purchase price and sales price are almost flat. There is not much difference between the two. The profit of the dealer is mainly from the installation fee and the year-end rebate of the brand, 70%. Dealers are in a state of capital preservation, meager profit or even loss. ”
In the past, the main consumer of home appliances was middle-aged and old people. They liked to experience it personally before purchasing electrical appliances. This has become a source of guarantee for offline specialty stores and hypermarkets. However, as the main consumer of the home appliance industry tends to be younger, the traditional offline channels are gradually “over the air”, and the impact on dealers is not small.
Zhang Shaoshuo pointed out that every August is the time for brand owners to set up sales tasks for the coming year. In 2018, the market environment that is in short supply has digested the inventory. No matter whether the climatic conditions of the next year can still be “to power”, the brand will continue to release. More than 30% of the sales metrics required by the store. “ Gree's task for the store will exceed the normal sales quota, because all the policies formulated by the brand are all in one chain, the dealer only signed the sales task the following year, in order to get the previous year. All rebates. For example, you have to give you 20 points of profit, but 15 of them are normal for you, and 5 points are for you the following year. "There is no problem with the stocks if the market is on an upward trend, but there is a risk once it is in a downtrend."
As far as the product itself is concerned, Gree's refrigeration technology and experience have established its leading position in air conditioners, which is also the advantage that competitors are most “eyes”. In 2018, Zhuhai Gree Electric Appliance Co., Ltd. v. Ningbo Aux Air Conditioning Co., Ltd. infringed the utility model patent dispute series of six cases in the first instance of the Guangzhou Intellectual Property Court, one of the cases was Gree Electric v. Oaks without permission, production, sales, promise Sale of eight models of air-conditioning products using Gree Electric's patented technology, the court ruled that the defendant Oaks stopped manufacturing, selling, and promised sales infringement, and ordered the defendant Oaks to compensate 40 million yuan.
However, as the differences between brands gradually shrink, the price war is getting stronger and stronger, which will have an impact on Gree’s revenue growth. “In the past 2 years, Oaks has achieved 300% growth through online operations, and the United States is also trying to catch up with Gree. March is the main battlefield of the United States. In order to stop Gree’s activities in April, Midea’s 35 inverter air conditioners are fixed. The price is sold, the first-level frequency conversion is sold as a three-stage inverter, and the online and offline prices are the same. “ If the ratio of online and offline channels for home appliance consumption was originally Sanqi, then after 2018, it is already five or five, Zhang Shaoshuo said. And Gree's time to open up online channels is much later, and the emphasis is on offline store channels.
On March 11th, Gree washing machine and Jinghong refrigerator production base project started construction in Luoyang, Henan, costing 5 billion yuan. Not long ago, in January, Gree also invested 5 billion yuan in planning and layout of smart home appliances such as washing machines in Chengdu Xinjin, Sichuan. Dong Mingzhu said that Gree Electric Appliances will use three to four years to complete the development layout from the air conditioning field to the washing machine field. In this way, Gree intends to transform into a comprehensive home appliance enterprise. The industry believes that this is one of Gree's strategic initiatives for the goal of 600 billion in 2023.
However, in the current income structure of Gree Electric Appliances, the proportion of household electrical appliances is only 1.72%, and the proportion of intelligent equipment is 0.39%. Obviously, there is still a long way to go.
Liang Zhenpeng, an analyst in the home appliance industry, believes that with Gree's current size of 200 billion, it is unlikely that it will triple to reach 600 billion within five years. The single product structure is the biggest problem. “Dong Mingzhu started several diversification strategies before, but all failed. The market share of Gree Mobile, Jinghong Refrigerator and Dasong Small Appliances is very low. ”
Liang Zhenpeng told the IT Times that in the air-conditioning sector, the growth momentum in the first two or three years was good, but it was a kind of luck, but the momentum began to slow down in the second half of 2018, so the first few months of 2019 were negative growth. Gree's performance growth pressure is very huge.
Speaking of Gree's external expansion strategy, Liang Zhenpeng believes that Gree has chosen the wrong time. It is difficult to seize a new position in the market mature period, and it is very difficult to gradually erode the opponent's share. “And Gree is not professional enough in these new fields. How do you use air-conditioning talents to build refrigerators and mobile phones? Dong Mingzhu is still enjoying the word-of-mouth dividend for the products of Zhu Jianghong, which is very dangerous for Gree. ”