White shirts and ties, even in their own offices, Deng Chaohua, the president of Langneng Electric, still reveals rigor and calmness, and this is a true portrayal of Deng Chaohua's work on building electrical appliances, rigorous, pragmatic, and wise. This enables Langeng to maintain its leading position in the highly competitive building electrical appliance market.
In 2007, the building electrical appliance market was surging. “The reshuffle of this industry will always exist. We focus on building electrical appliances and constantly improve our own strength and enhance our brand and value. This is what we should do.â€
The development of the industry depends on the effective promotion of excellent enterprises. The innovation of enterprises, especially the innovation of excellent enterprises, will also bring a benign butterfly effect to the development of the industry. Langneng – as the most professional enterprise in China's building electrical appliances, its every move has always been a concern, and it has a huge impact on the development of the industry.
What have Langeng been doing in the past six months? What is the key figure in the building electrical industry, how does Deng Chaohua think about this market? Our reporter recently interviewed Deng Chaohua, the president of Langneng.
Specialization is the foundation of the building electrical industry
Reporter: With the entry of NVC, Huatai, Sanxiong, Aurora, Benbang and other lighting companies into the electrical industry, coupled with the impact of rising raw material prices, channel development and corporate diversification, multi-disciplinary operations, the electrical industry will Entering an unprecedented period of shuffling, the stronger the stronger and the weaker.
Deng Chaohua: The current situation of cross-industry and industrial development of enterprises is very common. In the past few years, the development of China's economy, the domestic consumer market is very large, and the rapidly growing consumer market has made some enterprises, and many companies have lost it. Due to the large demand in the market, white goods have entered the IT industry in recent years, and enterprises entering the lighting industry in the IT industry abound. Moreover, with the intensification of product homogenization competition, excessive propaganda and irrational competition have caused many enterprises and industries to fall into the predicament of small profits but quick turnover. In order to seek breakthroughs and market expansion, it is quite normal for lighting companies to enter the electrical industry. Excellent companies entering the electrical industry will speed up the industry reshuffle, which is very beneficial to the industry's outstanding enterprises, and can better show the competitive advantage of enterprises.
Cross-industry or industry expansion is not controversial in itself, all of which is attributed to the company's own business philosophy and strategic planning. Some enterprises, from the home appliance industry to the small household appliance industry, to the IT industry, such enterprises in the market, the profit-centered, is not a long-term corporate development practices, their products once encountered professional in the market A powerful enterprise will quickly lose its competitiveness.
Therefore, it is difficult for companies that do lighting to enter the electrician to enter the electrician. If they do not understand it, or if they do not use the people who are good at the electrician market, it is difficult to compete with the enterprises in the professional electrician industry. In the construction electrical industry that Langneng itself focuses on, we also clearly feel that specialization is the foundation of this industry.
The product market implements the "two-eighth rule"
Reporter: Whether it is the electrician or the lighting industry, the rising cost of raw materials and a series of rising costs have already had a certain impact on the further development of the company.
Deng Chaohua: In terms of enterprise cost, the most important thing is the rational allocation of resources. Langeng actively explored this in the first half of this year. Langneng has taken a series of measures to increase revenue and reduce costs. In terms of cost control, we introduced and applied modern management software. We have carried out great reforms and adjustments in personnel, which further promoted communication and communication. These measures have enabled us to effectively reduce costs. At the same time, we have also adjusted the product line and channel dealers to achieve rational allocation of resources, and apply 20% of the best quality products and distributors to the market with a good share of 80% of the company's profits. With rapid development, the enthusiasm of dealers has also been improved. Of course, I have also repositioned and divided the remaining 80% of products and distributors, making them more beneficial. The direction of development of both sides has progressed and achieved good results.
Reporter: Every year in the middle of the year, companies of all sizes will make a comprehensive summary of the work in the past six months. What kind of summary does Langeng have?
Deng Chaohua: Enterprises are constantly summing up their progress. Langneng recently made a summary of the operation of the first half of this year. In the past six months, Langneng has done things that the company has not done in the past 10 years. Laozi’s Tao Te Ching has such a saying, “Can you smother and quiet Xu Qing? Can you be able to move to Xu Sheng?†Some adjustments and integrations that Lang can carry out in the first half of the year can also be summarized as these words. Turbidity, static, clear, safe, dynamic, and raw, let Langen’s market calm down, and also digest our stocks, further rationalizing our market
In terms of market structure, starting from the Yangtze River, since last year, Langneng has adopted a mode of management and control of the North-South region. This model is different from the so-called operation center in the industry and different from the general office system. However, this model facilitates the management of the market and the control of the channel by promoting the command to the front line, realizing the company's rapid response, and further strengthening the headquarters' control of the national market. We are still in the groping phase of this model, and it is not until next year that we can fully see the results of this model.
Pursue the taste and value of the product
Reporter: With the upgrading of industry competition, the phenomenon of product homogenization has become increasingly serious, and the market breakthrough of enterprises has increasingly focused on brands.
Deng Chaohua: The idea of ​​brand management, the concept of Langeng has been firmly established since the day of its establishment. The product itself is a carrier of the brand. Langneng has always been demanding on the products and pursues perfection. We are about to launch a new series of switch products in August. The new products not only achieve breakthroughs from the product technology level, but also more considerations. The consumer experience. Revolutionary innovation in technology, in the design aspect also reflects the high added value of Langeng products, reflecting more humanized design, not only product safety, but also very stable, long life, throughout The design concept is forward-looking. This new product will further strengthen and enhance Langeng's leading position in the field of electrical engineering.
At the same time, in terms of lighting, Langneng will also bring joy to the industry this year. Our high-end ceiling lamps designed by Danish professional design companies will be a symbol of the quality of the lighting market. The unique design will bring more exciting to the market.
Product-level competition is the foundation, and brand-based business ideas and market operations are also extremely important. Langneng will make the product itself tasteful and become a symbol of value and lifestyle.
Establish a benign market ecosystem
Reporter: The competition in the industry has become diversified. Branding, internationalization and comprehensive upgrading of the industry have become hot topics recently.
Deng Chaohua: In fact, we now see that the whole industry is relatively impetuous, and it is not fully standardized. In this process, Langan can develop steadily and gradually build into a well-known enterprise that is in line with international standards. The corporate infrastructure. For the entire industry environment, we are more eager to establish a benign market ecosystem. Enterprises and media must work in this direction.
We hope that the market and social consumers can see the positive development of the industry. Langneng is also the same. I hope that all the favorable factors will be fully demonstrated. The factors that help consumers can be displayed to consumers, not to be exaggerated. This is to let our partners and consumers strengthen their trust in our Langen company. An important method of support.
Internationalization is a very important part of a company's branding. If we want to be in line with international standards and better integrate into international competition, I think every company should have a vision for R&D, team, service and future development. These aspects do your homework. Only by continuously developing products that are suitable for international standards and suitable for consumer needs, let the team have an environment and cultural atmosphere of unity, communication, interaction and innovation, with professional services, in place services, and make a development for the company. Only a clear and visible development of future forecasts will enable every employee of the company to have a passion and motivation for the company's development, in order to better do a good job in the enterprise, to do a good job, to go out of the country and to go global.
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