“Household appliances business groups have more decentralized rights and fully participate in market competition.†On November 21st, at the 2017 (15th) Annual Conference on the Competitiveness of Chinese Enterprises organized by the China Business Newspaper, Lv Jian, executive vice president of the multimedia industry division of Konka Group In an interview with the “China Business†reporter, he said that the restructuring of Konka Group in 2017 has achieved remarkable results. Despite the market fluctuations, the company’s development has remained stable. Talking about this still ongoing reform, Lu Jian said: "Everybody wants to do well. In the new economic era, we must first have a strong desire to win, we must raise the brand position of Konka up. From senior leaders to grassroots employees There is consensus that this is the core issue that runs through Konka." Lv Jian pointed out that after the incident of minority shareholders, Konka Group made great adjustments. “We have such a statement within ourselves to respond to changes in the outside world with our own changes.†Lu Jian said that the group has to transform itself into an investment holding platform, first, to expand new product lines, find new growth opportunities, and secondly, Investment and mergers to achieve expansion. In April 2017, Konka established a multimedia industry headquarters that integrates R&D, supply chain, marketing, and after-sales resources to achieve the overall collaboration of the entire color TV business. The original three divisions - Overseas Division, Multimedia Division, and Manufacturing Division are integrated into one. The reason for such adjustment, Lu Jian pointed out that each division has R & D, procurement, leading to the dispersion of the premium ability of each division. "Especially the color TV industry, which is fully competitive, is no longer suitable for changes in the market." On November 17, Konka announced that it plans to invest RMB 1 billion to establish Konka Multimedia Co., Ltd. as the main operator of the company's multimedia-related services such as color TV services. In addition, after the establishment of Konka Multimedia Co., Ltd., it will invest 700 million yuan to establish a multimedia domestic sales company and 300 million yuan to establish two wholly-owned subsidiaries of multimedia export companies, which will be responsible for domestic sales and export of multimedia products such as color TV products. Lu Jian pointed out that the adjustment of the home appliance sector is mainly based on corporatization. “For the home appliance business, the group will decentralize its power as much as possible so that it can participate in more intense market competition. The most fundamental reason is that the brand of Konka should be given more vitality.†In fact, as a whole, China's color TV market sales showed a downward trend. According to the "2017 China TV Market Summary Report for the Third Quarter of 2017" recently released by AVC, the retail sales volume of the TV market in the third quarter was 10.41 million units, down 12.9% year-on-year; the sales area was 6.89 million square meters, down from a year earlier. 7.3%. In spite of this, in 2017 Konka Group still maintained a steady growth. It seems that Lv Jian's TV business of Konka Group is not constrained by the upstream supply chain. Under the condition of falling panel prices, the overall price of Konka is still competitive. "China's color TV market is still promising." Lv Jian believes that in the Chinese market, color TV sales of up to 50 million units per year, according to an average of 2,000 yuan per calculation, the market scale of 100 billion. "However, it is undeniable that this industry has no fixed rules of the game. The spoilers who hit the market at low prices emerge one after another and pull the price too low, resulting in a lower overall profitability of black power." Lu Jian even pointed out that China's color TV market has a certain scale, but the development is more difficult. This is the norm. "In order to obtain greater returns on investment, Konka continues to adjust its product line, and home appliances will be positioned as the leading brand for smart households. With the family as the core, they will use a large screen to link home entrances." Lv Jian said that the cooperation between Konka and JD.com will be fully realized. Shopping channel. With the general trend of consumption upgrades, large home appliances companies have oversized their high-end consumer markets. Lu Jian believes that channels are changing, online and offline impacts are inevitable, and online is developing offline. Konka must cater to this. Trends. "At present, the main sales or offline, the survival value under the line is the high-end." Lv Jian said that the average price of the line may be only half of the line, if you do not take the line of high-end, there is no value, forced the company to enhance There is no second way out for products. It can be predicted that the competition in the future industry will become increasingly fierce. In Lv Jian’s view, entrance is the key to competition in the color TV market. “Under the background of building a smart city, Konka's color TV business will focus on smart communities, and will use smart home as the core to create peripheral products. If the color TV business does not occupy this entrance, there will be no future,†said Lu Jian. It is worth mentioning that with the rapid economic development, the importance of fulfilling social responsibilities for businesses is becoming more apparent. Lu Jian pointed out that as a state-controlled enterprise, Konka has a broader understanding of social responsibility. Konka's social responsibility is not only responsible for 30,000 employees. The entire industry chain is fulfilling its social responsibilities and has a high level of awareness of environmental protection. At the same time, Konka also actively participates in various public welfare activities. "Konka has a fund, and employees either take a day to do public welfare or donate a day's wages to do charity," said Lu Jian. MicroBT is a technology company which is based on block chain and artificial intelligence. Focusing on integrated circuit chip and products development, production and sales, and provide corresponding system solutions and technical services. We adhere the ideal"ultimate,win-win,integrity"to provide high quality products and service. Now MicroBT has passed the national high-tech enterprise certification.
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February 09, 2023