Recently Foxconn Technology Group is somewhat busy: holding hands with former chief scientist of Baidu and Wu Nanda, a well-known expert in the field of artificial intelligence; the board of directors of the company made an initial public offering of RMB-denominated ordinary shares through its subsidiary Foxconn Industrial Internet Corporation and applied for listing on the Shanghai Stock Exchange.
Foxconn was the thirtieth anniversary of the founding of Shenzhen in 2018. Back in 1988, Foxconn's first production base in mainland China --- Shenzhen Ocean Precision Computer Connector Factory was founded in Xixiang, Bao'an District, Shenzhen City.From then on, Foxconn and Shenzhen have had the intersection, and Foxconn acquired Sharp in 2016. Today, Sharp announced that it will participate in the construction of Shenzhen City in 2017 a major project --- Foxconn Heron future global display technology and innovative application research and development center, 'in Shenzhen Do the first 8K content industry base '.
From foundry to do their own brands, the world's largest electronics industry OEM - Foxconn transition how to go? Two Foxconn executives recently accepted an interview with Southern Metropolis, the future direction of Foxconn's transformation in detail Analysis.
path
Sharp acquired the brand
'It's a quick way to buy Sharp and start Foxconn's own-brand business.'
Recently, the Southern Reporter came to Foxconn Shenzhen Longhua Science and Technology Park Zone A door next to see an old plant is being transformed, here is Sharp's global smart home appliances R & D design center.
On August 12, 2016, Sharp paid a total of 388 billion yen (about 3.8 billion U.S. dollars) to Sharp for its 66% stake and Sharp became a Foxconn-based company at the time when Sharp was at a loss for a long time. However, as Sharp A company that owns the 10th generation LCD panel production line has some advantages in the upstream panel technology, resources and brands.
In December 2016, Yuan Xuezhi, who had been working in the advertising industry for many years, became the first CMO in Foxconn's history, signaling to outsiders that Foxconn is beginning to focus on brand marketing.
Talking about his reasons for joining Foxconn, Yuan Xuezhi told reporters from Southern Metropolis that "Foxconn used to be OEM and ODM, no ToC business, no Markting. Last year we started to have our own brands, This is also what Mr. Guo has done for a long time. There is a brand, there is a market demand, there will be Markting (marketing).
In Yuan Xuezhi view, to do consumer goods and OEM is completely different, Foxconn used to be a foundry, now has its own Sharp brand, it is necessary to do sales and service.Although making the brand, ToC business risk is relatively high , Investment is also large, but do a good job, bring the influence of the commercial image of a great force.
For Foxconn's transformation, Lu Renbo, the deputy secretary general of China Electronic Chamber of Commerce, told reporters from South China that Foxconn has made B2C restructuring and opening up the industrial chain. This is a very wise choice. Whether it can be successful yet remains to be seen.
In the appliance industry analyst Liang Zhenpeng it seems, 'Today, in the consumer electronics market, want to create a household name brand, the difficulty is very large, may hit tens of billions of dollars consumers will not hear the noise. Acquisition Sharp, Foxconn's autonomy This is a quick way to start your brand business. '
Foxconn Vice President Chen Zhenguo accepted two media interviews, including South are admitted that after Sharp joined Foxconn, Foxconn can be opened up the whole industry chain. Foxconn in the past throughout the production process, in the production technology and production platform, do The Industrial Internet, however, now with the Sharp brand, Foxconn is building an industrial internet platform for the sales, design, manufacturing and service industry chain of smart home products.
select
Why do black electricity market first
'From manufacturing services to technology services, with the brand, there is a chance to get in touch with the market.'
For the reasons for the transformation of Foxconn, Liang Zhenpeng Southern told reporters that 'Foxconn is the world's largest consumer electronics foundry, but the foundry industry is characterized by small profits but quick turnover, low profits from the industrial chain point of view, high profit is the design R & D, own brand these links, and this is the brand only.Fujian Kang previously earned only the profits of the manufacturing sector, it hopes in the design and development, patents, brand operation to get the corresponding profits, so that corporate profits and profit margins In order to be promoted, to make Sharp, Foxconn can bring additional profits.
'In the past, Foxconn did the job of foundry and used the capacity of manufacturing integration to reach the maximum in the world, which is a very respectable thing, but in the past Foxconn's DNA really did not face the imagination of the market and its ability to portray the world to consumers. Foxconn will integrate production, sales and service in the future with such an overall imagination. One of the 25th largest group in the world (Note: Fortune Global 500 No. 25 in 2017, No. 27 in 2017), you do not want to One day we become the No. 1 in the world We certainly hope that in the process, we should count what we lack.Calculation of the business development is not an instant, but also for a long time, we wait for this opportunity, we also cherish this opportunity 'Yuan Xuezhi said because Foxconn wants to protect the best interests of customers, there have been some time ago that we are not a brand, and even we do not have a brand.
In Yuan Xuezhi's opinion, as a foundry has the limit, there are commercial insurmountable place. At that time to do a little awkward brand, there is no way to fully devoted, but they also want to do very hard at that time, with little success , Such as 'Wan Ma Pentium' (Foxconn retail offline store on the map), then want to start from the shop, but time is not good, ran into the start of Taobao and the entire Chinese electricity supplier, at a wrong point in time. Mr. Guo (Terry Gou) more powerful is that if he found wrong, the decision to suspend the time point control well.
Foxconn opted to make a black market after Sharp's acquisition, said Yuan Xuezhi, 'Most of our customers are 3C products that do not have so many customers on the TV and we are not afraid of the customer's product line, which is why we choose from the TV Machine starts. '
In fact, we want to do the idea of the brand, the most important thing is to let us know the market, understand the user.We have produced a lot of 3C, home appliances, but we do not know who it sold to him, how he used. "Foxconn vice president Chen Zhenguo told Southern reporter, Foxconn was the simplest idea: 'If we have channels and methods to understand the needs of consumers and the market and the pulse of technology development for our future, product design and development will be more effective.'
'We developed from manufacturing services into technology services, that is, we did not have the brand in the past, since Sharp joined Foxconn, we have a brand. With the brand, there is a chance to come to the pulse of the market.' Chen said the country, "After the pulse of the market, we have the opportunity to understand at the price end and the function end what kind of products consumers need, and we also have the opportunity to understand how users use the products we design, manufacture and sell."
Positioning
'New Sharp' positioning 'noble and not expensive'
'What is noble, it is the brand's own DNA, Sharp has a very gene engineer, a research and development.'
After Foxconn acquired Sharp, Foxconn Vice President Dai Zhengwu became Sharp's new president, but also Sharp since its inception more than 100 years, the first head of China from China, and Sharp's head of the Chinese market is precisely Foxconn Vice President Chen Zhenguo. 'These two generals to Mr. Guo (Terry Gou) put up the transformation process of transformation from worker to worker, but also the integration of corporate culture, and finally allow both parties to twist together.' Yuan Xuezhi said the two Foxconn's role is the transformation of the striker.
In addition to 'downsizing' for Sharp, Foxconn's chief executive, Gou Gou, is "noble and inexpensive" for Sharp. "While Sharp had good technology but poor financials, it wanted every business to be profitable It sells a TV to make money, it would rather sell less, do not want to sell, so its operation in the Chinese market is relatively conservative. 'Yuan Xuezhi said,' After we cooperate with Sharp, we put forward the 'noble and not expensive' The concept, what is noble, it is the brand 's own DNA, Sharp is very engineer gene, a research and development spirit.
Sharp and high-end before the steady image to be different, Sharp also began to 'localization', 'younger', 'Internet' in marketing, first named "singer", and then with the "run it" program cooperation , Please star as manager and endorsement 8K products, to attract young consumers.
From the TV brand, can have a panel upstream, use their own modules, have their own factories, coupled with the next channel, sales, service, the whole industry chain can open a few, which is the whole industry chain Advantage of this advantage, we can make the price cheaper. 'According to Yuan Xuezhi introduced in the model development, for the Chinese market, Sharp made 18 new models in 2017.
'It has always been a very good brand, What it lacks is the past, the efficiency and effectiveness of management is not satisfactory, Sharp and Foxconn management efficiency and effectiveness of strong alliances, Sharp soon turn loss to win.' Foxconn Vice President Chen Zhenguo said.
According to Sharp's earnings announcement released on October 28, 2017, the company posted a net profit of 34.7 billion yen for the first half of April to September from a year earlier loss of 45.4 billion yen.
On December 12, 2017, in an exclusive interview with Southern Metropolis Daily, Yuan Xuezhi said: "We quickly pulled Sharp (stock) from around ¥ 88 to around ¥ 300. Last week, It took only 5 months for our department to return to the one section of the TSE, from the time we submitted our application to the final success.
In Yuan Xuezhi view, Foxconn is an enabling business, Sharp is a company powered by Foxconn. 'We want to deliver very clear information to the domestic consumers and users, we hope the outside world do not use the old Sharp's rules and regulations set in the new Sharp on.
data
Sharp sales in mainland China increased dramatically
'Price is not the only factor, but also consider the quality of the product and future after-sales.'
Earlier, Sharp raised its global sales target for 2017 to 14 million units.
'Sharp's color TV strategy is the high school low-end models at the same time, this year's price war played very ruthless' appliance industry analyst Liang Zhenpeng told reporters Southern, Sharp acquired after Sharp, Sharp TV in a lot of resources, 2017 Sharp TV sales in mainland China and the global market has grown rapidly.
According to Zhong Yi Kang to Southern Metropolis Daily, the data show that in the online retail market, Sharp in 2016 in mainland China market share of 2.9%, ranked No. 11, as of the first 50 weeks of 2017, Sharp's market share of 8.9% Jumped to No. 4; online retail market in 2016, Sharp in mainland China's share of 4.1%, ranked No. 8, as of November 2017, Sharp's share of 8.3%, jumped to 6th.
According to Yuan Xuezhi previously disclosed, it is estimated that by the end of 2017, Sharp TV ToC sales in the Chinese mainland market can reach 7 million units. 'We grew by 4.5 times, in the past in the era of the old Sharp, we sell about 1.5 million units.
'Why Sharp sales in the year so much to increase, I think the fact is that we have a very clear positioning, we are to be' noble and inexpensive 'Sharp.' Hsueh Chi admitted frankly that Sharp's current revenue accounted for Foxconn's The proportion is still small.
Yuan Xuezhi said, 'Why black electricity as the main choice, the first is in Japan have SD P panel factory, SD P panel factory in the world are the most advanced, in the past because of business problems, capacity into a lot of pressure. We do not sell television, we need to digest the panel. By 2019 Foxconn's three panel plants a year (capacity) is 30 million panels, from now on to force, by 2019 There are enough markets to turn our own panels into our own TVs for sale to consumers.
China Electronics Chamber of Commerce Deputy Secretary-General Lu Renbo told reporters in the South, according to the average panel price calculation, Sharp is not profitable in the end product, but the panel must be making money.
Liang Zhenpeng think, 'Sharp is the main reason for the loss of the panel over supply. Panel market this year, good, produced products in short supply, LCD panel prices, the average selling price from 2016 to 2017 prices more than 50%. Sharp TV with their own panels, controllable costs, even if the price will not lose.
Lu Renbo pointed out that Foxconn should do a long-term planning strategy Sharp's products. 'Now the market is very mature, consumers are very mature. Consumers buying products, although the price is the main factor, but the price is not the only factor, but also consider Product quality and future after sale. '
Center of gravity
Aim at '8K + 5G' ecology
'I think 2018 is the first year of 8K, starting with the start of 8K broadcast at the Tokyo Olympics in 2020, just about the same time as the 5G commercial.'
Foxconn was the thirtieth anniversary of the founding of Shenzhen in 2018. The clock back in 1988, Foxconn President Gou visited the investment environment in Shenzhen; that year, Foxconn's first production base in mainland China --- Shenzhen Ocean Precision Computer Connector The factory was set up in Xixiang, Bao'an District, Shenzhen Since then, Foxconn has had an intersection with Shenzhen, and Foxconn still has 270,000 employees in Longhua Technology Park in Shenzhen and Guanlan Technology Park.
Chen Zhen Guo said that at present, Foxconn's entire industrial park is divided into four stages. '2018 is the thirtieth anniversary of our trip to Shenzhen, and we have just started to build a factory here in Shenzhen. At that time, we created job opportunities for employment, in fact, the country Create a lot of foreign exchange. 'Chen said that' when the company continues to grow, we have demand to the mainland, of course, the mainland invited us to invest, when we go to require the settlement of the entire industrial chain can take over, not just a Factories, so the suppliers of our supply chain are following, and this is our second phase.
The third stage, like Zhengzhou and Chengdu (Park). 'Because in the coastal areas, whether in Yantai or Shenzhen, many colleagues come from the Mainland, he must go home at a certain time, we think about how So that they can go home and have the opportunity to work nearby, so we moved the industrial park to Zhengzhou and Chengdu. "In the fourth stage of Chen Zhen-kuo's view, 'We emphasize that the new industrial park is actually an ecological, environmental and energy saving Industrial Park.
At present, 8K display technology is Sharp and even Foxconn's center of gravity.Sharp announced that it will participate in the construction of Shenzhen City in 2017 a major project --- Foxconn Heron future global display technology and innovative application of R & D center in the future through the base '8K +5 G 'Practical application of research and development, to further consolidate 8K TV in the content of the short board.
'In Shenzhen to do the first 8K content industry base in China, has now been approved .If the start of March 2018, it should be about two years to achieve.' Yuan Xuezhi said.
'I think 2018 is the first year of 8K, starting with the Tokyo Olympics in 2020, starting to broadcast with 8K, just about the same time and commercial 5G' Chen said that in the future when the domestic 5G units to complete the construction, plus Foxconn is a technology leader in 8K and Foxconn can use the '8K + 5G' ecosystem for eight lifestyles such as work, education, entertainment, family socializing, eco-car, property transaction purchasing, health and safety. 'So the whole' 8K + The ecology of 5G 'will affect our future life.'
Focus
A
Foxconn how to find a new growth point?
On the basis of stable manufacturing transformation,
One day may start selling fruits and vegetables
On the afternoon of December 12, 2017, the reporter interviewed two Foxconn executives at Foxconn Longhua Science and Technology Park. On the very day, Foxconn Vice President Chen Zhenguo was shouted to the meeting by President Gou Taiming and until about 10 PM, Chen Zhenguo ended his meeting and came to interview.
Chen Zhen-kuo said at the time: 'Today's day's meeting will be held all day on the industrial internet.' Previously, Chen Zhen-kuo once said that the future of Foxconn is not just manufacturing. There are two major directions for the transformation: First, industrial internet, Foxconn's industrial foundation, Second, from the manufacturing service to the technology service industry, covering the basic necessities of life, entertainment, medical treatment and Foxconn's active layout of the medical field, the hospital will also be built in the future.
Yuan Xuezhi said he had wanted to retire but Gou found him. In his view, Gou's future lifestyle is very interesting. 'What is most important to people in the future? Cleaner water, fresh air, Safer home life, more exciting entertainment, science and technology make people's life progress, may need a lot of technology to solve. 'Yuan Xuezhi admitted that when a group is large enough, always looking for new growth points. Foxconn is also the layout of medicine , Agriculture, new energy, electric vehicles, etc. 'How to transform itself into a technology service company, one day we start selling vegetables and selling fruits, we should not be too surprised.'
However, the transformation does not take place in a single step. In particular, such a huge science and technology group as Foxconn has made the slightest change and it is affecting the whole body.
For Foxconn's transition, Yuan Xuezhi said that this is a conversion process. "The ship is so big that it will turn around. It (Foxconn) is still based on the current very stable manufacturing, with ToB's way, even if it is made Nor is it the idea of previous foundry, but also the development of many new businesses, such as medicine, agriculture, new energy, electric vehicles and communications, which Foxconn did not have before.
In an interview, Yuan Xuezhi also said that after Foxconn enabled Sharp, it was even a powerful alliance, and in his opinion, 'the cooperation with Sharp has been very successful and vibrant!'
B
Business transformation of those general workers how to do?
Get some skills through company training
To provide employees the opportunity to return home business
Foxconn now has 1.2 million employees and more than 1 million general workers in the production line. What should these workers do in the process of business transformation and upgrading? Yuan Xuezhi said: "With industrial automation, the boss (Gou) said in the previous two years, 20 Years later, there may be no workers in assembly line. However, a business is socially responsible. I can say that I built a pipeline today, these 80,000 people do not want it? This is irresponsible. We have a 'rich township shop Plan. "The basic idea was that the line workers had some training and even though he did not have the skills to come in, we helped them learn fitter mechanics and understand some of the circuitry, so for some time they had company training to get some Of the skills we provide employees the opportunity to start their own business to develop staff skills so that they have a return to entrepreneurship, (we) hope that the retail through the top to bottom.This plan in the boss (Terry Gou) thought for a long time, about seven Eight years.
According to Chen Zhenguo, although the number of workers will decrease in the future, the number of employees will not necessarily decrease. "Our number of online operators may decrease, but the number of technicians and engineers may increase. How can we help them to transform their skills in training? We are very important now. '
Chen Zhen-Kuo said he came from the education sector, and when he entered the group, he set up the IE College as Dean. "We hope to cultivate colleagues who have creative ideas, innovative thinking and entrepreneurial spirit. After the colleagues come in, we provide The academic education is coming in today is a secondary school, you can work while reading, you can read the college .If you have tertiary education can also finish the undergraduate, undergraduate (academic) with, you can read the master, we even There is a doctor, and when we have colleagues, we have a technical secondary school, and now we have a doctoral course.
After the interview, Chen Zhenguo and the team went on a 'double 12' summing-up meeting, and Foxconn, who is in the midst of a transition, is busy and it is still too early to conclude whether Foxconn can make a transition with Sharp Corp. At least for now Foxconn has a good start.