Whirlpool China formally announced the appointment of the new chairman on January 2. Whirlpool Group Global Executive and Nobel Laureate Wu Shengbo, who had worked for a number of foreign-owned companies such as GE, Honeywell and Osram, will serve as Whirlpool (China) Limited, chairman of the new appointment effective December 29, 2017.
'We are now meeting unprecedented market challenges and opportunities in the white goods industry and are looking forward to working with the management and other board members led by President Ai Xiaoming to work together with all our partners to leverage Whirlpool's global brand and technology development strengths and write Whirlpool in A new chapter in the development of China. "Wu Shengbo said.
After experiencing major accounting errors, the Securities and Futures Commission issued a warning letter, stock prices plummeted and executives resign, Whirlpool (600983.SH) latest earnings data revealed that the company in the first three quarters of 2017 revenue 4.902 billion yuan, down 3.57%, attributable Net profit of shareholders of listed companies -057 million, down 123.44%.
Ai Xiaoming, who assumed the role of president of Whirlpool China in September last year, served as chief executive of OSRAM China, and Wu Shengbo, then president and CEO of OSRAM Asia Pacific, can be described as 'old teammate.'
It is said that the day before the departure of former chairman Kim Woo Wah, Whirlpool China has been large-scale blood transfusion, coupled with the historical issues left behind by Hefei Sanyo, how to re-integrate the company's four major brands, the biggest challenge the new team now.
In response, Wu Shengbo said: 'The new leadership will deepen the localization of the new strategy, take advantage of the new revolution in China's home appliance industry, officially open the Chinese market to start a new prelude to integration and development.'
Far behind
On December 14 last year, Whirlpool China issued a public announcement announcing that Chairman Kim You-hua will resign on December 29 and resign as director and chairman of the board of directors and chairman of the strategic committee of the sixth session of the board of directors, Any position.
Analysis, Kim's resignation is mainly due to the company previously exposed major accounting errors and the poor performance in recent years on July 27 last year, Whirlpool China issued the "Notice on the major accounting errors corrected and resume trading announcement," said the company found In 2015 and 2016, there was an accounting error. It was primarily estimated that the amount of such errors was about RMB250-300 million in respect of sales discount.
Subsequently released on October 16, "the pre-accounting error correction notice" confirmed that Whirlpool China in 2015 and 2016, respectively, more than net profit of 100 million yuan and nearly 90 million yuan.Without accounting errors, Whirlpool China in the In the three years from 2014 to 2016, the actual net profit of the Company was 293 million, 263 million and 194 million respectively, showing a declining trend year by year.
In an interview with 21st Century Business Herald, a veteran observer in the home appliance industry, Whirlpool China reported a revenue of 6.9 billion yuan in 2016, a figure that is relatively small for the home appliance industry, while Whirlpool's annual revenue in the world is 25 billion U.S. dollars , The Chinese market to its contribution rate is very low, and the Chinese home appliances in the global market status is extremely disproportionate.
Not only that, before the resignation of Jinyouhua, CFO positions in the company changed its position four times in less than two years. In November last year, even Zhang Rongzhong, who has been responsible for the marketing work in Hefei Sanyo and Whirlpool, has resigned from Whirlpool China's vice president position, completely leave the company.
In fact, Whirlpool China announced a return of 2 billion U.S. dollars in 2014 after a 51% controlling stake in Hefei Sanyo was acquired through private placement and acquisition and set a goal of "returning to China's first-tier white-electricity groups in 5 to 10 years." Goal, but three years later, Whirlpool China not only failed to move closer to the white giants such as the United States, Haier and Gree, but also suffered from muddy losses.
For performance losses, Whirlpool China sent a response to 21st Century Business Herald reporter on January 3 that it was due to rising raw material prices, lower product sales prices and higher-end product mix, which did not meet expectations. As a result, excessive investment in channel expenses resulted in the report period Loss.But Whirlpool international market expansion, including the global product supply, the core components of the frequency converter market development and development of kitchen appliances, have shown rapid development trend.
'In the future, Whirlpool China will continue to take products and technology as the traction, promote product mix adjustment and differentiated competition, and lead the upgrade of consumption. Second, conscientiously do a good job in brand strategy planning and establish a brand image; continue to deepen the reform of marketing system, broaden channels, Strive to simultaneously develop online and offline, to further break the kitchen appliances market, etc. 'Whirlpool China said the company will continue to refine management, promote intelligent manufacturing and other means to improve efficiency, improve product quality, pay close attention to reducing costs.
Brand integration to be broken
For Liu Buchen, Whirlpool has done well in the world, especially in the US market, but it has been operating in the Chinese market bleak for four main reasons, first and foremost is that Whirlpool in the Chinese market from product to marketing are too conservative .
'For example, a lot of home appliances have now been developed in the direction of intelligence, especially in the United States. Haier has introduced various smart home appliances. However, Whirlpool, a white giant, has few intelligent products in China. Obviously, The mainstream trend of the lack of basic grasp.In the marketing communication level, Whirlpool also almost out of the visual field of China's mainstream media, this is not what mainstream brands should do. "Liu Buchen said.
Followed by the aging brand.In Liu Buchen view, although Whirlpool is a famous brand of home appliances, but it currently only has a certain influence in the eyes of the elderly, young people in the eyes of basically no effect, young people in the choice of home appliances, Whirlpool rarely consider the brand.
'Marketing channels also have great problems, for example, Whirlpool some products sold only in Suning, sales channels in other channels or not, a chain of channels how could support the sales of all products from an enterprise?' Liu Buchen that Whirlpool China Of the marketing channels must be rebuilt.In addition, the company is also facing the problem of brand clutter, Whirlpool, Sanyo, Imperial, Rongshida four major brands what? Location ambiguity, resulting in Whirlpool, the most important brand, performance and even As Sanyo. 'Liu Buchen said.
This reporter learned that, despite the acquisition of Hefei Sanyo, Whirlpool China won the Sanyo, Di degree, Rongshida three brands, product lines from washing machines, refrigerators, kitchen appliances and electrical appliances extended to life.But Rongshida brand ownership in Hefei SASAC, though Whirlpool is currently authorized, but due to historical reasons the brand's license to use is still quite chaotic.
A few years ago, 21st Century Business Herald reporter has reported that many factories with located in Hefei Industrial Park, a small appliance manufacturer Rongshida brand and Hefei Sanyo dispute.It is reported that Rongshida brand taken by the various provincial agencies lease After the co-operation, at this stage it is even more a 'dilemma'.
While Sanyo Whirlpool has been nominally sold Whirlpool acquisition, but before the private white business has actually been sold to Haier, and renamed Haier Aqua, Whirlpool only Sanyo brand left without any technical gains. Since early last year , Whirlpool will continue to instill SANYO brand washing machine brand rights expire in 2019 will not renew.
In contrast, the Royal brand, which was established as a high-end brand in 2011, has not been able to compete in the fierce market competition in recent years. Now that the brand has no longer required channel merchants to display their stand alone when making their stand, A low-end series exists, the market space quite awkward.
In addition, Whirlpool itself brand for historical reasons, in the air-conditioning, water heaters, small appliances and other products on the brand in Suning hands, thus resulting in 'some products are only available in Suning'. All kinds of old and new problems, More often than not, big brands are only 'nominally' and have left Whirlpool China management teams limited in the marketplace.
In the face of the current predicament, Whirlpool China told reporters in the 21st Century Business Herald that "the Company has planned the center of gravity of various brand channels for different market directions," and has established aiming at the domestic market of white light and the users of different consumer groups Multi-brand business development ideas'.
At the same time, the company also hopes that the Hefei Smart Factory put into operation in November last year will have a synergistic effect with Whirlpool China headquarters building and the global R & D center, which will be fully operational this year. It will enhance Whirlpool China's competitiveness and achieve cost, quality and speed raised dramatically.