Expedition to the Chinese market for 24 years, the US home appliance giant Whirlpool sprint China's "white first camp," the dream does not seem to take into account the reality.
Due to the cost upside and high-end product structure upgrade is not expected, the disclosure of 2017, the performance of Whirlpool recently predicted: 'The company's performance is expected to lose 080 million yuan to 110 million yuan' Prior to 2016, the company achieved net profit attributable to shareholders of listed companies Profits of 283 million yuan, which is the rare loss of Whirlpool in recent years.
The original multi-brand management problems yet to be resolved Overwhelmed by the arrival of the new head Wu Shengbo, Whirlpool has also made difficult to overcome the localization problem has once again become the focus of attention.
'Mr. Wu has decades of experience in corporate operations strategy and management.' Whirlpool insiders told China Business newspaper reporters that they are not concerned about the management risk of head changes and that Whirlpool will focus on Whirlpool China To create global manufacturing center, global R & D center, global sourcing center, global industrial design center and global testing center to further consolidate the localization strategy.This will enable Whirlpool to be 100 billion yuan revenue threshold of 'white first camp' more One step closer?
Achievements
In fact, this is not the first time that Whirlpool has been frustrated with the performance of the Chinese market, and has successively proposed to achieve net profit of 413 million yuan and 412 million yuan in 2015 and 2016, respectively, but all ended in disappointing results.
Reporters also noted that the pressure from the performance of raw materials, the performance of the pressure has been reflected in 2016. Whirlpool integrated Hefei Sanyo appliance business in 2014 on the occasion, the industry once thought that the increase in business volume for the company to enhance the procurement of raw materials bargaining The ability to reduce cost pressures will be of great benefit, but until now, the effect did not show up.
'The problem is indeed there.' The above Whirlpool insiders admitted in an interview with reporters: 'In the parts procurement, because the company follows the recent localization of the procurement, the Group and the company difficult to play a synergistic effect; in the bulk of the procurement of raw materials, the Group However, the Company has not fully joined the Group's global raw material procurement system due to restrictions on its business strategy and other constraints, so the synergy effect is limited.
Faced with the tide of high-end intelligent home appliance trend, since 2015, the domestic integration of product lines to promote the transformation of foreign output in the transformation of high-end products to become the main layout of Whirlpool logic. Whirlpool in the past two years have been transferred by Hisense Whirlpool (Zhejiang ) Electric Co., Ltd. 50% stake in the integration of Guangdong Whirlpool's microwave oven business to eliminate business overlap.At the same time, Ray series drum washing machines, Jupiter series cross door refrigerator and other flagship product available, also be seen as Whirlpool brand focus on the pursuit of a concentrated expression .
However, the effect does not seem to be significant in this regard.Comprehensive Zhong Yi Kang, Aowei cloud network in recent years, such as summary data show that Whirlpool in the field of washing machines and large refrigerators market hovers in the hovering around 10. The industry believes Whirlpool previously used channel Underwriting custom, festivals and other heavy volume to open the market, but also dwarf the brand image.
'For the price war preference, Whirlpool ice wash and other white goods in the low-end brand image curing, which directly hamper its advanced to high-end camp.' Appliance analyst Liang Zhenpeng frankly. In fact, this is also committed to line and Whirlpool two-track online channels simultaneously push the high-end products difficult to achieve a substantive breakthrough important reason.
Compared with the washing machine, as one of the white-fist-level products, the refrigerator situation is even more serious. 'Matthew refrigerator product significant effect for less than 10 billion yuan revenue volume of enterprises, in the' sandwich layer ', price war And brand war 'banner' are unable to carry. 'China Household Electrical Appliances Research Institute, said Lu Jianguo, deputy chief engineer, Haier, Hisense and other top five sales companies firmly dominate the vast majority of market share.
Whirlpool has recently terminated the implementation of 'an annual output of 4 million units of energy-saving environmental protection high-end refrigerator expansion project' instead to invest 'an annual output of 5 million washing machines intelligent, frequency conversion technology phase II project' also attracted the attention of the industry.Industry believes that, This move is not only an acronym for compliance with the external situation, but also the frustration of Whirlpool refrigerator breakout pressure.
It is worth mentioning that, Whirlpool innovation graded partner system, the new kitchen electricity business segment.Liang Zhenpeng pointed out: 'kitchen electric prospect is certainly.But Whirlpool ice wash main business base has not yet firmly established, and set foot in the new business areas, both opportunities More adventurous.
In this regard, Whirlpool also has its own considerations. 'Whirlpool Kitchen Electric in the channel model innovation is based on the flat marketing of precision marketing, the purpose is to focus on profit sharing in the traditional channels to partners; in the current domestic In the kitchen appliance industry, foreign brands like Whirlpool have the full range of resources is scarce. "The Whirlpool insiders said.
Localization of 'chronic illness'
Whirlpool's succession of new businesses in China is behind its diminished enthusiasm for the Chinese market.While it entered China in 1989, Whirlpool launched an intensive layout of various industrial lines such as ice-washing.But most of the investment ended in a loss, Whirlpool was forced to withdraw And retreat.
Whirlpool in 2014 is quite a turning point for the year, its agreement by the transferee, non-public offering of shares, etc. Hefei Sanyo acquired 51% stake in the revitalized Whirlpool 野 觎 China's market ambitions is increasing . With the reorganization, Whirlpool took the helm of Hefei Sanyo at the helm, but also won the Whirlpool, Sanyo, Di degrees, Rongshida four brands at the same time.While then in charge of printing Jin Youhua (former chairman of Hefei Sanyo) made it clear that the 5 to 10 years into the first white group in China.
Compared with single-brand enterprises, the multi-brand and multi-category development pattern also put higher demands on the company's management methods and capabilities, but Whirlpool has repeatedly criticized the product line as brand ambiguity and conservative marketing. , Fuzzy positioning of the brand, the localization management ability of management also aroused the industry questioned Whirlpool in recent years, the annual report also outspoken: 'The company is facing the appropriate management risk, subject to further adjustment.' And in July 2017 Whirlpool The emergence of rare major accounting errors in the industry, but also the industry as a manifestation of their internal management and management problems in the home and abridged all corners of the year Jinyouhua resigned as president of the company in September 2017 post, so that 'mixed' Whirlpool's home Strategy also adds more uncertainty.According to incomplete statistics, since 2015, the chief financial officer, vice president and other core executives at least seven people to leave.
The new chief executive Wu Shengbo recently formally became chairman of the company also caused the industry to wait and see.It was reported that it first held top positions in the Asia Pacific region of foreign-funded enterprises such as General Electric, Honeywell, Osram, the eclectic color of the Chinese and Western eclectic.
Mr. Wu has decades of experience in corporate operations strategy and management, and since February 2017, Mr. Wu has served as the global executive committee of the Whirlpool Group and president of the Asia Pacific region. "The above Whirlpool insiders said that Wu Shengbo was appointed Whirlpool (China) Co., Ltd., chairman of the board, also highlights China's Whirlpool global development strategy in an important position.
The stability of the management is the prerequisite for localization implementation, Wu Shengbo's arrival undoubtedly will enhance Whirlpool's cohesion and confidence after experiencing the twists and turns and readjustment in 2017. However, Leung pointed out: 'Compared to black and white market More emphasis on the localization of operations, Wu Shengbo manipulation experience is mainly limited to the field of lighting, pulse technology, market, industry trends do not have more experience than those who come from traditional home appliances.
In fact, the "mixed" white business localization is not without success precedent.Department of German-based Siemens not only realized the white-roots products in China, but also continued its high-end European brand image behind this is its R & D, manufacturing, manufacturing and sales team. "The backbone of R & D team is basically Chinese, and the full trust of local talents is the prerequisite to ensure the localization of products." Industry sources close to Siemens who do not want to be named said: Mixed-race companies not only need to have leading technology and excellent quality, more importantly, to fully understand the Chinese market and consumer needs, and strengthen the localization of operations and construction, which is the key to rapid leap in business.
Whirlpool may not be aware of the crux of the problem. "The Hewlett-Packard Smart Factory in Whirlpool was officially launched in November 2017 and the Whirlpool China headquarters building and the Global Research and Development Center (Hefei) will also be operational by May 2018. 'The Whirlpool Insiders According to the statement, Whirlpool will focus on building Whirlpool Global Manufacturing Center, Global R & D Center, Global Procurement Center, Global Industrial Design Center and Global Testing Center around Whirlpool China, which may solve the localization problems that plague its many years.
Right now, the strong rise of the Central Department of home appliances, fighting in full swing.Hal, Gree, the United States and other homegrown giants horse stitches momentum has been upgraded to high-end intelligent competition, 'White's first camp' threshold has exceeded 100 billion yuan camp Closing the high door, the brand together to be significant, there is no substantive breakthrough in the high-end Whirlpool behind I am afraid that more than a small cut.