With less than two months left, the chairman of Gree Electric Appliances and President Dong Mingzhu’s term of office is ending. In the past five years, investing in Yinlong, doing a diversified business such as mobile phones has attracted the star entrepreneur’s attention.
It is also in the past five years that Gree Electric’s revenue under the leadership of Dong Mingzhu has achieved impressive results. The financial data show that Gree’s revenue grew from RMB10.11 billion to over RMB150 billion, and net profit also from 2012. The RMB 7.38 billion yuan has increased to RMB 15.42 billion in 2016. In the first three quarters of 2017, it has also realized a net profit of RMB 15.46 billion.
At the same time as the scale of the company grows, Gree Air-Conditioning has also entered the Middle East, Brazil and other markets. What did Gree use to go abroad? At the Boao Forum for Asia on April 8, 2018, when Dong Mingzhu accepted an interview with a reporter from the 21st Century Business Herald, he said: , Chinese companies 'going out' rely on honesty, 'innovation' is the core competitiveness.
In Dong Mingzhu’s view, Gree’s PV air-conditioners now travel the world, especially in the Middle East, and bring a qualitative change to the local people. This is very meaningful. Faced with the current Sino-US trade friction, Dong Mingzhu It is believed that companies should respond to the improvement of independent innovation capabilities because 'only innovation can change the world'.
Innovation is the core competitiveness of a company
"21st Century": At present, Gree's inverter air conditioners, photovoltaic air conditioners and other countries along the 'One Belt and One Road' sales have achieved certain results. Do you think that Gree can create these products and what is the core of the 'going out' success?
Dong Mingzhu: In fact, over the past few years, we are thinking about 'dedication'. If I buy someone else's technology, I can make a product, and I can also promote it in the market. But I think that is not what we want, what we really want. Self-innovation. I think the biggest contributor is 'creator'. What is 'creation'? Some people you have also have, and that's just imitation. When our lives are changing, we are also consuming resources, at the cost of health. This allows us to create a product that does not consume resources and make people healthier. This is the origin of our photovoltaic air conditioning.
What's more important is that we bring a new concept of consumption - no consumption of resources, use of new energy to achieve a new way of life. Photovoltaic air conditioning not only meets the needs of backward areas, is also welcomed in developed countries, they are more concerned about saving resources The idea, especially in the Middle East, is a qualitative change for them. This new energy gives them a better quality of life. So I think it's very meaningful.
"21st Century": Can you specifically talk about Gree's business in Brazil? Are you optimistic about Brazil's market prospects?
Dong Mingzhu: We have been investing in Brazil since 2001. Why did we want to invest in the factory? It is because our brand is very popular in the local area, and we have to go international. By taking 'internationalization' we can To contribute to local development and construction, this is something we want to do. So over the past 17 years, from the start of construction to today, Gree has been able to survive, integrate into Brazil, and bring brand to the local area. The power is that made in China.
I believe that the Brazilian market will be better in the future, because their quality of life is also rising. They need air-conditioning, but they do not have this spending power. Air-conditioning is where high-end consumer goods. But with the improvement of quality of life, when our products are also When it comes to the needs of the civilian class, the market is huge. We believe that our PV air conditioner will be the most popular here because it does not need electricity. For an average consumer, no electricity means that in future operations. , do not need to increase the cost of consumption.
"21st Century": How do you evaluate the current status of China's manufacturing enterprises 'going out'? What is Gree going out to rely on?
Dong Mingzhu: In the past, Chinese manufacturing companies have actually “walked out” in large numbers, but people do not know that it is China’s own manufacturing, because in the past, they were all branded and produced for others. But now, people gradually realize that China can create a lot of good quality. Products. For example, chairs, domestic often buy some international brands, but these brands are often produced in China.
So I think that Chinese companies should speed up to the world and let more people know about China's manufacturing. Gree’s 'going out' depends on creating new technologies and improving people’s quality of life. I think Chinese companies’ go out , Whether you rely on your brand, the market's recognition of you is also good, and finally play a supporting role is to build with integrity. This may be now entrepreneurs need serious and cool thinking.
Doing cell phone 'play concept' is useless
"21st Century": At present, China and the United States have encountered some frictions in the field of intellectual property, especially in the high-end manufacturing industries. How do you see this friction? How does such an environment affect the business? How should Chinese companies respond?
Dong Mingzhu: I believe that the US launches a trade war and it is actually for its own benefit at some level. But when you hurt someone, it actually hurts yourself. I think it may eventually return. On the basis of respecting others, let's talk about it again. This will make it easier to resolve differences.
Whether it is an American company or a Chinese company, companies must respect each other, and on the basis of mutual respect, they must be resonated. The corporate response is to take the road of independent innovation. Only innovation can change the world. Gree has been taking the path of independent innovation, independent research and development, and the time may be longer. However, we hope to become a creator of true value to society and humanity.
"21st Century": Some people think that Gree still uses the traditional 'manufacturing' thinking to do mobile phones. What do you think of this?
Dong Mingzhu: Mobile phones are always manufactured. It is useless to play with concepts. I think in this era of the Internet, how to build a product based on the needs of consumers is the most important. Many people may use 'quantity' to To measure the mobile phone market, Gree said that it shouldn’t choose to be a mobile phone. The mobile phone is already a Red Sea market, but I don’t think so. With future changes in life, we may have more of this “quality” demand. We cannot Immerse yourself in a virtual world. So, quality is first.
We want to build a smart home that not only guarantees the running quality of household appliances such as air conditioners, but also the needs of future outdoor long-distance connections, the need for connection between people, and the need for connection between people and things. necessary.
"21st Century": After the end of this year's term, will the Yinlong Club be your next stop? Is there a satisfactory successor in your mind?
Dong Mingzhu: At least there is no news at the moment. There is no news that I haven’t thought yet. (Successor) Actually, the satisfaction is not satisfied. I think it may mainly depend on the parties to see whether his or her talents can meet the requirements of the company. , It doesn't depend on me.