Chapter 8 〇7. Galanz: From "making fast food" to "making old soup"

Seven years ago, the scepter of Galanz was passed from his father Liang Qingde to his son Liang Zhaoxian.The high-spirited "Brother Xian" obviously doesn't want to enjoy the shade under his father's tree.At the beginning of taking office, he announced his ambition: spend a huge sum of 2 billion yuan to enter the air-conditioning industry, and strive to become the world's number one in production and sales within 3 to 5 years. Seven years later, the air-conditioning production base built by Galanz with an investment of 2 billion yuan in Zhongshan has already stood tall, but it is still far away from the second world number one goal promised by Liang Zhaoxian.Facts have proved that simply cloning the "scale advantage" model of microwave ovens to the marketing of air conditioners is unsuccessful.

An invincible "butcher's knife" obviously cannot be called a "butcher's knife". A monopoly that cannot enjoy monopoly profits is obviously not the monopoly that people expect.In the special "generation and a half" period, Galanz is facing the problem of where to go. In 2006, Yu Yaochang, who once called himself "a mouth of Galanz", faded out of Galanz "because of family reasons".People suddenly discovered that Yu Yaochang's long-term theory of value destruction is coming to an end forever with Yu's departure. The 41-year-old Marshal Liang Zhaoxian started his own arduous search at the helm of a giant manufacturing company with a history of 29 years.

"Reconstruct the channel, reshape the brand, and realize the strategic transfer from 'world factory' to 'world brand'." On March 28, 2007, Galanz Dealer Annual Meeting, Liang Zhaoxian expressed his own solution to the problem . "We used to 'make fast food', but now we want to 'cook old soup'." Easier said than done, how difficult is this strategic change?Liang Zhaoxian counted his fingers and said to the reporter: "It really affects the whole body. It is not easy to be this home, and it is even more difficult to change this home. Galanz microwave ovens spend as much as 140 million yuan a year as gifts, and they are shipped from Shunde to all parts of the country. 20 million yuan; there are 9,000 promoters all over the country, and the salary and bonus are another 200 million yuan..."

It is commendable to have the courage to overthrow the successful experience and path of the past.However, it is more the reality of Galanz that forced it to brainwash up and down and enter a difficult transition period.Changed from the long-standing price war strategy of adapting to all changes, and embarked on a strategic innovation stage of adapting to all changes. In 1992, the 55-year-old founder Liang Qingde led Galanz into the microwave oven industry. Three years later, Galanz achieved the number one sales of microwave ovens in China, and became the number one in the world in 1998.Since then, the market share of Galanz microwave ovens has once been as high as 70%, and it is still stable at more than 50%.

As expected, Galanz monopolized the market, but Galanz did not enjoy the huge profits formed by the monopoly. At one time, each microwave oven only made a profit of 50 cents (Yu Yaochang's language). To explore the mystery of Galanz's low profit, we must first start with its core theory.The Galanz model was born out of Yu Yaochang's value destruction theory.Yu Yaochang believes that the safety factor of Chinese enterprises is relatively low. Only by repeatedly using price wars to completely destroy the value of industrial investment and make others unwilling to enter can the safety of enterprises be guaranteed.Under the guidance of this theory, Galanz has repeatedly launched price wars, and even got the title of "price butcher".However, when Galanz destroyed the investment value of others, it also pushed itself into a corner and cut off its own source of income.As a result, Galanz's market share has increased, but its profits have continued to decline.

Another important reason for Galanz's low profit is that its technological innovation capability is weak and it is difficult to lead major changes in the industry.Although Galanz has made many improvements in the microwave oven, they are all minor improvements within the framework of the original technology.Because there is no unique major breakthrough in technology, it is difficult to set a monopoly threshold despite having a monopoly position. Once the price rises, many peeping stalkers can quickly enter the market. In June 2000, when Liang Zhaoxian took over, the ceiling of Galanz was more than that.On the one hand, Galanz has been wrestling with South Korea's old rival LG for many years, but still cannot eliminate it. Instead, its city rival Midea tore apart Galanz's "defense line" that has been defending for many years.On the other hand, after the annual production capacity of Galanz has increased to 15 million units, it is already close to the limit, and there is not much room for further improvement.

On September 20, 2000, Galanz announced its entry into the air-conditioning industry, and threatened that Galanz's air-conditioning output would reach 8 million sets within three years.This is the boldest decision of Liang Zhaoxian who just took over the scepter.At that time, apart from Liang Zhaoxian himself, almost no one in Galanz agreed, and Liang Qingde also felt that the risk was too great.However, Liang Zhaoxian's military order impressed his father: make the air conditioner the world's number one. There are three main reasons why Liang Zhaoxian made such a "bet": first, the huge profit margin of the air-conditioning industry. In 2000, the net profit of the air-conditioning industry was as high as 20% to 30%, while the gross profit of microwave ovens was only 3%; In the traditional standard industry, low-cost manufacturing is Galanz's strong point; third, the market share of the top three in the air-conditioning industry was far below 30%, which provided opportunities for new entrants to rise.

In October 2000, four months after Liang Zhaoxian took office, Galanz's first air conditioner rolled off the production line, which shows its vigorous and resolute style.The sales volume of Galanz air conditioners in the Chinese market reached 270,000 units in the first year.This made the air-conditioning giants who were quite disdainful of the microwave oven champion quickly feel threatened. However, this fierce "Galanz whirlwind" did not clear all obstacles on the way forward as Liang Zhaoxian wished. Entering 2001, air-conditioning companies began to set off price cuts.Changhong, TCL, and Duckling are also aggressively entering the air-conditioning industry.The large-scale entry of capital quickly pulled the air-conditioning industry into the era of meager profits.Galanz, which has not yet established a scale advantage, is powerless in the face of sudden changes.Galanz, which is used to proactively launching price wars, obviously lacks experience in passively responding to price wars.

In order to achieve large-scale production, at the end of 2003, Liang Zhaoxian decided to invest 2 billion yuan to establish the world's largest air-conditioning production base, intending to monopolize the air-conditioning market like he monopolizes the microwave oven market. On May 20, 2005, the first phase of the project was completed.Facing the production base that bet almost all of his family fortune, Liang Zhaoxian admitted frankly that he was "fighting for his life". At this time, the environment of the air-conditioning industry has changed, and it is no longer the scene when Liang Zhaoxian announced his entry into the air-conditioning industry.In fact, the entire domestic air-conditioning industry is already in a state of overcapacity and has fallen into an overall predicament.

In 2006, Galanz sold about 3.8 million units of air conditioners at home and abroad, a year-on-year increase of 30% compared with 2005, but the domestic sales were only about 1.3 million units, far from Galanz's goal.Facts have proved that simply cloning the "scale advantage" model of microwave ovens to the marketing of air conditioners is unsuccessful. Although Liang Zhaoxian said that the meager profit model is still the foundation of Galanz's insistence.For the air-conditioning industry with overall overcapacity, it is obvious that Galanz will not be the only one making meager profits. Around 2005, Galanz began to build the mid-to-high-end image of Galanz air conditioners, and successively launched light wave air conditioners and color air conditioners.However, since these two innovations are not exclusive, many air conditioner manufacturers quickly followed up.The dream of Galanz air conditioner differentiation has come to nothing.

With a wave of the butcher's knife, mourners are everywhere.Galanz's low-price strategy was once invincible and earned itself the title of "price butcher".However, the lethality formed by the low price also obscured the eyes of Galanz people.For many years, Galanz has never placed hard advertisements, and even CCTV has never appeared Galanz advertisements.For a tens of billions of enterprises, this cannot but be said to be a miracle. In Galanz's marketing dictionary, low price seems to be the only word.Low price, low price, low price, Galanz wins.Therefore, all resources of Galanz are tilted towards low cost, and even its "ascetic monk" culture that has been formed for many years also reveals the taste of low cost. The high admiration for low prices and the disregard for other marketing methods make Galanz's marketing level "10 years behind the industry". Galanz air-conditioning first adopted the provincial general agency system, and later the network was refined and developed into a regional agency system, but it has not been able to meet the expectations of the headquarters in terms of the loyalty of dealers and the penetration ability of channels.After that, Galanz once put its hope in Gome, Suning and other chain stores, but the sales in the stores were not satisfactory. This ever-changing marketing strategy conclusively shows that Galanz is swaying left and right in its marketing thinking.Until 2005, a brand-new marketing model entered Liang Zhaoxian's field of vision - establishing a joint venture or a wholly-owned sales company.This is the prototype of the joint venture holding subsidiary that Galanz is currently promoting. On August 23, 2006, at the Galanz Distributor Conference held on this day, Liang Zhaoxian officially announced that Galanz would rebuild its marketing channels and establish joint venture holding subsidiaries with local distributors.At this meeting, Galanz identified 14 pilot provinces and cities. Three months later, 35-year-old Han Wei suddenly became the general manager of Galanz Electric China Sales Corporation, leading the reform in an all-round way. As a leader in the Chinese market with annual sales of more than 7 billion yuan, Han Wei was once the Purchasing Director of Carrefour, and was one of the earliest senior purchasers in the Chinese chain industry.Han Wei, who was born in the retail industry, is very clear about the requirements and expectations of retail companies, including chain stores, for manufacturers.For Galanz, which has no other weapon other than the "price butcher's knife", Han Wei, who "instigated rebellion" from across the negotiating table, will undoubtedly give Galanz more confidence and confidence. In August 2004, at the invitation of Liang Zhaoxian, Han Wei joined Galanz.When he first joined Galanz, Han Wei put forward the concept of establishing eight sub-warehouses, intending to move the sales platform forward.Although it was not implemented in the end, the concept of moving the sales platform forward took root in Galanz. After two years of exploration, it finally evolved into the current joint venture holding subsidiary. Han Wei successively served as KA Director of Galanz Sales Company, General Manager of Small Appliances Sales Division, and General Manager of Microwave Oven Sales Company.Two years of triple jumping and finally taking charge of the handsome seal of Galanz China Sales Headquarters, it can be seen that he is very important in Liang Zhaoxian's mind. In the past, Galanz, like many Chinese companies, pursued top-down "promoting marketing" in the Chinese market. There was only the "locomotive" of the headquarters, and the marketing centers in all regions had to report to the headquarters, wait for policies, and ask for resources.In the industrial chain, it is manifested that manufacturing power drives purchasing power and channel power. In this "locomotive" management model, power, pressure and motivation are all concentrated in the "engine".This highly centralized model played a big role in the initial stage of the company's positioning as a "world factory". However, with the expansion of the scale of the enterprise, the radius of management is getting longer and longer, and the pressure and resistance encountered by the power system of the "locomotive" in the process of advancement are increasing. It is necessary to maintain the continuous and rapid development of the enterprise and the industrial chain , a new source of power must be discovered. In November 2006, Galanz announced the integration of the three major industrial brands, channels and human resources advantages of microwave ovens, air conditioners and small household appliances, and established the China Sales Corporation.Galanz China Sales Corporation has four functional departments under the jurisdiction of planning, sales, terminals, and operations, and concentrates on all aspects of the three major industries of microwave ovens, air conditioners, and small household appliances. Han Wei said, “The strategy committee of Galanz Group has been thinking about the establishment of the sales head office since 2005, and it was originally planned to be implemented in 2007. Since the entire marketing system is very clear, the human resources of the four major functional departments of the headquarters are also fully prepared. , so it was listed a few months earlier than expected.” Under the guidance of the China Sales Corporation, Galanz's subsidiaries in various places have put more emphasis on self-operation capabilities, and have a considerable degree of authority over human, financial, and material management, which makes every marketing link a driving force for Galanz to move forward. . In 2006, Galanz microwave ovens spent 140 million yuan on gifts, and another 20 million yuan was spent on transporting them from Shunde to all parts of the country.At the same time, Galanz has 9,000 promoters across the country, including wages, insurance and bonuses, and the annual cost is as high as 200 million. Due to the implementation of remote management, Han Wei has no way of monitoring the real performance of the promoters: "If a promoter says what his sales performance is in a certain store in Gome for a month, I can find out from Gome's system whether it is true or not. True. But if he said how many units of Galanz products were sold at a retail outlet in a certain county in a certain month, I have no idea at all, and I can’t monitor it.” Obviously, this annual expenditure of 200 million yuan , is a confused account that cannot be accurately managed. "This kind of waste is intolerable for manufacturing companies with meager profits!" The solution given by Han Wei is to change remote management to territorial management. "At least 20 million yuan in gift transportation costs have been saved! The confused account of the promoters in the past can also be calculated more clearly, at least there will not be as much waste as before!" Han Wei said. The price difference is divided by many things now.In the past 10 yuan products, Galanz may have used two yuan for territorial services, but because of remote management, the two yuan spent may only play the role of one yuan. After the establishment of the joint venture company, the two yuan was given to the subsidiary company, and the subsidiary company distributed it according to the actual situation of each place.What is certain is that due to better understanding of market conditions, the subsidiary company may spend less than one yuan to do things that cost two yuan to do better than before.This saved cost has become one of the subsidiaries' profit sources. In fact, the saving of sales expenses is just icing on the cake for Han Wei.What he really cares about is the promotion of sales performance by the joint venture holding subsidiary model. "In the past, Galanz's market was extensive. After the establishment of the subsidiary, the sales platform moved forward, allowing Galanz to have a platform to deeply cultivate the market." Galanz's original system of branches and offices governing dealers obviously cannot carry the mission of territorial management.For Galanz, which is in urgent need of a breakthrough, channel reform is already imminent.After the news of implementing a joint venture holding subsidiary came out, many dealers of Galanz were eager to try. In October 2006, Galanz's first joint venture holding subsidiary, Sichuan Galanz Sales Company, was formally established, and quickly set off an upsurge in establishing a joint venture company. As of March 28, 2007, Galanz has established 52 subsidiaries across the country.Among them, 8 are joint ventures established with the original distributors, and the general managers are all held by distributors; the remaining 44 are wholly-owned subsidiaries of Galanz, and the general managers are selected from Galanz sales staff.Starting from 2007, through these 52 flexible tentacles penetrating the market, Galanz will strive to determine 1,000 brand bases, weave a wide, deep and dense marketing network, create incremental points for brand sales, and establish 1,000 brand franchise stores. Support 1000 distribution outlets. At present, Galanz has invested more than 120 million yuan in eight joint ventures.Obviously, such a generous investment must have extraordinary expectations for performance growth.The basic target set by Han Wei for the Chinese market of Galanz is to increase microwave ovens by 50% and small appliances by 100%.In the previous few years, the average growth rate of microwave ovens was only 15%.In order to ensure that all subsidiaries, especially joint venture holding subsidiaries, can be ordered and prohibited, Han Wei even wrote the number of brand franchise stores to be opened into the contract with the joint venture holding subsidiary. Fuzhou Galanz, led by Lin Jianhua, is the only one among all eight joint ventures that Galanz does not have an absolute shareholding in.He and Galanz each hold 35% of the shares in the joint venture company, and the remaining 30% is held by the former distributor of Galanz small household appliances in Fuzhou. After hearing the news that Fuzhou Galanz Sales Company will be established soon, Lin Jianhua immediately expressed his intention of cooperation. "Once I set up a sales company, my agency qualification will definitely be revoked. After so many years of hard work, I have laid the market foundation for Galanz microwave ovens in Fuzhou. There is no reason to give up it. What's more, Galanz is a big company with more than 10 billion yuan. The company dares to invest money in it, so why should I be afraid of a small business with tens of millions of yuan a year!" Lin Jianhua has cooperated with Galanz for 10 years and has been responsible for the sales of Galanz microwave ovens.As a powerful home appliance dealer in Fuzhou, Lin Jianhua handles more than a hundred branded home appliances. Even now, he still holds the agency rights of several well-known brands, with annual sales reaching tens of millions of yuan.However, Lin Jianhua's long-term dealer career has made Lin Jianhua love and hate brand companies: "If the market is not doing well, it will definitely be replaced; if the market is doing well, it may still be replaced." Lin Jianhua once personally experienced a good market being replaced.At that time, Lin Jianhua had finally completed the market cultivation and was about to enter the harvest period. As a result, the regional manager of the manufacturer in charge of the Fuzhou market made trouble and asked one of his relatives to take over the Fuzhou market, while he sat behind the scenes to enjoy the benefits.Lin Jianhua's sense of security was eroded time and time again. Since then, Lin Jianhua had no choice but to sit on the home appliance channel in the Fuzhou market and become a tyrant fighting against many brands: he could neither do too well nor do too badly; neither could he devote all his channel resources unreservedly , and must ensure that the brand in their hands can generate sufficient profits. A solid brand, a solid agent.In this way, on the dangerous balance beam, Lin Jianhua worked cautiously for many years and formed his relatively stable brand agent qualification.However, after having the agency right, Lin Jianhua's business wisdom is always tested in the specific business work. "Generally speaking, manufacturers will have a unified requirement for retail prices, and the profit margin left by manufacturers to first-level agents is only about 10% of the purchase price." Lin Jianhua We calculated an account carefully: the tax is two Points, two points for staff salaries, two points for warehouse rent, plus operating expenses and capital costs, the total cost of the agent needs about 8 to 10 points.Don't engage in crooked ways, tax evasion and tax evasion, dealers can only count on that little year-end rebate.Once the task is not completed, the agent may also pay back. "Manufacturers only calculate their own costs, but they don't calculate the costs of agents, or they don't bother to calculate them." However, after the salesman of the manufacturer has delivered the goods and received the commission, he may slip away or be transferred to another position. The new staff will not accept the empty checks for promotional support issued by their predecessors in 99%.Therefore, although there is a supply contract signed between the headquarters of the hypermarket and the headquarters of the manufacturer, the specific distributors have to raise the delivery price in order to maintain their livelihood, and even refuse to supply the hypermarket. Immediately afterwards, Lin Jianhua calculated another account for the joint venture company: under normal circumstances, there is a difference of 30 to 40 points between the production cost of the product and the price for the first-level distributors, which is mainly marketing costs, including promotional costs. Staff salaries and promotional items, as well as sales commissions, etc.After the joint venture, the subsidiary obtained Galanz's products at a transfer price, which is definitely cheaper than the original distribution price. At the same time, some market support allocated by Galanz according to the sales amount can be used more fully than before.The cost saved becomes the subsidiary's profit.And because we only concentrate on making products of one brand, we will undoubtedly intensively cultivate the regional market, and the increase in sales is naturally a reasonable thing.Whether it is from the perspective of sharing the future growth of the Galanz brand or the current profit of the company, Lin Jianhua feels that it is better than before. He admitted that he had considered finding a trader to be in charge of the sales of other brands in his hands, and devoted himself to Galanz.But after careful consideration, Lin Jianhua decided to give up completely: "The core channel resources are all in my hands, and it is difficult for traders to carry out their work. Once they do not do well, it will inevitably involve my energy. But I will definitely not be able to divide my energy into Galanz. Focus on the original business. Since you are not sure to do it well, it is better not to do it at all!" In December 2006, Lin Jianhua, Galanz and Fuzhou Xinrongbai, an agent of Galanz small household appliances, invested a total of 20 million yuan to establish Fuzhou Galanz Sales Company according to the shareholding ratio.At this time, it was less than two months before Lin Jianhua and Galanz officially started joint venture negotiations.The 35% shareholding with Galanz is the harvest of Lin Jianhua, an "early bird".In subsequent joint ventures, Galanz has insisted on the principle of owning 51% of the shares. Since the establishment of the subsidiary, the sales volume of Galanz microwave ovens in Fuzhou market alone has exceeded 20 million yuan, more than doubling the sales volume from April to December 2006. "It is not a problem for Fuzhou Galanz's sales to exceed 100 million yuan this year!" Lin Jianhua is full of confidence in the future and the joint venture. When the imprint of the price war gradually faded from the true nature of the Galanz logo.For the leaders of Galanz, how to fill the resulting gap in the connotation of the Galanz brand is a top priority at the moment. In October 2006, Galanz announced to form a strategic partnership with CCTV, aiming at more than 50 million microwave oven users in China, making every effort to create a microwave food program of "Delicious China · Table for Three".Liang Zhaoxian, who has always been low-key, appeared at the signing ceremony, because Galanz officially launched the strategy of "a century-old enterprise·world brand" from this event. Liang Zhaoxian said: "The general environment has changed, and the development ideas and strategies of enterprises must also change. If we simply base ourselves on the 'world factory', our competitiveness will gradually disappear." As a trader in the Chinese market, Han Wei considers how to implement this strategy into action.He believes that whether the way of looking at and obtaining quality can be changed will determine whether the Galanz brand can be improved as desired. During the market research, he discovered a strange phenomenon: Many consumers believe that the products that Galanz manufactures for some big brands are of better quality than the products of Galanz’s own brand!After analysis, Han Wei believes that, apart from the brand advantages of the big brands themselves, the real reason lies in the service quality provided by the big brands. "In the past, Galanz people only understood the quality as the functional quality of the product itself, such as whether the parts of the product are strong, whether it is safe to use, whether it is durable, etc. In fact, quality should be divided into two latitudes: tangible and intangible. Understand. The tangible quality is the quality of the product itself, and Galanz still needs to be further improved; the intangible quality is the service quality, and Galanz still has too many lessons to make up for in this regard. We launched a joint venture holding subsidiary this time to make Galanz People can be closer to consumers, so as to provide satisfactory services to consumers in the first time." In recent years, Galanz's annual technology investment has remained at a level of more than 3% of annual sales, and the focus of sales in the entire market has shifted to mid-to-high end. "From last year to this year, our R&D funds have more than doubled. In terms of R&D team building, we also pay more attention to the internationalization of talent structure." Liang Zhaoxian told us.Now Galanz's chief technology officer is a Korean who once worked for Samsung. At the annual meeting of the Chinese market on March 28, Han Wei also clearly announced: "Under the guiding ideology of brand promotion and value return, Galanz will continue to launch innovative products with world-leading levels, and continue to adopt a mid-to-high-end price strategy. .” This can be seen as a public declaration by Galanz to abandon the price war and reshape the brand image. At present, Galanz's overall market share in the domestic microwave oven market is 57.6%. "In the past, it was an advantage in quantity, concentrated in the middle and low-end, but now the situation is different." Han Wei introduced that in this year's product structure, mid-to-high-end products above 700 yuan accounted for 75%, an increase of 10% over last year. "Last year's mid-to-high-end products are already mid-range or even low-end products this year." "The basic guiding ideology of Galanz's work in 2007 is: first, pay attention to consumption, create demand, and take healthy, energy-saving and environmentally friendly products as the main products in 2007. Influential air-conditioning products. Again, the pursuit of maximizing the market and strengthening channels.” Han Wei said, “The development of the home appliance industry has been very mature, and it is difficult to gain a foothold in the market by relying on the previous scale and price weapons to focus on demand. Focusing on brand management driven by research and development is the general trend of Galanz's future development, and it is also the truth of Galanz's transformation that has been suspected." Han Wei revealed that in the next two to three years, Galanz will further integrate the technical strength of the headquarters and foreign professional scientific research institutions such as the United States and South Korea, and develop more high-quality and efficient products to enhance brand competitiveness. It is understood that Galanz's latest light-wave air-conditioning products such as "Three Fresh Winds of Light Waves" are the first to adopt the smart sliding cover retractable air outlet design, which combines the two major air conditioners of Galanz "smart fresh air exchange" and "high-efficiency light wave sterilization" pioneered in China. Health technology, unique multimedia digital function, powerful sterilization, two-color early warning, intelligent healthy ventilation system, up to the national first-level energy efficiency standard, is the top product in the air-conditioning industry at present. The establishment of the subsidiary means that Galanz's marketing platform has successfully moved forward, and its tentacles that penetrate into the front line of the market will capture market information more keenly. In recent years, with the intensification of competition in the home appliance industry, coupled with the soaring prices of raw materials, the market environment has been unprecedentedly harsh, the industry has reshuffled and entered the fast lane, and home appliance companies that have been shut down, stopped, merged, and transferred have emerged one after another. This has made many brands promise to the society The warranty service has become a dead letter. From 2000 to 2006, more than 70 brands successively withdrew from the air conditioner market, including Leroy, Yingyan, Macro, Toyo Denki and other once well-known brands, which also closed down or stopped production, making their air conditioner after-sales service completely disappear. Although the state has relevant regulations, the operator shall be responsible for repairing, replacing or returning the goods stipulated by the state or agreed by the operator and the consumer to repair, replace or return the goods, but in the event that the manufacturer terminates its relevant business, Even if the repair ability of the retailer is high enough, it is impossible to obtain the corresponding parts from the manufacturer that has withdrawn from the market. Not long ago, Galanz announced that with any brand of problematic air conditioners, consumers can buy light wave air conditioners at a discount of 200 to 600 yuan; The maintenance cost is charged according to the unified standard of private brands. With this move, Galanz has successfully created an image of a corporate citizen with a sense of social responsibility. In 2006, Galanz opened a nationwide unified service telephone line, and also promised door-to-door maintenance of small household appliances.At present, most of the domestic small household appliance market takes selling products as the ultimate goal, and simply disdains to do thankless after-sales service.Galanz's commitment to door-to-door maintenance will undoubtedly quickly establish its own high-quality and differentiated image. In Han Wei’s view, service will become the key force for enterprises to win in the future: “Many people now think that the profit of small household appliances is very high. In fact, I think the profit is low. In the past, service fees were reserved in the profits of small household appliances. , Now everyone doesn’t do services, so they feel that the profit is high. But in the future, the service quality of the enterprise will determine the production capacity of the enterprise. The level of service can be achieved, and the level of production capacity can be improved.” The way of life determines the future of the company, which can be verified from the development trajectory of Galanz: it is not its founder Liang Qingde, nor the "one mouth" Yu Yaochang of Galanz that really forms the image of Galanz as a "price butcher", but the objective presence in the market consumer demand for low-priced products. When Liang Qingde founded Galanz, "Made in China" was booming. Without advanced technology and dazzling brands, "Made in China" had extremely low production costs in the world.At that time, because most of the global market was still in an extremely unsaturated state of product quantity, large-scale "Made in China" was able to quickly occupy the market with ultra-low prices. As the representative and ultimate of "Made in China", Galanz has reached a height beyond the reach of most "Made in China".Through OEM, Galanz has launched comprehensive cooperation with more than 200 multinational companies in the world, and has carried out all-round cloning from production equipment, supporting devices, production technology and other aspects.Not only in the field of microwave ovens, but also in the fields of air conditioners and small household appliances, this model allows Galanz to integrate global productivity at extremely low cost, forming a virtuous low-cost cycle. Due to the long-term price war as the only means to expand the market, Galanz conveyed an isolated low-price image to the customer group.Other than that, there is hardly anything for customers to linger on.Many customers just buy a cheap microwave oven, and it doesn't matter what brand it is. However, the market situation has changed significantly now: when the number of products tends to be saturated, the pursuit of product quality in the global market has been raised to a considerable height.The concept of quality here, as Han Wei said, includes product quality and service quality.Even Yu Yaochang, who played up the image of Galanz as a "price butcher", realized that the era of relying on "one-and-a-half tricks to hit the market" has passed, and now it has entered an era of systemic competition, especially organizational competition. Judging from the message sent by Han Wei, Galanz should have found the right direction of efforts.After Liang Zhaoxian's effort to create another air-conditioning world champion was not at the right time, this time, Galanz should be able to come at the right time.