How to Cross the Industrial Cycle for the "Capital of Home Appliances in China"

The largest enterprise in the home appliance industry, small home appliances, for Midea, even at a 10% annual growth rate, the development trend will not be too obvious.

The small home appliance industry emphasizes' speed 'and has a short product lifecycle, requiring an extremely flexible enterprise system to adapt. "Zeng Zhanhui said that Xinbao fully empowers employees to work freely, and benefits are directly distributed to the grassroots level.

Xinbao currently has over 2000 product models, with an average lifespan of three to four years for each product. On average, around 700 new products are launched annually, while around 700 old products are phased out. The rapid pace of innovation in the field of small home appliances by Xinbao often makes the bulky and super large home appliance giants unable to keep up.

In Shunde, in addition to Midea, many home appliance companies have also chosen to seize new opportunities and achieve transformation.

In recent years, the new wind has fallen on new energy, "said Zeng Zhanhui. Xinbao has its own judgment on whether to lay out new tracks in the future. Although the ceiling of the small home appliance market is visible, there is still room for growth, and the enterprise still maintains stable growth.

By acquiring Mofei, Xinbao has developed from OEM to brand end; By developing self owned brands such as Dongling and Yum ō ng Tu, we will shift from focusing on export sales to domestic sales.

The home appliance industry has entered a mature track, and transformation is definitely necessary, but I think it is not about changing the track, but increasing the track. "Yan Weijian, the head of the Information Industry Department of the Shunde District Economic Promotion Bureau, believes that small home appliance enterprises like Xinbao, with a billion yuan level, have not entered new tracks such as New Energy, but have chosen to extend to both ends of the industrial chain.

In Yan Weijian's view, Midea's layout in building technology, robotics, new energy and other directions is not only a "new track", but also an extension of the original industrial chain. Building technology is an extension based on air conditioning; Making new energy vehicle parts also relies on having a foundation in home appliances; Even though robots are a completely new field, the existing industry can provide sufficient orders for new businesses.

This is also a testament to the overall approach of Foshan's industrial transformation. In recent years, Foshan has taken new industries such as new energy vehicles, new energy storage, and healthcare as key steps to change the industrial form. However, the development of these industries in Foshan is not "out of thin air", but rather based on its own foundation, positioning itself in the large industrial chain, and continuously strengthening and accumulating momentum.

The "Capital of Home Appliances in China" plans to transform into a "Secret Recipe for Soil Improvement"

In May of this year, another small household appliance enterprise in Shunde, Guangdong Delma Technology Co., Ltd., entered the A-share market.

In the first quarter of this year, Xiaoxiong Electric achieved a revenue of 1.251 billion yuan, a year-on-year increase of 28.07%; The profit was 165 million yuan, a year-on-year increase of 58.27%.

A group of "specialized, refined, and innovative" enterprises such as Delta and Little Bear have been favored by the capital market, reflecting that the small home appliance industry continues to maintain vitality and radiate new vitality.

Over the past 15 years, Little Bear has achieved a compound annual growth rate of 37%, "said Li Yifeng, Chairman of Little Bear Electric Co., Ltd.

Li Junwei, General Manager of Domestic Marketing at Guangdong Delmar Technology Co., Ltd., believes that the world's small home appliance industry is located in China, and China's small home appliance products have begun to lead the world trend.

Yan Weijian stated that Shunde's home appliance industry not only has peaks, but also has highlands. The total amount of household appliances here is large, with a wide range of categories and a complete range of varieties. It is the largest production base for household appliances in China, with over 380 industrial enterprises above designated size.

Why are we rooted in Foshan? Because the Pearl River Delta has the world's most complete supply chain. There are hundreds of parts factories upstream of me, and new products can be produced quickly and updated faster in the Pearl River Delta. "Li Junwei said," Even if some companies move to Southeast Asia and other regions, it is difficult to form a clustering effect like the Pearl River Delta region

As the "home appliance capital of China", Shunde is also seeking to change its "secret recipe for soil improvement".

Building the most friendly manufacturing strong zone is the most important measure to promote the high-quality development of Shunde. "Liu Zhiyong, Deputy Secretary of the Foshan Municipal Party Committee and Secretary of Shunde District Party Committee, said that" the most friendly "means achieving comprehensive" optimization "of various factors. We must strive to create the most suitable soil, ecology, and environment for the development of the manufacturing industry, and promote the formation of a comprehensive development pattern of" grass shrub tree ".

The entire city of Foshan is also continuously promoting the optimization of industrial spatial layout, accelerating the construction of a modern manufacturing system with distinct characteristics, structural optimization, cluster chain formation, excellent quality, and brand recognition. Since the beginning of this year, Foshan has transferred 8470 acres of industrial land to support the development of the real economy. In the first half of the year, industrial investment increased by 35.5%, and the growth rate of industrial added value above designated size reached 7.2%, both ranking among the top in Guangdong Province.

In the first half of this year, Foshan's advanced manufacturing industry grew by 8.4% and high-tech manufacturing industry grew by 7.2%. The innovative enterprise formation in Foshan is steadily growing, with an expected number of high-tech enterprises reaching 10000 by the end of this year.

We are in an era full of uncertainty, and no enterprise can be 100% stable. Only change and change are trends and eternity. Zheng Ke said that only by embracing change, dedicating oneself to innovation, and improving the ability to respond to uncertainty, can we cross the industry cycle and achieve sustainable development.