Xinhua News Agency, Shenzhen, July 19 issue: Gree Dong Mingzhu talks about “Made in Chinaâ€: The phenomenon of “bad money drives out good money†in the market is contained
Xinhua News Agency “Xinhua Viewpoint†reporter Cai Guozhao, Zhou Ke
How to prevent the economy from escaping into reality? How to create a more optimized business environment? How can "Made in China" be transformed and upgraded to "China-made"? A few days ago, the “Xinhua Viewpoint†reporter exclusively interviewed Dong Mingzhu, chairman of Gree Electric.
Talking about the status quo: the phenomenon of "bad money drives out good money" has been curbed
Reporter: How do you view and evaluate the current status of China's manufacturing industry?
Dong Mingzhu: China's manufacturing industry is undergoing a storm and is entering a new phase.
Gree Electric Appliances has two important time nodes: First, it learned the real marketing in 1995; Second, it opened the curtain of technological breakthrough in 2005, and the company began to develop compressors and motors with its own core technologies. Especially in 2012, the thinking of our technical personnel changed, the design concept changed, and more good products were produced. At present, a nearly 10,000 R&D team has also been trained.
Gree is the epitome of the era. "Made in China" from imitation to creation, from formal learning to essential innovation, is undergoing changes that have accumulated over time and subtle changes. In 2016, Gree Electric Appliance realized a net profit of RMB 15.421 billion, an increase of 23.05% over the same period of last year. In the first quarter of this year, the net profit was 4.015 billion yuan, an increase of 27.06% over the same period of last year. These are the dividends brought about by technological breakthroughs. In addition to Gree, there are many outstanding companies in China that are innovating and leading the market.
From the development curve of recent years, the Chinese economy is slowly getting better. In my impression, China’s private investment has been warming this year, and the scale and structure of foreign capital absorption have been stable and improving. Maybe, "winter" is in the past, and we haven't rested in "winter" and accumulated a lot of energy.
Reporter: What trends do you think China's manufacturing industry has and what are the signs?
Dong Mingzhu: "Made in China" achieved a great breakthrough in quality control. For some time, "Made in China" was not well-received in the world. It was caused by the shoddy work of some unscrupulous enterprises, cutting corners, and even inconsistent samples and finished products, affecting the image. Now the phenomenon of “bad money driving away good money†has been contained in the market, and brand awareness and quality consciousness have begun to penetrate into the bone marrow of the company. This is the first good thing.
The second good phenomenon is to follow from lead to lead. What we feel most deeply about manufacturing in these years is that there is no market discourse right for follow-up companies, and they can only fight for prices. Now we are starting to cultivate a market and lead a market. Gree’s R&D direction is to develop technologies that conserve resources, reduce environmental impact, and actually improve the quality of consumer life. From the perspective of the entire country, more and more companies have embarked on the same path.
I remember there was a survey. The Chinese-made products most recognized by consumers 10 years ago were toys, lighters, clothes, and other small commodities. Now they are home appliances, mobile phones, aerospace equipment, and high-speed rails. What this shows is that "Made in China" continues to progress and continues to be high-end. This change is cumulative but it is subversive.
Talking about problems: talent, corporate integrity and technology are the key
Reporter: What do you think is the problem facing "Made in China"?
Dong Mingzhu: First of all, I think it is personnel training. In the process of transformation and upgrading of enterprises, technological innovation is very important, and in order to master the core technologies, the most critical is talent. Talent cultivation is not simply a matter of overpaying, but it also requires the creation of a talented environment for growth.
The second is the entrepreneur's integrity and responsibility. In the past we were a large exporter, but not an exporter. Why? It is because most companies OEM production and make profits. What is an entrepreneur? Not that you own a company is an entrepreneur. A true entrepreneur is a sentimental person. A sense of social responsibility can bring positive energy to social development.
For some time, due to the lack of timely returns on manufacturing transformation and upgrading, some companies have “made a break from realityâ€, some have engaged in real estate out of the main business, and some have merged for story and scale. Of course, I'm not saying that mergers and acquisitions are not good, but many mergers and acquisitions have not brought about an increase in productivity. As responsible Chinese entrepreneurs, we should consider what changes "Made in China" will bring to society and the country. In the past, letting some people get rich first, entrepreneurs should now allow more people to get rich. This is the direction of entrepreneurs and more people living better. This is the responsibility of entrepreneurs.
The other is technical issues. When China did not have a rice cooker before, I had bought it abroad because the rice it cooked was really delicious. This made us see what we lacked, so we worked hard to develop a rice cooker ourselves. For foreign advanced technologies, I am not opposed to buying, but we must stick to our own path and be willing to do something in a challenging and adventurous spirit.
Talk about innovation: innovation should not be subsidized by the government
Reporter: Innovation is one of the most mentioned words in “Made in China†in recent years. How do you see innovation?
Dong Mingzhu: I think the real innovation of the company should be consumer-oriented. Products should be designed and manufactured based on the needs of consumers.
We should not innovate in order to subsidize innovation by the government. Instead, we must innovate according to the needs of the market, users, and customers. For example, air conditioners used to have cool winds on the line, but it is not enough to make users comfortable. This is the first point. The second is to save energy. It is best not to spend a penny with air conditioning. Therefore, we have developed photovoltaic air conditioners sold worldwide. You have unique technology, others do not, this is your innovation. Therefore, innovation is not a follow-up but a breakthrough. It is a challenge to self.
Reporter: How do you understand "Internet +"? You once said that "Ma Yun can't live without me. I left Ma and still live." Why do you say that?
Dong Mingzhu: With the rapid development of information technology, the Internet has become more and more influential to people's work and life. While Gree insisted on promoting the transformation and upgrading of the manufacturing industry, Gree also actively embraced the Internet. Our big data, big data on management systems, and big data on R&D are all based on the Internet. But the internet is just a tool. It can't leave me. I leave it. It's nothing more than a bit of hard work. If there is no product support, everything will be zeroed.
Now that the market is hot, I think sharing is just a marketing model and cannot replace products and replace manufacturing.
Talking about the Future: Intellectual Creation and Integration Are Two Important Directions
Reporter: What do you think is the future direction of "Made in China"?
Dong Mingzhu: "Made in China" has an important direction - intelligence, what supply chain collaboration, flexible production, are included, this is the only way for China's manufacturing industry to change from strong to strong.
You all know that I have invested in Yinlong. Why did I insist on doing this? Because Yinlong is not only an electric car, but also a mobile intelligent terminal, it is an integrated port of the future smart home, and it is an outlet. "Made in China" has another direction, which is integration. In the future, manufacturing should realize the convergence and integration of the entire value chain of processes such as marketing, R&D, supply chain, and production. This kind of integration is a lot of cross-border. For Gree, Yinlong's energy storage technology can help companies open another door. Gree engages in photovoltaic technology and wants to provide consumers with green and economical appliances. Yinlong's advantages in energy storage and energy-saving technologies and Gree's future development have foreseen close correlations.
Reporter: What is the most important thing in this process?
Dong Mingzhu: I think the progress of "Made in China" needs some spirit. We are now lacking the spirit of pursuing perfection in some companies, and even individual companies use techniques such as fraud and patent infringement to deceive consumers in pursuit of short-term interests. This affects not only the company itself, but also the image and development prospects of the industry. "Made in China" may have no shortage of items, and it lacks the spirit of craftsmanship. As long as the details and links are completed bit by bit, it will be a big leap to accumulate.
There is also a question of starting point and feelings. Many companies now want to see good things, but each industry has a process of survival of the fittest. To make money to do a certain project, the chance of dying will be great because it is too utilitarian; The starting point for doing this project will have lasting momentum and it may succeed. As long as everyone in China is willing to create and is willing to put the country first, our country will be strong.
The challenge is endless, innovation is endless, and the transition can not be completed with a few slogans. In order to dream to change the world, you have the power to never finish. China also needs more skilled craftsmen to create more satisfying products for consumers.
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