Sunday, January 15, 2012

Dialogue JinLi chairman LiuLiRong: core competitiveness three elements

In the domestic mobile cellphone market ii governors, JinLi communication equipment Co., LTD. The chairman LiuLiRong described his "no opponent, only example".
An example of the power is infinite, but in communication this every few years and "king of ChengTou transform flag" field, the example is the change from time to time. For example, LiuLiRong I first years very valued nokia (the Po), and now although also be see "jobs zhuan" (the Po), but he said, now the main study example is samsung (the Po).
Whether samsung or nokia, a common is: are the largest global shipments at that time mobile phone manufacturer, is comprehensive and complete coverage of product line. This is also has become domestic handset sales of the first JinLi company, with similar.
In the interview process, the rise of the JinLiTian LiuLiRong took out for cell phones and reporters with ancient iphone4 apple mobile phone began to do more. "Photographing result shows that our better." LiuLiRong said, "apple started more touch technology, apply it on hand, combined with the 3 G mobile experience, through the Internet to mobile phone this social very convenient very comfortable, but now, apple has been behind The Times."
"If you don't do manufacturing, especially the core manufacturing, it will be difficult to manage OEM industry, and the core of the product quality, also not good to go for the industrial chain of resources integration, and reduce the cost. Will also affect the enterprise integrated innovation and the company the sensitivity to the market confidence." LiuLiRong so explain the whole industry chain JinLi layout.
In fact, as a local grassroots phone representatives of growth power, the success of the mobile phone JinLi genes, in domestic other industry also has similar shadow.
"The core competitiveness of the enterprise can be said to be covered in any of the enterprise. But whether can keep full passion? Whether to have the efficiency of the competitors? Beyond have the adaptability of the innovation based on the enterprise in the industry? Good individual character, will eventually become the winner, depends on the 'three whether'." LiuLiRong think, JinLi in keeping workers passion, reflect efficiency and the enterprise has the ability to adapt to, are pretty good.
In the mobile Internet era, as the end of a mobile phone, the speed of change or eliminated speed will be faster. China mobile phone industry and past the story of the rise and decline of ups and downs in warned, "first" and not glory, but more challenges. JinLi is you will be given a included in the international business school's classic successful cases, and is repeated previous domestic handset boss track?
To this, LiuLiRong keep enough careful with full thinking, whether in its own competitive power, or in international, capitalization strategic layout, he move slow, in his words, "future JinLi realize, in the brand construction shift toward comprehensive mobile phone brand layout, and to provide mobile products manufacturers and service providers terminal shift."
Scale determinism
The 21 century ": founded in 2002, to 2003 completed the research and development, sales of building, brand promotion and set up a market, and five thing. And then to global shipments in 2011 more than 25 million sets, as the open market and overseas market share the biggest local ODM mobile phone manufacturers. The company rapid development is the acquisition of??????? This year in smart phones and how field layout?
LiuLiRong: JinLi positioning is always not do segments of the market, but for more extensive consumer groups. 2010 roll out "lotus pond" series of mobile phone and 2011 roll out smart phones, is the reflection of the location.
Our initial product more masculine, business model, lack of young, trendy factors. 2010 roll out "lotus pond" series is to cover people with more wide some, so with a young, fashion, music and entertainment feature, location turn even more women. This series of promotion in the influence of the good, to brand also have pretty good ascension.
But "lotus pond" series or in the traditional orientation 2 G products. In 2011, we began to overall layout smart phones. In December 2011, launched three paragraphs smart phones, sales in short supply. In January 2012 it will then push to four of smart phones. JinLi smartphone product line in the business people from "day jian" series to the young people to "e-life" series, will cover from the entry level to the flagship series as a whole.
The 21 century ": product type so many back, you on research into how many?
LiuLiRong: except in marketing costs, improving inputs, we in the research and development on the input and too little.
Now r&d has formed a few parts, besides application development, intelligence research and development team, and integration of the layout of the content and Internet team personnel to add has 7800 people.
The 21 century ": specific for research and development spending total input probably how many? In the sales revenue accounts for how much is probably in than?
LiuLiRong: research and development of sales more than actually is not a good index. Our main concern is the total investment, or in industry total input inside, r&d efficiency of rankings. Apple $billions a year sales, its research and development expenses than of is very low; And a lot of the old Chinese state-owned enterprises, research and development costs a lot of, a little bit of sales, accounting for more than high, but have no meaning.
In fact, JinLi now hope to realize more change. In the brand construction on comprehensive mobile cellphone brand toward layout, will want to move products manufacturers and service providers of terminal transformation.
The 21 century ": two or three years ago you very praise highly nokia, you will now begin to learn which one? An apple or samsung?
LiuLiRong: first nokia is comprehensive brand, from high to low full coverage. And now all the cover of the best is samsung, not nokia. So I will learn to samsung in English.
The future mobile phone market will be more focused, scale will is the decisive factor of enterprise survival state. Only keep large shipments scale, to the industrial chain in position, and finally realize the scale benefits. In the mobile Internet times, early by industry chain will each component of education and training to complete the market of the task, but with the market is mature, industrial chain each link from fusion to return to the division, cloud, tubes, the function will be more clear and focus.
Samsung is we study example, catch up from target. We with samsung also have very good cooperation, this year's cooperation should be more than $300 million, mainly in the raw materials of cooperation.
The brand is the amplifier
The 21 century ": you said the scale of the determinism, I think of two other company, one is byd, the other is a li ning, they all previous years because the scale of the channel expansion in last year with some degree of crisis. How are you watching?
LiuLiRong: I think with their sales channel no relationship. The core of and the product itself. For manufacturing corporations, no matter which a field, the core is only one, the product.
If the product itself is good, sales scale and channels are be compelled the expansion. Enterprise still have to depend on product to talk.
And the costumes of the user experience with cell phones experience is not the same. Clothing user experience is more of a perceptual, consumption is not the product itself, is more of a symbol. And mobile phones is a standard can be quantified, such as photographic clarity, data, 5 million pixels and 3 million, difference is very big.
The 21 century ": but like many mobile phones, make high-end brand, also is to have specific people like to use, feel is a symbol of status. In the brand shaping, do you have any idea?
LiuLiRong: JinLi want to do is mainly for consumers to provide cost-effective products, the product itself only
Is the core.
The brand is not you to talk of consumer means and tool, the brand is an enterprise engaged in the consumers' mind precipitation a result. Is not a spokesperson for advertising, please, your brand came out.
In addition, the expansion of the brand, propaganda is amplifier, the better product, the better the amplifier; The product is bad to also give you amplification. Otherwise is perfected, otherwise is down. I do the concept of product, it is to make a durable consumer goods, smart phones will also make it after this pattern.
"The three whether" the success or failure of the set
The 21 century ": do you think the core competencies of the company have? Rapid development of what be the reason?
LiuLiRong: I understand the so-called core competitiveness, and is compared with competitors, you have different, or superior to rival of things and you and competitors in different and superior to keep the enterprise management's sustainable.
Whether can keep full passion? Whether to have beyond the efficiency of the competition? Whether to have the adaptability of based on innovation? Good at the enterprise in the industry for individuals, will eventually become the winner, depends on the "three whether". JinLi in keeping workers passion, reflect efficiency and the enterprise has the ability to adapt to, are pretty good.
The 21 century ": how to do it?
LiuLiRong: first of all, except in the system of the design compare human nature, flexibility, we also through authorized and benefit sharing, let the company management team and ordinary employees rich work passion at the same time, also let employees wastage rate is very low.
Benefit sharing this, in the ordinary employees, according to the employee contribution and shareholders to share profits, is the bonus, this bonus can also shares the company, we are thus alone has set up a WaiPan, different from the registered capital stock. In the left the company, can take away. In addition a mechanism for executives, backbone, through the equity dilution, or shareholders quotas, which can be a real company shareholders, with original shareholders' rights.
And two is efficiency and adaptability. Samsung is a good explanation.
Apple started more touch technology, apply it on hand, combined with the 3 G mobile experience to the Internet, through the phone this social be comfortable, but has now been behind The Times.
We look back, in a scene of apple, meanwhile, nokia, samsung, MOTOROLA (the Po) and so on also scrambling to pursue it. To now, like samsung now products can say is the comprehensive beyond the apple. Why? Is the will of the identity after samsung, quickly adapt to the change of the market and constantly high efficiency to produce new products, quickly at the market.
The reasons behind the??? What???
And apple one or two years and a machine, it is just kind of crowd, "pink". Apple is equivalent to the invention of gunpowder, invented the multi-point touch technology, a mobile phone completely changed, in others to make before has not kept pace with so much money is also should. But now apple has already behind The Times.
The 21 century ": efficiency and adaptability, how do you do it?
LiuLiRong: with smart cellphone, for example, we saw is the direction of development, but my products listed fast.
With nokia and samsung, for example, they also saw the outbreak of smart phones, but nokia and samsung's performance is not the same. Nokia now just come out a model, and samsung all smart phones on the market has been making a lot of money.
High efficiency, is also a reason behind. In JinLi culture, products, were not only the product planning or research and development department separate things, but based on mechanism, the culture of flexibility on, everyone can be a part of the decision.
The 21 century ": do you think that the factors are derived from where?
LiuLiRong: we were always emphasize that, the internal operation as the form of small companies, keep the passion of startups and flexible.
We make decisions, not only in small range high internal discussion, even I can and the employee's direct exchange gain enlightenment, so can a lot less process, planning, severe cinemagraphic restrictions, and the staff are passionate and opportunities to participate in the development of the company.
The 21 century ": the factors is rooted in the kind of flexible fortress early machine on the market and sensitive?
LiuLiRong: if the stronghold is a term, I qualitative "fortress" is efficiency, that we've been in better. But the stronghold of the company after all small, JinLi is a pretty large company. Management of the company ten thousand people with dozens of people's company is completely different.
The 21 century ": in fact this is to test your company's control method. How to let the big company tens of thousands of people, still keep a startup company of attitude and behavior?
LiuLiRong: I think later can only rely on enterprise culture, plus appropriate mechanism, system guide to maintain and become a long-term competitiveness. The scale of the samsung is so big, but samsung also is still a very efficient enterprise. Nokia will be different.
The 21 century ": what management style makes the team full of passion?
LiuLiRong: as a manager, want to have the vision and the coordinated ability. Even if a person in technology is very strong, if do not have this kind of vision, or other departments, and around the coordinated ability, and I may not put you on the position of management.
In addition I special emphasis on senior managers, initiative and creativity. I often speak, you have what things don't say with me, you and I said can also, but you still want to go to promote. And it is also very strong itself organization ability and the execution.
I pay more attention to two front, I hope executives is a dynamic, creative and active, they are the engine and heart to the concept, except me, they can be a lot of a heart, and in this way enterprises could have been full of passion and vigor.
Don't jump about internationalization
The 21 century ": the company in the internationalization strategy from layout?
LiuLiRong: we now of the key or domestic market. To be fair we are far from internationalization. In fact JinLi mobile phone overseas sales that part, 90% is an ODM, 5% to 10% is our own brand.
In our case don't make talk about international, or will be in trouble. Now I do not advocate talk about international, also not JinLi currently work overseas the center of gravity, so far from international strategy. I think first to do local strong.
The 21 century ": don't jump about international, is to learn the lessons of domestic some company?
LiuLiRong: is based on its own judgment and the understanding.
Every country's ideological culture and customs are all different, the internationalization is not so easy. The difficulty of the largest international, one is brand recognition, the second is management. We can put out some feelers, do some could do. For example we will now JinLi advantage products made, but the international market brand operation and management to the others. Although I was low added value, but the risk is controllable.
The 21 century ": say to risk control, mobile phone industry change so quickly. You think at present industry or the possible risks point in where? Your daily risk control strategy and have?
LiuLiRong: in the mobile phone industry is concerned, the direction of the decision and timing is important. With smart phones, for example, if I had three months to the market, and will be better than it is now. But three years earlier, as early as five years, I may have died.
Another is the inventory control and management. A very hot products of your inventory with on the demand of the market. A not selling product, the chop down of cut it, the digestive digestion. In this we also had a deficit. Because of the product market enterprise difficult to master degree, it is difficult to avoid making mistakes, so enterprise also easy to face the risk loss.
The 21 century ": if mistakes is inevitable, that should take what the error correction mechanism?
LiuLiRong: in this industry inside to make mistakes is inevitable. A small mistake can make the enterprise, but big mistake made a may stand up to it, often make sure not.
We the whole plan system, production system are very clear about our product sales, because the information within the company is Shared. Our planning department manager and I saw sales data is the same. So in inventory management, our mechanism is relatively better.
In addition, compared with other enterprise, we supply cycle is short. We can now do less than a month, and the high-ranking some company is eight weeks. Why is eight weeks? Because the company's internal production department and purchasing department and the planning department may because worry about making mistakes, will step by step the responsible, so go program time is very long. JinLi culture is not an accident is a firing people, but they don't bear responsibility, but in fact all responsibility in the bear.
The 21 century ": JinLiKe have access to the capital market's going to? Although the two years does not need the money, but the capital market in addition to raising money besides, it can also shape brand, expand the influence, even can use some strategic shares let you get way more cooperation opportunities.
LiuLiRong: if only for the market and introduce these capital, I'm not agree with. This kind of capital, in the aim is to sell you, even you promote enterprise to some on the right track, such as mere pursuit of profits or statements of scale, good-looking.
But if there is really to the development of the company or brand position improve strategic partnership of recognition, JinLi also is very willing. We hope that this strategy is a global giant and partners, and their goal is the long term.

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