As a result of leading Gree into the field of smart phones and new energy vehicle manufacturing, Dong Mingzhu was once considered to be “not a good jobâ€, and these sideline industries have not yet produced significant performance. Dong Mingzhu’s diversification strategy has been controversial. In the face of outside doubts, during the recent BRIC summit held in Xiamen, Dong Mingzhu reluctantly remarked to the media – even if it took debts, it would not give up Gree’s mobile phone and car building plans.
"Barely," "sticky," "high profile," "domineering," and "net red" are the labels that the outside world bestows on this "hegemonic female president." Because of the success of Gree's leading position, Dong Mingzhu dared to say, "I never made mistakes," and "I will always be right." Because she was unwilling to be controlled by others, she had the irresponsibility to withdraw Gree's products from home appliance stores and build store channels. Due to fierce market competition, she did not hesitate to criticize her counterparts and shelled her opponents as “liars†and “thief groupsâ€; because she was highly exposed, she was happy to “speak for herself†and personally made Gree a platform, saying “Let the world go. Love China; because she knows what she wants, she doesn't wait to see real estate and claims to "never get involved," but she has a special interest in smart homes and smart manufacturing. Today, Dong Mingzhu, who has been in his 60s, does not show signs of retiring. He is still full of passion and rushes around. The years did not grind her corners, but instead made her more ambitious and full of morale.
No regrets over the mouth
Gree's air-conditional dominance is unquestionable. However, Dong Mingzhu is not satisfied with this. Facing the bottleneck caused by the thin business structure, Dong Mingzhu led Gree to open up a diversified development road and fully enter smart phones, smart homes, new energy vehicles and smart equipment.
In terms of making mobile phones, Dong Mingzhu once declared that "Gree made mobile phones and eradicated millet in minutes." He also vowed that "the future goal of 50 million units should have no major problems." Even directly released, "Huawei sells first, and we sell second. "The rhetoric.
However, according to public information, Gree has released a total of 3 mobile phones so far, and sales are not satisfactory. The first generation of Gree mobile phone sales of less than 100,000, the second generation of Gree mobile phones are still on sale for a year, only 25,000 online sales, which with Dong Mingzhu sold 50 million a year of the "small goals "It was nearly 2,000 times worse. Many people in the industry pointed out that Gree's handsets did not bring surprises to users in terms of configuration and price. In fact, they were doomed to failure.
At the recent BRICS summit, Dong Mingzhu said publicly: “I never thought that my cell phone failed. I think my cell phone is doing a good job now. Although it’s not much, I’m not using quantity to identify it. It is to make everyone not regret after use. I have always adhered to independent creation, independent research and development, and their own design, but it must have a time." Dong Mingzhu said, Gree mobile phone is now the third generation, fourth generation has come out, hope From the manufacturing process and design features to meet the needs of users. There are also industry insiders that Dong Mingzhu's ambition to do mobile phones is not really to snatch this market, but in the layout of the future of smart home systems.
Also sparking questions from outsiders are Dong Mingzhu's plan for making cars. At the end of 2016, Dongming Zhu, after going through a wholly-owned purchase proposal and being rejected by the shareholders' meeting, announced that it would take a stake in Zhuhai New Energy automaker Yinlong in a way that it would be able to make money once again and let the outside world see Dong Mingzhu again. "Decision making." In addition, Dong Mingzhu also used personal relations to pull Wang Jianlin and three other companies, jointly increased capital of 3 billion, and obtained a 22.388% stake in Zhuhai Yinlong.
Since Dong Mingzhu entered Zhuhai Yinlong, he began to work frequently on the expansion of new energy vehicles, and it also allowed the once obscure company to rapidly grow into an industry “dark horse.†This year alone, there are seven Yinlong industrial parks in the country, totaling about 80 billion yuan, and they cover Zhuhai, Chongqing, Shijiazhuang, Chengdu, Lanzhou, Tianjin and Nanjing. It is said that Zhuhai Yinlong is still continuing to investigate the foothold of the next industry base and investment will continue to expand.
Dong Mingzhu said that everyone wants to be a peach picker, not a tree-planter. “But when I personally borrow money into Yinlong, I just hope to plant a tree. We have no reason to say that we must wait for this project or field. When the money is earned, it will go in, but there is no risk to take on the challenge."
In terms of smart equipment, Dong Mingzhu also vowed that: "I am determined to take a road to self-improvement, to enter the robotics, numerical control machine tools, technology into productivity, intelligent manufacturing future positioning, and hope to use smart manufacturing assistance Push China's industry as a whole."
Regardless of how the outside world evaluates, Dong Mingzhu has always believed that his choice is correct. She had hoped, "Everyone is sitting in Gree's car, typing Gree's cell phone, controlling the temperature of air conditioners at home and enjoying the delicious food Gree has brought to you. This is my dream."
Enemy in the home appliances circle
When Gree was mentioned, it would have to mention its biggest rival, Midea. One is a state-owned enterprise with weaker state-owned asset management and control and a small shareholder that can “challenge†large shareholders. One is a rare private enterprise that can establish a perfect professional manager system in China. The two companies hold more than half of China's air-conditioning market share, becoming a duopoly in China's home appliance industry. The fight between the two parties has never stopped. Again and again, court battles, saliva warfare, trademark warfare, price warfare, patent warfare... In the aftermath of a wave of Chinese-style business wars, Gree and Midea staged a swing-jerk home appliance circle “Courage of the Lakesâ€.
In June of this year, Gree filed a lawsuit with the court, claiming that the US's "Refrigeration King" series of air conditioners infringed and claimed 50 million yuan. However, the United States is not to be outdone. In the same way, it initiated several patent infringement lawsuits against Gree.
The behind-the-scenes lawsuit revealed that the competition between the two sides has become increasingly fierce, and Gree has also deeply felt the challenge from the United States. The absolute advantage of Gree is the air-conditioning sector. In addition to air conditioning, Midea also performed well in other home appliances. From the perspective of revenue composition in 2016, Gree Electric's main revenue comes from the air-conditioning business, with sales of 88.1 billion yuan, and air-conditioning business revenue accounted for 81%. Midea Group's main revenue comes from air-conditioning, small appliances, and ice washing. Among them, sales of air-conditioning business accounted for 66.8 billion yuan, accounting for 42%, small appliances accounted for 27%, and ice-washing accounted for 20%.
In addition to the United States, Gree and Xiaomi are also happy. A few years ago, Dong Mingzhu and Lei Jun set a "one billion yuan gambling contract." Now that the gambling deadline is approaching, Lei Jun led Xiaomi into Gree’s “base area†formally and recently released its first DC inverter air conditioner product, and Gree has already released multi-generation mobile phones.
For the outcome of the game, Lei Jun had publicly stated that 99.99% of Xiaomi must win. The reason is that Xiaomi plugged in the wings of the Internet and complied with the development of the times. However, Dong Mingzhu suddenly “hands in†Ma Yun, and Gree also plugged in the wings of the Internet. Although Dong Mingzhu had said many times in public before, "If Ma left me, I can't live. I left him and lived."
According to the 1018 billion-level strategic cooperation agreement signed by Gree and Tmall in 2018, Gree's full-category product will trade 10 billion yuan on the Tmall platform. The two sides will also set up joint laboratories to use the core technologies of Gree Electric Appliances and Tmall Big Data to customize C2B to meet the needs of consumers, provide consumers with more personalized products, and start a new journey of new retail for the home appliance industry.
Lei Jun had said at the end of July that Xiaomi’s annual revenue target was 100 billion yuan. At the end of August, Gree released its first-half results that showed that in the first half of 2017, Gree Electric Appliances had achieved operating revenue of 69.185 billion yuan, an increase of 40.67% year-on-year. Now, with the gambling deadline approaching, and in the face of Dong Mingzhu who has added the weight of the world, Lei Jun may be under pressure.
Creating a legendary "Opening" life
As the hit drama "My first half", Dong Mingzhu's life is divided into the first half and the latter half of his life. Before the age of 36, her life was bland. After 36, she created countless legends. In 1954, Dong Mingzhu was born in an ordinary family in Nanjing, Jiangsu Province. There are seven brothers and sisters in the family, and she is a veteran. In 1975, Dong Mingzhu entered a chemical research institute in Nanjing to do administrative work. He worked stably and had the identity of a cadre. Later, Dong Mingzhu married his beloved husband. However, there are dangers in the sky, and people are always fortunate. In 1984, Dong Mingzhu’s husband suddenly died of illness and left a son who had just turned 2 years old. Losing her husband and living alone with her son, a strong sense of crisis hit Dong Mingzhu.
In 1990, Dong Mingzhu resolutely resigned from the enviable administration of the Institute of Chemical Engineering and left his son with grandmother to take care of him. He resolutely went south with the spirit of "becoming unsuccessful." After several twists and turns, Dong Mingzhu entered Gree, which was then called Zhuhai Haili Air Conditioner Factory, and made a salesperson at the grassroots level. She was 36 this year. In an interview with the media later, Dong Mingzhu said, “The biggest turning point in my life is the death of my husband. If it is not the case, I will not go this way at the moment. If he is there, he will not agree to me in Zhuhai. â€
After Dong Mingzhu entered Gree, the first arduous task he received was to go to Hefei, Anhui Province to collect debts – a debt of more than 400,000 yuan left by the previous salesman. In the end, Dong Mingzhu succeeded in recovering debt by virtue of his 40-day visit to the boss’s office. This made Zhu Jianghong, the then general manager at the time, admiration and became a classic inspirational story in the marketing world. Relying on hard work and sincerity, Dong Mingzhu continues to create Gree's sales myth. Her personal sales have soared to 36.5 million yuan.
Dong Mingzhu later recalled, “It was actually simpler to do the sales. You worked hard and it was hard. I didn’t have any other ambitions at the time. I was thinking of selling more air-conditioners, earning more money, and raising me. son."
In 1994, Gree experienced a serious internal crisis. Some key salesmen suddenly "collectively resigned." When Gree was in the most difficult time, Dong Mingzhu withstood the temptation, insisted on staying in Gree, and was voted as the company's Minister of Operations by unanimous vote. . In 1996, Dongming Zhu, who had been promoted to the sales manager for the cooler air-conditioning industry, would rather not reduce the price. She led 23 sales clerk to fight against the marketing team of hundreds of domestic manufacturers, and produced 100 million. 2% of the yuan's profit was subsidized to each dealer by sales, prompting Gree's sales to increase by 17% for the first time, surpassing Chunlan for the first time.
Since then, Dong Mingzhu's life has been "hanging." Under her leadership, Gree Electric Appliances ranked first in the country for air conditioner production, sales revenue and market share for 11 consecutive years from 1995 to 2005. Since 2003, Gree's sales have grown at a rate of 30% each year, and net profit has remained above 15%. In 2002, Dong Mingzhu was awarded the “Chinese Women of the Yearâ€; in 2004, he was named “China’s Top 10 Marketing Figuresâ€; in 2005, he was named “The 50 Most Influential Business Women in the World†by Fortune magazine. ". In 2007, Dong Mingzhu became the president of Gree Electric Co., Ltd.; in May 2012, Dong Mingzhu was officially appointed as the chairman of Gree Group.
From one of the most common salesperson to becoming Gree Electric's chairman, Dong Mingzhu spent 22 years. In these 22 years, she took extra effort at each step. The outside world therefore commented on her as "the road that Dong Mingzhu has passed, and she does not have any grass." (Reporter Ban Juanjuan intern Zhang Yashu.)
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