The era of survival of the fittest in China's home appliance industry

Shopping malls are like battlefields!

If you win, you will eat everything; if you lose, you will have nothing.

On the battlefield, either you die or I live;

Above the mall, the law of the jungle, the survival of the fittest, surprises.

In this era of increasingly fierce business competition, whoever does not work hard will be eliminated.

Just now, there was a loud noise in the home appliance industry, a generation of heroes, once the "king of refrigerators", Xinfei Electric suddenly fell down!

Bankruptcy auction! Farewell, Xinfei Electric!

One stone stirred thousands of waves.

Recently, heavy news came from a judicial auction website that Xinfei is about to go bankruptcy and liquidation, and conduct judicial auction of assets.

From June 28 to 29, the three companies, Xinfei Electrical Appliances, Home Appliances and Refrigeration Appliances, will hold a public judicial auction with a starting price of 450 million yuan and a guarantee of 100 million yuan.

In addition, land and real estate under the name of Xinfei will also be auctioned, with a starting price of 115 million yuan and a guarantee of 20 million yuan.

Today, Xinfei has completely ceased production, the factory is empty, and workshops and warehouses are even affixed with seals to bid farewell to this era.

This means that the first home appliance brand that once defeated Samsung and Siemens and beats Haier and Gree has completely collapsed.

Ten years of glory

Xinfei, founded in 1984, is located in Xinxiang, Henan, and was transformed from a small arsenal. At the beginning of its establishment, the losses were severe, and even wages could not be paid for three consecutive months.

After Liu Bingyin took over, he not only quickly turned losses into profit, but even a few years later, he sent Xinfei to the first brand of domestic refrigerators. In its heyday, Xinfei's sales reached 3 million units at a time, with a market share of up to 20%.

At the beginning, in order to establish the Xinfei brand, Liu Bingyin learned Zhang Ruimin and made a trick.

The 400 Xinfei refrigerators were all lined up, and it was announced on the spot that it was a shame for Xinfei to produce unqualified products. On the spot, a sledgehammer was lifted and all 400 inferior refrigerators were smashed.

Suddenly caused a sensation, the topic of Liu Bingyin's angry smashing the refrigerator quickly spread all over the streets and became the talk of countless people after the tea, Xinfei was also widely known, and was labeled as "high quality", and sales rose rapidly.

At the same time, the advertising slogan "Xinfei's advertising is better, not as good as Xinfei's refrigerator" has begun to spread throughout the country.

Xinfei became the first of the "four golden flowers" in the refrigerator industry. The other three Haier, Rongsheng and Meiling can only be ranked behind it. Samsung and Siemens are far from rivals.

While the performance soared, Xinfei did not treat its employees badly.

At that time, working in Xinfei was a kind of glory. Finding a wife and blind date wearing a Xinfei uniform is more useful than a suit and leather shoes.

In 1994, the monthly salary of Xinfei Factory was as high as 1,700 yuan, while the average salary of the entire Xinxiang area was only 400 yuan.

In addition, during the Chinese New Year, Xinfei will also distribute rice, noodles, and oil to the employees. The factory director Liu Bingyin even leads the executives to stand in the doorway at the entrance to welcome employees to work.

The employees are the real owners of Xinfei, and many people love Xinfei like home.

In 2003, there was a fire in Xinfei. Before the fire truck arrived, the employees rushed in to extinguish the fire. Although the factory building was smoked completely, it was cleaned up by the employees a little bit after only ten days. Renewed.

However, until 2007, Xinfei had another fire, but no employee rushed in to extinguish the fire. Some people even looked at the fire and cursed angrily: Fuck it, just burn it!

In just four years, people suddenly lost their hearts, as if everything had changed.

Ten years without rising wages, Xinfei declined

With the hearts of people together, Mount Tai moves.

Liu Bingyin was painstakingly lonely and led the new trapeze all the way, but in the end, he was defeated by himself.

In 1994, China was starting a wave of investment attraction, and the local government hoped to attract foreign capital to invest in new flights.

However, it was met with fierce opposition from Liu Bingyin.

You know, Xinfei at that time was just like the sky and the sky, Liu Bingyin was so bold and arrogant that he wanted to lead Xinfei to conquer the new world. How could he be willing to sell Xinfei to others.

But helplessly, his arms could not be screwed on his thighs, and eventually sold.

Xinfei Electric, Singapore Honglong Electric, and Singapore Yuxin Electric hold 49%, 45%, and 6% of the shares respectively. Since Yuxin Electric is controlled by Honglong Electric, 51% of the control of Xinfei Electric has been owned by Honglong. Electrical control.

Although Liu Bingyin still holds the right to operate, since then various strategic operations can no longer be smooth sailing, which is often hampered.

Especially in 1997, Liu Bingyin took a fancy to the air-conditioning market and tried to enter the air-conditioning field. At that time, Whirlpool was preparing to sell the blue-wave air conditioner with continuous losses. Liu Bingyin saw the opportunity and shot at the right time. However, he was fiercely opposed by the Singapore board of directors on the grounds of blind intervention and excessive risk.

The second time, in early 2000, Liu Bingyin once again tried to acquire Guangdong Sanrong Air Conditioner. The handover time had been negotiated, but was rejected by the board of directors again.

Liu Bingyin almost wanted to cry without tears, and watched as he missed the best opportunity for diversification.

For Xinfei, even more unfortunately, by September 15, 2001, Liu Bingyin suddenly died of gastric cancer in Guangzhou. Since then, Xinfei has completely lost the right to speak on the board of directors.

Although his successor, Li Gen, has a strong ability to lead Xinfei to a higher level in a short period of time, he has a weak foundation.

Especially in September 2005, the local government of Xinxiang once again sold 39% of Xinfei ’s equity to Hong Leong, and since then, Hong Leong ’s shareholding in Xinfei has jumped to 90%.

By 2006, Li Gen was replaced, and the new Singaporean Zhang Donggui took over Xinfei Electric. After that, more than 400 senior executives were continuously airborne, and almost all the senior management of Xinfei was exchanged.

Since then, Xinfei is no longer Xinfei's new fly, Xinfei is just a migrant worker.

In 2012, Xinfei even had a major strike by employees, protesting that "the wages would not rise for ten years." Some people even moved the portrait of Liu Bingyin, who had been dead for 11 years, to the door of the factory. The human resources manager came to the stage to appease and even coaxed him by eggs.

The hearts of the people are scattered, and Xinfei has been scattered. At this time, the road to death of the new management has gone further and further.

Because the new management does not understand the Chinese market, blindly entering small home appliances, the quality is difficult to guarantee, and negative market news continues to appear. Even the TV station and the Quality Supervision Bureau have repeatedly exposed it, which has greatly damaged the brand image of Xinfei.

Since then, Xinfei began to deteriorate, and in the face of continuous loss of performance, in order to look good in the short-term report, the new management even continued to reduce the channel, making sales further decline, forming a vicious circle.

It's three feet frozen, not a day's cold, and now Xinfei has already fallen ill and has no medicine to save, so that it has fallen to the point of bankruptcy and liquidation, which is really disappointing.

Conclusion

There are no successful companies, only companies of the times.

When the times abandon you, you wo n’t even say goodbye to you.

When the founder of RT-Mart resigned, he said: I defeated all my opponents, but lost to the times.

In this era of jungle law, the era of survival of the fittest is not about big fish eating small fish, but fast fish eating slow fish.

China's home appliance industry is in a blue ocean, and the momentum is fierce. Xinfei catches up with the wind and seizes the opportunity.

However, it got up early in the morning and hurried to the late set.

Because of the loss of independent management rights, the action is slow, the mistakes are full, and they ca n’t keep up with the changes in the market. They do n’t pay attention to the changes in e-commerce channels, miss the opportunities for diversification, and even destroy the Great Wall in the future. It was a sparse battle and lost a good situation. It was surpassed by the latecomers Haier, Gree and Mei one after another. In the end, he fled in sorrow and grieved for help until bankruptcy and liquidation.

While Xinfei left countless people with a sigh, it also left a profound lesson for this era.

At any time, the right to self-management is indispensable. Allowing capital to kidnap an industry, lay-offs, and random operations will only accelerate the demise of the enterprise.

It is undoubtedly the magic weapon for enterprises to be independent and self-reliant, to be united, to grasp the market and to keep up with the times.

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