Chuangrongfa: Three Steps to Enhance Customer Value

Founded in 2004, Shenzhen Chuangrongfa Electronics Co., Ltd. started from the remote control business and gradually grew into an intelligent control system provider. This company is a supplier of remote control terminal equipment designated by many famous consumer electronics brands at home and abroad. 70% of its products are sold abroad and serve 70% of the world's top 500 consumer electronics companies.

In the course of nearly ten years of international development, Chuangrongfa has gradually improved the value of delivering overseas customers: from good cost performance to one-step leading products, to integrated solutions. To effectively deliver these different customer values, Chuangrongfa has created corresponding key capabilities.

One of the trilogy: Delivering cost-effective value

From the establishment of the company to 2006, it is the first stage of the international development of Chuangrongfa. Like many Chinese foundries based on chance and the company's ability to determine their target market, Chuangrongfa identified the United States as its first international market. A year later, Chuangrongfa entered the UK and French markets with its reputation in the US market and improved company capabilities.

"We do remote control, and there are some target customers, that is, it matches our company's service capabilities customers." said He Enyi, Marketing Director of Chuangrongfa.

The most important value for customers is cost performance. In Chuangrongfa's view, this customer value contains rich connotations, and only a thorough understanding can improve the operability and profitability of its value delivery. Chuangrongfa believes that the cost-effectiveness pursued by customers is not simply to reduce costs in the performance of ordinary products, nor is it a simple relationship between performance and price.

"High cost performance refers to the best quality products, not necessarily the lowest price; not only quality and performance, but also our response speed, ability to solve problems for customers, and after-sales service. Our engineers and business personnel These values can be provided without time difference, and the problem can be solved on the same day, which is the most direct and cost-effective value provided to customers.” said Xue Chentun, manager of the international marketing department of Chuangrongfa.

Many of Chuangrongfa's US customers are large global companies. They have shipping plans in advance, and Chuangrongfa can make long-term planning accordingly. However, its European customers often require urgent shipments, and there are more orders for temporary shipments. This puts forward different ability requirements for Chuangrongfa.

To this end, Chuangrongfa is looking for ways to improve the response speed of its supply chain. Each material is set up with 3-5 suppliers, divided into strategic suppliers and non-strategic suppliers. "Strategic suppliers have given us a lot of support in the integration of their internal resources. We have supported them along the way, so they respond very quickly to our orders. Suppliers have A BCD, support us is A, not support It's D." He Enyi said.

The code library in the remote control largely determines the performance of this product. Taking the TV remote control as an example, the code library controls whether the remote control can control one brand or multiple brands of TVs, and whether it controls one channel or multiple channels of TV programs. In order to deliver higher cost-effective value to customers, Chuangrongfa integrated a universal code library that was the most complete and effective in China at that time, and produced a universal remote control that can be used by a variety of devices, which was highly praised by customers.

The second part of the trilogy: the production of one-step ahead products

2007-2011 is the second stage of Chuangrongfa's international development. Customers in the US, UK and French markets remain the company's main target customers. However, unlike the first stage, customer value has changed. What Chuangrongfa does is to build matching capabilities and deeply cultivate in the target market.

This value proposition is: product leadership, close to customers, one step ahead of the market. Chuangrongfa hopes that such a value proposition will lead the company to take the lead in the market competition before the customer's needs appear. "We do it according to the plan of the product line, not just according to the product requirements put forward by customers." He Enyi said.

Actually, Chuangrongfa has achieved positive results in realizing this value proposition by relying on aggressive market research and mature technology platform. When Chuangrongfa made wireless products, its competitors were making traditional products that foreign customers demanded; when Chuangrongfa was making six-axis wireless products, its competitors were making three-axis products; When R F4CE (a protocol standard for remote control of consumer electronic products), WIFI and Bluetooth products, its competitors are still making ordinary 2.4g products. Chuangrongfa has gradually widened the gap with its competitors in technology.

Chuangrongfa's R&D department and marketing department visit customers from time to time, communicate with customers' product managers about each other's ideas and ideas, and even communicate with customers' customers. The topics of communication often include: How will the technology develop in the future? What are your thoughts and suggestions for product line planning in the next three years? Based on the technology platform of Chuangrongfa, what can be done?

Every time the company's executives go abroad, they are accompanied by R&D personnel to communicate with customers. He Enyi said: "Let the R&D personnel observe from the customer's point of view, chat face-to-face, and talk to the customer about their concerns from their own professional point of view. Bring different personnel to meet different people and see different markets." Moreover, basically Every six months, Chuangrongfa conducts a large-scale market survey.

Through customer communication and market research, Chuangrongfa has divided the remote control market into 32 industry categories, and each category has detailed market segmentation and product segmentation. This classification system has played an important role in pulling and guiding the company's products one step ahead of its competitors. "We look at 32 major categories to see which ones have advantages and potentials, which match the company's advantages, and where are our competitive advantages, and finally subdivide them in the selected 2-3 industries, and select the corresponding The products are developed and produced." Xue Chentun said, "We hope that one day people can control all the electrified devices in the home through our remote control."

Three Parts of Trilogy: Provide Integrated Solutions

From Since 2012, it is the third stage of Chuangrongfa's international development. The company's value proposition for European and American customers has been upgraded again, from product leadership to integrated solutions.

In such solutions, many needs and elements that customers are not aware of are often added. Chuangrongfa's ten years of experience and expertise play an important role at this time. For example, a Swedish customer asked Chuangrongfa to make a remote control with an air mouse to control the computer, TV and set-top box in the hotel room. "This kind of air mouse is very power-hungry, and ordinary batteries may run out in two weeks. The customer asked us to add a switch to turn off the air mouse function when not in use. According to our experience, the hotel is a very special place, Adding an air mouse switch is not suitable, so our solution added an automatic wake-up function: when the remote control is held in the hand, the air mouse function is automatically activated, and it is automatically turned off when not in use.” Xue Chentun said.

During the development of this function, Chuangrongfa persuaded customers to abandon software-controlled wake-up and use a simpler and more reliable mechanical wake-up. "We don't need to do very complicated software modifications, but find a mechanical The activation method of the software replaces the development of the software with a single part." Xue Chentun said, "This brings a lot of benefits to the customer in terms of cost and time.

The software will take a lot of time, and it is not particularly sensitive to debug. And the testing process is too long. We use our own experience, conditions and technology to provide integrated solutions, saving customers money and time, and providing a better user experience."

In 2.4G, RF4CE, WIFI and Bluetooth and other technologies In terms of platform selection, Chuangrongfa is more professional than customers, which is why customers trust Chuangrongfa. In fact, in the process of designing and integrating solutions, the technology platform established by Chuangrongfa is very powerful. The company sets up a team of professionals from software, hardware, structure (or appearance), projects, testing, etc., and integrates relevant resources to create a technology sharing platform.