Create triple competitiveness

In the reception meeting room of Hangsheng Electronics Co., Ltd., there is a particularly eye-catching photo in the center—that is, after the company's president Yang Hong received the "Nissan Global Technology Innovation Award", he was with Nissan's global Group photo of the vice president.

For Yang Hong, being awarded the Nissan Global Technology Innovation Award in 2006 is a landmark event in the development history of the company and even China's automotive electronics industry. It signifies that Chinese auto electronics manufacturers can achieve breakthroughs in technology and quality while maintaining their low-cost advantages. Hangsheng stood out from Nissan's 3,000 global suppliers and became one of the six manufacturers to receive this award, and it is the only Chinese manufacturer.

Yang Hong clearly remembers that in 2003, when the global vice president of Nissan chose Hangsheng as a pilot supplier, he said to him: "I can give Hangsheng a chance, because you are a man with ideals and aspirations. However, if the quality of the product does not meet our requirements, we consider it to be garbage no matter how cheap it is. If you send the product over, we will spend money to throw it away, and it will also affect our production progress. We regard Hangsheng as a company in China. If the pilot is successful, we will expand the scope of the pilot; if it fails, we will terminate this strategy."

Yang Hong was shocked by his words, feeling a heavy burden on him, and also had a strong sense of responsibility , "If we are successful, other parts manufacturers in China will have a chance."

In the following years, Yang Hong led the staff to work hard and practice their internal skills. Every year, 4%-5% of the company's sales revenue is invested in research and development, to build a technology platform, to improve the technical content of products, and to speed up product upgrading. Establish a fast and efficient quality management system, while maintaining cost advantages and responding quickly to customers, improve product quality, achieve the management of Japanese automobile company QCD (quality, cost, design/on-time delivery) and American automobile company QSTP (quality, service, technology, price) management requirements.

Today, Hangsheng is one of the largest automotive electronics companies in China. The company's products have a coverage rate of 90% in the Chinese market, a market share of 30%, and are strongly entering international markets such as Europe, America, Japan and South Korea. Among the top ten international automobile manufacturing companies, Hangsheng has entered the global procurement system of 6 of them, forming an enterprise scale with an annual output of 3 million sets of automotive electronic products such as car audio and navigation, and an operating income of nearly 2 billion yuan.

Independent joint innovation

Yang Hong divides the company's development into three "seven years". In the first seven years from 1993 to 2000, the sales revenue was 100 million yuan, which is the stage of completing the original accumulation. In the second seven years from 2001 to 2007, it achieved sales revenue of 2 billion yuan, which is the stage of innovation. The third seven years from 2008 to 2015, through the second entrepreneurship to achieve world-class, internationalization.

When Hangsheng was established in 1993, Yang Hong thought more about how to keep the company alive. In the seven years to 2000, thanks to the rapid development of China's economy and the continuous growth of the car market capacity, the car audio system launched by Hangsheng covers trucks, mini-cars and cars, and the sales of products have also increased from less than 5 million yuan to 100 million yuan. .

At this time, Yang Hong had a longer-term goal. He said: "After reaching 100 million, I found that the goal is too small, or if we don't advance, we will retreat. The sales of 100 million may not make a profit of 1 million, it may lose money, and it may be acquired by others. Hangsheng must Strive to establish core competitiveness and realize the upgrade from low-end products to mid-to-high-end products."

To achieve this goal, technological innovation is the key, which is also the focus of the second "seven years". In terms of technological innovation, Hangsheng's principle is "independence and innovation". Its focus is on the introduction of technical routes, with independent research and development as the mainstay. There are technology introduction, talent introduction, international cooperation, and the combination of production, education and research. .

In 2005, Hangsheng established a joint venture with France's Valeo Group, one of the top ten automotive electronics companies in the world, mainly developing auto parts such as parking sensors and auto switches. At the 2008 Beijing Auto Show, Hangsheng exhibited a new vehicle-mounted mobile digital TV developed in cooperation with Tsinghua University. And it has been used in many cars in the Chinese market.

Six years ago, the market share of car navigation products in China was not high, but Hangsheng Company valued its market potential and decided to cooperate with Japanese companies to introduce their technology. Through these years of efforts, Hangsheng has an advanced platform to independently develop car navigation products.

The continuous increase in R&D investment is an important prerequisite for technological innovation. Hangsheng implemented the shareholding system transformation in 2000, changing from a pure state-owned enterprise to a joint stock limited company with a diversified shareholding structure, providing a solid financial foundation for the enterprise to implement technological innovation. Private shares in the company's shares reached 60%, covering management, natural persons, venture capital and other private enterprise funds. The company's registered capital increased from 2.38 million yuan at the time of its establishment to more than 30 million yuan in 2000, and then surged in 2006. to 150 million yuan.

Correspondingly, technical investment has also been put on the important agenda of development. In the four years from 2003 to 2007, Hangsheng's sales revenue increased from 800 million to 2 billion, and the proportion of R&D expenses in sales revenue rose from 3% to nearly 7%. Yang Hong said: "The innovation of the company's system has solved the problem of development funds, and we have the conditions to vigorously carry out independent innovation in 2003 and have a good grasp of the rhythm of product structure adjustment. Through these years of continuous R&D investment, new The continuous emergence of products has formed a favorable situation for the development of today's enterprises."

Perfect Quality Management

Automotive electronic products have a prominent feature, that is, they must be mass-produced and the consistency of product quality must be guaranteed. . To accurately deliver 10,000 or even 1 million pieces of automotive electronic products to vehicle manufacturers, the same quality is required. This requires products not only to achieve functions, but also to achieve industrialization; it requires suppliers to be consistent in design management, technical management, and very strict in quality control.

At present, the biggest difference between most Chinese auto electronics companies and their international competitors in the end market is that more Chinese companies sell to the aftermarket, while international giants sell more to the front. As a leading enterprise in Chinese automotive electronics, Hangsheng has fully entered the pre-installation market of 6 international vehicle manufacturers. Process, manufacturing process and supply chain management process to ensure product quality.

In the product design stage, Hangsheng requires designers to take into account the cost and quality of the product, to have means and conditions for product verification, and to eliminate all possible interference factors.

In the manufacturing stage, the quality of the products is guaranteed mainly by the production process that pays attention to details. For example, the quality of welding should ensure that the solder is full and the reliability of the entire product is high. In the process of wave soldering, there are 8 temperature zones, from low to high, and then from high to low. During the operation, it is necessary to ensure reliable welding quality and avoid damage to the life of components. Whether it is 10,000 units or 100,000 units, the quality is the same, and the product life is guaranteed to be at least 3-5 years after leaving the factory.

Another example is the improvement of process automation. In the past, a production line required 50 to 60 people to complete some functions. Now two sets of automation equipment are introduced, and two people can complete the work of 50 to 60 people in 8 seconds. While improving production efficiency, it also improves standardized operations, thereby improving the consistency of product quality.

In the automotive electronics industry, excellent supplier management is a core competitiveness of an enterprise. A car has tens of thousands of components, and an automotive electronics manufacturer provides supporting automotive electronic products, generally involving thousands of components. These components cannot be completely produced by automotive electronics companies. Components such as resistors and capacitors must be contracted to suppliers. How to manage suppliers will have a great impact on the competitiveness of enterprises.

“If one out of a hundred parts is unqualified, the final product of Hangsheng will be unqualified. It is very important to pull, cultivate and manage suppliers.” Yang Hong said, “The production capacity of parts suppliers , production awareness and business philosophy will affect the quality of the products. The upper-level suppliers must accurately convey the information of technological improvement, and put certain pressure on the lower-level suppliers, making them feel a sense of crisis.”

Hangsheng in A 1+2 strategy is used in developing and managing suppliers. For the same product, Hangsheng will select 1 supplier with international advanced technology level as the benchmark, and then select 2 suppliers with domestic advanced technology level and strong adaptability as the training object. "With one benchmark to learn, the other two will continue to improve and catch up. Although several companies compete for a product, Hangsheng emphasizes reasonable profits and reliable quality, and emphasizes that manufacturers must have a fighting spirit, and lazy people can't make money. Yes." Yang Hong said.

Fast cost response

With the continuous increase of production capacity of automobile manufacturers and the intensification of homogenization competition, the profits of complete vehicles are also declining, and the pressure of cost reduction from vehicle manufacturers is also passed on to the upstream supplier. Multinational automotive electronics giants such as Bosch, Delphi, and Siemens continue to set up companies in China, putting considerable pressure on China's automotive electronics suppliers.

However, Hangsheng has established a comparative advantage of cost leadership and quick response, and is not at a disadvantage in the market competition with international automotive electronics giants.

In terms of cost innovation, Hangsheng adopts a two-step strategy. The first is to combine technological innovation and supply chain management to improve core competitiveness; the second is to transfer low-end product manufacturing to second-tier cities and complete the industrial layout strategy ahead of competitors.

The "Body Control ECU" project developed and developed by Hangsheng Company through independent innovation is matched with Hafei Automobile Group, replacing the imported similar products. The price of a single unit has dropped from 2,000 yuan in the past to 600 yuan. Because it is a substitute for import, it saves tens of millions of yuan for the main engine factory.

The Dongfeng Nissan Multimedia Navigation Project undertaken by Hangsheng Company reduced the unit price of Dongfeng Nissan's car navigation products from the original 15,000 yuan to 6,000 yuan, a drop of 60% through effective integration and innovation. "We cultivate suppliers, each supplier provides a point of gross profit, and the entire industry chain has a great advantage." Yang Hong said.

In terms of industrial layout, Hangsheng manufactures mid-to-high-end products in Shenzhen, and transfers some low-end products to Ji'an, Jiangxi, and Liuzhou, Guangxi. The cost can be further reduced, reaching the same cost as Vietnam and India. "Multinational companies are currently deploying in first-tier cities. Hangsheng has expanded to second-tier cities in the mainland. We are doing things faster and better." Yang Hong said, "For example, in terms of research and development, most of the research and development of multinational companies is In foreign countries, the domestic part is not as good as us in terms of treatment and response speed."

Quick response is the embodiment of the "customer first" concept and fighting spirit of Hangsheng employees. Yang Hong is quite proud of the company's culture. There were so many things that moved him. For example, a vehicle manufacturer made a sudden request to let Hangsheng provide products that usually take 30-40 days to provide within 10 days. As a result, with the positive efforts of employees under the accumulation of Hangsheng culture, it will be available to customers in 9 days. Product submitted.

Another example, in order to complete the supply of a certain product in time, some employees on the production line can insist on working for two or three days without going home. Some employees who are responsible for purchasing raw materials and parts go to the supplier to urge the goods, and stay there for three or four days. If the goods do not meet the requirements, the employees will not leave there to help the supplier improve. In order to do product testing, some employees gave up the opportunity to reunite with their families during the Spring Festival holiday, and went to Japan for business trips. The family members did not complain, and they still hoped that the product testing of their relatives in foreign countries would be successful.

Quick response is also the nurture of automobile culture. Car culture is a vocabulary that Yang Hong talks about with great relish. In his opinion, a deep understanding of car culture is one of the sources of Hangsheng's competitive advantages. The car culture he recognizes is that, firstly, vehicle companies have high systematic requirements for suppliers; secondly, consumers pursue the most advanced and fashionable automobiles and the electronic products in them.

According to this culture, Hangsheng accelerates the speed of product update and supply, and drives the sales of customers. "The preferences of domestic car consumers are unique, which can be seen from the update rate and preferences of mobile phone products. Also in cars, Chinese people like advanced electronic configurations, such as navigation systems, DVDs, rearview mirrors and mobile digital TV, the overall cost will increase a little, but the added value of the model is very obvious. Hangsheng's NAVI satellite navigation system for Dongfeng Nissan Bluebird has been well received by the market."

This point can be seen in the CEO of Dongfeng Nissan Ren Yong was confirmed there. In an interview with the media, he said: "Chinese people like new, especially conspicuous equipment. Dongfeng Bluebird cars are replaced every year, and some advanced electronic devices such as car phones, car audio, and car navigation systems are integrated. The continuous increase of instrument functions has brought wave after wave of customers' enthusiasm for purchasing."

In the past 15 years, Hangsheng has entered the vision of international manufacturers with its own accumulation and continuous focus. In the next 7 years, Hangsheng's goal is to achieve a breakthrough in high-end automotive electronic products. By 2015, the operating income will reach 10 billion yuan, 10 million sets will be produced and sold, and the net profit rate will be over 8%.

“I believe that in 2013, some high-end products can be mass-produced, and rapid development can be achieved in 2014 and 2015. We can also supply high-end products that were previously only supplied by multinational companies.” Yang Hong said , "I hope there will be a voice from Chinese companies in the global division of automotive electronics."