Dongyi Risheng: Business Aristocrats

When Wang Laiting joined Dongyi Risheng's franchise system six years ago, he never dreamed of what he has achieved today.

His Tianhui company has transformed from an unmanageable construction and decoration company into the No. 1 brand in Tangshan's home improvement market, with an average monthly output value of around 1.5 million yuan.

Wang Laiting's success is just one page in the success story of Dongyi Risheng. Tianhui is the first franchisee of Dongyi Risheng. Since then, 51 companies from all over the world have joined Dongyi Risheng.

These franchisees, together with Dongyi Risheng's own more than 20 directly-operated stores, have formed a leading business empire in a "migrant labor industry".

This business empire created an output value of 1.17 billion yuan last year. This business empire has won the "China Excellent Franchised Brand" award for the past three consecutive years, thus winning this year's "China Franchise Award".

The evaluations given by the judges after inspecting Dongyi Risheng are: clear market positioning, good business performance, clear development strategy, accelerated internationalization, and support for franchisees in all directions...

These evaluations, In the home improvement industry operated by migrant workers, it is basically the evaluation of "aristocratic" companies.

The Noble Route is the way to success for Dongyi Risheng. Born in an industry that operates like a migrant worker but is full of market opportunities, Dongyi Risheng improves the quality of its business and injects "aristocratic blood" into the business; it improves the positioning of its business and positions its target customers as "aristocrats". Such a route and method made Dongyi Risheng stand out and eventually became a standout.

Full of guerrillas on the road, home decoration is a "migrant industry"

At the end of 1996, Dongyi Risheng was born in a simple rental house in Beijing. At that time, there were only dozens of decoration companies registered in Beijing; 95% of the decoration market was occupied by the road guerrillas.

The so-called road guerrillas are a few migrant workers standing on the side of the road who dare to solicit decoration business by placing two bricks in front of them.

A large number of home improvement guerrillas, robbing customers at super low prices. Formally registered decoration companies have only two ways to go: either exit the market, or join forces with the guerrillas, and continue the competition without quality assurance, material assurance, and warranty assurance, and competition without a future.

This is a very chaotic industry, but it is also an industry with huge market potential. A popular saying at the time, "The key to a well-off society is housing, and the key to housing is home decoration" is a simple expression of the potential of this market.

Subsequent economic statistics also verified this market potential. In 2006, the output value of China's home furnishing industry has reached 600 billion yuan, a year-on-year increase of 20%, accounting for 12.7% and 2.83% of China's total retail sales of consumer goods and GDP.

Faced with such industry conditions and market space, what is the way out for Dongyi Risheng, who was "from a humble background"? Its answer is: take the aristocratic line, build the company's business into an aristocratic image, and be faster than the competition to establish a first-mover advantage.

Inject "aristocratic blood" into the business: start from standardization

Dongyi Risheng's aristocratic line starts from standardization first. Quality, service, materials, and design all put forward norms and standards that were higher than the industry level at that time, or took the lead in putting forward norms in the industry and became industry standards.

These strictly enforced norms and standards make Dongyi Risheng a professional company trusted by customers. This allows Dongyi Risheng to take the lead in the home improvement industry where the good and the bad are mixed.

Quality In the initial stage of industry and market development, excellent quality is the first drop of "noble blood" that makes a business stand out. This is especially true for home improvement consumers who "work for the house all their lives".

Chen Hui and Yang Jin, the founders of Dongyi Risheng, are well versed in this law. The company was established less than half a year ago. After careful investigation, analysis and summary, they proposed and implemented the "eight-level quality assurance system", taking the first step of standardized development. This is the first systematic project construction quality management method proposed and implemented by the enterprise in China's home decoration industry.

This method has been tested and improved in actual construction, and developed into a strict eight-level engineering quality management chain. In this management chain, every home improvement project must go through a strict inspection of eight links.

These links include: account manager registration, designer design, designer tracking service, foreman responsible for quality, project manager inspection, engineering manager and general manager random inspection, return visits during construction projects, and regular return visits to completed projects.

These links actually let the company take the responsibility for quality itself, instead of passing the responsibility to the customer when there is a project quality problem like many home improvement guerrillas, or even being a craftsman and disappearing from the world.

Service Chen Hui and Yang Jin inject the second "noble blood" into Dongyi Risheng's business. It is service, it is the designer's whole-process tracking service, it is an electronic quotation service, it is a hotline service, it is a general manager supervision service, it is a service Warranty service and ultimately full home service.

Dongyi Risheng's designers provide services to customers in the whole process from the stage of scheme design to the delivery of finished home improvement products to customers, and even regular return visits. This full tracking service has created a precedent for China's home decoration industry.

Not long after the company was established, Chen Hui and Yang Jin were the first to create an electronic quotation system in response to the chaotic quotations and irregular behavior of slaughtering customers in the industry. Customers can directly check the cost of each decoration project (including sub-projects) from this system, so that they can avoid the open mouth or the lion's mouth about the price encountered by other decoration teams. This move achieved immediate results and won the trust and favor of customers for Dongyi Risheng.

Dongyi Risheng is the first in the decoration industry to open a complaint hotline for the general manager's office. It establishes a 24-hour feedback system for customer service and an 8-hour repetition system for general manager quality supervision. These measures have improved the response speed of customer service. Whether in customer psychology or in actual operation, they have become a small magic weapon to get closer and win customers. The 2-year engineering warranty, 5-year waterproofing engineering warranty, and lifetime cost repairs add points to the company in attracting and retaining customers.

Dongyi Risheng also integrates the experience of quality management and professional services, exclusively proposes the concept of complete home service, and establishes an integrated process from design, material, engineering, accessories, service and so on. This concept and process aims to provide customers with high value-added services, so that customers can enjoy the process of decoration with peace of mind, peace of mind and happiness.

Material This is the third "noble blood" of Dongyi Risheng's business. In order to differentiate itself from many decoration teams that cut corners, Dongyi Risheng Group has established the largest central material control center in China's home decoration industry, and implemented unified global material procurement and distribution. While ensuring material quality, it pays attention to Materials are more environmentally friendly.

After proposing the concept of complete home service, Dongyi Risheng decided to expand the business value chain and transform from a home improvement chain model to a home improvement chain model. It has reached an in-depth strategic alliance with more than 50 famous home furnishing brands around the world, and launched the Italian-German French Home Furnishing Experience Hall.

This is the largest home furnishing museum in Asia. Dongyi Risheng introduces home furnishing products of internationally renowned brands to Chinese consumers through the way of home furnishing museums and the channels of the franchise system.

High-quality, environmentally friendly, home furnishing materials and products that are in line with the world are undoubtedly the dreams of home furnishing consumers. The measures taken by Dongyi Risheng reflect its pursuit in this regard.

Design Chen Hui and Yang Jin injected the fourth drop of "noble blood" into Dongyi Risheng's business, which is the "design" that best reflects the professional level of home improvement enterprises.

Their approach is to hire internationally renowned Italian design masters to lead the group company's chief designer. This is also the first time that a Chinese home furnishing company has hired an internationally renowned designer.

They are the first in the home improvement industry to adopt a strict five-level positioning system for designers. According to the ability and experience, designers are divided into five levels, the lower-level designers can grow into higher-level designers after honing their skills and experience. This system not only guarantees the gradual maturity and high-grade upgrade of design concepts, but also cultivates an effective designer team.

They regularly organize professional teams to participate in internationally renowned home furnishing exhibitions, such as Germany's Kelon International Home Furnishings Fair and Italy's Milan International Home Furnishings Fair. In these exhibitions, these professional teams pay attention to capture the fashion trends and design concepts of international home furnishing, combine the Chinese culture and lifestyle, and devote themselves to creating the most suitable home furnishing art.

They established a three-level return visit system in the company's design department. Design managers, account managers and designers regularly visit customers. They even pass half of the designer's salary to customers for evaluation.

The effective designer development and management system has greatly improved the design level of Dongyi Risheng designers. Their designs began to break through the industry's emphasis on materials and textures and other surface forms, entered the inner world of the customers themselves, and reflected them in the design scheme.

Chen Hui gave a typical example. They once did home renovations for the president of a media company. The president is unmarried and lives with his parents. Although he is in charge of a large-scale company, at home, he is only a 28-year-old child.

In response to the characteristics of this president, they used a lot of bright colors in the design. The study room is bright green, and the floor is a large texture. The bedroom is fuchsia and the bed is zebra print. As a result, the president liked the design and decoration very much.

"We started to really study people's way of life, instead of simply thinking that a CEO's home should be calm and solemn in the eyes of outsiders. We are digging into the user's own heart." Chen Hui said.

With its extraordinary design strength, Dongyi Risheng has become a frequent visitor to various design competitions. In the past four years, it has won the gold medal of the "International Beautification Home Design Competition" hosted by the China Building Decoration Association.

The standardized management of franchise quality, service, materials and design not only enables Dongyi Risheng to establish a "dignified" business image to distinguish it from Yunyun's peers, but also makes its franchise system comparable from the very beginning. specification.

The franchise operation pays special attention to the operation system and management experience of the headquarters, whether it can be effectively replicated among the franchisees. The basis is whether there is something worth replicating at headquarters.

In this regard, the standardization of Dongyi Risheng provides a solid foundation. With this foundation, before it started franchising in 2001, it sorted out the first set of system manuals with more than 200,000 words, and sorted out all the service links. Then, it began to plan the strategy and system of the franchise, and only then began to develop the business.

"I think the foundation was good at that time, and then I upgraded the system manual every year, from 01, 02, to this year's 07 edition. At that time, I used the more advanced business model of franchising to Therefore, our franchise system has been very standardized from the very beginning.” said Zhang Ping, director of Dongyi Risheng Franchise Business Center.

Injecting "aristocratic blood" into the business: sublimating it with culture

If standardization allows Dongyi Risheng to establish a distinguished professional image, then improving its cultural level greatly sublimates its aristocratic demeanor.

Just as improving a person's cultural level can make his speech and behavior elegant and noble, improving the cultural quality of a company and its business can make a company, its employees, and customers more honorable and noble. And the noble and noble cause, who does not rush to it?

Dongyi Risheng raises the "cultural level" from two levels. The first is the corporate culture, and then the home culture.

Dongyi Risheng extracts the connotation of corporate culture by comparing the different characteristics of the three animals, and preaches, instills and spreads it in the entire franchise system through training and internal publications. Its corporate culture specifically includes the spirit of the squirrel, the way of the beaver, and the talent of the geese, which represent unremitting hard work, scientific management processes, and proactive teamwork of employees.

Dongyi Risheng expresses its corporate culture as such mottos as "Be a person first, then do things, and then make money", "Integrity is the foundation of being a person", "There is no successful individual, only a successful team". These catchy aphorisms are easily remembered by employees and franchisees alike, improving their mental outlook.

Its home furnishing culture is mainly reflected in the research, publication and dissemination of international and Chinese home furnishing culture and fashion trends. It established the first non-profit design research institute in China's decoration industry in April 2000, and publishes a major research result every year.

For example, the "Eight Interior Design Styles Influencing the Chinese Lifestyle" launched in 2005, and the "Four Styles" launched in 2006 based on the eight major design styles and incorporating more international and fresh elements, have become Design vane of China's decoration industry.

This year, it launched "Huamei Customization · 2007 Global Home Furnishing Trends", and released ten home furnishing trends such as "Palace Party", "New Ukiyo 'Painting'", "When Beethoven Met Madonna", "Luxury Unbounded" and so on . Just from the names of these trends, you can appreciate the high culture blowing.

Experience shows that culture is a soft power or a soft competitive advantage of an enterprise. The spread of this power is ubiquitous, the impact of this power is far-reaching and long-lasting, and the economic contribution of this power is enormous. Dongyi Risheng's culture spreads, influences and contributes to its franchise system.

Positioning Target Customers as "Nobles": Raising Business Positioning

It is one thing to inject "noble blood" into a business, but it is another to elevate your business positioning to "nobles". This is because even a business that is positioned as a "country bumpkin" can be done in an aristocratic manner.

These two things, Dongyi Risheng does not fall. It starts from two aspects to improve the positioning of the business: to improve the business positioning and to improve the market positioning.

As mentioned above, the business positioning has been very clear, expanding from home improvement chain to home furnishing chain. The market positioning is improved to focus on high-end customers. Specifically, its customers include three categories: first, villa developers, who design villa model rooms for them; second, business owners and big names in the film and television sports industry; third, middle-class people who have requirements for the quality of life and hope that the living space can penetrate the artistic atmosphere class.

With positioning, brand connotation follows. According to the positioning of the business and the market, Dongyi Risheng summarizes the brand value into three principles: responsibility principle, responsible for customers, industry, and society; cultural principle, selling not the product combination of woodworking and masonry, but High-grade cultural lifestyle; artistic principle, reflecting the perfection of "art" in design, construction and service.

Now, Dongyi Risheng is the first famous trademark reviewed and recognized by China's home furnishing industry, with a brand value of 1.328 billion yuan.

Standardization, culture, branding, all together, make Dongyi Risheng aristocratic. This comprehensive strength is what many franchisees like Wang Laiting are most interested in.

“Customers have the most say in the quality of products, prices and services we provide. We can provide customers with more cost-effective home services. All of these depend on the comprehensive strength of the company. "Wang Laiting said.

The author is the Deputy Editor-in-Chief of the CEConline website.