Galanz: From "World Factory" to "World Brand"

Recently, Galanz decided to integrate the three major industrial brands, channels and human resources advantages of microwave ovens, air conditioners and small household appliances, and set up a China Sales Corporation to change the original line of Galanz microwave ovens, air conditioners, and small household appliances. . Galanz's explanation for this is: to adapt to the strategic transformation of the company's development from "world factory" to "world brand".

Some analysts in the industry believe that this is an adjustment made by Galanz when the main business of microwave ovens and air conditioners faced bottlenecks. When it comes to air conditioners, simply cloning the microwave oven's "advantage of scale" model into air conditioner marketing has proven unsuccessful. After years of price wars in the microwave oven market, the market structure is basically stable, but the industry profit is also close to the bottom.

Whether forced by the situation or not, Galanz's new strategy has determined its new direction: from professional manufacturing to brand operation, from home appliance supply to service supply.

Under the new strategy, Galanz's talents, brand, price, marketing and other aspects will show new characteristics.

Talent: Senior management is getting younger

It is the young marshal Han Wei who is the general manager of China Sales Corporation. The 35-year-old Han Wei joined Galanz two years ago. He previously served as the purchasing director of household appliances in a large French supermarket in Shanghai and the national purchasing director of Shanghai Century Lianhua Group.

In China's home appliance industry, there is a problem of aging in the marketing level. Han Wei is in charge of Galanz's Chinese market, which also indicates that the senior management of Galanz's overall business level has become younger. In fact, since 2000, Galanz has been actively promoting the construction of the rejuvenation of the cadre team, and it has achieved great results. The executive president of the group is only in his early 40s. A young, promising, energetic and efficient management team has been formed in Galanz.

Brand: Looking for new brand value points

To truly transform from a "world factory" to a "world brand", Galanz needs to enhance its competitiveness in the process of enhancing its brand reputation.

Galanz, which started from "oem, odm", has indeed created its own world in the world with the capital of global processing plants, but after Galanz has its own relatively solid foundation, it once called "continue to serve The declaration of "The world has been a processing factory for 50 years", "processing factory" once became the value point of the Galanz brand.

Coca-Cola said that even if its factories all over the world were burned down one day, it would come back to life the next day. because of what? Because its brand value is still there! And what is the new brand value of Galanz now? Under the framework of the new strategy, re-creating the value point of the Galanz brand has become a top priority. After finding a new brand value point, it is necessary to call out its own personalized brand slogan on this basis, so as to leave its own distinctive brand in the hearts of consumers. Brand.

Price: Give up the price war

"Price butcher" used to be a ridicule for Galanz. By wielding the "price reduction" stick, Galanz has achieved the proud result of the first market share in the world and China. However, under the new strategy, can Galanz's magic weapon of "injuring the enemy by a thousand, and self-destruction by eight hundred" continue to be effective? In other words, if we continue to maintain low profits, can Galanz still develop? The answer is no, because Galanz has made it clear that it will give up the price war.

The problem now is that long-term price wars are likely to cause dealers and consumers to form "price reduction" dependence. Consumers are accustomed to your price reductions, and suddenly one day you don't lower prices, will consumers change their targets? Abandoning the price war will be a test of Galanz's brand loyalty.

Marketing: Create a Blue Ocean

Microwave oven is a world-recognized high-efficiency, energy-saving and environmentally friendly product, and is hailed as a symbol of the kitchen revolution by Western countries. However, in China, due to the long-term influence of people's traditional open fire cooking habits, microwave ovens have appeared polarized between "high penetration rate" and "low usage rate" in China. Surveys show that most consumers who own a microwave generally only use about 5% of its functions.

In this regard, Han Wei, the new general manager of Galanz China Sales Corporation, pointed out that China, as a major microwave oven manufacturer, has provided the world with many high-tech and high-performance products, and provided many families with healthier and energy-saving cooking solutions. Although Galanz has achieved "global simultaneous supply" in its products, the consumption concept of domestic consumers is far from mature enough in foreign countries. Galanz teamed up with CCTV to jointly create a brand column, providing solutions for consumers on how to make good use of microwave ovens, changing the impression of microwave ovens as "simple heating tools" in consumers' minds, discovering "new blue oceans" in the microwave oven industry chain, and giving products value innovation. To achieve a win-win situation for consumers, businesses and manufacturers, and promote the sustainable and healthy development of the entire industry.

The author is editor of the CEConline website.