Galanz: Low carbon can also be cheap

"The Swedish MAX chain clearly states on the menu the CO2 emissions of making a burger, not the original calories. Customers will feel like they are choosing a low-carbon lifestyle when they buy a burger, fulfilling citizenship social responsibility.” As the assistant president of Galanz, Lu Jilie is quite sensitive to the low-carbon awareness of foreign companies. In fact, Galanz also joined this "cuckold" action. In March last year, they released the industry's first "White Paper on Low-Carbon Electricity in China". In this "White Paper", Galanz proposed its own low-carbon development strategic model - "three highs and three lows", namely low emissions, high energy efficiency; low cost, high cost performance; low debt, high development.

Galanz puts "low emission and high energy efficiency" at the top of its strategy. The starting point and goal is to lead and create a new low-carbon lifestyle. Only the product technology based on this can carry the long-term development of the enterprise. Galanz's comprehensive low carbonization extends from product technology research and development to plant construction, cost control, industrial chain structure, and channel marketing.

Technology research and development is the source of low carbon

In 2010, Galanz's total sales reached 37.5 billion yuan, and announced that it will achieve operating income of 100 billion yuan within 3-5 years, of which 5% will be used for product technology research and development. With the increase of the base, Galanz's funds for low-carbon technology research and development will increase year by year. The microwave ovens, air conditioners, ice washers, small household appliances and other subsidiaries of Galanz Group have their own R&D teams with thousands of personnel. In October 2009, Galanz transferred the backbone of each company to set up the group innovation R&D center. Air conditioning alone has established four low-carbon R&D centers in China, Japan, South Korea, and the United States, a national-level heat balance low-carbon laboratory, and an enthalpy difference laboratory.

Low energy consumption and low emissions are two concepts. One is from the perspective of energy saving of products; the other is energy saving and emission reduction in the manufacturing process, Lu Jilie said. As the world's largest professional Galanz assistant president Lu Jilie is full of low carbon awareness. As a microwave oven manufacturer, Galanz's market share has been far ahead of its competitors. In recent years, the production design of high-efficiency microwave ovens has also been continuously updated. Galanz uses the three concepts of intelligence, energy saving and omnipotence as the principles to carry out product research and development. In 2001, Galanz pioneered the light wave microwave combined microwave oven (referred to as "light wave oven"). Due to the dual three-dimensional combined heating of light wave and microwave, the heating speed is 40% faster than that of ordinary microwave ovens in the past. Since then, the microwave oven industry has entered the "light wave era". At the same time, Galanz has also carried out energy-saving upgrades to the core components of microwave ovens. Combined with the cooking habits of the Chinese, Galanz has upgraded the core component of the microwave oven - the magnetron. In 2003, Galanz launched the frequency conversion microwave oven, but due to the high cost, it has mainly supplied to overseas markets for many years. In 2008, Galanz developed a new generation of U8 high-energy magnetron and 6-watt DC fan, which improved the energy efficiency of microwave ovens by 10%-25%.

On September 2, 2010, Galanz launched China's first "Leader" microwave oven with first-class energy efficiency; The light wave frequency conversion microwave oven controls the output power by changing the frequency, and can freely control the fire power, which not only makes the food heating more uniform and reduces the loss of nutrients, but also improves the power efficiency, shortens the cooking time, and reduces the standby energy consumption. Compared with ordinary light wave ovens, it saves 20 %above.

Microwave oven is a world-recognized high-efficiency, energy-saving and environmentally friendly product, and is hailed as a symbol of kitchen revolution by western countries. Authoritative data show that the microwave oven can save 65% energy than electric stove and 40% energy compared with gas. If 5% of cooking work in my country is switched to microwave ovens, then compared with gas stoves, about 600,000 tons of standard coal can be saved every year, and 1.54 million tons of carbon dioxide emissions can be reduced accordingly.

In addition to microwave ovens, Galanz's product lines such as air conditioners, refrigerators, and small appliances have all been upgraded to become low-carbon and energy-efficient. By making full use of solar energy, energy saving of more than 30% has been achieved, and the electricity saved every day can meet the normal electricity consumption of thousands of households for one day. A low-carbon ice-washing production base with a cost of 1 billion is under construction; all refrigerators have reached level 2 energy efficiency and above, and products with level 1 energy efficiency are over 70%; the front-loading washing machine that consumes electricity up to the European A+ standard and saves 25% of water will be launched soon.

A low-carbon business model that promotes internal and external growth from outside.

In the industry, Galanz has always taken cost advantage as its core competitiveness, and was even called the "price butcher" for a time. Under the low-carbon standard, Galanz also insists on carrying out the price advantage to the end, pursuing "the taste of roast goose and the price of tofu". Where does Galanz's confidence come from? Facing the reporter's doubts, Lu Jilie stated Galanz's technical strategy: "R&D generation, reserve generation, application generation".

Take the inverter microwave oven as an example, Galanz has already developed it and put it into production in 2003. But at that time, it was not put into the domestic market, but mainly exported to overseas. In 2006, Galanz Group achieved an annual revenue of 18 billion yuan, of which, only overseas sales revenue reached 1 billion US dollars, which was evaluated as "foreign war expert" by industry insiders. Through large-scale manufacturing and advanced technological process control, Galanz reduces the overall cost to a relatively low level. Due to Galanz's high quality and low price, Galanz has never been worried about sales overseas. Japan and South Korea have been leading the world in the field of microwave oven technology. Galanz cooperates with local enterprises and institutions to set up a special microwave oven research institute, and utilizes the abundant local professionals to research higher-end and more fashionable products for Galanz. When the core technology is finally mastered and the price of components drops, new products can be put into the domestic market and popularized at a price acceptable to consumers. Therefore, it was not until 2010 that the conference of light wave frequency conversion microwave ovens was held in China. R&D generation, reserve generation, application generation, staged, market-based, profit-based R&D, production, and sales have formed Galanz's step-by-step development strategy, giving full play to its price advantage in different markets at home and abroad. At the same time, through the stimulation of overseas markets, it promotes the improvement of its own technical level. Galanz's model of raising domestic products from outside and promoting domestic products from the outside has further strengthened its price advantage and stabilized its position as a "price killer".

Another example is the "fluorine-free high-efficiency fixed-speed air conditioner" released last year, with an energy efficiency ratio of over 3.75. As early as 2003, Galanz developed a full range of R407C fluorine-free air conditioners, and quickly occupied 70% of the European environmental protection air conditioners. After that, R410A fluorine-free air conditioner and fluorine-free inverter air conditioner were quickly launched, which sold well in overseas markets such as Europe, America and Australia. Because the patent of fluorine-free refrigerant was in the hands of large foreign companies at that time, the introduction price was very expensive, and the installation process was also very demanding, which exceeded the supporting level of China's air-conditioning industry at that time. Therefore, the promotion of fluorine-free air conditioners in China was relatively slowed down. . Now, the fluorine-free refrigerant patents controlled by foreign companies have basically expired, and Galanz's training for service personnel who professionally install fluorine-free air conditioners has also been in place. The time to promote fluorine-free air conditioners to the domestic market is relatively mature. Galanz launched fluorine-free high-efficiency fixed-speed air conditioners on the basis of fluorine-free inverter air conditioners according to the different characteristics of domestic and foreign markets, and found the best combination between "maximization of technology" and "maximization of consumer interests".

Difficult to quantify carbon emissions are "foot-binding" low carbon

On December 1, 2010, the microwave oven industry's first national standard for energy efficiency grades, "Energy Efficiency Limits and Energy Efficiency Grades for Household and Similar Microwave Ovens" was officially implemented. The microwave oven product standard is divided into 5 grades. Among them, Grade 1 products are the most energy-saving products, and the efficiency value must reach 62%; products above Grade 2 are energy-saving products, and the efficiency value must reach 60%. Production and sale are prohibited. Galanz has successively launched the "Leader" microwave oven and "Leader" light wave frequency conversion microwave oven with first-class energy efficiency last year, and the goal is that 50% of the products can reach the first-class energy efficiency standard.

Ganz Air Conditioning under the low-carbon strategy has established a strategic procurement platform with hundreds of core component suppliers around the world, and has integrated quality control capabilities throughout the entire process of R&D, procurement, manufacturing, logistics, installation, and after-sales. Recently, Haier has also cooperated with suppliers to create a "low-carbon industry chain of fluorine-free inverter air conditioners". Since June 1 last year, the mandatory national standard of "Energy Efficiency Limits and Energy Efficiency Grades of Room Air Conditioners" has been implemented, and the energy efficiency grades of all air conditioners have changed from the original 5 grades to 3 grades. The original 3, 4 and 5 fixed-speed air conditioners will be eliminated, the old 2-level energy efficiency will be reduced to the new 3-level, and become the industry entry threshold, the old 1-level will be reduced to the new 2-level, and a new 1-level will be added. The energy efficiency threshold is increased by 23%. However, since 2006, Galanz has stopped production of low-efficiency air conditioners with grades 4 and 5; subsequently, it has stopped production of air conditioners with energy efficiency of grades 3 and below for several consecutive years. Last year, Galanz air conditioners were all developed and produced in accordance with the new national energy efficiency standards for energy efficiency above grade 2.

However, compared to the formulation of energy efficiency standards, how to quantify low carbon is quite tricky. Different industries, different companies, and even different links in the production chain, the definition of low-carbon is facing a situation without evidence. Lu Jilie believes that in addition to formulating national energy efficiency standards for low-carbon management of enterprise products, the original database of China's home appliance industry should also be established. In the end, the emission situation of each industry depends on the data. Now many companies are doing carbon emission reduction tests, but they have not released the data. The reason is that there is no objective and national data support, and they are worried that they will become "martyrs" if they announce it first. In addition, it is to establish a unified carbon emission accounting standard system. Lu Jilie said that at present, whether it is the ISO14064 standard (this standard specifies the best mode of management, reporting and verification of greenhouse gas data and data in the world. People can calculate and verify the emission value by using a standardized method to ensure that 1 ton of carbon dioxide is The measurement method is the same anywhere in the world. This allows the calculation of the uncertainty of the emission declaration to be uniform around the world, and the end user groups such as governments, market trade and other interested parties can rely on these data and make claims.) Also PAS2050 standard , have not formed China's carbon emission accounting system. Low-carbon quantification is an important part of enterprises to control low-carbon costs, and it is related to whether the low-carbon strategy can be successfully implemented.

35 million microwave ovens, 6.5 million air conditioners, 25 million small home appliances, 4 million refrigerators, 3 million washing machines, and 1.5 million dishwashers. Glenn has formed a complete white goods industry chain. Galanz's new plant in Zhongshan will all use LED energy-saving lamps; all raw materials for washing machines are degradable and environmentally friendly materials, and the maximum water saving rate of front-loading washing machines can reach 25%; the air-conditioning production line only produces first-class energy-efficient products; all refrigerators reach second-class The energy efficiency is above, and the first-class energy-efficient products exceed 70%; the third-generation color crystal plate induction cooker products use aerospace materials, which increase the thermal efficiency to 95%; microwave ovens, electric ovens, and electric steam oven lighting will use energy-saving LED lights. The original 25W is reduced to 1W; the fan motor for cooling the electric steam oven will be replaced by a DC motor. Low-carbon development has become the focus of Galanz's strategy of "comprehensive leading white goods group", exploring a new path for the upgrading and transformation of "Made in China".

Background knowledge:

The main method of carbon emission reduction accounting comes from the "Guidelines for National Greenhouse Gas Inventories" compiled by the Intergovernmental Panel on Climate Change in 2006. The basic idea of accounting is to multiply the source by the emission coefficient (EF ), which is currently under revision. Regarding the accounting of carbon emissions, there are ISO140641, 2, 3 series standards for carbon emission accounting of organizations and projects, as well as the PAS2050 carbon footprint standard. At present, my country does not have its own carbon emission accounting standard system. my country has put forward a carbon emission reduction target of reducing carbon dioxide emissions per unit of GDP by 40%-45% compared with 2005 by 2020. In order to achieve this goal, it is urgent to formulate a carbon emission accounting standard system in line with my country's national conditions, and to improve the technical system of baseline survey, tracking monitoring and accounting and evaluation of greenhouse gases.