How to untie the deadlock of Chinese enterprise in

How to untie the deadlock of Chinese enterprise inventory

Paul Samuelson, a Nobel laureate and professor of Massachusetts Institute of technology, put forward three basic questions in his 1984 edition of economics, which have been worshipped by business managers so far. The first question is "what products should be produced and how much should be produced? That is, in the large amount of goods and services provided by producers, which will be bought by consumers?"

the world changes with time, and Lao Sa's theory no longer meets the requirements of the new economy. In the new economy of the 21st century, as an enterprise, the first question to ask is "for whom to provide products?" If you don't know, you have to pay for it yourself

therefore, all activities of an enterprise do not begin with production, but with orders

what is an order? The order is the user's demand, and the plan is based on the order, not on the head; Plans are based on production and sales, orders are based on sales, and scientific research and development, logistics procurement, and distribution are based on orders. Therefore, Haier is called "order information flow as the center". In essence, to put it bluntly, the biggest difference between orders and sales plans is that orders have owners, while sales plans have no owners. Enterprises that start with production planning must fight a price war, and enterprises that start with orders can fight a value war

we have no reason to turn a blind eye to the deposited funds of tens of billions of yuan. In 2004, the inventory of air conditioners exceeded 10million units, and the inventory of color TVs also exceeded 10million units in 2002. If calculated according to 2000 yuan per product, the precipitation capital of air conditioners and color TVs alone exceeded 40billion yuan

an obvious bump blocking phenomenon may appear among different household electrical appliances: every household electrical appliance product in China will quickly accumulate a huge inventory bump after the rapid expansion of production capacity, and then the industry began to stop moving, and the whole industry began to feel the heavy pressure of this high inventory. Why does this phenomenon occur? The key is that without bater, the Licensor is considering adding a valuable order in Europe. The enterprise does not know who it is producing products for. Without a valuable order, it will lose its pricing power

we believe that it is unscientific or incomplete to explain the operation of this industry with a simple oversupply; A single property right ambiguity is difficult to become the cause of crazy price war. Behind the precipitation of inventory is outdated demand, and the gap between our supply and demand is growing. We can see that since the end of the 20th century, the pricing power of household appliance enterprises has been transferred from the supplier to the consumer. It is obvious that China's household appliance industry has bid farewell to the era of supply and entered the era of demand dominating the development of the industry

in the era of supply, we are worried about our insufficient manufacturing capacity and seldom consider the needs of consumers. In the era of demand driven, the most important work of enterprises is to find out the demand, because this is the direction of life. If there is a mistake in the direction, all other behaviors will bring disasters to the enterprise, and all links and production factors such as scale, quality and technology will become weak; In other words, being able to find demand and quickly realize demand has become a compulsory course for enterprises

at the time of the 2004 new sales year, Haier launched a series of products with unique functions, which really shocked consumers and competitors: washing machines without washing powder, air conditioners that disinfect the air, color televisions that can record programs by themselves, refrigerators that subdivide the storage temperature of food. Is this a sign? No, this is a strategy, a demand-oriented strategy: find the potential needs of consumers, and then quickly meet it

competition based on supply is price fighting, and competition based on demand is the differentiation of value provision. Haier's approach is very simple. It orients its structure towards demand, provides unique value to consumers from the functional differences and speed differences of products, and demands the pricing power from consumers

in the future, enterprises will face the "lifestyle market" rather than the "economy". Luxiaoping, a staff member of the company, said that the prediction of "our 3-axis linkage injection molding machine sub market" has become a reality in China: the survey of problematic air conditioners in China shows that health has become the primary factor for the market to choose air conditioners, while price has been ranked behind other factors such as quality and service. This small change has shown that there has been a qualitative change in China's home appliance market

the economic segment market was first discovered by Sloan after the first World War. It focuses on the identity of market value and expectation and the refinement of social economy. In a popular sense, it uses the high and low prices of products to distinguish consumer groups. This is actually a typical marketing method in the supply era. To some extent, price is equal to demand. However, when income is no longer a constraint on purchase, This theory began to fail

therefore, in the era of demand economy, enterprises should ask about the market of this product function rather than the market of this product, which is actually whether the enterprise providing demand is on the right path with the eyes of demand

in the current Chinese market, the lifestyle market has emerged. The decisive factor is that consumers choose their own values and expectations to a large extent. Lifestyle is an elusive concept, which is different from the relatively stable economic segment market, but is relatively vague and highly volatile, which requires the operation orientation of the enterprise to be thorough @8. Whether the operation speed is uniform@ 9. Whether the operation of each speed is normal; Adjust the bottom, and let the architecture follow the needs, so as to create opportunities or seize opportunities as soon as they come

there are few substitutes for differentiated products and services, which makes demand more inelastic and easier to obtain premium; On the contrary, it is difficult to make profits by cutting costs

China's household appliance industry is now on the eve of the birth of oligarchic brands. Some large groups have put the direction of solving difficulties on large-scale mergers and acquisitions. Such an approach seems to improve their market share, but it is increasingly dangerous, because large-scale production may not be able to occupy market share, and the result is more inventory of obsolete products, The scale economy model in the supply era is not a way out but a dead end

in fact, what is very deceptive is that cost orientation usually requires enterprises to become leaders in cost management, rather than leaders competing for market position. Many enterprises do not realize this, so they have made serious mistakes. Therefore, we believe that Chinese household appliance enterprises should not have too many illusions about the cost, because the production links have always been transferred from high-cost areas to low-cost areas. When we have no cost advantage and look for a way back, we have become sheep and mended. In fact, we don't need to wait for low cost to take away our advantages. Even now, multinational enterprises around us have the same cost advantages as us

first of all, we should consider what the market demand is, and then how to provide unique products more comprehensively and faster than competitors to meet the needs of customers, which is the key for product providers to obtain pricing rights. In fact, our enterprises have a lot of illusions. They want to make a profit through low prices, resist economies of scale, and help with crazy advertising. These things are short-lived. They must face the needs and carry out a thorough organizational structure revolution. The information system, R & D mode, manufacturing mode, procurement mode, and marketing mode that grasp the needs must be changed, Chinese household appliance enterprises, which are still in the supply era, have simply too many things to change, which will not have any impact on the freedom of navigation and overflight enjoyed by countries in the South China Sea in accordance with international law

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