Yang Dongwen: From Competition-oriented to Consumer-oriented

Born in 1964 in Tonggu County, Yichun City, Jiangxi Province from 1982 to 1986, Yang Dongwen studied at the Accounting Department of Zhongnan University of Finance and Economics with a bachelor's degree in economics from 1986 to 1988. He studied at the Department of Sociology at Nankai University, where he studied under Professor Fei Xiaotong. Master of Laws 1988-1994, successively served as Assistant Professor, Lecturer, Associate Professor and Head of Accounting Department, School of Economics, Hainan University 1994-1998, served as Director of Hainan Zhongda Certified Public Accountants from 1998 to 2000, as the Skyworth Group in China Chief Financial Officer promoted the successful listing of Skyworth's shares on the Hong Kong Main Board from 2000 to 2003. He served as General Manager of Skyworth Group's China Regional Marketing Headquarters, in charge of domestic sales, and achieved good performance. From 2003 to 2005, Chairman of a large-scale clothing company in Beijing. ~In 2012, he served as Executive Director of Skyworth Digital Holdings Limited, Vice President of Skyworth Group, President of Shenzhen Skyworth-RGB Electronics Co., Ltd., Director of Skyworth Domestic Colour TV Business in 2008, concurrently Chairman of Skyworth Overseas Development Co., Ltd. from 2012 to date, and Skyworth Digital Holding Co., Ltd. CEO, President of Skyworth Group, Shenzhen Skyworth-RGB Electronics Co., Ltd. Chairman of the Board will not give up the opportunity to turn to overtake the Huchun Min: You just took office, the role needs to change, and the difference is, this year, you are responsible Skyworth Group's overall business, talk about your policy strategy?

Yang Dongwen: It took just one month to serve as president of Skyworth Group. At present, I still have a comprehensive understanding of the management structure of the Group, various industry conditions, and various functional departments. We are still unable to talk about new ideas and are adapting to this role transition. I am now thinking about two questions: What is my mission? How to achieve?

The decision made by the board of directors to separate the chairman and the CEO is not only a requirement for Hong Kong listed companies, but also a need for the company to develop to a certain stage. The Board of Directors made it clear that my mission is two things: First, during my term of office, the first step of how Skyworth Group will implement its strategic plan is to achieve a sales target of RMB 50 billion by 2015; second is to let the main industry color TV industry To achieve transformation - to consumer-oriented transformation. This is also my two basic goals after my tenure.

How to promote the realization of these two goals? The basic idea is to optimize and mobilize the resources of the group: First, promote the growth of high-quality core industries, make TV bigger and stronger, this will take a relatively large amount of resources, energy and time; Second, how to address the existing The company’s business characteristics, development stage and market opportunities, formulate corresponding promotion strategies to promote the rapid growth of emerging industry companies, and thirdly, examine the development laws and technological development characteristics of the consumer electronics industry under the conditions of existing resources. Looking for new development opportunities. In general, it is to implement the group development strategy of “strengthening the core industries and expanding the related industries” and, at the same time, seeking new opportunities for industrial development.

Of course, from a strategic point of view, Skyworth will take the road of relative specialization, which is mainly consumer electronic products. The core is to focus on TV, which is the terminal product of TV, to carry out the entire group's business and industrial layout. While extending upstream and downstream, other industries will also do some layout and optimization. For example, in order to promote the development of TV screens, we will continue to strengthen the module business. We also need to develop the related injection molding and mold industry to support the development of the whole machine. In related industries, we must continue to expand and strengthen set-top boxes, and quickly develop 3C IT or digital products such as MID and DVD. In the professional field, we do a good job in security monitors, optoelectronics, and automotive electronics. In order to achieve these goals, we will correspondingly optimize resource allocation, organizational structure, business processes, and incentive mechanisms, and focus on solving some mechanisms and processes that cannot keep up with the situation and lag.

Hu Chunmin: From the current trend of color TV in China and even in the world, the color TV industry has encountered a “ceiling”. Skyworth’s goal of “achieve 50 billion yuan by 2015” depends on the color TV industry alone.

Yang Dongwen: 50 billion yuan is a more realistic goal for Skyworth. Take color TV as an example. By 2015, China's color TV market is expected to reach 60 million units. If Skyworth's market share can reach 20%, it is equivalent to 12 million units, and 10 million units and average price will be 3,000 yuan. According to the calculation, this is a scale of 30 billion yuan; in terms of exports, the global sales of LCD TVs will total about 220 million units, and will increase to at least 300 million units by 2015, through sales of our own brands, plus OEM/ODM, With the sales of SKD/CKD and other methods, Skyworth's overseas market should have the opportunity to achieve 10 billion yuan. The total amount of domestic and foreign TV sales is 40 billion yuan.

In supporting industries, emerging industries have very large market opportunities. For example, our digital set-top boxes, 3C digital products, white goods, etc., I believe that supporting industries can basically contribute 20% of the performance, so that it has reached a scale of 50 billion yuan. The annual sales volume of Skyworth Digital has reached 3 billion yuan, and there is still room for growth. Therefore, it is more realistic for Skyworth to spend 50 billion yuan in 2015.

Hu Chunmin: The feeling that Skyworth has given me is “specialty and stability”. It has been very steady. Will Skyworth develop in a leapfrog style during your term of office?

Yang Dongwen: Different companies have their own styles in the development process. Skyworth pursues moderate, continuous, high-quality growth and does not want to ups and downs. According to my management experience, the ups and downs caused great harm to the company itself and the supply chain partners. We will try to avoid such a route. In this five-year period, Skyworth will overtake the curve or stand out at a certain inflection point. Skyworth is also observing. Is there any opportunity for TV industry? I think there are, for example, new display technologies such as OLED, 4K×2K, and naked-eye 3D that are new opportunities for the industry.

In addition, the color TV product itself is also in transition, because it is not only a simple hardware product, color TV has also become more and more soft. There may be a very large market opportunity in the industrial transition. Skyworth will find such an opportunity, and only after it has found such opportunities and is ready to stand out. I also believe that if you hide the words just now, it means that by 2015, there will be only one or two of the six color TV companies in the country that will stand out, and of course they may be eliminated in the competition. Xoceco, as in China, was once very important in China. One brand, in the consumer market over the past few years, basically sounded very small. If there is a chance of a curve overtaking, Skyworth will certainly not waste it.

The household electrical appliance enterprises will eventually turn into Hu Chunmin in black and white: The diversified development trend of black-box companies is obvious, not only extends to the upstream and downstream, but also involves the white electricity industry. Skyworth also purchases Chigo's shares in the secondary market. Does it mean that the main business will have to change?

Yang Dongwen: To be frank, European and American companies are more specialized. At least, the diversified companies in the cross-industry operations of American companies can hardly find GE. GE also diversifies its investment. Most American companies, such as Coca-Cola, Intel, and Microsoft, basically adhere to such a professional business idea. However, among Asian companies, there will be more diversification, which is also a statistical law. In particular, companies in South Korea and Japan are basically diversified. I think there are historical reasons and there are many other factors. We will not discuss here. Specifically to the field of home appliances, Samsung, Panasonic and other Asian home appliance companies are basically walking on both legs in black and white. Therefore, the successful cases of benchmarking companies in the industry cannot but say that the choice of Chinese companies has a profound effect. The choice of a professional development path or a diversified road is a matter of choice. I personally feel that there is no difference between right and wrong, and only suitable and unsuitable.

There are two reasons why black power companies are involved in white power. I think there are two reasons. The first is that the development of black power companies has reached the “ceiling” of growth earlier, and everyone feels that they have to pay a higher price to grab the market share of competitors. It is better to concentrate these resources into the new white electricity industry to find new market opportunities. The first to perform more aggressively is Hisense and Changhong, followed by TCL and Konka, and Skyworth is the last to truly do white electricity. However, from the current point of view, the black power companies involved in white electricity, the success of its white electricity is not very successful, this business in the industry are mostly in the "everything" position. In fact, the competition in the white-electricity industry is also very fierce. The fact that black-power is doing a good job does not mean that white-living power will certainly be stronger. Skyworth, of course, is also pondering this phenomenon. Skyworth is trying to integrate white goods from the point of view of integrating resources, mainly refrigerators and washing machines, and mainly refrigerators.

Skyworth does white electricity based on two aspects: the first is resource sharing, and it is suitable for the needs of partners, especially rural channels. If the specialty store in the county is only selling color TVs, dealers will face certain pressures for survival; second is The balance of products during the busy season is limited because the peak season of black electricity is generally in winter, and the peak season of white electricity is just the off-season of color TV. In fact, we are advancing the white power business in a down-to-earth way, with stability, and with key breakthroughs. Take the refrigerator as an example. Last year, the factory was built to achieve sales of 300,000 units and sales of nearly 400 million yuan. Our goal this year is to achieve doubling and 600,000 sales. At present, our market focuses on the third and fourth-tier markets, and we have the opportunity to find a relatively good entry point for the market and enter the urban market.

Another reason why black power companies enter the white power business is that the changes in white power technology are relatively stable compared with black power, unlike the changes in black power technology.

In short, I believe that most home appliance companies will move toward black and white.

Some features are not needed by consumers. Hu Chunmin: Chinese companies only account for 0.69% of sales in R&D, and 3% to 4% for foreign companies. This is the crux of Chinese companies’ lack of voice in key technologies. Where How can Chinese companies achieve breakthroughs in core technologies?

Yang Dongwen: Our lack of R & D investment is caused by three factors: First, our business development is only 30 years after all, the accumulation is not enough, the scale did not reach such a threshold, there will be resources for research and development after accumulation, there are The protection of the budget; the second is related to the excessive burden on the company. Our national taxation system is based on value-added tax. According to Li Dongsheng, chairman of the TCL Group, TCL earned more than 1 billion yuan last year, and the tax paid was 4.2 billion yuan. It is indeed the current status of Chinese companies, especially manufacturing companies; the third is also related to the development stage of the company.

At this stage, the development strategy of Chinese companies is basically a competition-oriented strategy, focusing on what brands and products a competitor is out of. It is easy to move toward a low-cost strategy because you are not concerned about consumers and will be conservative in product innovation and R&D investment. To change this situation, first of all, the state should indeed carry out structural tax cuts, especially tax cuts for manufacturing companies. Secondly, our enterprises must re-examine the competition-oriented tactics, and enterprises must move from ideological to truly consumer-oriented. TV has some functions that consumers do not need at all. It is because of competitors, so I also want to. For example, using the TV's interface as an example, if you want to be a VGA port, who will use it? The reason why Skyworth also has to do the VGA interface is because our Purchasing Guide said that the competing brands all have, if we do not, the products will not be easy to sell. Another example is that there is only one HDMI port on the TV, and it is necessary to have 4 HDMI ports. These are the products of competition orientation, not oriented to the needs of consumers.

Let me give another example. Domestic mobile phone manufacturers often donate a spare battery to increase sales promotion when consumers buy mobile phones, because they think this is competitive. In fact, consumers are very convenient in the case of charging. Less use of this spare battery, this is actually a functional waste. If you look at Apple, it's a battery, and it won't open. This is really oriented to consumer demand. Excessive competition-oriented strategy often brings two bad results. First, excessive pursuit of low cost leads to a decline in the quality of products. Second, it adds unnecessary functions that consumers do not need. It increases business costs and increases consumption. Burden.

To truly improve our R&D capabilities, we must strengthen our basic R&D investment, which is not entirely oriented toward the immediate goals, but should be guided by long-term goals. However, in fact, some basic R&D is indeed a high-tech enterprise that is not willing to do it. It is indeed impossible for you to force him to do it. Every CEO has his business indicators during his term of office. He cannot do some research and development for 20 years. This aspect requires the government to come forward. The government can consider some basic research to begin with the defense industry. Many basic technologies in the United States come from the military industry, and then turn to civilian use. Car navigation, Internet technology and so on are all developed from the military industry. In my opinion, the reason why the United States has developed rapidly in technology, especially the development of basic technologies, is related to their large investment in R&D in the military industry.

Accusing the whole machine makers to be "not lacking the core" is not correct. Hu Chunmin: The high-generation LCD panel production lines of BOE and Huaxing Optoelectronics have been put into operation smoothly, but we have noticed that Samsung Electronics and LG Electronics have shifted their investment focus to OLEDs. In the pursuit of advanced technology in the world, how do home appliance companies do?

Yang Dongwen: This is a question of national sentiments. Some people have it, and we must also have it. There are two points here: The first one is whether we want to have it ourselves. China chooses to have it because we lack core technologies, so we have to invest. However, when we look at the United States, there is no LCD panel at all. Can you say that the United States is behind? Can you say that U.S. consumers do not have televisions? In fact, they bought TVs cheaper than us, because all color TV manufacturers go to the United States to sell them, all to the United States where there is a price war, the United States consumers do not need TV. Therefore, I think this issue is not right or wrong. The key is to make it clear that we should not have this thing. If this problem is not clear, always follow and always be passive. LCD panel people have come to the front, we still follow the company, you just keep up with the LCD, others have introduced OLED. If you think of this problem clearly, everyone will feel calm.

I feel that there are some pseudo-experts, such as what OLEDs are not clear enough to boast about. To be frank, this will mislead the government's decision-making departments. Therefore, we still need to calm down, truly track the development trend or law of display technology, and make a correct industrial layout. We can always find a solution by changing the market for technology or changing the market by technology. The problem now is that many people say that China's color TV companies lack core screens, I would like to ask a question, Skyworth as a whole machine factory, how can you criticize me that the chip does not own production? Semiconductor is an industry, I bought a semiconductor, but I did not buy in mainland China, to buy the United States Silicon Valley, as long as their advanced technology products on it Well, how is the core? You said Shaoping, there is no panel, but I bought Korea, Japan, and there is nothing wrong, because I am a complete machine company, whoever is the cheap I bought. In accordance with their opinion, the United States is not a "core lacking screen" in the television industry, and even the entire machine factory does not have it.

What I mean is that we have to pay attention to consumers. As long as consumers use them well, use them comfortably, and use them cheaply, that's right. This is the real purpose of the market economy.

Hu Chunmin: From a business perspective, what you said just now is correct, but it is not necessarily correct for an industry because it involves industrial security issues.

Yang Dongwen: I understand what you mean by first clarifying the above issues and then talking about the matching and layout of the industry chain. The leader of the industrial layout must be the industrial planner, that is, the government. It can use various resources, and it can also mobilize the enthusiasm of enterprises to improve the industrial layout. In the era of CRT, China has done a very good industrial layout. For the LCD panel and OLED industry, my suggestion is that the investment subject must be as small as possible and focused. Since China has a large land area, the investment region can be relatively diversified. For example, South Korea is very concentrated, unlike the fact that we are so scattered, so many subjects, so many local governments must engage. This must strengthen the country's industrial planning and policy guidance, and even take some effective administrative measures.

In short, it is very necessary to strengthen the industrial layout and improve the industrial chain from the perspective of national strategic deployment. As for who can do this, it can be a complete machine enterprise or a professional panel enterprise. I think there should be a professional division of labor. To be relatively concentrated, not every province is on the panel, too scattered and not competitive. In this way, it is possible to overtake the curve, such as the development of the OLED industry.

The concept is mostly the result of excessive competition. Hu Chunmin: Recently, concept products such as cloud television, micro-blog TV, and voice control television have varied, but from a technical point of view, domestic companies have not yet reached the level of leading the industry. How do you see the current color TV industry? Strange situation?

Yang Dongwen: I think this should be positively evaluated because in this piece of applied technology, China's color TV companies have indeed stood on the same starting line with foreign manufacturers, even Chinese companies have gone even faster, such as 3D TV, currently the most developed The fastest and largest market is in China, including cloud TV and smart TV. China has been at the forefront of the global mainstream TV companies. One year or two after domestic manufacturers developed smart TVs, Samsung proposed "smart TV" and they have lagged behind. It cannot be said that foreign companies did not do it. Chinese companies should not do it. This kind of inertial thinking must be changed.

The concept is mostly the result of competition, because the focus of mining on different functions varies. At the same time, new technologies are not very mature when they first appear, and they also need to give consumers a process of acceptance. Since the launch of Cloud TV, all brands have followed suit, including foreign brands. Chinese companies have already led the development of this technology. This is normal. What companies need to do now is to really make cloud televisions, smart TVs, and other products transparent, so that it can provide real and beneficial consumer experience.

Of course, some people may ask, after Apple TV, Google TV came, do we still have room for survival? At present, the global color TV market is 220 million units, and traditional TV companies must have their own living space. Of course, IT companies can find space suitable for them in this field. This is a process of mutual integration. I call TV "IT". IT companies have rich experience in the operation of the Internet business, technology precipitation, and other aspects than traditional color TV manufacturers. Although IT companies have always coveted the TV screen, no one is really successful, so this is not easy for IT companies. At present, everyone has high hopes for Apple TV. We will wait and see.

Appliance companies also have unique advantages. In terms of controlling consumer demand for color TVs, color TV manufacturers are even better, and they have mature sales channels and perfect after-sales services. What's more, the learning ability of traditional TV manufacturers cannot be ignored. Once the traditional TV manufacturers strengthen their learning in IT and the Internet, they are looking for a connection point. I believe TV manufacturers will find better back-office and front-office operating models. However, whether color TV manufacturers or IT vendors, or other companies, as long as they can launch a better model will be successful, the future market will be a flourishing, and ultimately the benefit of consumers.

"Going out" requires the efforts of a generation of people Hu Chunmin: Domestic appliance companies have been "going out", but TV companies are not doing well in this regard. Please combine Skyworth's actual talks on how to "go global"?

Yang Dongwen: In the past 30 years, the Chinese market has grown rapidly. It is normal for local Chinese companies to pay more attention to the local market. Other countries have focused their attention on China. We should even do a better job in this market. We should say that we used to The road to development is correct. At present, the Chinese market is becoming more and more mature, and domestic companies have also accumulated experience. Especially when the domestic market hits the ceiling, “going out” has become our consensus.

However, "going out" cannot be rushed. The history of Japanese companies and Korean companies going global has shown that this requires the efforts of a generation. During those years, numerous local young people were sent overseas. At present, China has also developed to this stage. Our generation will have to shoulder this responsibility. Perhaps we can accomplish this mission when we are 60 years old.

Therefore, we must proceed step by step and practically and plan according to the actual situation of the company. First of all, we must do OEM, ODM and other processing business well, learn advanced technology, management methods and means from foreign companies, and enhance their own quality and quality in the process of cooperation. This "going out" is more practical. Secondly, according to our technical level, talent reserve, and actual needs, we will gradually establish branches to promote sales of our own brands. At present, Skyworth's development focuses mainly on the 10 ASEAN countries, and also in India, Thailand, Indonesia, and the Philippines. Some branch offices have been set up. We also have concerns in developed countries. If there is an opportunity for brand merger, we will also consider that the key is to see whether it is appropriate or improper. When the company has a certain foundation in the management experience, management and control methods of talent, technology, and foreign branches, we will let it go.

The reporters need to have the courage to achieve a curve overtaking. Skyworth needs opportunities, but it also requires courage.

"5 billion for 5 years and 100 billion for 10 years". As early as in 2009, Zhang Xuebin proposed this development goal, but in the era of Yang Dongwen, this dream still makes Skyworth fascinated. In order to fulfill this wish during his term of office, Yang Dongwen, who has always been low-key and steady, said, "I will never miss any opportunity for overtaking." It seems that this time, Skyworth is going to make a real difference.

In the field of color TV, Skyworth has always been the most specialized company, with 80% of its performance relying on color TV support, LCD modules, set-top boxes and other services are also centered around TV screens. Focused on creating excellence, Skyworth's performance in the black-box market is obvious to everyone. From every generation of flat-panel TV upgrades to the first to complete the layout of the industry chain at a lower cost, Skyworth has taken advantage of an “early” word to seize market opportunities.

However, Skyworth's "specialty" is also mixed with a little helplessness. Skyworth was also tempted when other color TV companies deployed the mobile phone market, but it was unsuccessful. When other color TV companies entered the white electricity market, Skyworth also shot it. Refrigerators, air conditioners, and washing machines were all small, but Skyworth did. At the latest, I will not go fast.

As the saying goes, “One flower alone is not spring”, and the scale of impact will reach 100 billion. Skyworth will also need to work hard in diversified business areas, such as business expansion through mergers and acquisitions between companies and institutions, rapid expansion of scale, and enhancement of technology. reserve. In addition, to grow into an international enterprise, Skyworth will also have to make breakthroughs in opening up overseas markets. “Going global” will require bolder steps and bigger steps.

When Apple subverted the business model of the traditional consumer electronics market, when the accelerated IT television, when the mobile Internet is gradually popular, all consumer electronics manufacturers are irrepressible. Skyworth is also watching and waiting for action. Yang Dongwen said, "We must seize the key point of world technology transformation." Last year, Skyworth pioneered the introduction of cloud television. In the spring of this year, Skyworth has further explored the value-added services that are suitable for the color TV industry and the "healthy" card when the vendors are playing "voice" and "sense" functions. However, at present, the application of Skyworth Cloud TV is still free. Yang Dongwen said that the business model for value-added software has not yet been found. This is still a trial and error process.

In many interviews, Yang Dongwen spoke highly of Xiao Jun's Lei Jun. Instead of praising Xiaomi's mobile phone, he expressed appreciation for Lei Jun’s dreams and actions and learned from them. After witnessing the growth of Skyworth and leading the breakthrough of Skyworth, Yang Dongwen appeared more calm and restrained. However, the appreciation of Lei Jun’s figures was revealed in the flash of light in his eyes. This light made Yang Dongwen thoughtful, It is very likely that Skyworth will change. We are looking forward to Skyworth's courage and courage.