An Hui, General Manager of Anmeng Sanitary Ware Co. Stockpot,Hot Pot Accessories,Round Stockpots,Casserole Foshan Shunde Oubao Luo Intelligent Catering Equipment Co., Ltd. , https://www.aobl-co.com
[Reporter]: The development of the home industry is inseparable from the real estate industry. The regulation of the property market brings new thinking to home furnishing companies and distributors. In the first half of this year, the real estate new deal continued to suppress the housing prices that grew too fast, and the transaction volume of the housing market decreased significantly. What is the impact and change of the downstream home industry as a property?
[Anhui]: Since last year, our entire big decoration industry has indeed been affected to a certain extent, mainly because the performance of retail sales is getting less and less, which is of course related to the innovation of consumption patterns and sales channels. In the context of the trend, industry companies are beginning to reflect, because good days are gone, what is the company's foothold and what wins the future. I personally think that this is a good thing that will make our industry survive the fittest and make our business healthier.
For example, Anmeng Sanitary Ware, we carefully analyzed the current housing industry, we believe that hardcover housing is a mainstream in the first-tier cities, so we started the construction of engineering channels. We believe that in some major cities, the market for repairs has arrived, and many consumers have entered the second renovation, so we began to develop some products for the second renovation. In a word, the impact of real estate allows us to start looking at the industry and the company itself, and actively demand solutions. This is the impact and change.
[Reporter]: At present, many home furnishing companies are turning their attention to the third- and fourth-tier markets. However, the purchasing power and consumption power of the third- and fourth-tier markets are not as good as those of the primary and secondary markets. May I ask whether Anmon will make certain adjustments to the product line?
[Anhui]: We all know that third- and fourth-tier cities and rural construction are a big market, but not every brand is suitable for doing it. I personally doubt it. Brand positioning does not have a wide latitude, and no brand is suitable for the public.
As a high-end integrated bathroom brand, Anmon is currently focused on first- and second-tier cities, with high-end flagship stores and boutiques to maintain brand positioning and to do some image projects through engineering. Of course, we will also do some popular products, because the excellent design must be easy for most people to enjoy. I personally think that if you really want to get involved in the countryside, the third and fourth line, you can re-cultivate a brand.
[Reporter]: The rising prices of raw materials, labor shortages, interest rate hikes, and tight electricity use have led to a significant increase in operating costs, leaving many home furnishing companies in trouble. In the context of difficult business, in addition to trying to "open source", how to "throttle" has become a problem for many home furnishing companies. What is your approach to this?
[Anhui]: In the aspect of “open sourceâ€, we started the engineering department last year and put the promotion of engineering channels on the agenda. At the same time, we also started to try e-commerce, let the Anmeng brand through various channels and Consumers are closer.
At the same time, we also pay close attention to cost improvement and achieved great results. The first is the inventory of human resources, to avoid people floating in the matter, to benefit from human resources management, to make the best use of people. Secondly, we have reduced the cost of products of the same quality through design and process technology improvement. This is one of the key evaluation indicators I have always been to the R&D center. Once again, we improve work efficiency and improve yield through the transformation of production tools and production lines. In fact, there are many implementations of throttling, mainly from the above three aspects. We emphasize that for products of the same price, we must have more functions than others, and we must have a cost advantage for products with the same function.
[Reporter]: In 2011, the global e-commerce market is expected to reach 680 billion US dollars. In 2013, the scale of China's online shopping transactions is expected to exceed 1 trillion yuan. When the traditional real estate home industry encounters modern network carriers, the e-commerce era in the home industry is bound to come. Has your company been involved in the e-commerce market? If no, please explain why. If so, can you share your experience?
[Anhui]: We have already started some e-commerce attempts and have achieved certain results. Through the practice of the previous period, we believe that online sales can promote the health of a company. For example, the accuracy of the order and scheduling plan, the speed of the order system, and whether the entire company system is smooth. The biggest experience is that small steps run faster, and implementation is more important than planning. Because new things are not referenced, we must explore ourselves, and the network changes rapidly, which requires us to be fast.
Detours are also inevitable, and we can only sum up experience in the process of continuous trial and error. This is our relatively big sentiment.
[Reporter]: The first half of the year is about to pass, what is the performance of your company's market? What gratifying achievements have you achieved? What is the overall sales target for 2011?
[Anhui]: Because our company is prepared for the current situation, it has little impact on us from the overall performance. Our engineering and export performance has also grown exponentially.
Our plan is to make major breakthroughs in engineering, from scratch, from small to large, to build engineering reputation, it seems that the dealer community response is also better. Our goal this year is a little more conservative than in the past few years. We hope that the overall sales performance will reach 1.5 times that of 2010.