Thousands of trials: "separation of production and sales" (Figure)


——Interview with Mr. Duan Xingong, General Manager of Qianli Enterprise Co., Ltd., Executive Deputy General Manager Liu Yonghong

Production and marketing integration and production and sales separation which is more suitable for the development of lighting companies? This problem has not been debated in the industry in the past, because the lighting industry has always been a sales model dominated by production and sales. On March 1 this year, Taiwanese company Qianli cooperated with professional marketing company PAOS in the establishment of a new company in Guzhen. The new company and Huizhou Qianli headquarters implemented the separation model of production and sales. This is the first move in the industry, which naturally causes the industry to separate the production and sales. The focus of the model.

Taiwan enterprises have increased their awareness of domestic sales

Reporter: It is understood that there are more than 400 Taiwan lighting companies in the mainland, and the annual output value accounts for more than one quarter of China's lighting (lighting). However, most Taiwanese enterprises in the past 20 or 30 years are OEM and export. Mainly, there are only a handful of companies doing domestic sales. The mainland is a big market. It is obvious that Taiwan enterprises have given up this market. Some people say that Taiwanese companies investing in the mainland to set up factories only want to enjoy some advantages of the mainland as a manufacturing base. May I ask Liu, how do you think about this?

Liu Yonghong: The early mainland was indeed very attractive to Taiwan's manufacturing industry. For example, policy concessions and cheap labor have made Taiwan's manufacturing industry rush, but with the rapid development of the mainland's economy, the people's spending power has increased dramatically, and this market has been allowed. It has become a battleground for military strategists. Therefore, I believe that Taiwanese companies do not have to give up domestic sales. They are only relatively cautious and conservative. In the past two years, many Taiwanese companies that have only been export-oriented have realized this and gradually increased their domestic investment. However, for Taiwanese companies, it is still difficult to open up the mainland market.

Duan Xingong (left) and Liu Yonghong in research work

Reporter: There are fewer Taiwanese companies doing domestic sales and less domestic sales. Mr. Liu mentioned that it is more difficult for Taiwanese companies to open up the mainland market. What are the specific reasons? As a senior expert in the mainland industry, how do you see Duan Zong?

Liu Yonghong: The mainland market is a very large market in terms of both vertical and deep. The consumption habits of each region are different. This is a considerable challenge for Taiwanese companies that are good at exporting markets. Therefore, I think The lack of understanding of the mainland market should be the main reason for Taiwan-funded enterprises to open up the market. It is because they do not understand, so they dare not invest boldly. This often loses the initiative and has no initiative.

Duan Xingong: Taiwanese companies entering the mainland to establish production base products are not domestically sold. The initial idea was to reduce production costs. In the past ten years, Taiwanese companies have gradually discovered that the mainland market has great potential and will begin to consider domestic sales, but it is difficult to develop. As a manufacturing enterprise, Taiwanese enterprises are masters of factory management. They have more modern management systems and rich experience than mainland enterprises. However, they only operate in Taiwan market and export, lacking experience in mainland market operations, and the mainland market potential is even more than Europe. Large, regional markets are very different, the competitive environment is not standardized, and price wars have become one of the main means of competition. For Taiwanese companies that have relatively high product prices and often adopt the "regular army" attitude to fight regular warfare, There are not many ways to appear, and it is normal to have fears, confusion, conservative emotions and unacceptable reactions.

Qianli and PAOS

Reporter: Qianli started out as an exporter, but the domestic sales have been relatively successful. Please briefly introduce the situation of Qianli doing domestic sales over the years. What is the biggest difficulty in the process? Mr. Liu and his team of domestic marketing experts are aiming to do a good job in the mainland market. Where is the biggest gain in two years of cooperation?

Liu Yonghong: The export business of Qianli began as early as the 1980s. It was not until the early 1990s that the domestic sales business began. It has been recognized by many dealers, but there are still many difficulties in this process. For example, intellectual property rights, trademark counterfeiting, etc., but I think the biggest difficulty is not understanding the mainland market. Like other Taiwanese companies, before 2005, Qianli’s marketing directors were all Taiwanese. They used the usual thinking to manage the market. It is easy to create difficulties in communicating with dealers. In order to solve the problem completely, we have the current cooperation with PAOS. I believe that the biggest gain lies in the ideological change. After the cooperation, we adjust the market policy, boldly invest, and adjust the product line. It is to cater to the market demand and is oriented to the terminal demand. This is what the Qianli before the cooperation did.

Duan Xingong: In the past two years, our cooperation has been very enjoyable, and the harvest has been great. It is mainly reflected in the stable trend of domestic customers and channels, the maturity of the channel management model, and the diversification of products. The market share in the mainland is increasing, and the Qianli brand is obviously improving. More lively and more energetic. Speaking of the biggest gain between us, the trust between the two sides is getting deeper and deeper. It is clear that we have opened a new company.




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