The striker is exquisite
The decline in China’s exports has further widened, and Wang Feng has made a major decision. Moving to Beijing is a key step in Deluge’s future international strategy.
The Linglong Rubber Group is one of the few companies that has experienced significant declines in import and export throughout the country but has maintained high growth. In the first half of last year, the overall situation of tires was relatively good and could change dramatically. As soon as it entered the second half of the year, the domestic tire industry saw a significant decline in sales.
Wang Feng, the current president of Linglong Group, has almost become the absolute protagonist of tire companies in this financial crisis.
In 2008, Delegium achieved sales revenue of 10.2 billion yuan and earned foreign exchange of 650 million U.S. dollars, becoming the top 20 tire industry in the world and the top 3 tire industry in China. This success is not easy for tire companies, which is not very good at advocacy in China.
March 5, 1975 exquisite predecessor Zhaoyuan tire repair factory was formally established. The company's sales started from the initial 0 to 100 million, spent 16 years; from 1 to 10 billion, they spent 10 years; and from 10 to 100 billion, exquisite only For 7 years. Not too many people know that Zhaoyuan City, Shandong Province, and not many people know the exquisite rubber group in this city, but everything happened quietly.
Wang Feng, who grew up in a quiet business, has new ambitions. On May 22 of this year, Linglong Rubber Group officially moved to Beijing and established Beijing Linglong Tyre Co., Ltd. On the day of the ground-breaking ceremony, Wang Feng deeply touched the journalist: “Exquisitely go out and compete with world-class tire companies.â€
No event first
In previous years, many tire companies in China relied on low-cost advantages to export their products. At one time, there was a scene of contending and export blowouts. Many companies focused on expanding the scale, but Wang Feng was unaware of the problem. Existence, after a period of hesitancy, Wang Feng finally identified the entry point of the market and the selling point of the product. He decided to let the company take the differentiation route and concentrate the advantaged forces one by one.
Subsequently, the competition among domestic tire companies reached a state of enthusiasm, and how to “outperform†their peers became a problem for Wang Feng’s night vision. Later, he clarified “competing with whom†and “taking what competition†and focused on product R&D, quality management, customer development, and customer relationship maintenance. Until now, Exquisite has more than 160 countries abroad and has more than 300 direct customers, and many of them are powerful local distributors.
The unexpected situation in 2008 caused the price of raw materials to fluctuate greatly and the risk of devaluation of dealer stocks increased. Linglong itself had a complete set of risk defense system and development protection system, but how to share the crisis with the distributors Wang Feng timely launched a Set of more fresh sales policies - "hedging."
At the end of 2008, a customer in Brazil had set tires for more than 30 cabinets, valued at more than 1 million U.S. dollars, and the sums had reached exquisite accounts. Delicatessen should have shipped and could be calculated. From Shandong to Brazil, the road was to go. The last 45 days, and this shipment arrived, according to the situation of the drop in raw material prices at that time, the dealer must lose money, exquisitely called the subscribers in Brazil, told them to transfer the goods to the more recent customers, etc. When they come down, give them more goods. It is this adjustment that reduces the loss of Brazilian customers by 20% to 30%, and after they had placed orders with several domestic tire factories, they now only took the exquisite family.
This healthy sales network guarantees exquisite export growth. At the beginning of last year, the goal set by Linglong was to reach a peak value of 650 million U.S. dollars in exports. In August, exquisite exports earned 61 million U.S. dollars, and they reached 50 million U.S. dollars in November and December respectively. Last year, sales revenue was 10.2 billion yuan and foreign exchange earned 650 million U.S. dollars.
Internationalism ambition
The excellent situation in front of him has not become the reason for Wang Feng's stagnation. His international ambition is further expanding. Going out of the country's exquisite, the reputation in the United States is quite good. Wang Feng, who visited the US tire sales store on several occasions, knows that in the United States, the car is not a luxury but a necessity of life. The Americans pay more attention to the price of the car tires.
He decided to set up an R&D center mainly for the North American market, started construction of the Central Asia Tire Testing Site, and set up Delicate Customs Declaration. On the first day of this year, he and his first-line employees in Shandong finished their dumplings and embarked on a journey to the United States. On the second day of the first month, he held the first office meeting for research and development and marketing in North America. In just a few months, the same product was sold to North America, the price increased by 7%, and the profit rate increased by 5%.
The North American Strategy has already begun to show results.
Having experienced the financial crisis, Wang Feng made it clear that his own judgment was not just a tire company. For Chinese companies, there is a big problem: Re-manufacturing and marketing, which makes it very easy for companies to become "branded "Enterprises, it is difficult to go international.
The situation has not allowed Wang Feng to slow down. It is the worst time for others, but it does not necessarily target himself. Only by seizing potential opportunities can greater breakthroughs be achieved. Perhaps two years ago, Wang Feng did not think that he would have to shift the space of more than 30 years in the old base. Now he has to think seriously.
Moving to Beijing, we pay more attention to R&D and marketing, research tire rolling resistance, environmental protection, comfort, etc., reduce fuel consumption, improve driving comfort, and meet the individual needs of different users. More than 200 new products will be put on the market in the future. Wang Feng, who was vigorous and resolute, came to Beijing for talks with relevant leaders. The global top ten ambitions prompted him to invest heavily in Beijing Linglong Tire Co., Ltd. This project has a total investment of 300 million yuan and covers an area of ​​115 acres.
After the project is completed, it is mainly used for chemical, physical experiments, performance testing and in-depth technical research of various tires; and based on the existing marketing network, it integrates marketing teams, bases itself on Beijing, radiates the whole country, and faces the world, creating an international New situation in marketing.
“This is not to say that manufacturing is not valued.†Shandong Zhaoyuan is still a manufacturing base. During the conversation, Wang Feng revealed that this year Delicate will also acquire a factory in China and establish a second production base to cope with the market that is in short supply. Contradictions, and the location will be in the south, can also help them save logistics costs. In overseas markets, if it is not a financial crisis, Exquisite is ready to select India, the second largest population country in the world last year. This is indeed a good choice for tire companies that are consumer products. Now that India has just held an election, the political situation is still not clear. Wang Feng is still waiting for an opportunity to make another decision.
How long will the aftermath of the financial crisis persist? This may not be clear to anyone now. Zhang Hongmin, chairman of the Shandong Rubber Association, told reporters that the upcoming June tire situation is still worried because the situation is still uncertain.
However, Wang Feng appears to be more optimistic. This is not an unwarranted blind confidence, but through a set of data, showing exquisite confidence. Wang Feng said that China's tire sales accounted for only 10% of global tires, exquisite tires accounted for 10% of the Chinese market share, they account for 1% in the global market; and Michelin in the global market accounted for 20% of the largest, exquisite only it's 1/20, "We have absolute space for development. Even if Linglong's sales volume drops by 50%, there is still 49% of the market for Delicatessen. We have our own R&D, have our own brand, and have our own global marketing network. As long as we have built our products and marketing network, we have no problem."
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