"Chunlan air conditioner went out of business?”
When it comes to Chunlan air conditioning, the post-80s generation is very impressed. The sentence "Chunlan air conditioning, high-level pursuit" has hollowed out the purses of many people.
In the first decade of the last century, Chunlan air conditioning was a well-deserved leader in the air conditioning industry, with an annual income of 5.6 billion in its heyday, and only 400 million in Gree air conditioning at that time.
At the same time, its founder Tao Jianxing has also become the well-known "father of air conditioning", he has led Chunlan air conditioning to break into the international market, ranking seventh in the world.
However, the glory is not what it used to be, and now the former air conditioning overlord is being forgotten.
Chunlan air conditioning is little known, and its performance has long declined.
In the first three quarters of this year, Chunlan's main revenue was 14.8 billion yuan, down 44 percent year-on-year17%。
In fact, as early as 2008, Chunlan shares for three consecutive years, with a cumulative loss of more than 500 million yuan, the Shanghai Stock Exchange suspended its trading, and the stock price plummeted, maintaining a range of 6 yuan per share.
The original main air-conditioning business has also gradually declined, and even fell out of the top ten in the industry.
Later, Chunlan Group tried to save itself by replacing assets and turned into a real estate stock, but this did not save it.
In just a few decades, why did the former "king of air conditioning" fall into such a situation?What exactly has Chunlan air conditioner experienced?
When it comes to Chunlan air conditioning, we have to mention its founder Tao Jianxing.
Tao Jianxing was born in an ordinary intellectual family, but he was very smart since he was a child, and he also liked to observe and study, and he had a strong interest in electronic technology, and often indulged in disassembling electrical equipment at home.
In 1977, Tao Jianxing entered Taizhou Forest Machinery Factory and became a technician.
Due to Tao Jianxing's studious and hard work, he quickly accumulated a wealth of electronic technology knowledge and management experience. Within a few years, he became the head of the technical section.
In 1985, Tao Jianxing was transferred to Taizhou Air Conditioning Equipment Factory as the factory director.
However, at that time, the Taizhou air-conditioning equipment factory was facing serious losses, the production line was suspended, and the workers were demoralized.
Its air-conditioning output ranks second to last in the country, and the factory scale ranks third from the bottom among the 21 refrigerator factories in the country, with a net asset of only 4.65 million yuan.
No one was willing to take over such a mess before, and being assigned here was equivalent to "decentralization", but Tao Jianxing resolutely decided to pick up the burden.
After taking over the factory, Tao Jianxing immediately launched a drastic reform.
First of all, he reorganized the structure, streamlined the departments and laid off personnel, especially those who relied heavily on the "big pot rice" mentality and were passive and lazy.
His actions aroused the disgust and dissatisfaction of the workers, and some even threatened him and threatened to retaliate against him, but these did not shake Tao Jianxing's determination to reform.
Secondly, Tao Jianxing screened the original more than 40 production lines of the factory one by one, and only retained more than 10 useful ones.
Then, Tao Jianxing conducted in-depth market research and found that most of the air conditioners in the market are sold in the power range of 3,000 to 7,000 kcal per hour.
So he decided to fill the gap in the market and concentrate on the production of air conditioners below 3,000 kcal and more than 7,000 kcal per hour.
At the same time, Tao Jianxing adheres to the principle of high standards and strict requirements to firmly control the quality of products.
And try to raise funds, the introduction of advanced production lines and testing equipment, greatly improve the accuracy and reliability of air conditioning.
In 1988, Taizhou Air Conditioning Equipment Factory officially launched household air conditioners.
A year later, the factory sales have exceeded 100,000 units, and it is surprising that the performance and quality of the air conditioner have been highly praised by consumers, and orders have been overwhelming.
In the same year, the air-conditioning equipment factory officially changed its name to Chunlan refrigeration equipment
In order to pursue more long-term development, Tao Jianxing turned his attention to inverter air conditioning.
However, when he tried to buy this technology from a Japanese company, the Japanese company gave Gundam70 millionsky-high prices.
Obviously, the Japanese side refused to show Tao Jianxing the technology, and also sneered at the technical team, believing that China could not develop an inverter air conditioner.
Unexpectedly, the attitude of the Japanese company to look down on China brought Tao Jianxing an opportunity for a breakthrough.
Tao Jianxing simply established his own R&D team to tackle technical problems, and only one year later, the team mastered the core frequency conversion technology.
Not only is the R&D cost only 3 million, but the performance of domestic air conditioners is more energy-saving than that of inverter air conditioners produced in Japan.
Soon, the factory successfully launched inverter energy-saving air conditioners, and quickly seized the market, and the annual output increased several times in a row, bringing a turnaround situation for the factory.
But Tao Jianxing was not satisfied, in order to expand the market share of Chunlan air conditioner, he began to work brand marketing.
He first invested 50,000 yuan and invited Ye Maozhong, who is now a madman for advertising, to shoot an advertisement, but Ye Maozhong did not have much experience at that time, and relied on a fellow villager working in Shanghai Film Studio to complete the advertisement.
Subsequently, Tao Jianxing spent a huge amount of 300 million yuan to put this advertisement on CCTV for five consecutive years.
The advertisement, titled "Score 6 billiards in one shot", aroused strong repercussions after it was broadcast.
The advertising slogan of "Chunlan air conditioning, high-level pursuit" is deeply rooted in the hearts of the people, and it also helps Chunlan quickly stand on the position of the leading boss.
In 1990, Chunlan air conditioning achieved an output value of 1200 million yuan, ranking first in the country, and hatchback air conditioning products also occupy 35% of the domestic market share of similar products.
At the same time, the domestic air conditioning and home appliance market has not only attracted the entry of foreign brands, but also many brands such as Wuxi Yingyan, Shaanxi Baohua, and Shunde Huabao have also emerged.
However, Tao Jianxing's experience and strength are indeed extraordinary, and in the fierce competition, the performance of Chunlan air conditioning is still rising.
In 1994, Chunlan air conditioning has developed to 12 production enterprises, with an annual output of more than 1 million units, achieving sales of 5.2 billion yuan, with a market share of up to 40%, far exceeding Gree, which has an annual sales of only 600 million yuan.
It can be said that at that time, for every three air conditioners sold in the country, one was Chunlan air conditioner.
In terms of enterprise scale, Chunlan Air Conditioning deserves to become the largest air-conditioning production base in China and one of the world's seven major air-conditioning manufacturers.
It is rumored that the Chunlan brand has spread to thousands of households at that time, so the workers who work in Chunlan have a special face, even after work, the workers are still wearing work clothes.
In this year, Chunlan was successfully listed on the Shanghai ** Stock Exchange.
Since then, with the prosperity of the market and the development of the company, the share price of Chunlan shares has risen all the way, and the highest once climbed to 64 per share3 yuan, and Changhong, Haier can be called China's best three carriages.
In 1995, Chunlan participated in the National Household Appliance Industry Competition organized by the National Bureau of Statistics, and stood out with its outstanding performance and strength, and won the reputation of "China's Air Conditioning King".
In 1996, Chunlan's total output value soared to 10.7 billion yuan, an increase of 509 times compared with the value when Tao Jianxing took over, and the results were amazing.
At the same time, the net assets of the company also surged from the 4.65 million yuan he took over to nearly 4 billion yuan, an 858-fold increase.
For any entrepreneur, it is an unparalleled outstanding achievement.
However, fate is always treacherous and changeable, and Chunlan is also at the peak step by step towards the quagmire.
Tao Jianxing believes that at this time, his Chunlan air conditioner has achieved the first place in the market, and the domestic market has been saturated, and it is necessary to find a new profit growth point.
In order to make Chunlan air conditioner go to the world, Tao Jianxing did not hesitate to plunge into the torrent of diversification strategy and decided to invest in industries such as motorcycles and automobiles.
In 1994, with 2 billion Tao Jianxing entered the motorcycle industry, two years later, "Chunlan Tiger" and "Chunlan Leopard" two products came out, each model is priced as high as 5,000 yuan.
In the 90s, this was a huge amount of money, but in just half a year, 60,000 units were sold, with sales of nearly 1 billion yuan.
This achievement of the motorcycle brought great encouragement and confidence to Tao Jianxing.
At this time, Tao Jianxing's ambitions became more and more reckless, and he was no longer satisfied with the success of the motorcycle field, but decided to go further into the automotive field and wanted to build a larger corporate empire.
In 1997, Chunlan Group spent 7200 million yuan acquired Nanjing Dongfeng Motor Company and established Chunlan Automobile
After market research, Tao Jianxing found that the 5-ton to 15-ton trucks between medium and heavy trucks of freight trucks were in a gap in the market, so he decided to cut into the market.
In 2001, after Chunlan truck was launched into the market, especially the truck's novel appearance, comfortable and spacious cab, and standard air conditioning and air conditioning, it was very popular with freight drivers.
Next, Chunlan Group also cooperated with South Korea's LG Electronics to jointly produce fluorine-free refrigerators and develop the washing machine market.
In addition, Chunlan Group is also involved in the TV war, the development of high-energy power nickel-metal hydride batteries, and the investment in LCD projects.
Unfortunately, Tao Jianxing's diversified layout quickly collapsed in the face of reality.
In 2000, the Chunlan LCD project was declared a failure, and $600 million was lost. Subsequently, the domestic truck industry shifted to heavy trucks of more than 30 tons, and Chunlan's main cargo trucks of less than 15 tons lost its advantage.
Chunlan's washing machine business also had a mediocre response, losing money year after year.
In 2008, Tao Jianxing gave Chunlan Truck to XCMG Technology, and Chunlan's diversification failed completely.
If only the investment in other fields fails, Chunlan, who has a big family, can still make a comeback. However, Chunlan, which started by relying on air conditioning, also missed the second period of air conditioning development.
Because Tao Jianxing needed a lot of capital and manpower to support the development of diversified strategic businesses, the main business of air conditioning was neglected.
In 1998, Gree replaced Chunlan as the No. 1 sales company, and at the same time, brands such as Midea and Haier also rose rapidly, and Chunlan's market share continued to shrink.
In 2005, Chunlan Air Conditioner had a loss of 25.95 million yuan, breaking the record of 11 consecutive years of profit after listing.
In 2007, Chunlan's air conditioning business revenue fell by 31 percent year-on-year52%, and the net loss of the enterprise was 19.8 billion.
Due to the loss of three consecutive years during the period from 2005 to 2007, in 2008, the Shanghai Stock Exchange asked Chunlan to temporarily suspend trading, and Chunlan's loss had exceeded 500 million yuan.
This blow made Chunlan's predicament even worse, and in the face of this sudden change, Tao Jianxing felt powerless.
At this point, it dawned on him that all of this was caused by his own decision-making mistakes.
To make up for his mistakes, Tao Jianxing traveled far and wide, looking for possible partners and investors.
But after a series of losses and trading suspensions, investors' confidence in Chunlan has fallen to freezing point, and no one wants to take over this hot potato at this time.
In September 2009, in order to survive in the shell, Tao Jianxing was forced to use 6The accounts receivable of 5.6 billion yuan and the equity of its three subsidiaries replaced the 10% equity of Taizhou Power Plant owned by the parent company Chunlan Group, the 60% equity of Taizhou Xingwei Real Estate Company and 15550,000 square meters of land.
In November 2009, after 18 months of suspension, Chunlan resumed listing.
However, after the reorganization, Chunlan is no longer focused on the home appliance business, but has transformed into the real estate industry.
Now as a company, Chunlan is still alive and well, but as the air-conditioning giant of the year, Chunlan has long ceased to exist.
Nowadays, the air conditioning market has become a "three-point world" situation.
Midea, Haier, and Gree have occupied the vast majority of the market share, and the domestic air-conditioning production capacity is basically in a state of serious surplus, and the competition of enterprises will be more serious.
In the face of a difficult survival situation, it is too difficult for Chunlan air conditioner to return to the market.
In the first period of the development of air conditioning, Gree and Midea are silently cultivating and accumulating strength, only this "air conditioning brother" put down the watermelon in his hand, looking for sesame seeds everywhere.
In the end, the side business did not start, and the main business was copied by others, and they lost everything.
No company can stand at the top forever, and no company can make money forever. In the face of the changes of the times, any enterprise may fall off the altar at any time.
Chunlan air conditioning did not lose to this era, but died in the blind and arrogant ambition of the founder.