After Huang Guangyu became the richest man in China for the first time, Gree faced Gome and Suning's ** and lost its retail channels. However, Dong Mingzhu used the "rebate model" to unite dealers around the country, and successfully broke the monopoly of Gome and Suning by laying stores across the country. This "rebate model" has become the core technology of Gree, and the interests of Gree and dealers are firmly together. Through this model, dealers can not only obtain sales profits, but also enjoy tens of billions of shareholder dividends. This close cooperative relationship makes dealers around the country willing to pay out of their own pockets to help Gree open stores across the country, effectively breaking the market monopoly.
Rich expansion: After Gree just became the richest man in China, Gree fell into a huge predicament in the face of Gome and Suning. However, Dong Mingzhu was not discouraged, and with the help of the unique strategy of "rebate model", she successfully united dealers around the world. This model transforms the relationship between Gree and dealers from simple purchase and sales to a cooperative relationship of mutual interests, so that dealers can obtain stable sales profits and shareholder dividends. It is through this close cooperation that Gree was able to set up specialty stores across the country, breaking the monopoly of Gome and Suning in the air conditioning market. The success of this cooperation model not only promoted the development of Gree, but also won the loyalty and support of dealers for Gree.
However, after 20 years of cooperation, the relationship between Gree and its dealers has changed drastically. This year, Dong Mingzhu decided to carry out channel reform, which has made a major change in the channel sales model. The first step in this reform is to dilute the dealers' equity and bring in new investors. Secondly, the rebate for dealers has also been significantly reduced, from the original 24% to a negligible level. This caused strong dissatisfaction among many dealers, who accused Dong Mingzhu of being a villain who "scolded the monk after reciting the scriptures" and "crossed the river and demolished the bridge". Even Huang Hui, Wang Jingdong, Hu Wenfeng and other core figures of Gree expressed dissatisfaction and doubts about Dong Mingzhu.
However, just when people thought that the relationship between Gree and the dealer would last forever, something unexpected happened. This year, Dong Mingzhu decided to carry out a channel reform, which also means that the relationship between Gree and dealers has undergone a huge change. First, Gree decided to dilute the dealer's stake and bring in new investors. This decision has sparked strong dissatisfaction among many dealers, who feel that their interests have been compromised. Secondly, the rebate of dealers has also been greatly reduced, and at the same time, Gree has also broken the "sister and brother alliance" for 20 years. The dealers who worked closely with Dong Mingzhu in the past expressed their dissatisfaction and accused Dong Mingzhu of betraying his past commitments and cooperation principles. This incident not only aroused the strong ** of dealers, but also aroused widespread concern in the society. For Gree, channel reform will be an unprecedented test and will also determine its future development.
However, in this conflict with dealers, the only person who supports Dong Mingzhu may be Wang Ziru. During the interview, Dong Mingzhu told Wang Ziru: "This may be a decision that will change the rest of your life." And Wang Ziruo accepted Dong Mingzhu's invitation to serve as the person in charge of channel reform. He shows great enthusiasm and responsibility, arriving at the office at the earliest or latest every day, and dedicating himself to his work every weekend. His close cooperation with Dong Mingzhu enabled him to report the progress of his work to Dong Mingzhu in a timely manner. Through the introduction of the cloud-network wholesale system, he successfully solved the problem of large dealers earning price differences in the past, making Gree closer to consumers, better grasping channels, and providing more space for the first battle.
Rich expansion: Unlike the controversy of dealers, Wang Ziru played an extremely important role in this reform and became Dong Mingzhu's most reliable partner. During the interview, Dong Mingzhu said to Wang Ziru: "This may be a decision that will change the rest of your life." Wang Ziru was convinced of Dong Mingzhu's words, and resolutely decided to accept the important task of channel reform and became the person in charge. He threw himself into this work, leaving early and returning late every day, even on weekends. In order to better report to Dong Mingzhu, he also specially chose the office closest to Dong Mingzhu. Through his efforts, he developed the cloud-network wholesale system, which successfully solved the problem of large dealers earning price differences, making Gree closer to consumers, better grasping channels, and providing more space for the first battle.
However, Dong Mingzhu's channel reform has been resisted by many dealers. Some dealers openly expressed their dissatisfaction and announced that they had cut ties with Gree and switched to selling Philips air conditioners themselves. What's even more worrying is that Gree's old ministers Huang Hui, Hu Wenfeng and Dong Mingzhu's secretary Liu Yirong and others have joined the team, forming an Avengers alliance composed of old ministers who were forced to retreat by Dong Mingzhu. Even Dong Mingzhu's old leader Zhu Jianghong stood on the side of Philips Air Conditioner regardless of his illness, saying that dealers must make money.
This conflict with dealers not only made Gree face a huge challenge, but also deeply revealed Gree's predicament. In the past few years, Gree has been defeated by Midea and lost the first place in market share. Other companies such as Haier, Hisense, and Xiaomi have strong momentum in diversification, and their market value continues to rise. The challenges that Gree needs to face are not only the relationship with dealers, but also how to maintain competitiveness in the fierce market competition, how to respond to changes in consumer demand, and so on. Gree needs to make breakthroughs in industrial upgrading and innovation, and find new growth points in order to be invincible in market competition.
Rich and expanded: However, Dong Mingzhu's channel reform has encountered severe challenges. Some dealers expressed dissatisfaction with this reform and publicly announced that they would break off relations with Gree and sell Philips air conditioners instead, which put huge pressure on Gree. What's even more worrying is that Huang Hui, Hu Wenfeng and other Gree's ministers, as well as Dong Mingzhu's secretary Liu Yirong and others have joined the team and established an Avengers alliance composed of old ministers who were forced to retreat by Dong Mingzhu. Even Dong Mingzhu's old leader, Zhu Jianghong, also stood on the side of Philips Air Conditioner, saying that dealers must be allowed to make money. This conflict with dealers not only caused damage to Gree's image, but also brought huge obstacles to Gree's development.
The dilemma faced by Gree is not only the relationship with dealers, but also how to maintain competitiveness in the fierce market competition, how to respond to changes in consumer demand, and so on. In the past few years, Gree has been defeated by Midea and lost the first place in market share. Other companies such as Haier, Hisense, and Xiaomi have strong momentum in diversification, and their market value continues to rise. Gree needs to make breakthroughs in industrial upgrading and innovation, and find new growth points in order to be invincible in market competition.