From the initial "bankruptcy" was questioned to the daily increase of 100,000 fans, the former "washing machine king" Weili Electric (hereinafter referred to as "Weili") has experienced a significant "counterattack" in the recent period because of the promotion of traffic.
Recently, a netizen from Henan shared a paragraph on social **, showing a powerful washing machine that has been used for 26 years, and asked: "What year is this washing machine?" The manufacturer may have gone bankrupt! *, a netizen who calls himself "Weili Electric" wrote about the products, production places and brands of Weili Electric on Weibo. It attracted the attention and onlookers of a large number of netizens. Subsequently, Weili Home Appliances also said that Weili will provide users with washing machines, dryers and other products and services in the form of "free experience". The official account of Weili Electric posted this information: "The company has not gone bankrupt and is still in continuous operation". Netizens praised the Weinig washing machine. At the suggestion of many netizens, Weinig gave this netizen a brand-new drum washing machine.
This activity, which aims to give back to loyal customers, quickly appeared on the hot search list on major ** platforms. Netizens walked into the Weili live broadcast room to carry out the activity of "buying the same model", and posted their longer-used Weinig washing machines in the comment area, and also dug out more stories behind the Weili washing machines.
Recently, Jiupai Finance visited Weili Electric Appliance Company in Zhongshan and interviewed Liu Liang, chairman of Weili Electric, and Liao Yan, general manager of the washing machine division, in order to understand the traditional manufacturing industry that has been affected by unexpected traffic.
The office building of Weinig Electric. Photo by Chan Ching-yee).
For Weinig, the sudden flow of traffic brought the manufacturing company, which had already entered the year-end vacation, back to busy work.
On the day of the interview, the staff in the office hurried over and several employees gathered on the rooftop for a meeting to discuss how to deploy goods to those areas that were already out of stock. Liao Yan and Liu Liang are the heads of the business department of a well-known e-commerce company in Zhejiang. Since Liu Liang temporarily needed to have a ** meeting with the division manager, the new ** businessman did not have the patience to wait until the end of the year and urged them to sign the contract as soon as possible. Liao Yan was not in a hurry, she knew that Liu Liang was going on a business trip, but she didn't understand how Liu Liang did it. Liao Yan's task is to adjust the pricing strategy of various partitions and platforms, and some **merchants use the traffic drop to carry out**, which makes other **merchants quite dissatisfied with her.
Although the company has been described as "probably about to go bankrupt", it is actually the largest home appliance production center in southern China, and relies on overseas and OEM to live a comfortable life. Today, the glory of the WEINIG washing machine is a thing of the past, and there is a sense of loss within the company. However, compared with the glorious history of the past, the present is somewhat bleak: in the 80s of the 20th century, the Weinig washing machine became the national sales champion for seven consecutive years and was officially awarded the honorary title of "washing machine king" by the National Bureau of Statistics. At that time, people's trust in the WEINIG washing machine seemed to come from a deep emotional connection, and every wash was a tribute to mother's love and family care. The propaganda of "Weinig washing machine, love for mothers" and "powerful enough" have become childhood memories of that generation.
In the exhibition hall of Weinig Electric, you can see a photograph of Chen Jingyi's semi-automatic washing machine, released in 1984
Although Liu Liang felt excited and nervous, he fell more into confusion. He realized that he was in an unfamiliar territory and needed more learning and adaptation. He candidly says he doesn't know anything about traffic, internet marketing, or how to "get around."
In the past many years, Weinig has adhered to the traditional brand strategy, advertising and sponsoring popular variety shows on CCTV. Traditional channels are gradually declining, and the Weinig brand is rapidly losing ground. With the increasing abundance of resources, the influence of traditional advertising strategies has gradually weakened, and the challenges of emerging brands to sales channels and market strategies have made traditional brands face new difficulties. The glory of Mighty was like a dream, but now it is gradually forgotten by time. Liu Liang lamented that among young consumers, few people can remember the existence of Weili.
Now, the transformation of live broadcast technology and young people's consumption patterns has provided new opportunities for domestic brands, which is more vividly described as "pouring wealth into the sky". WEINIG's live broadcast program has attracted a large number of young fans, who have left messages in the live broadcast room, and WEINIG has taken the trouble to reply to every message, establishing a close interactive relationship with fans. On the short ** platform, Weili is very "persuading", netizens put forward suggestions and opinions in the comment area, and Weili strives to "spoil fans" to meet the needs of netizens.
Just as Weinig has done, this round of "pouring wealth" has prompted domestic brands to re-learn brand knowledge and explore new survival strategies in unexpected opportunities.
Next is the content of the conversation between Jiupai Finance and Liu Liang and Liao Yan (modified).
1] "It's not a hot topic that can be curated."
Jiupai Finance: After becoming popular, how much has the number of fans and orders increased? Orders are growing rapidly, but the number of followers is skyrocketing, and the finance team needs to adjust production schedules to respond to demand, while improving service levels to ensure orders are delivered smoothly to maintain brand reputation. Do you have the capacity to handle the increasing number of orders?
Liao Yan: Before our official Douyin *** became popular, there were only a few hundred fans, but since that short ** became famous, our number of fans has increased to 400,000. After becoming popular on the Internet, our brand influence has expanded rapidly, the popularity of the live broadcast room has continued to rise, and online sales have been rising. At present, we still have about 1,000 to 2,000 viewers in our live broadcast room** for a long time**, and the scale of online sales has increased tenfold. Our brand is gradually taking root in more regions, which bodes well for our growth. In the next business, many areas where our brand has a small influence before, such as Xinjiang, have businessmen come to establish cooperative relations with us.
With the sharp increase in orders, some models have been sold out, and we are currently making a nationwide transfer or considering replacing them with other models. In response to the surge in orders, tension pervades the factory. Although our first quarter order schedule was already full, in order to better handle this batch of orders, we decided to start work early on the fifth day of the new year and carry out urgent production activities.
Jiupai Financial Report: Since the ** released by that netizen has received widespread attention, many netizens have also begun to share their purchase information, mainly focusing on which model, counting the longest time they have used, and what is their reaction to these loyal customers?
Liu Liang said: ** has caused extensive discussions, one of the focuses is that a washing machine has been used for up to 26 years, according to our subsequent statistics through a variety of ways, there are some washing machines used for 32 years, or even up to 36 years. These are very representative, because we can see what changes have taken place in WEINIG during this time? The second generation of products we introduced to the market in 1984 is undoubtedly a witness to the glorious history of Weinig Electric and the growing Chinese home appliance market.
On the occasion of the 45th anniversary of the establishment of Weinig, we have been thinking about how to effectively give back to consumers. This time, the "posting" activity was extremely popular, and a large number of wonderful shares poured in. At this favorable time, we are currently actively collecting "posting orders" submitted by netizens to confirm which ones are genuine and still in use. We plan to update and replace pre-1994 models.
Jiupai Finance: When the ** released by consumers has received widespread attention, how do you first feel when you see the sharp increase in the number of fans?
Liao Yan: Our first reaction was completely unprepared, the number of fans suddenly surged, and suddenly a number of ** came to conduct interviews, we had no experience in this area before, and we were completely caught off guard. This time, we made a very good attempt to combine our own company with the company's products, and use the social platform to let everyone see the effect of our efforts. In the past, we didn't even have a live streaming team at our headquarters, but after this success, we also started to optimize the operation of our social and short platforms and built our own live streaming team.
Jiupai Finance: After becoming popular, what changes has Weili experienced within the company?
Liu Liang said: For Weili Electric as a whole, everyone is very proud, on the one hand, because they have silently persisted for many years and were finally discovered by everyone; In this competitive market, WEINIG has always won with products and services. On the other hand, WEINIG has always been a product and service focused company, and it is very exciting to be able to receive consumer recognition for its products. Their ** is not out of task, but sincere recognition and love in their hearts. We did not force employees to share** or create a sensation in the live broadcast room, because we were worried that employees who entered the live broadcast room might be treated as a "water army" or deliberately hyped up, and thus punished by the platform. The employees of Weinig Electric are desperate to **, which is their inner expression of their true feelings for the company, and also the incomparable confidence in the Weinig brand. However, a large number of employees are actively doing it, including some who have moved away from influence, and they are all actively doing it.
Jiupai Finance's short ** platform describes a topic of "not understanding marketing", but this hot topic has received a positive response in terms of traffic and sales.
Liao Yan said: Although the users who publish ** are accustomed to sharing their daily lives on the Internet, the traffic of other ** is not high, and only a paragraph about the Weili washing machine has attracted the attention of many people, including the manager of our Henan branch. The manager gushed about the advantages of the Weinig washing machine in the live broadcast room and answered various questions from netizens. The manager also shared a ** on the Douyin platform, responding to netizens' "collapse theory". On that day, a large number of viewers poured into the live broadcast room, which attracted the attention of our headquarters. So, we made a quick decision, and in response to the enthusiasm of our users, we decided to give them a brand new WEINIG washing machine. In order to meet the needs of netizens, we are giving away a brand new machine.
Jiupai Finance: Once this is concerned, how will its influence be strengthened?
Liu Liang said: This is definitely not planned by us. Although the short ** has been widely disseminated, we have not deliberately tried to attract fans or attract traffic. The popularity of this time was completely unexpected, and some netizens called it "splashing wealth", but we think this statement is also acceptable.
However, we also believe that this is the in-depth embodiment of WEINIG's customer service philosophy in the sales system for many years, and many things do not need to be guided at multiple levels, because everyone has the same opinion. Every effort is accumulated in silence. This time, I think real effort will pay off, as long as you have a positive attitude to face the market, then the market will give back to you. Perhaps initially, the returns are not immediately apparent, just as it takes time to see a good harvest after sowing. Such a return is likely to be late, not absent.
2] Despite "not going bankrupt", it is still quietly earning small profits".
Jiupai Finance: As a long-established domestic enterprise, when I see consumers, "I guess they should also face the fate of bankruptcy?" "I'm challenged, but the power is still alive. How do you feel when you have doubts? My mood is firm. What is the current state of operation at WEINIG?
Liu Liang: I don't think our influence is enough. Our export markets continue to expand, especially in the home appliance sector. In fact, the company is doing quite well. By 2023, our total sales will reach 3.5 billion yuan, and our profits and taxes will rank 28th in Zhongshan. With the exception of 2022, we have achieved a growth rate of 30% for the fourth year in a row, and production has reached saturation, which shows that WEINIG is in a very healthy business situation. 85% of our sales revenue is contributed by the export business. In addition to washing machines, which are the main export products, domestic sales account for half of the total, and microwave ovens and refrigeration products are also major exports. By 2023, the sales volume of microwave ovens under the Weinig brand will rank third in the world, and the scale of production and sales of ice cream machines has reached the world's leading level.
Jiupai Finance: After this popularity, have you set new development goals?
Liu Liang said: "In the next three years, our growth goal is to double our operating income, which is actually the goal we have set for a long time. Although there has been a big increase in traffic and sales in this round, we haven't made any adjustments yet. We believe that we should take a step-by-step approach to our work and not be overly aggressive. At this year's press conference, the main product of the Weinig brand is the freelancer platform, which is a new marketing method that combines traditional offline promotion with online and offline. Although the popularity will eventually subside, through this popularity, I am convinced that WEINIG will definitely reach a higher level of online sales in the future, as more and more young consumers begin to understand us.
Jiupai Financial Report: Weili Electric was once known as the giant of China's washing machine, and has been the first in China's washing machine market for 7 consecutive years. The decline of Weinig Electric is not just a decline in market share. The suspicion that "it may also go out of business" is partly a reflection of the decline in the brand awareness of WEINIG over the years, as well as the various changes that the washing machine market and WEINIG have undergone during this time?
Liu Liang recalled: I still clearly remember that the washing machine of the Weili brand was sold by Wujiaohua Company in Wuhan at that time, and it was a train and a train that transported it to Wuhan, resulting in demand exceeding **. At that time, WEINIG washing machines seemed to be indispensable in life, and every household used them. Over time, we went through a series of reforms and re-acquisitions, which led to a gradual deterioration of our economic situation, and today many young people have lost their sense of power. Therefore, Liu Liang decided to start from the product itself, increase R&D investment, and improve product quality and performance. The reason why brand awareness is gradually "falling behind" is that, on the one hand, there are many brands in the current market, which leads to consumer distraction, coupled with the rapid change of hot topics, no brand can remain in people's memory for a long time; On the other hand, in the context of internet marketing, this is an era in which winners are able to cope with various challenges. In this digital age, traditional brands are facing unprecedented challenges. In the past, if a brand wanted to enter the market, it usually chose CCTV for advertising. However, in the current brand concept, the market often only remembers the one that invested the most money, and not the one that ranks second. Therefore, we are reluctant to invest too much money to damage the brand's awareness, but believe that using these costs on the product itself will bring better results. We tried to expand our market through social **, but found that our content was out of step with the aesthetics of young people. Although some people call us "Buddhas", in fact, we don't know anything about the internet and the associated ways of playing.
Jiupai Finance: Weili washing machine once enjoyed a high reputation in marketing, but in the Internet era it suddenly "lost its voice", have you made other attempts?
Liao Yan said: "We represent a typical manufacturing factory. Despite this, our marketing strategy still maintains the traditional model, such as the traditional ground sales channel and the focus on traditional e-commerce platforms. Over the years, WEINIG has been working quietly on many fronts, in addition to advertising on CCTV and satellite TV, we have also sponsored programs such as "Do Not Disturb" and "The Voice of China". But unfortunately, the conversion rate of these activities is not high, causing many young people to stop paying attention to TV shows.
In the home appliance industry, profits are relatively low, while traditional marketing strategies require a large amount of capital investment. For a smaller company like ours, this is undoubtedly a heavy economic pressure. At the same time, it is difficult to find a more effective advertising strategy, so advertising is neglected in our strategy, resulting in a gradual decline in market influence. We need to keep up with the times, actively learn about new ** marketing, and gain a deeper understanding of young people's buying behaviors and preferences. We have been a little slow to respond to the new avenues that the young people love. We urgently need to change our thinking, actively learn new marketing knowledge, and understand the changes in young people's consumption psychology and buying habits. At the moment, we don't know much about the marketing strategies of the new** and new channels, and we don't know much about the changes in the way the younger generation shoppers.
3] With "listening to persuasion" as the core, the traditional domestic brand course has been comprehensively reshaped.
Jiupai Finance: What enlightenment and thinking has this "popularity that cannot be planned" brought to Weili Electric?
Liu Liang said: In the past, we may not really care about how to carry out Internet marketing, but this success has made us deeply feel the horror and shock of this power. We are deeply aware of the power of the Internet, but how to effectively harness this power does require careful consideration. On the one hand, we need to attach great importance to network marketing and sales channels, and on the other hand, we also need to weigh the human and material resources that need to be invested.
In the future, we will deepen, understand and adapt to this model. There are a lot of us in the industry who position ourselves as "outsiders".In fact, we know the market very well and know that we are in **. In the past, we had a concept that "good wine is not afraid of deep alleys", but now I believe that even high-quality products should be promoted through effective promotion means. Our "Buddhist" culture is likely to be even more radical in the future. We are also considering whether we should seek a third party to assist us with the planning work, however, the third party is only doing some of the usual operational steps, which requires us to think deeply.
Jiupai Finance: How long do you think this boom can last? When people start to realize the importance of Internet marketing, can we accumulate experience for future marketing strategies to maintain the current traffic growth?
Liu Liang said: The current heat has lasted for ten days to half a month, which is completely understandable. Liu Liang's words make it clearer that we really can't keep "relieving", but to find a sustainable growth point. We don't do it continuously, my view is that it is impossible to do it all the time, and we don't know how to do it. This opportunity is an opportunity for our brand development, we need to continue to innovate, replace the old with the new, improve the quality of products, and let consumers feel a better experience in use. We are thinking deeply about how we can make the most of this opportunity and further refine our product strategy, such as replacing old products with new ones. This is not only from the point of view of sales strategy, but more importantly from the point of view of brand delivery. Behind the real traffic is the huge benefits brought by domestic brands. We also hope that our domestic brands will continue to prosper in the market and provide more consumers with a better domestic experience.
Jiupai Finance: Do you think that this popularity has really seized this opportunity?
Liu Liang said: Overall, I think the performance this time is quite outstanding. Some people suggest that we "listen to persuasion" and think that we will do whatever netizens want to see. This is mainly because of our deeply rooted consumer-centric business philosophy that drives us to make all kinds of decisions, whether it is "persuasion" or follow-up action, just like eating when we are hungry, it is our nature to drive, and we will continue to do so.
Jiupai Finance: Considering the difficulty of planning hot topics, do you think there will be a second wave of traffic next?
Liu Liang said: "It's really a rare explosion, but I believe it will happen. We're also preparing for that, and we're not going to rush to a second chance like we did this time.
Jiupai Finance: As a domestic product with a long history, Weinig has encountered a variety of challenges in its past business operations. Why, then, does it continue to "stick" in the same way that it reacts to consumers?
Liu Liang said: In the home appliance industry, the competition is extremely fierce, and this competition has continued until now, and Weili has made great efforts to do so. In this long process of growth, every challenge is a baptism, and every failure is an accumulation. For Zhongshan, in recent years, many of the old brands that were once glorious no longer exist. This process is like a grinding of suffering, and only through the tempering of time can enterprises truly consolidate their position. I believe that any business needs to go through more than 30 years of growth and precipitation if it wants to succeed, scale and become stronger. In this process of growth, it will suffer two devastating blows before it can finally become a steadfast business. Only after going through the wind and rain can the enterprise really stand firm. Many of the companies that are still holding on to it today, as well as others that we've observed, have already made it past this phase. This perseverance and long-termism is the key to the success of the company. In addition, we have always adhered to the principle of long-termism and devoted ourselves wholeheartedly to brand building and product quality improvement.