Global Home Grid Reporter: Please tell us about the current situation of the Duh Group in terms of home appliances.
Zhang Hui: There are two major brand series in the household appliances section of the Dukes Group. One is the Shenhua series and the other is the Putian series. We also have two production bases, one in Shanghai and one in Zhangzhou, Anhui. The production base in Zhangzhou is newly put into operation in 2011 and covers an area of â€‹â€‹615 mu. Ganzhou is the capital of molds, and there are many resources to use. The Ganzhou municipal government is also building a home appliance industry group with hundreds of billions in Chenzhou. The entire Chinese home appliance manufacturing industry is gathering in the two major cities of Anhui, Ganzhou and Hefei, so we also We chose to start production of our new production base in Zhangzhou.
At present, Putian's refrigerators and washing machines are still produced in Shanghai. At the production base in Quzhou, we have already started production of Putian air conditioners. Washing machines and refrigerators production lines are starting up. In the future, Putian products will continue to be produced there. We plan to produce all of Putian's products at its base in Zhangzhou. Shenhua refrigerators and the company's fully automatic washing machines are mainly produced in Shanghai.
Global home network reporter: Putian and Shenhua's product lines are basically the same. So what's the difference between the positioning of these two brands?
Zhang Hui: Compared with Shenhua, Putianâ€™s positioning is more advanced, and Putian is a Sino-Japanese joint venture. With the help of Japanâ€™s leading technology to enhance the added value of products, the market is dominated by good products. Currently, the market positioning of Shenhua is mainly at Grade 234. City and some first-tier cities in the supermarket system, the brand positioning of the middle-end consumer.
Global home network reporter: At present, the home appliance industry's overall market is a downward trend, so what is the market performance of Duh's products?
Zhang Hui: Shenhua refrigerator project started in 2007, just in time for the two years of home appliances to the countryside policy, so the sales situation is relatively good, in 2011 the overall economic environment is not very good, we are in the 1- In February, it rose in a contrarian direction, which was around 22%. In addition, the increase in washing machine products is around 18%.
Global Home Grid Reporter: At present, what is the main market for Duh's products?
Zhang Hui: Our product market is spread all over the country, but the focus is on the northeast, north, northwest, and southwest regions, while southern China, like Fujian and Zhejiang, is still relatively weak.
Global Home Grid Reporter: Why is it not particularly good to sell in the Zhejiang market?
Zhang Hui: In Zhejiang, the polarization between the poor and the rich is relatively serious. For high-end users, the brand awareness is very strong. All of them like imported products, while ordinary users will buy relatively cheap products. In addition, Zhejiang is also a distribution center for small household appliances. Ningbo and Cixi have many home appliance manufacturers. Most of the products rely on low prices to seize the market. In this case, we have no price advantage to compete with local brands because our company insists on quality first and the raw materials and spare parts used are all the same as the well-known corporate supply system in the same industry, because the final decision on market sales is made. It's still the product quality. This is an eternal theme.
Global home network reporter: With the end of the home appliances to the countryside policy, will the company sales have an impact?
Zhang Hui: The end of the policy of home appliances going to the countryside has not had a great impact on us. We are small and medium-sized enterprises, and the scale is relatively small. Therefore, when we encounter policy changes, we can quickly change directions and adjust strategies. This is also a small and medium-sized enterprise. The advantage lies. Moreover, our company has always insisted on the concept of winning product quality, insisting on innovation, which makes our products still have important reasons for good sales in the event of a policy retreat.
Global Home Grid Reporter: The overall home appliance market is declining this year. Does Dulux feel that the market is coming in winter?
Zhang Hui: I think that the coldest time has passed so far. From November of 2011 to January of this year, it is the coldest period in the home appliance market. Especially around the Spring Festival, the entire real estate market is not very good. The appliances are closely related to the real estate industry.
However, from January to now, our companyâ€™s sales have increased. As the Chinese New Year is over, it is the sales season for refrigerators and other refrigeration products. We have newly developed more than 30 new regional agents, and at the same time, agents all over the country are Their respective regions have held new product launches, ordering sessions, and introduced more aggressive sales policies and achieved very good results. This market performance is also a good start for our overall sales in 2012.
In my opinion, although some policy guarantees gradually withdrew from the market in 2012, the home appliance market has experienced a downturn, but it will also be a growth trend. Because the country is vigorously developing peopleâ€™s livelihood and stimulating domestic demand, there are also some projects that benefit the people, and in real estate, the state will launch 40 million sets of affordable housing during the â€œTwelfth Five-Yearâ€ period, and this year it will have 10 million. Sets of affordable housing are concentrated in the market, which is good news for the home appliance market. Moreover, the consumption of affordable home appliances will be more rational, so they tend to buy some suitable products with higher cost performance when they purchase home appliances. This will be a good opportunity for companies like us.
Global Home Grid Reporter: In response to the changes in the overall market environment, what are the new measures for Du Fuâ€™s 2012 market?
Zhang Hui: In the face of changes in the market, we have also made some adjustments. The first is to insist on the means of meeting marketing. Meeting marketing is one of the most effective ways for home appliance sales in China. Through the meeting, products are displayed together, and the feelings of the distributors are brought closer, and the products are quickly released to the terminal distributors. Only when the product is in the hands of the dealer, the dealer is willing to sell your product, and your product can achieve higher sales.
The second is to continue to increase our brand building efforts so that more people understand our brand. Although Shenhua, an old Shanghai brand, already has a certain degree of social awareness, for young consumers, it is still necessary to strengthen branding, such as advertising on television, newspapers, and websites. In addition, there is the most direct one. One way is to use outdoor advertising and wall advertising. The influence of this method is relatively large. Through these methods, more consumers are aware of our brand and then subscribe to our products.
The third is to strengthen promotional activities. Because the current large economic environment is not very good, there are many household appliance brands, and the competitive pressure is very large. At present, we have formulated a promotion plan for the whole year. In May and June, there will be a relatively big promotion activity, urban and rural linkages, and radiation in key national markets.
The last is the construction of the after-sales system. We have now established a complete after-sales system throughout the country, expanded our call center in Luzhou, and launched the Dussou aftersales information service system. We have achieved mutual connections for all maintenance outlets across the country. In the second-tier brand companies, we are the first The company owns such an intelligent after-sales service system platform. We have full-time after-sales field managers in each area, responsible for the construction of local after-sales outlets. For SMEs, after-sales is very critical.
In order to ensure the quality of after-sales service, we have also taken some measures, such as the timely settlement of maintenance fees, other companies put the maintenance fees after three months before settlement, and we guarantee and repair operators to settle one month. In addition, we have corresponding incentives for timely on-site service, giving a certain amount of tilt on maintenance fees, and we also have corresponding penalties for exceeding the response time. In addition, we will return visits to customers and strengthen the control of maintenance outlets. The purpose is to improve the quality and level of after-sales services so that services can become one of our competitive advantages.
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