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Gree's full sales failed, what is the problem?

author:Hu Huacheng
Gree's full sales failed, what is the problem?

Recently, Red Star News reported that Gree canceled the five-year full sales system. So far, Gree has not responded to this.

It is reported that starting from 2019, Gree began to trial run "full sales", with the purpose of tapping the growth potential of the enterprise. At that time, some media pointed out that the sales assessment task set by Gree for each employee was 10,000 yuan. However, this indicator was denied by Gree.

However, in Gree's 2019 annual report, it can be seen that in order to face the new consumption mode and communication mode of e-commerce, all employees participated in the development of the company's sales channels, and there were more than 100,000 registered branches of "Dong Mingzhu's store", with a total annual sales of 1.4 billion yuan, with an average sales of 14,000 yuan per branch. Judging from the data, Gree's national sales strategy has achieved immediate results, and it only took one year to increase its revenue by 1.4 billion. However, compared with the giant Gree, 1.4 billion only accounted for 0.7% of the revenue of 198.2 billion yuan that year, and the impact was minimal.

Gree's full sales failed, what is the problem?

Unknowingly, Gree's full sales have been implemented for 5 years, but Gree's revenue has declined instead of increasing. The revenue from 2019 to 2022 will be 200.5 billion yuan, 170.5 billion yuan, 189.7 billion yuan, and 190.2 billion yuan respectively.

Some people may say that Gree's poor performance cannot be blamed entirely on Gree, because the real estate industry is not good, and the demand for household appliances has of course become smaller. But let's take a look at Gree's competitor Midea Group, its revenue from 2019 to 2022 will be 279.4 billion yuan, 285.7 billion yuan, 343.4 billion yuan, and 345.7 billion yuan respectively. Although the real estate industry is in a recession, Midea Group is still slowly climbing, how can Gree have a sense of stagnation? Gree must have a problem in some aspect, but it is impossible to say exactly what is the problem.

Full sales may be a brave attempt in Gree's business model, but unfortunately, the effect is not satisfactory. When Gree employees were recently asked by the Red Star News reporter whether "Gree has canceled the sales of all employees this year", Gree employees said that it can be understood in this way, because the indicators of middle-level cadres have been greatly reduced, and individuals have no indicators.

This means that Gree's attempt to sell all employees has ended in failure, and it has also sounded a wake-up call for other companies that want to sell all employees that it is not easy to achieve full sales.

According to insiders, there are obvious drawbacks in Gree's full-staff sales system, although it allows the company to sell a little more, but for employees who have no external resources, full-staff sales have become a kind of pressure. Especially those employees on the production line, they don't have much time to contact people in the outside world except for going to and from work every day, let alone selling.

However, employees are pressed by indicators, and it is difficult for the whole person to relax, which will affect their own work. When the negative effects outweigh the positive effects, that is, when a policy fails completely.

This is to be expected from the failure of Gree's all-staff sales, because Gree treats individual phenomena as general phenomena, which is an irrational decision. Everyone knows that sales is the easiest career for ordinary people to make money, but why are there still many people who don't do sales? Because they know where the boundaries of their abilities are, they don't try it easily.

Gree's full sales failed, what is the problem?

When they finally escaped the profession of sales, the company told them that they were going to sell to all employees, and if they couldn't sell, their wages would be reduced, wasn't this a disguised layoff?

In fact, there is nothing wrong with the company's implementation of full sales, the mistake is to take it as an indicator. It stands to reason that these non-salespeople should be an additional reward for selling products, whether they can sell or not, they should be tied to the performance of their own work, which will only increase the pressure on employees, and nothing else will be of much help.

Taking Gree as an example, the number of employees in the company was 88,846 in 2019, and it will drop to 72,380 in 2022, a decrease of 16,466 in four years. It's hard to say if these employees left because they couldn't bear the performance pressure.

The premise of all-employee sales is not to become a burden to employees, but to get additional rewards at your fingertips. For example, suppose Gree opens the internal price of each employee, the market price of 5,000 yuan of air conditioner, the internal price of employees only needs 4,500 yuan, and the customer buys through the employee channel, and the employee can also get a commission of 500 yuan. There needs to be a scene here, that is, when employees are chatting with friends, they are not actively selling, but when friends are chatting about buying air conditioners, they will most likely ask your opinion, after all, you are an employee of Gree. At this time, you can tell your friend that you can look at the air conditioner in the official flagship store, I can help you buy it with the internal price of the employee, and I can help you save 500 yuan.

If the index is given to every employee, then everyone will become a salesman, and the company may not be able to do anything, and in the end it is really a loss to the wife and soldiers!

Gree's full sales failed, what is the problem?

This is the best era, but also the worst era, with capital thinking and new business model integration, the whole world is your stage!

In the world of new business, there is no eliminated industry, only the subverted out of the enterprise, and now all business competition will focus on "model innovation and capital operation".

A company or a boss, if there is a shortage of innovation ability and capital thinking, is destined to lose in advance.

Remember: without innovation, how can there be imagination, without imagination, how can there be competitiveness, if you want to break through, you must subvert the original business model, reconstruct a new business model!