The business sea is full of ups and downs, and countless people and enterprises have reached heights that are difficult for others to reach by taking advantage of the east wind of the times.
Changhong,It is a brand that everyone is familiar with,At that time, it was a thing worth showing off to have a Changhong TV at home,The three traditional wedding pieces have also become refrigerators、Color TV、Washing machine。
Changhong became a leader in TV brands at the end of the last century after its launch,But it's such a business giant,When it fell in the torrent of the times, it didn't even make a splash。
A major reason for his decline was that he was defrauded in 2004 when he cooperated with an American company, and the amount involved was as high as 4 billion yuan.
Source: Beijing Morning Post, December 8, 2004 "Changhong was deceived of 4 billion yuan in the United States and will be forced to significantly revise its overseas strategy"
It is precisely because this extremely important fund cannot be withdrawn that Changhong later went into decline step by step, what happened at that time? How did the giant Changhong fall?
Domestic giants
1997 is a year for Changhong,In the year of the rapid development of domestic TV sets at that time,Changhong topped the domestic TV sales championship with an absolutely crushing attitude。
And with a market share of 35%, other brands have no place to fight, from 1972 to 1997 to make the first TV to dominate, Changhong only took 25 years.
Source: State-owned Assets Report March 7, 2020 [In-depth Report - 70th Anniversary] Changhong: A condensed history of the reform and development of state-owned enterprises
Behind all this, in addition to the promotion of the torrent of the times, the system and Changhong leaders are also indispensable, Ni Runfeng, an entrepreneur who is not famous today, but he is the promoter and leader of Changhong's development.
But 35% of the market could not meet the appetite of Changhong at that time, what did the business competition rely on? Naturally, it is more advanced technology and cheaper prices,At that time, the technology had reached a bottleneck,Plus the consumption tax on color TVs introduced by the state。
Many people who were originally willing to buy TVs were discouraged,At that time600Yuan can be said to be a huge amount of money,Seeing that sales are getting bleaker and bleaker,It is impossible to upgrade products in a short period of time。
If you want to seize the market, you can only reduce the price, but the price reduction is a double-edged sword, and if you use it well, it can stimulate the market activity, and if you don't use it well, it is likely to smash the signboard, which is very easy to lead to the downgrading of your own brand.
But it was such a very risky operation, Ni Runfeng made a decision and reduced the price by 350 yuan, it turned out that he was right, that year Changhong began to enter the homes of ordinary people, and the sales were all the way to the dust.
But this is far from satisfying Ni Runfeng's appetite, in order to be able to completely establish the position of the leader of Changhong TV, his habit of taking risks is once again reflected.
What kind of business is the most profitable? Naturally, there are no competitors, and if a technology or product is unique to only one company, the profits will be unimaginable.
In this way, in order to achieve a monopoly of the family,Changhong has made a thing that no one can imagine,It is this bold attempt,Changhong TV really began to decline。
Delusional Cutting
In order to achieve his goal, he began to privately sign monopoly agreements with a number of color tube factories, if he can eat the deal, even if the price is low and he drinks more, he will make money.
Of course, the premise is that he can sell, so it can be said that this hoarding cost him a lot of cash flow, and the productivity is full, in order to eat most of the market by himself.
But he didn't expect that the time and place were all right and none of them stood by his side, and just when he fantasized that these could bring huge benefits to the group, something happened that he couldn't even think about.
At that time, Changhong hoarded CRT material picture tubes,Before that, TVs used this kind of picture tubes,But just when Changhong was ready to monopolize the picture tube,A new display material appeared——That is, the LCD screen LCD that we use the most today。
Compared with the CRT material displayLCDThe LCD is thinner and more vivid,This almost dimensionality reduction blow contrast makes Changhong's hoarded picture tube completely rotten in his hands。
But at this time, Changhong is far from breaking his muscles and bones, giving up the previous monopoly idea, and actively accepting new things It is still possible to keep up.
But what happened next made Changhong's TV industry completely go to the abyss.
Faint tricks are frequent
At that time, Changhong squeezed a large amount of inventory, they had to consider how to turn inventory into funds, at that time there was no such a large market demand in China, had to focus on foreign countries.
At this time, a company called APEX appeared, which was responsible for the OEM sales of domestic TV sets in the United States, and the two sides had cooperated several times before that, but the number was relatively small.
This time, Changhong seemed to be a little sick and rushed to the doctor, in order to sell the inventory to the other party as soon as possible, regardless of whether the other party had such a great ability to directly start to deliver the machine to the other party.
The other party is not less to take, but the payment is not seen at all, at first the other party just said that it was because of the company's financial problems, it will take a while.
But half a year, a year, or even two years have passed, and still haven't gotten a little payment, Changhong Group only knew at this time that it was deceived, and after investigation, the other party was just a leather bag company.
The payment is not coming, and the payment of more than 4 billion yuan is directly gone, you must know that the revenue of Changhong Group for a whole year is only more than 10 billion, and the net profit is even less.
This incident was very fatal to Changhong at that time, but it could barely remain in the first echelon, but later Changhong bet on the wrong treasure again, choosing plasma and liquid crystal display.
As a result, Changhong can't even guarantee the first echelon of TV brands,The domestic market began to shrink,Foreign markets have to give up,The people who support Changhong TV are becoming fewer and fewer。
Changhong had no choice but to pause and keep shrinking the size of the TV,Until it lost its position in the first echelon of the market,Today, when it comes to buying a TV, who would have thought of buying Changhong?
From the first in the field of domestic television, to today's no one cares, Changhong's fatal decision-making mistakes are too many, so that no one dares to help when it falls.
Today's Changhong has completed the reorganization of related industries, although today's Changhong has no former status, but still relies on its own solid basic skills to survive the most difficult time.
epilogue
Once the top enterprises in a field in China, they have fallen here because of several decision-making mistakes, which can also see the fragmentation of the changes of the times.
Just like Nokia and Sony in the past, they were both big leaders in a certain field, and their status now and once was also heaven and earth.