Where is the factory, where is the market

  Dear guests and entrepreneurs, good morning!

  Today is the 7th Nanjing Door and Window Customization Industry Conference. It is not easy for a conference to be held for 7 consecutive years. As long as you can persevere in any career, you will definitely achieve something. I look forward to this industry conference to stick to it. By the twentieth conference, our door and window business in East China will definitely be a different scene. The time given to me today is 15 minutes, and I will talk about one topic-where is the factory, where is the market.

  This picture is of the factory built by Sayyas in Nanjing, which will be put into production around July this year. The land for the first phase is 55 acres, 40,000 square meters of factory buildings, and a total of 169 acres for the first, second and third phases. The industrial land in Nanjing is still quite expensive. Five years ago, I told my colleagues at Sayyas that if Sayyas wants to survive and continue to develop, it must follow these 12 words: stepping out of Longjiang, going public, and organizational change.

  Sayyas has gone through 22 years, and it has been my expectation to get out of Longjiang.

  Some time ago, I went to meet with Leng Youbin, the chairman of Heilongjiang's most outstanding entrepreneur, Feihe Dairy, and I asked him: You and I are both in Heilongjiang, why is your business doing so well? He said: Actually, Feihe Dairy is a Beijing company. In 2001, Feihe Dairy put its headquarters in Beijing. It suddenly dawned on me that this is the difference between me and Chairman Leng Youbin. In 1998, when I invested in Sayyas, I had 40 million in cash. Because of my "farmer thinking" at the time, I refused to locate my headquarters in cities such as Shanghai, Shenzhen, and Beijing, and stayed in Harbin forever; therefore, I have made today's insignificance. Sen Ying. Regarding going out of Longjiang, we have gone through a process, and I have been thinking about it, and I have also argued with my colleagues. The usual thinking is that where the market is, the factory is there. "Tao De Jing" chapter 40 has such a passage: "Everything in the world is born of existence, and existence is born of nothing. The factory is "being", it is visible and tangible; the market belongs to the category of "nothing". Factory If we want to survive, we have to rely on the market. This is a very cruel logic of existence before us.

  But my thinking is reversed: where the factory is, the market is. As stated in Chapter 2 of The Tao Te Ching, it is difficult and easy to regenerate between existence and nonexistence. It means that existence and non-existence, difficulty and ease are mutually transforming and mutually contributing to each other. It may be hard for everyone to imagine that in a city with a poor economy like Harbin, Sayyas can make 300 million yuan a year in Heilongjiang because the Sayyas factory is in Harbin. For more than 20 years, Sayyas’s brand recognition in Harbin has been increasing year by year, and it has become a familiar brand to the common people: common people think that it is not enough for real estate projects without aluminum-clad wood. If Sayyas aluminum-clad wood is not used, it is definitely not a high-end. project. This shows that the location of the factory is of great strategic value for the driving force of the local market.

  Of course, I can't build the factory in the desert. I prefer to build the factory in the market hinterland where land and labor are expensive, rather than low-cost land.

  I have been thinking for five or six years: Where should Sayyas’s second factory be built? I chose Xi'an at first. Xi'an is in the northwest, China's northeast, north, and northwest are relatively cold. Relatively speaking, aluminum-clad wooden windows are more needed. This is the thinking of "where the market is, the factory is there", but there are really no good cities around the northwest. I finally made up my mind and came to Nanjing.

  The amount of windows in the south is huge, and the housing prices are also scary, but there are really no decent aluminum-clad wooden window companies here. Looking at the entire East China region, aluminum alloy windows are thriving, but many excellent aluminum-clad wooden window companies have transformed. I often think that there are so many outstanding entrepreneurs in the South, and they are very smart and hardworking. Why is no one doing a good job in the field of aluminum-clad wooden windows? Is there really a huge inherent obstacle in this market? Faced with the current situation where so many outstanding peers have left the market, can it be said that I, a native of the old and young in the northeast, can break this deadlock?

  In fact, we have already scheduled production orders of more than two billion yuan for Sayyas Nanjing factory. The problem now is not a market problem, but a production capacity problem.

  You may ask: Sayyas broke the original intention of not making aluminum alloy windows for 22 years this year and launched the Jane Eyre aluminum core golden window system. Does this mean Sayyas also feels that the development of aluminum-clad wooden windows in the south has encountered insurmountability The difficulty?

  Here, I want to tell everyone: It's not like that. Sayyas is an aluminum-clad wood brand and will never become an aluminum alloy brand.

  The reason why Sayyas makes a little aluminum alloy is entirely to meet the matching needs of end consumers. For example, it is like saying that Sayyas’s various series of aluminum-clad wooden windows are a table of meals, while Jane Eyre aluminum core golden window system It's just a dessert after a big meal. We will never let Sayyas Jane Eyre aluminum core gold windows overwhelm the guests. We will implement a selective limited sales business model. Please rest assured that Sayyas will not become your opponent. We are only targeting Sayyas aluminum clad wood. Air-conditioning window customers carry out a little value-added service!

  Our window industry is really a bitter industry, and it is not easy to do large-scale operations. It is Internorm, the number one brand in Europe that has gone through 1989, and its aluminum-clad wood products reached RMB 550 million last year. This industry is not easy to do. First of all, it is a fully customized complex product, plus complex services. How complicated is it? In Sayyas ERP system, there are 180,000 kinds of material codes in total. Second, the product customer order value is high and low frequency, and from the retail side, it is still a non-rigid demand. For example, the engineering business often has orders of more than one billion yuan, and the retail end often moves hundreds of thousands or even millions; because the customer order value is high, the boss often needs to negotiate in person, but the boss’s time and energy are limited, even if How many nails can you hit if you are covered in iron? The situation on the retail side is similar, except that the dealer boss is tied up, and we are all caught in the "boss marketing" model.

  However, Sayyas finally established a factory in Nanjing based on the reverse thinking of "where the factory is, the market is". In a speech in Beijing some time ago, I also put forward the "Relativity Theory of Productivity Distribution" accordingly. The window industry is an industry with an economic radius. We must continue to shorten the absolute distance with our customers, and of course, the psychological distance is more important. Whether it’s engineering or retail, both parties need to meet and negotiate before signing the contract, and after-sales service is required to install after-sales service after signing the contract, the factory nearby can make consumers feel more at ease. Therefore, we must coordinate the layout of the factories. The scale of each factory does not need to be too large, but the supply radius must be reduced to within five or six hundred kilometers. Although this will increase a lot of management costs and risks, it is also easier to open up the market.

  In addition, our environment has changed. On September 22 this year, General Secretary Xi Jinping solemnly announced to the world at the UN General Assembly: 3060 Zero Carbon China’s great plan. China will reach its carbon peak in 2030, that is, China's carbon emissions will reach its peak, and then it will fall. To achieve carbon neutrality in 2060, carbon emissions + carbon absorption = 0.

  How many elements does the "Zero Carbon China" plan contain? Three. First, zero-carbon energy, second, zero-carbon buildings, and third, zero-carbon transportation. All of us here are extremely close to "Zero Carbon Building". We all know that almost 40% of building energy is lost through doors and windows. Because of the country's commitment to the world and with the promotion of follow-up policies, our door and window people have caught up with an unprecedented historic opportunity, and we will break through the bottleneck of the door and window industry. Opportunity 1, China's rural homesteads are beginning to flow, and urban funds will flow to the countryside, and the booming rural real estate is about to begin. Opportunity two, the city's 60-70 billion stock buildings are in need of renovation. Opportunity three, although the amount of newly-built real estate is small, it will develop in the direction of high-quality real estate, and develop into passive, refined, and prefabricated buildings.

  Everyone must work hard to seize this opportunity to resist the uncertain environment with a certain ability. Finally, I wish our 7th Nanjing Door and Window Customization Industry Conference a complete success, thank you!