Seeing that more than half of 2023 has passed, the recovery of domestic economy is gradually accelerating. According to the "China Retail Prosperity Index (CRPI)" released by China Business Federation at the beginning of this month, the index has been maintained in the expansion range for eight consecutive months, which fully proves the resilience of China’s economy. For various industries, those well-prepared brand enterprises have gained brand-new development opportunities, and they are taking advantage of the situation, especially in the home appliance industry. As Qiu Bu, senior vice president of multinational home appliance giant A.O. Smith Group and president of China Company, said in an interview with the media a few days ago: "The three-year epidemic is a severe challenge for the home appliance industry as a whole and our enterprise itself." In the face of the sudden test, A.O. Smith set down his heart to practice "internal strength", and started with the deep logic of "brand repositioning", "reorganization of enterprise growth strategy" and "organizational evolution driven by corporate culture", and completed the "self-iteration" of the enterprise in a three-pronged manner, laying a solid foundation for the rapid development of the post-epidemic era!

High-end smart interconnection strategy reshapes the concept and mind

"First of all, we have defined the enterprise’s high-end smart interconnection strategy and found a new growth track in the future." Qiu Bu said that when A.O. Smith was mentioned before, consumers would think of high-end items such as water heaters and water purifiers, which is consumers’ existing cognition of the brand. Now, they hope to reverse this image and "plant" A.O. Smith’s concept and mind as a high-end smart internet brand for consumers while strengthening the brand’s high-end attributes.

"High-end, that is, adhering to the professional route and achieving the best in each single product field, is the pursuit of intangible assets value that A.O. Smith must adhere to as a foreign brand." Qiu Bu explained, "China’s market is vast, with diversified consumption levels, including local enterprises, European, American, Japanese and Korean enterprises competing on the same stage, and its complexity and intensity can be imagined. Therefore, A.O. Smith’s high-end and professional attributes should continue to be strengthened, but this does not mean that we should give up the position attributes other than high-end. In recent years, we are also promoting the development of its sub-brand A.O. Smith-Jianit. A.O. Smith takes offline channels and high-end routes; A.O. Smith-Garnett lays out the young people on the line and pursues the luxury and fashion style of young people, which is our planned brand matrix new play. "

Beyond the high-end, the high-end smart internet brand is a new impression that Qiu Buxi hopes consumers will form on A.O. Smith. "In recent years, we have realized that the logic of the market has changed, and the integrated solution of family wisdom has become a new demand of consumers. Therefore, we began to cut into the smart and comfortable home market for home decoration consumption, relying on the technical advantages of enterprises in air, water and heat energy, and focused on the creation of’ good wind and good water’ in smart and comfortable homes, and thus launched the A.O. Smith AI-LiNK smart integrated system with good wind and good water to provide consumers with one-stop, high-end and high-end services. Qiu Bu added, "In the future, we hope that consumers will think of high-end smart internet brands, and the image of A.O. Smith will emerge in their minds."

Focus on "Good Wind and Good Water" in the whole house to build the second track

Qiu Bu mentioned that observing the trend of home appliance enterprises in China, some of our head brands have invariably aimed at the whole house or the system solution. "A.O. Smith will also take this road, with good products,+good service+good management, and build a new moat and a second growth track for enterprise development and competition."

With the advancement of intelligent technology and the increase of consumers’ demand for one-stop solutions, smart interconnection has become the development trend of the home furnishing industry. "The development of enterprises can not be separated from the sales contribution of excellent single products, but the integrated system of complete sets of sets of sets allows us to have the opportunity of pre-sales, intercept orders at the place closest to the demand, enhance the interaction and experience with consumers, provide consumers with one-stop services before, during and after the sale for the renovation of new houses or the renovation of old houses, and move the assembly line of household appliances to users’ homes to fully digitize the whole connection. This also increases brand stickiness, allowing users to think of us first when they have follow-up needs. "

Of course, when making high-end smart interconnection systems, A.O. Smith doesn’t do everything. "We only focus on good wind and good water, and other things, such as security and white electricity, are left to professional industry head brands. In fact, we are building a’ high-end smart internet club’ so that the excellent products of interested high-end brands can be linked into our AI-LiNK high-end smart internet system. "

The so-called smart interconnection, its core is to empower lifestyle upgrades. "It is very simple to make a product equipped with WIFI function and realize remote intelligence of a single product; However, it is not easy for many single products or devices to form a system and interact in an orderly manner, even generating new value through connection and linkage. The former is an engineer’s thinking, and the latter is the ultimate goal of smart interconnection, "Qiu Bu believes." For example, we use fresh air conditioning to link the range hood, and use the negative pressure of the range hood to exhaust air. On the basis of not increasing the speed of fresh air conditioning, increasing the fresh air volume can also reduce the noise in the operating environment, which is the new value. The goal of high-end intelligent interconnection of A.O. Smith’s integrated system of good wind and good water is to discuss the importance of water, heating and electricity and quality of life in cable homes from the perspective of top-level design.Structure."

Innovation drives organizational evolution and stimulates enterprise vitality.

After clearly sorting out the brand positioning and growth strategy, Qiu Bu drove the organizational evolution through cultural innovation, and it was this change that inspired the new vitality within the organization. "The implementation of the strategy needs to rely on people, and people are the most active factor."

In order to better implement corporate values and new strategies, Qiu Bu takes "people" as the center and promotes the corporate culture construction of TOT(The One Thing is the most important thing), SOT (the speed of trust) and GPS(Good Place, Smile Company). "As a foreign brand, a core competitiveness of A.O. Smith is corporate culture. Especially with respect to employees, we don’t want to increase the pressure on employees with 996 and other assessment indicators, but we hope that they can clearly understand their own goals and fully understand the brand strategy, and integrate their goals and strategies to form a self-driving force. For example,’ the most important thing about ‘TOTTOT’ is that managers should understand what employees’ dreams are, whether they are working goals or life dreams, focus on finding the most important thing and make breakthroughs through innovation. It is with the ideological weapon of’ TOT’ (the most important thing) that A.O. Smith constantly constructs and devotes himself to creating a beautiful life belonging to China family and a truly high-end smart and comfortable home.

A.O. Smith also promotes GPS culture (Smile Company) within the company, hoping that every employee can be happy and work happily. Since A.O. Smith put forward the concept and goal of "Smile Factory" in 2021, it has achieved remarkable results and the morale of front-line employees is high. In order to convey the company’s smile culture to consumers, A.O. Smith has built a team of "Smile Shopping Guide" and "Smile Technician". Through the company’s empowerment, they can realize self-improvement in a pleasant atmosphere, so as to better convey the beautiful vision of building a high-end smart interconnection with good wind and good water to consumers.

SOT (Speed of Trust) aims to cultivate trust between people and let employees trust the company from the bottom of their hearts. For example, the supervisor should talk with employees on 1ON1 to help them understand the strategy, build self-confidence and enhance mutual trust, reach a deep consensus on the objectives and core work, make a plan, and implement the plan. Every time we talk, we will form a digital record to remind employees to follow the planning process and help employees to give timely feedback and reply at any time. All levels of the company communicate with each other through "one-on-one", interlocking to create an organizational culture of deep trust. In practice, this operation has effectively improved the harmony and trust between supervisors and employees, and increased and strengthened employees’ heartfelt sense of identity with the company’s strategy.

Now, in addition to the employees in the company, A.O. Smith is also promoting similar cultural landing in the team of agents and service providers, fully mobilizing the enthusiasm of front-line sales and service personnel and their trust in the brand through trust and empowerment, and truly aggregating the strongest synergy in the critical period of transformation and upgrading from the perspective of "people".

A.O. Smith, whose brand repositioning, strategy upgrading, culture-driven organizational evolution and adjustment strategy, organization transformation and culture reshaping, is heading for a new journey of history under the leadership of Qiu Bu.

(Source: Financial Information)

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