Gree Electric Appliances stopped supplying original distributors in Hebei for many days, as an important market, news finally came out of changes in Hebei's sales channels.
Recently, it was rumored that Zhuhai Huange Digital Technology Co., Ltd. (hereinafter referred to as "Zhuhai Huange") obtained the authorization of Gree Electric in Hebei region. Xu Zifa, the former president of Gree Electric's Hebei dealer, completely withdrew from Gree . A reporter from Xin Yellow River found that the new authorized company may be related to JD . Liu Qiangdong and Chapter Zetian were once shareholders of Jiangsu Saif Green Food Development Co., Ltd., the major shareholder of Zhuhai Huange. Zhuhai Huange legal person Zuo Yujie is also the legal person of Jiangsu Jingsai Wine Industry Development Co., Ltd., which undertakes the distribution and service of the entire Moutai sauce-flavored series of wine products in the self-operated channel of JD Mall . Xie Fan, one of Zhuhai Huange's directors, is the president of JD Home Appliances Division.
Gree Electric's Hebei market is surging, while Shandong market is also changing. Duan Xiufeng, the former Gree Shandong dealer, was rumored to have returned in a low-key manner. New Yellow River reporters have tried to contact Gree Electric Appliances and Duan Xiufeng many times, but no reply was received as of press time. As an old Gree official, Duan Xiufeng suddenly announced his resignation from Gree at the end of 2019 and has since switched to Midea and Aux , and has not completely cut off contact with Gree. Last month, Duan Xiufeng established Shandong Gree Electric Appliances Sales Co., Ltd. According to reports, local Gree dealers in Shandong revealed that Duan Xiufeng has purchased goods and mainly operates the "fourth platform".
The channel changes that Gree has been advocating in recent years have affected the interests of the original general dealers. Now, Hebei and Shandong have one "left away" and one "returned". How Gree's sales model will transform in the future is still attracting much attention.
suspension of supply Hebei Fengbo
Recently, the topic "Gree Electric Appliances Stop Supply of Hebei Distributors" has become a hot search. The storm comes from a picture circulated online. On August 18, 2022, the former general distributor of Gree Electric Appliances in Hebei, Hebei Xinxing Gree Electric Appliances Sales Company (hereinafter referred to as "Hebei Xinxing Gree"), issued a notice to all distributors in Gree, stating that on August 16, 2022, Zhuhai Gree Electric Appliances suddenly stopped shipping to Hebei Gree, and now in a responsible attitude to dealers, from now on, dealers who have invested should make plans to pick up the goods as soon as possible, and the Hebei company's supply can ensure timely supply.
Hebei has always been a key market for Gree Electric Appliances. Xu Zifa, chairman of Hebei Xinxing Gree, was once called one of the "five princes" of Gree dealers. In 2015, Xu Zifa served as the director of Gree Electric Appliances. Two years later, Gree Electric issued an announcement stating that Xu Zifa was investigated by the China Securities Regulatory Commission for suspected violation of securities laws and regulations. He then voluntarily applied to resign as a director of Gree.
On August 9, 2022, Xu Zifa appeared at the Philips air conditioner new product launch conference as a shareholder. Ten days later, he issued a notice to all dealers in Gree Hebei that Gree Electric had stopped shipping, and then held a banquet at a large hotel in Shijiazhuang, Hebei, inviting major dealers in Gree across the province to announce that he no longer operates Gree air conditioning .
This banquet attracted much attention because of its "high specifications". It is reported that hundreds of people attended the banquet and took their seats by name. During the meal, Xu Zifa distributed 100,000 yuan in cash to each table, with an average of 10,000 yuan per person. There is 15-year-old Moutai liquor on the table. He said at the banquet that he hoped that dealers would support his investment in Philips .
Industry insiders speculate that Xu Zifa’s “breakup” with Gree may be because of the new retail changes actively promoted by Gree. Two years ago, Gree Dong Mingzhu store’s WeChat mini-program mall provided direct delivery services to retailers, which had a significant impact on local agents making profits.
After Gree Electric cuts supply of to Hebei's emerging Gree , there are constant speculations on how Hebei, as Gree's key market, will develop.
Hebei's new dealer is backed by JD.com?
Hebei region dealers recently revealed to the media that after Xu Zifa announced that he would no longer do Gree, Gree Electric began to actively promote the authorization of new dealers in Hebei. At present, the new distributor in Hebei is Zhuhai Huange Digital Technology Co., Ltd. (hereinafter referred to as "Zhuhai Huange"). A reporter from New Yellow River called Gree Electric, but no reply was received as of press time.
It is reported that on August 22, 2022, Gree Electric issued a letter of authorization to Zhuhai Huange. Gree Electric Appliances authorizes Zhuhai Huange for one year, from August 22, 2022 to August 21, 2023. After the expiration, if Zhuhai Huange needs to continue authorization, the relevant procedures must be re-processed. Zhuhai Huange can use the three trademarks "Gree", "Dasong" and "Jinghong" in all channels in Hebei Province. At the same time, products other than these three trademarks are not allowed to be operated. This coincides with Gree Electric's approach before shutting down supply of Hebei's emerging Gree. Gree Electric has increased its online sales in recent years, which has had an impact on offline sales. Some dealers have begun to make Gree air conditioners and Philips air conditioners at the same time. Recently, Gree Electric has put pressure on these dealers to "choose one of two" and not be both Philips and Gree.
public information shows that Zhuhai Huange is established for more than three months and is located in Zhuhai City, Guangdong Province. It is an enterprise mainly engaged in the manufacturing of electrical machinery and equipment. The legal representative and chairman Zuo Yujie, Xie Fan, Lu Zhougang, Xia Fen and others serve as directors. Among them, Lu Zhougang served as the general manager of Gree Company in Guangzhou and Foshan , and Xie Fan was the president of JD Home Appliances Business Department. Zuo Yujie has also been reported to work on JD.com.
Jiangsu Saif Green Food Development Co., Ltd. (hereinafter referred to as "Jiangsu Saif Green Food"), the major shareholder of Zhuhai Huange, holds 51% of the shares, and Zhuhai Huange Trading Co., Ltd. holds 49% of the shares. Jiangsu Saif Green Food was established on April 6, 2016. Its legal person is Zuo Yujie and its major shareholder is Jiangsu Saif Trading Co., Ltd. Liu Qiangdong and Zhang Zetian were former shareholders of Jiangsu Saif Green Food and Jiangsu Saif Trading Co., Ltd., and withdrew from the shares from the two companies in August 2020. Among Runjing Information Technology (Jiangsu) Co., Ltd., which Liu Qiangdong indirectly holds shares, Zuo Yujie also serves as the chairman of the company, and Jiangsu Saif Green Food is the major shareholder.
Zuo Yujie is also the legal person of Jiangsu Jingsai Wine Industry Development Co., Ltd., and its major shareholder is Jiangsu Saif Green Food. According to the official website of Jiangsu Jingsai Wine Industry Development Co., Ltd., the company undertakes the distribution and service of the entire range of Moutai sauce-flavored series of wine products in JD.com's self-operated channels, and is also the national brand operator of the Moutai Group's century-old brand " Wangmao Liquor ".
From this point of view, Gree Electric's new distributor in the Hebei market may be related to JD.com.
Duan Xiufeng is rumored to be back in a low-key manner
Gree Electric's market in Hebei is experiencing turmoil, and the changes in its sales system are not stopping here. Recently, Duan Xiufeng, the former Gree Shandong dealer, was rumored to have returned in a low-key manner. On August 28, a reporter from New Yellow River tried to contact Duan Xiufeng many times, but no reply was received as of press time.
Duan Xiufeng can be called a Gree old minister. He was originally the boss of Shandong Gree and has always been an important figure in Gree's sales force. His subsidiary Shandong Hong April Holding Group Co., Ltd. (hereinafter referred to as "Shandong April") was once Gree's provincial agent in Shandong. He was also the general manager of Shandong Shengshi Xinxing Gree Trading Co., Ltd., which is Gree's official regional sales company.
At the end of 2019, Gree Electric Appliances Assistant Hu Wenfeng led a team to Shandong to promote new retail. Not long after, Duan Xiufeng suddenly announced his resignation from Gree on his circle of friends. After breaking up with Gree, it was revealed that it was changed to proxy Midea air conditioner and Aux air conditioner .
In August 2020, some self-media released "The former Shandong Gree Sales Company Leads Customers to Midea", and Duan Xiufeng issued a public statement stating that the incident had nothing to do with him and Shandong Gree agency company - Shandong Hong April. It is worth noting that the statement finally pointed out that the changes in Shandong Gree in the past six months have attracted close attention from the industry. Although Gree's business entities have undergone some rectification during the switching process, the two sides still communicate closely to promote the resolution of the problem. I believe that this incident can also cause reflection from New Shandong Gree Company.
However, Duan Xiufeng’s relationship with Gree has not been completely cut off. In January 2022, due to illegally reducing holdings of nearly 150,000 shares, the Shenzhen Stock Exchange issued a regulatory letter to Gree Electric Supervisor Duan Xiufeng. In February 2022, the Gree Electric Appliances Supervisory Board was changed, and Duan Xiufeng was still elected as a non-employee representative supervisor of the 12th Gree Supervisory Board.
The changes in Gree Electric Appliances in the two major markets of Hebei and Shandong are one of them "run away" and the other "return". Behind the changes proposed by Gree Electric Appliances many times since 2020. Dealers in various regions can directly connect with their headquarters. Dong Mingzhu live streaming has become popular many times. Under multiple changes, the profits of general dealers in various regions have been affected.
On July 26, 2022, Shandong Gree Electric Appliances Sales Co., Ltd. was established with the legal person Duan Xiufeng. It is reported that Duan Xiufeng is developing new markets and channels separately, and will mainly operate the "fourth platform", that is, supplying goods to multiple terminal markets such as specialty stores and malls. The return of veterans may play an important role in the transformation of Gree's sales system.
New Yellow River Client Reporter: Liu Jinyang Editor: Sun Feifei