On April 2, 2016, Hon Hai officially signed a contract to acquire Sharp with a capital contribution of 388.8 billion yen. In the following year, Sharp's stock price has been rising. On April 3 this year, Sharp's stock price once broke through 500 yen and finally closed at 495 yen, an increase of 5.3% on the day. Compared with the closing price of 125 yen the day before the signing of "Hongxia Love" last year (April 1, 2016), Sharp's stock price has risen nearly three times so far.
stock price is a buoy in the performance and operating conditions of the company. A month ago, Sharp released the renewal direction of the company through two small details.
html During the AWE exhibition in March, next to the 70-inch 8K TV at Sharp booth, the words "See you soon" were written on a piece of transparent glass. According to industry insiders familiar with Sharp's products, this indicates that Sharp will soon release a "almost bezel-free" TV, with the frame thickness reduced to 1.6 mm at its peak globally.
Sharp AWE2017 booth
On the other side of the booth, the words "Powered by Foxcconn" are written below the Sharp LOGO. It is obvious that on Sharp's road to revival, Foxconn provides the power of "rebirth".
"Our management system has played a lot in assisting Sharp in saving costs. We are also using Foxconn's supply chain advantages to optimize the original Sharp's supply chain system." Hon Hai/ Foxconn Technology Group Vice President, Dean of Foxconn University (IE College), and Chairman of Fulian.com International E-Commerce Co., Ltd. Chen Zhenguo told China National Grid reporter that Mr. Guo ( Guo Taiming ) has always believed that if two companies can use their respective companies' core advantages and learn from their strengths and weaknesses, then 1+1 will definitely not equal 2, which must be greater than 11.
Although Sharp's road to revival still faces many challenges, in the view of home appliance industry observer Liu Buchen , for Sharp, the most important thing is to convey a message: Sharp is back.
As a century-old Japanese store, Sharp has suffered serious losses in the past 5 years. In June 2016, because his liabilities exceed assets, he was once warned by the Tokyo Stock Exchange: "If the financial situation is not improved, it will not be ruled out for the market." Faced with such a dilemma, Dai Zhengwu immediately set a goal after taking over Sharp in August 2016, and turned losses into profits in the second half of 2016.
Sharp's third-quarter financial report for 2016 in February this year showed that the net profit of 4.2 billion yen successfully turned losses into profits. Sharp expects its consolidated current profit and loss in fiscal 2016 (ends March 2017) to make an estimated profit of 9.9 billion yen, while a loss of 192.4 billion yen in the previous fiscal year.
Thanks to the improvement in performance, Sharp senior executives said on February 28 this year that their goal of returning to the main board from the second board of the Tokyo Stock Exchange in 2018 has been adjusted, and they strive to return to the main board around the end of this year to the spring next year.
In addition, Sharp announced on March 31 that it will pay 3,000 yen (approximately RMB 185) to approximately 19,000 Japanese group employees each as a "thank you fee" for striving to achieve performance recovery.
Foxconn Technology Group Vice President Chen Zhenguo
In Chen Zhenguo's view, the improvement in Sharp's performance is the result of increasing revenue and reducing expenditure under Foxconn's empowerment. In fact, behind this understatement is Sharp's inextricable revival plan.
is almost blood-printed
For Sharp, returning to the Tokyo Stock Exchange main board is of great significance and will play a certain role in boosting its brand, products, investment activities, etc. However, this is not easy. Sharp still needs to overcome restrictions such as "total market value", "revenue stability", and "internal management system", and expanding sales has become the most direct path.
"We all signed a life and death certificate, and we almost pressed the bloody handprint." Yuan Xuezhi, chief marketing officer (CMO) of Foxconn Technology Group, told China National Grid reporter that the goal of Sharp air purifier is to surpass Philips and be the first in market share in China.
Compared with the newly released healthy white goods, the grand plan of Sharp TV can better demonstrate Terry Gou's ambition to revive Sharp.
Following the "Eye Plan", Terry Gou launched a "Tianhu Plan" aimed at revitalizing Sharp, and established special organizations in various systems of Hon Hai to promote and implement it.The core of the plan is to revitalize Sharp TV business through the joint efforts of supply chain, brand image, channel marketing, etc., and set a sales target of 10 million units in 2017.
reporter learned that Hon Hai used three major tricks in promoting Sharp TV. First, the employee price is launched for the more than 100,000 employees of Hon Hai Group in mainland China, so that everyone can watch Sharp TV and use Sharp home appliances at home. Second, let employees share tasks and promote Sharp products. The third trick is to buy 70 inches and get 60 inches on Double Eleven, and jointly implement the strategy of joint sales of real estate and TVs with real estate developers.
"The products they produce and operate by themselves, they know how to explain them." Industry analysts believe that many employees of the Hon Hai system come from rural areas, and it has certain advantages to let them develop the so-called third, fourth, fifth and sixth county markets. Hon Hai has always had such a plan to gather employees in the system and colleagues who go out to open stores as "seeds" that are sprinkled to various places to form a brand new sales system.
must first stabilize the domestic market by fighting foreign countries
Expanding sales and seizing the market is crucial to Sharp turning losses into profits, but this is not the key to the problem. Sharp has been giving people a feeling of dullness over the past few years. Although it had undergone several reforms before Hon Hai took over, the results were very little from the perspective of actual operating results.
Liu Buchen believes that the main reason for the decline of Japanese companies such as Sharp is not the technology or product problems, but largely lies in the problems of corporate management mechanisms and marketing strategies. If new management concepts and marketing methods are injected into it, Japanese home appliances may make a comeback.
Japanese companies have always had a tradition of superiority and inferiority, with relatively conservative management style and lagging in operation efficiency. In the fierce market competition environment, changing this rigid management mechanism will have the opportunity to return Sharp to glory.
Beginning with the as president of Sharp, Dai Zhengwu focused his work on organizational adjustment and employee optimization. He announced two major policies: First, buy back preferred shares as a means of employee incentive plans. Second, emphasize the concept of "return to the original intention" and use "sincerity and creativity" as the new principle for employees. Since then, Sharp also announced that he would buy back the Tanabe Building, the Osaka headquarters, negotiate with suppliers to reduce costs, and promote the concept of "one Sharp" to strengthen cross-departmental cooperation.
In fact, Sharp did not rush to sprint for performance from the beginning, but also did a lot of "striking" things internally, such as internal structural adjustment of the company, employee incentives and optimization, organizational collaboration, etc. Sharp is doing these things in Japan and mainland China is also doing them.
reporter learned that Fulian.com is the e-commerce sales platform of Foxconn Technology Group. In the process of revitalizing Sharp, Fulian.com has gradually been given the important task of developing smart homes, the Internet of Things, and combining Sharp China's organizational structure integration development. In order to be closer to consumers, it is now planned to integrate Sharp China Trade and Fulian.com established by the Sharp era to avoid the situation of the two-headed carriage. The operation rights and property rights of the new company can be effectively unified.
Sharp LOGO is written below: "Powered by Foxcconn"
According to Chen Zhenguo, Hon Hai/Foxconn will launch the "IIDMSM" management model in the future, which will bring more powerful back-end support to Sharp through vertical integration of the supply chain, innovation of technology and management, integration of fashion and technology design elements, consolidation of manufacturing advantages, and efforts in sales (Sales) and marketing (Marketing).
In short, in terms of internal change, Sharp hopes to create an enterprise atmosphere that pays more attention to efficiency and management through organizational optimization, process optimization, concept optimization, cost optimization and other measures.
"C2C" combat plan
compared with the "reducing" strategy, the "open source" strategy in early 2017 more directly conveyed Sharp's ambition to return. On the evening of January 21, the renamed "Singer" pushed the returned Sharp into the public eye. The new identity of "official partner" has brought Sharp Internet TV on the road of local marketing.
In order to achieve the established goals, Sharp has tilted its resources in marketing and has invested in Hunan TV's Spring Festival Gala, Lantern Festival Gala and other programs during the Chinese New Year. According to Sharp, the cooperation with "Singer" is mainly to show the new Sharp's younger, more technological, fashionable and more local brand characteristics, and many products that will cooperate with "Singer" will be launched one after another in April.
Before this, Sharp had already set a record of Tmall Double Eleven large-sized TV sales, Suning Yigou Black Electric's sales volume, and 70-inch TV single product sales exceeded 10,000 units in 2016. The reporter learned that from last year's Double Eleven to the end of March this year, Sharp completed shipments of nearly 1.5 million units, of which the Internet TV series completed shipments of one million units.
Sharp can achieve a breakthrough in shipments in a short period of time. In addition to strengthening innovative operations in its products, brands, marketing and other aspects after Foxconn empowers, the layout of channels is also important.
It is understood that Sharp's channels in mainland China can be subdivided into three layers: one is Fulian.com and Sharp's official website, the second is large-scale pipelines such as Gome, Suning, , JD.com , and the third is regional small distributors. Recently, Chen Zhenguo has been in close contact with various channels such as KA channels, traditional channels, e-commerce, etc., and "not forgetting old friends and making new friends" has become Chen Zhenguo's "big policy" for expanding channels. During the AWE exhibition in March this year, Sharp held a small dealer conference to target regional dealers, and it is not ruled out that it adopts joint ventures and equity investments to conduct in-depth cooperation in the future.
In addition to traditional social channels, Foxconn also plans to establish its own "C2C" channel. Chen Zhenguo revealed that Foxconn has conducted a lot of research in the Chinese market. For products that meet consumer needs, they will start directly from components and create localized customized products, and will be delivered directly to consumers. In the future, Sharp will design different products for different market demands, prices and channels, thereby seizing the gap in market demand.
Sharp revealed that the production chain will be extended to the consumer end through the "C2C" combat plan, with the intention of optimizing the processes of production, distribution, service and maintenance, and feeding the saved costs to consumers. Among the measures to optimize the process, Foxconn plans to implement a strategy of on-site production and on-site delivery, shortening the distribution process through the optimized configuration of production and assembly plants, thereby improving efficiency and reducing costs.
New Sharp's reversal of gun tips
When Sharp's sales were successful last year on Double Eleven last year, Terry Gou said in an interview that with the support of Foxconn's manufacturing process, Sharp's products are changing the problem of "noble and expensive" in the past, and now they are "noble and not expensive".
Under the tide of consumption upgrading, fighting against the high-end has almost become a kind of "political correctness". Recently, there is a voice in the industry: the "cost-performance ratio" strategy may destroy the reputation, reputation and recognition that Sharp has established and formed over the past century.
In response to this question, Foxconn explained: Almost all the best electronic products in the world that everyone sees are made by Foxconn. Why can’t we make a good refrigerator or a good TV? Sharp’s technology and technology still exist, but these technologies will make different products for different markets and then adapt to different market demands. This is actually a differentiated business idea.
As the "father of LCD", Sharp was once synonymous with innovation. Japan's first domestic radio, the first domestic black and white TV, the first domestic color TV, the first business card-type ultra-thin electronic calculator, and the world's first mobile phone with camera functions are all made by Sharp. Sharp has accumulated many leading research results and patents, but because of his later overly paranoid about technology, these inventions and innovations seem to be getting further and further away from consumers. On the one hand, the pricing of good products diverges from the market conditions, and it is not popular. On the other hand, little is known about customer needs, and direct introduction of celebrity products from the international market has caused discomfort.
"R&D, production and sales are like three nodes of a water pipe. Only when the three sections of the water pipe are unobstructed will the water pipe be healthy."Yuan Xuezhi said that after cooperation with Foxconn, Sharp's research and invention will be retained. The only difference is to shorten the process of technological invention from the laboratory to the consumer, so that everyone can enjoy it more easily and cheaply.
reporter learned that the current noble and inexpensive strategy is to solve the problem of being popular but not being popular, and the localization strategy is to target the flaws of the previous products' unacceptable environment. The overall idea is to maintain the quality and design of the original Japanese factory, and to do market-oriented prices and the content of the content. For example, Sharp TV is equipped with the YunOS system, and Multiple domestic suppliers cooperate to achieve "interconnection" in content, and at the same time develop a new Launcher that meets the usage habits of Chinese people. These innovations are developed around the use habits of domestic consumers of products and control systems.
Not only that, "younger" is also indispensable in Chen Zhenguo's brand strategy of "localization, youthfulness, and Internetization". Recently, Sharp announced that the "imported little brother" Dimash , who advanced to the finals of "Singer", has officially transformed into the Sharp Internet TV store manager. In addition, Sharp also Will become the special sponsor of the "Running Man" program, and continue to focus on local marketing with the help of the "Running Man trend" to deepen its efforts in local marketing and deepen its Chinese market.
Over the past year, Sharp's renewal journey has been obvious to all. However, the shortcomings are that the Sakai Panel Factory (SDP), which is jointly owned by Terry Gou and Sharp, reportedly suffered losses in performance last year. It is understood that SDP was hit in negotiations to increase panel prices last year. In the second half of the year, it stopped supplying panels to major customers Samsung Electronics, and instead provided panels to Sharp, which plans to expand sales in Asia and other regions, and has already Build a full ecological industrial park for 10.5 generation 8K displays in Guangzhou, China. Whether the sales expansion plan of Sharp TV is successful will directly affect SDP's future performance.
noble and inexpensive positioning, multi-channel combat plan, and operating mechanism reform can indeed help Sharp expand sales out of the quagmire. Foxconn's empowerment can indeed optimize the supply chain and save costs for Sharp. However, the measurement standard for the return of Sharp Honor should not be the amount of profit, but should bring back the screaming Sharp on the basis of achieving profits.
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