Dong Mingzhu, chairwoman and president of Gree Electric, a prominent Chinese appliance manufacturer based in south China's industrial powerhouse of Guangdong Province, has emphasized the paramount importance of innovation in business operation, describing it as lifeblood of enterprise vitality.
In an interview with China Global Television Network, Dong explained how technology can enhance corporate performance and also improve consumers' quality of life.
"We use technology to improve the quality of life of our consumers, and of course they need it, right? We can bring them energy-saving and health-enhancing products, which they definitely need. When a company can bring a better life to its consumers, society will recognize the approach of the company," she said.
Looking back to a challenging time back in 2001 when Gree faced an influx of foreign competitors with advanced technologies following China's accession to the World Trade Organization, Dong said the company chose to face up to the challenges with technological innovation.
"If we pursue immediate and easy results, we can just buy some parts from other countries. But it can't really improve the energy efficiency grade of our products as it means we can only rely on others' technology and make no breakthrough. So, that is a process of self-challenge where determination is needed. There are situations where dozens of compressors and dozens of motors would be burned out in a single day, causing an economic loss of hundreds of thousands of yuan in an instant. In such cases, our technicians would all be confused and very nervous as it seems there's no result yet after investing 200 million or 300 million yuan (28 million or 42 million U.S. dollars) in research and development. But for Gree, there's no upper limit as long as the research and development is needed. We can invest as much as we want. I believe that if we fail today and tomorrow, we will surely succeed the day after tomorrow," she said.
Gree's continuous investment in research and development not only enhanced the company's overall product competitiveness and bolstered sales growth but also solidified Gree's determination for technical innovation, enabling increased funds for further research and development initiatives, including establishing compressor and motor factories to build a robust research and development framework from the ground up.
"We need to innovate constantly, and I believe that the greatest vitality of an enterprise lies in its continuous innovation," Dong said.
Over years of development, China's air conditioning and broader home appliance industry has risen to the forefront in terms of production, technology and innovation, surpassing expectations and leading the charge in the global market. With over 3 billion units of refrigerators, washing machines and air conditioners in circulation in China, there exists substantial potential for the appliances industry's growth through trade-in programs for newer models.
The Central Commission for Financial and Economic Affairs convened its fourth meeting in Beijing on February 23, 2024, promoting large-scale equipment renewal and trade-in of old consumer goods.
Reflecting on Gree's accomplishments, Dong acknowledged the opportunities brought about by the government's adoption of favorable policies in advancing the industry.
"Over 600 million of Gree's sold air conditioners and household appliances have now been used more than ten years, so, I regard this policy rolled out by the country as an opportunity for development," Dong said.
Chinese entrepreneur emphasizes innovation as lifeblood of enterprise vitality
