On March 13, it was reported that Zhou Houjian, 65, officially resigned as chairman of Hisense Group Holdings Co., Ltd. (hereinafter referred to as “Hisense Group”), and the board of directors has elected Lin Lan, former vice chairman, to take over as chairman.
Lin Lan takes over Hisense and enters the stage of international breakthrough
The reporter of Securities Daily learned from Hisense Group that Zhou Houjian announced his resignation as chairman of Hisense Group and officially retired on March 12 before the regular monthly business evaluation meeting of Hisense Group.
Zhou Houjian graduated from the Department of electronics of Shandong University in 1982 and then worked in Qingdao TV factory (the predecessor of Hisense). He was promoted to the factory director in January 1992 and took up the post of general manager of Qingdao Hisense Electric Appliance two years later. It can be said that Zhou Houjian has worked in Hisense for nearly 40 years and has been in charge of Hisense for 30 years. Zhou Houjian, who comes from technology, attaches great importance to Hisense’s technology research and development.
“It can be said that Zhou Houjian created Hisense and injected the gene of science and technology into it. At present, Chinese household appliance enterprises have completed the leap from imitation to independent innovation. Zhou Houjian’s innovative spirit has been running through the growth history of Hisense, completed the stage of large-scale for Hisense, and laid the foundation for Hisense to truly become a century old international brand.” Liu buchen, a senior observer in the home appliance industry, believes that.
The latest financial report released by Hisense Group after the completion of the mixed reform shows that its revenue last year was 175.5 billion yuan, a year-on-year increase of 24%, a record high.
At the same time, Hisense Group’s international layout is accelerating, and its overseas business has become an important driving force for its performance growth. Hisense’s overseas revenue last year was 73.1 billion yuan, a year-on-year increase of 33%, accounting for 42% of its total revenue. Among them, the proportion of overseas independent brand revenue has even exceeded 80%.
In addition, Hisense’s diversified industries, including commercial display, intelligent transportation, medical ultrasound and other B2B products, are blooming everywhere in the international market. In 2022, B2B industry going to sea will become a more important strategic development direction of Hisense.
Nowadays, internationalization has been promoted to an unprecedented important position in Hisense’s strategic layout. Jia Shaoqian, President of Hisense Group, previously said: “Hisense has invested more than 10 billion yuan overseas for five years, and its overseas revenue will surpass that of China within three years”.
The importance attached to overseas markets can also be seen from the change of head of Hisense Group.
Zhou Houjian’s successor is Lin Lan, former vice chairman. He was born in 1958. He graduated from the Department of mechanical engineering of Tennessee University of science and technology with a doctorate in his early years. He joined Hisense in 2006. Hisense Group rated it as “an active practitioner and firm executor of Hisense’s internationalization strategy”. At that time, Hisense’s overseas independent brands accounted for less than 10% of the total revenue. In 16 years, Hisense completed a 70% growth and doubled its overseas revenue in the past four years.
Throughout the current mainstream home appliance giants, the proportion of overseas markets is increasing, of which Midea is 45%, Haier is about 50% and TCL is more than 50%. Most of them put forward the strategies of “scale reengineering” and “big head overseas”.
“At present, Hisense has reached the stage of international breakthrough and needs people with international vision and background to handle the market. The development of China’s household appliances has entered the stock era. Under the new scale goal, Chinese enterprises think about where the future development space is, and the overseas market is the key to the breakthrough.” Liu buchen said.
Since then, Hisense may further change its management system to international management.
“At present, Hisense Group has formed a development pattern of C-end and b-end two wheel drive, and China and the world go hand in hand. The change of Hisense’s leadership is more based on the consideration of enhancing the vitality of enterprise development. This inheritance will also bring more international management experience and promote Hisense Group’s accelerated transformation to an international management enterprise.” Major general Ding, founder of nail technology, believes that.
It is worth noting that “Lin Lan is only one year younger than Zhou Houjian, and will be a key figure in Hisense’s transition to an international enterprise. In the future, it will also be handed over to a younger management team, with a heavier transitional color.” A person close to Hisense disclosed to the reporter of Securities Daily.
the second generation of Zhongqing takes over, innovation and breakthrough become a new historical mission
There are early signs of Zhou Houjian’s retirement. In November last year, after Haier founder Zhang Ruimin bid farewell to the core decision-making level of Haier group who has been in charge for 37 years, the market heard the news of “Zhou Houjian’s resignation”.
In recent years, the problem of household electrical appliance enterprise successors has also become a hot topic for many times. In addition to Zhang Ruimin and Zhou Houjian, Ni Runfeng, he Xiangjian and Huang Hongsheng have retired behind Changhong, Midea and Skyworth.
The famous “Zhu Dongpei” in Gree Electric Appliances Inc.Of Zhuhai(000651) history also ended with the retirement of Founder Zhu Jianghong. There is still a suspense about who will become the successor of Dong Mingzhu.
With Zhou Houjian’s retirement, it can be said that China’s mainstream home appliance brands have completed the “new and old” handover. Most of China’s home appliance giants have completed the transition from the first generation of founders to the second generation of Zhongqing management team, and have fully entered the era of the second generation of Zhongqing management team. In the new historical period, the second generation management team growing up in inheritance has also been given a new mission.
“The mission of the young and middle-aged management is different from that of the first generation founders. The first generation is mainly entrepreneurship and development, and the second generation is facing innovation and breakthrough. At present, Chinese household appliance enterprises have become an important force in the world. It is an important mission undertaken by the second generation management team to complete the leap from Chinese brands to international brands and from a single household appliance enterprise to a diversified technology giant.” Liu buchen said.
Zhang Jianfeng, Executive Deputy Secretary General of China household appliance business association, said: “during the second generation of Zhongqing, Chinese household appliance enterprises will complete the process of leaping from Chinese brands to international brands, and will also produce global consumer electronics giants such as Samsung and Sony in a real sense.”
