A generation of refrigerator giant Xinfei fell： due to financial pressure, it stopped production and applied to the court for reorganization.

"Xinfei’s advertising is not as good as Xinfei’s refrigerator", which was once popular all over the country, and Xinfei’s refrigerator once became the benchmark of China’s home appliance manufacturing industry, with a market share as high as 20%. But the past scenery is very pale in the current depression. …

Caught off guard, there was a loud noise in the home appliance industry, and a generation of fierce and once "king of refrigerators" Xinfei Electric fell down! Recently, Xinfei, a veteran home appliance manufacturer in Henan Province, submitted a reorganization application to the government due to poor management, and was on the verge of bankruptcy.

Xinfei seeks legal protection

Recently, insiders got a reorganization statement jointly issued by Henan Xinfei Refrigeration Appliance Co., Ltd., Henan Xinfei Electric Appliance Co., Ltd. and Henan Xinfei Household Appliances Co., Ltd. on November 1, 2017:

As of October 31, 2017, the company faced market competition and decline, and sustained losses in the past few years. Due to the pressure of capital chain, the company has to stop production activities at present. The above three companies have submitted reorganization applications to Xinxiang Intermediate People’s Court of Henan Province on October 30, 2017, and they have been reorganized according to law under the supervision of the people’s court.

The explanation also wrote: Xinfei is prepared to obtain legal protection by entering reorganization, so that the company can enter a relatively safe business environment and concentrate on the strategic design of company regeneration. Xinfei has started a working group, including managers and representatives of Yongan Shanghai Consulting Company. At the same time, supervisors will be appointed according to the court to supervise the reorganization work. The working group will convert the relevant assets into cash, but it will take time to deal with it.

In the explanation, the three companies promised that they would handle the interests of creditors and shareholders fairly and justly. Reorganization is a better solution than liquidation, and it will bring the best results to all concerned, including employees and suppliers.

Another insider obtained a letter from the board of directors of Xinfei Electric Appliances to all employees of Xinfei Electric Appliances Co., Ltd.: "In the past few years, Henan Xinfei Electric Appliances Co., Ltd. has been operating in a competitive and challenging business environment. Under the pressure of fierce price competition in the household appliance industry, the profitability of Xinfei Company has become more and more difficult. "

The letter stated that Xinfei Company was not prepared for liquidation. According to the licensing and OEM arrangements, the management team will continue to review potential strategic partners who are interested in using the Xinfei trademark. Xinfei Company has appointed Ernst & Young Certified Public Accountants (Shanghai) as the restructuring business consultant. In addition, an external manager will be appointed to work closely with the management team and Ernst & Young to supervise the reorganization. The company has appointed Wu Zhishan as the chief reorganization officer.

Experts said that Xinfei Electric chose to stop production in an all-round way, and submitted an application for company reorganization to the court, and turned to find a new buyer for Xinfei refrigerator, instead of directly adopting bankruptcy liquidation. Obviously, the major shareholder was unwilling to withdraw this old brand that once had good memories in China’s home appliance industry from the stage of the home appliance market, turning the brand resources that might be realized into a burden.

In the online shopping mall of Xinfei Electric Appliances, if you click on the hot-selling goods at will, you will be prompted "No sale for the time being" and "Zero inventory".

According to Dahe. com, the factory has been shut down since November 1, and the factory area has been unmanned except for security guards. The warehouses and workshops are sealed.

"I would rather go to Xinfei than go to the bank"

At the most glorious time of Xinfei, it was called the boss of the "four golden flowers" in the refrigerator industry, followed by Haier, Rongsheng and Meiling.

In 1996, Xinfei achieved great success, making it the top three refrigerator brands in China, and its market share was almost 20%. At that time, Gree had not started the refrigerator business, nor did Siemens and Samsung do anything.

Until 2005, the sales volume of Xinfei refrigerators ranked third in China, reaching 3 million units.

Xinfei was founded in 1984 and was transformed from an arsenal in Henan. In the first 10 years, under the leadership of the older generation of new flyers, it was invincible in the home appliance market.

At that time, many families were proud of being able to afford a new refrigerator. Even in some rural areas, one of the criteria for a woman to find a partner is whether the man has a new refrigerator at home!

In the memory of Zhou Hua, an old employee, many of the workmates with him in his early years were entrusted to work as temporary workers. Because the factory benefits are very good. When you are dating someone, people will think highly of you by wearing work clothes on a blind date. "It’s much better than a suit and tie.".

"I would rather go to Xinfei than go to the bank" became the mantra of some young people in Xinxiang City at that time.

In the past, big brother became a "miscellaneous brand"

With the integration of the capital market, the fate of the "four golden flowers" is also different: Rongsheng was returned to Hisense Kelon, Meiling was integrated by Changhong, and the new flight changed hands gradually, and the rising beauty gradually squeezed out of the top four.

According to the latest data, in the first nine months of 2017, the retail volume and retail sales of Xinfei refrigerator market accounted for 2.83% and 1.70% respectively, and the average product price was 2,202 yuan, which had already been squeezed out of the top ten in the industry.

According to the relevant personnel of an electric store, although the store sells Xinfei refrigerators online and offline, very few people buy them and the sales performance is poor. There are also store staff who said, "The brand of Xinfei is not available in our store. Few stores will have this brand, right?"

It can be said that the new flying refrigerator that could be displayed at home in the past has now become a "miscellaneous brand" that no one cares about.

Ten years without salary increase, employees went on strike collectively.

With the decline of Xinfei Electric Appliances, front-line workers also suffer: welfare subsidies are getting less and less, and wages have not been raised for ten years!

The first crisis:

In the autumn of 2012, 11 years after the death of founder Bingyin Liu, thousands of employees who tried to change their living conditions gathered in the headquarters of Xinfei in blue overalls, shouting "Pay rise, survive" and blocked the gate of the factory.

At that time, some employees listed a set of figures: the off-season salary of the workshop where Xinfei installed the temperature control meter was about 890 yuan, and the peak season salary was about 1,200 yuan. Far below the average income level of employees in Xinxiang City, 2160 yuan.

With the rapid intervention of the government, the top management of Xinfei Electric made a compromise.

The second crisis:

In 2013, Xinfei unexpectedly announced that some production lines began to stop production on May 28, and some employees of the company were also dismissed. With the help of the government, the crisis was alleviated.

The third crisis:

In November 2017, the above reorganization statement indicates that the third shutdown crisis of Xinfei Electric has come. This time, can anyone save it?

The "fatal wound" of Xinfei is worth pondering.

Rome was not built in a day. The experience and lessons behind the decline of Xinfei Electric Appliances to this point are worth pondering.

1, the blind introduction of foreign capital, strategic transformation failed.

In 2002, Xinfei carried out the reform of the state-owned system. Under the general trend of introducing foreign capital, Xinfei introduced the Singapore enterprise Hong Leong Group for joint venture, and later transferred its equity. The equity of Singapore Hong Leong Electrical Appliances accounted for 90%, and China’s strategic management right was completely lost.

As a result, in the face of fierce competition from Haier, Siemens, Gree and Midea, products, brands, services and marketing were all defeated.

2. "One woman marries more", and the famous brand becomes a miscellaneous brand.

At the national small household appliances fair held in March this year, three companies also came to the exhibition on behalf of Xinfei Company, claiming that they all held the right to use Xinfei trademark. Behind it is the management decision of "one woman marries more" made by Xinfei Company for the brand.

It is reported that at that time, the brand ownership of Xinfei was owned by Xinxiang Municipal Government of Henan Province, and the enterprise of Xinfei Refrigerator did not have brand ownership. Except refrigerators, the brand use rights of other household appliances were leased out to earn brand use fees.

3. Rush into small household appliances.

Xinfei has always been famous for refrigerators, freezers and other household appliances, but after being acquired by foreign capital, it began the rhythm of "doing death": exploring the way to enter the small household appliances industry. Sure enough, Xinfei’s small household appliances have been negative since they went on the market. For example, Shanxi TV Station and Quality Supervision Bureau have exposed a serious quality problem in a Xinfei rice cooker.

Without the technology, technology and talents of small household appliances, he blindly followed into the small household appliances industry. Since then, negative news has continued, quality and safety accidents have occurred frequently, and brand integrity has been overdrawn.

According to the analysis of insiders, Xinfei adopts a follow-up strategy in the face of every trend in the home appliance industry.

The law of the jungle is cruel. If you are not enterprising and stubborn, you will one day be eliminated by this rapidly advancing and constantly innovating world.

(The original title is "A generation of refrigerator" giants collapsed, and you must have heard its advertisement "Source: CCTV Finance)