Company news
Guangyu: Focus on the national brand of automotive air conditioning compressors
2013-08-19

Shanghai Guangyu is an advanced manufacturing enterprise that produces and sells “automobile air-conditioning compressor assembly”. In the past 11 years, Shanghai Guangyu has provided automotive air-conditioning compressors for many automobile companies in the domestic market. As of last year, the company achieved annual revenue of more than 150 million yuan. It is expected to sell more than 400,000 compressors per year this year, with annual sales reaching 180 million yuan.

 

Mr. Dong RongYONG, founder of Shanghai Guangyu Automotive Air Conditioning Compressor Co., Ltd.

 

 

As the pioneer of the industry, Mr. Dong Rongzhen, the founder of Shanghai Guangyu Auto Air Conditioning Compressor Co., Ltd., first entered and focused on R&D and innovation in the field of automotive air conditioning compressors. In the past, the car air-conditioning system developed "North Red Flag Car, South Shanghai-class car", and today its founding Guangyu is providing supporting production for the stable automobile air-conditioning compressor assembly for Liberation, Dongfeng Group Corporation and Beiqi Foton

 

Shanghai Guangyu is mainly engaged in the production and sales of “Automotive Air Conditioning Compressor Assembly”.

 

 

Market segments:

 

 

 

Focus on automotive air conditioning compressors

 

 

 

    Shanghai Guangyu is an advanced manufacturing enterprise that produces and sells “automobile air-conditioning compressor assembly”. The high-displacement automotive air-conditioning compressor assembly products have opened up the high-end market of Zhengzhou Yutong, Jinlong Automobile and other passenger cars, GY14P65 The (650CC) large displacement two-way piston air conditioner compressor assembly fills the gap in the domestic market.

 

 

 

    The company was established in August 2002. After 11 years of development, at present, Shanghai Guangyu mainly supplies auto air-conditioner compressors for automobile companies such as FAW, Dongfeng Second Automobile, Beiqi, Xugong and Yutong in the domestic market. The products are mostly used in construction machinery, CMB buses and bus buses. , light trucks, heavy trucks, SUVs and other models. As of last year, the company achieved annual revenue of more than 150 million yuan. This year, it is expected to sell more than 400,000 compressors per year, with annual sales reaching 180 million yuan.

 

 

 

Following the production of automotive air conditioning units by FAW, in 1981, the Shanghai Internal Combustion Engine Pump Factory put into mass production of the car air conditioning unit developed for the Shanghai brand sedan. The founder of Guangyu, Dong Rongzhen, was the first group (1979) to organize research and design of Shanghai brand car air conditioner. One of the industry pioneers of systems (including compressors). Dong Rongzhen also organized the technology introduction of "Japan Sanpower 5H14 Compressor Manufacturing Technology" for the first automotive air-conditioning compressor project in 1989, which made an important contribution to the localization of Santana car air-conditioning compressor.

 

 

 

The rapid development of automotive air-conditioning equipment has also enabled domestic auto-manufacturing enterprises to gradually tap the opportunity in the market segment of compressors, evaporators and condensers, air-conditioning accessories and bus air-conditioning. Opportunity, focusing on the automotive air conditioning compressor market and the birth of this.

 

 

 

 Market environment:

 

 

 

Foreign capital monopolizes local enterprises low price competition

 

 

 

    "Air-conditioning compressor is the heart of air-conditioning unit assembly. The development of core compression technology as a car air-conditioning device has always been the focus of car manufacturers around the world." Dong Wei told the Business Daily reporter that the current production of automotive air-conditioning compressors Mainly concentrated in Japan, the United States and Germany and other major companies, such as Japan Denso, Panasonic, Toshiba, Mitsubishi Heavy Industries and the United States Delphi and other companies, of which Japanese manufacturers have the largest output, these companies have large joint ventures or wholly-owned production plants in China.

 

 

 

However, Dong Wei said that in view of Chinas automotive air-conditioning compressor manufacturers, in the past 30 years, the technology of domestic automobile companies in the development of air-conditioning compressors has been introduced from Japan, South Korea, Europe and the United States, which has led to the current Most of the vehicle supporting market in the Chinese market is in the hands of foreign capital, while local companies have the characteristics of scattered, chaotic and poor distribution. “More than 70% of Chinas air-conditioner compressor market is occupied by foreign capital and joint venture brands. At the same time, the design capacity of local enterprises is far from that of foreign advanced enterprises. Small scale, weak development capability, and immature management are the most domestic automobile air conditioners. The disadvantages of the production enterprises. Therefore, in the domestic automotive air-conditioning industry, the barriers to entry are relatively low. After the influx of hundreds of small enterprises, they are relying on low-end price competition to survive."

 

 

 

Seeking a breakthrough:

 

 

 

Technology R&D + Industry-University-Research + Market Positioning

 

 

 

    In order to break through the above-mentioned difficulties faced by Chinas automotive air-conditioning market and seize opportunities in the segment of automotive air-conditioning compressors, Guangyu decided to use technology research and development to drive product sales, and then open up the domestic market, and want to establish national brands in the industry.

 

 

 

    First, Guangyu introduced an advanced compressor assembly line to improve the manufacturing process and production efficiency of its own products. The key components of the compressor assembly, such as cylinder block, cylinder head, swash plate, piston, and planetary disk, are all manufactured by themselves, and have formed an automated processing production line. The total production capacity of the controlled supply chain supporting enterprise can reach 150. Ten thousand sets / set.

 

 

 

    Secondly, Guangyu uses the development ideas of industry, academia and research to strengthen the follow-up talent cultivation and technological innovation research and development. At present, Guangyu has jointly established an industry-university-research and development base with Shanghai Jiaotong University to focus on the development of a new generation of products. At the same time, under the cooperation of a group of retired senior engineers of Shanghai Sanpower and the refrigeration department of Shanghai University of Technology, Guangyu jointly established the “Shanghai Guangyu-Shanghai Jiaotong University Automotive Air Conditioning Compressor Engineering Technology Research Center”, focusing on patent development and application. It has obtained 14 utility model patents and many other independent design and process patents.

 

 

 

    Once again, Guangyu has set its sights on large-displacement vehicles such as large and medium-sized buses, heavy-duty trucks and construction vehicles, and has produced compressors suitable for these models. In recent years, the market share has been reversed. According to Dong Wei, Guangyus self-developed large-displacement two-way slant plate compressor is twice as large as the crank-link compressor of large passenger cars on the market. Its 14P65 model and other products are Zhengzhou Yutong, Xiamen Jinlong and other companies every year. Providing a stable market supply, thus filling the gap in the high-end products of domestic large-displacement automotive air-conditioning compressors.

 

 

 

future development:

 

 

 

Focus on passenger cars and new energy markets

 

 

 

    Dong Guang, the current general manager of Shanghai Guangyu, said that “Guangqian Yuhou, Industry and Country” has become the corporate culture and development goal of this national brand. Regarding the companys future development, Dong Wei said that Guangyu has created a three-step, five-step strategic plan based on its own needs to become bigger and stronger. “The first step is to achieve an annual sales target of over one million units in three years. In the second step, the R&D strength will be transferred to variable displacement compressors and large displacement compressors within three years, opening up new automotive market segments and nurturing new ones. The third step, entering the electric vehicle industry within three years, the companys self-developed electric scroll compressor samples; the fourth step, entering the international market within three years, requiring export in Europe, the United States And the export volume of the Middle East reaches 20% of the total domestic sales; the fifth step is to further develop the joint automobile OEM to give full play to the advantages of both technologies and markets in the production areas of the OEM, such as Beijing, Wuhan, Liuzhou and other places to open branches, the same two The companies such as Steam Dongfeng Group and Beijing Futian have jointly produced and obtained the supporting market of domestic large groups."

 

 

 

    As the industry prospects in the passenger vehicle market and the new energy vehicle sector become clearer, Guangyu is also exploring business opportunities in the passenger vehicle segment. “At present, in the capacity research base jointly established by Shanghai Guangyu and Shanghai Jiaotong University, large displacement, variable displacement, turbine, internal control and electronically controlled air conditioning compressors are in the process of innovative research and development, and mass production will soon be formed this year. In the passenger vehicle field, we strive to achieve more than 10% of the markets output, especially in the new energy market, to increase investment in R&D, and strive to break the monopoly of foreign brands and fill the market gap of domestic brands."

 

 

 

  

 

 

 

[ Expert evaluation ]

 

 

 

Seizing for survival: the way for SMEs to survive and grow

 

 

 

 Jin Fuan, Party Secretary, School of Economics and Management, Tongji University

 

 

 

In most markets, SMEs face the same dilemma as Guangyu, which is dominated by some giant companies, and the market concentration is getting higher and higher, leaving only some barren land. Even in this almost barren land, companies still have to compete with many small and medium competitors for share. Moreover, compared with super competitors, SMEs have to overcome many problems such as difficulty in finding technical talents and limited capital strength.

 

 

 

SMEs need to survive in the cracks and continue to seek growth opportunities. We need to deal with such key questions: What kind of company should we be? How can we provide value to the market in a unique way? In what way can we do better than others? That is, the mission and corporate culture of the enterprise, the core competence of the enterprise, and the business model of the enterprise.

 

 

 

Guangyu Automobile regards “before the Guanghou, the industry to serve the country” as its corporate culture, but it also needs to interpret it in depth, to form a complete corporate culture system, to unite employees, lead employees, inspire employees, and motivate employees. Becoming a code of conduct and action guide for employees, coupled with an effective organizational structure, enables employees to have effective execution within the company, with active and rapid response in the market, from the inside out, from the inside From top to bottom, it always operates as an organic whole.

 

 

 

The so-called unique way to provide value to the market is nothing more than "people without me" or "people have me fine". In the competition with multinational giants, most SMEs can only start from the low-end market. But the low end is not a synonym for low quality. To become a good company, companies must always focus on and continuously improve the quality of products and services. If you ignore the quality with "people without me" and ask for the price, customers will look for alternatives; if you cant do "people have me fine" and provide high-quality products to the market, you cant stand on the market. Without the rich returns of the market, there is not enough capital support for the core competitiveness of enterprises to spiral up and gain further development.

 

 

 

    For SMEs, we must constantly restrain the impulse to expand. We must focus on our own limited and limited products and service areas, and deliver greater value to our customers. In this process, enterprises should actively integrate into the value platform of symbiosis, mutual survival and regeneration with various stakeholders, and obtain performance growth through the amplification effect of the platform, and gradually provide customers with a richer product portfolio. In such a business ecosystem, enterprises, with information, capital, and intelligence as partners, provide strong support in research and development and marketing, which is more conducive to the rapid growth of small and medium-sized enterprises.