In the face of the multiple challenges brought by the current industrial transformation and market demand change, sewing machinery business enterprises in the business model and asset acquisition, from competition to cooperation, have carried out continuous innovation and attempts. If the test of Hangzhou Haicheng in 2010 opened the curtain of mergers and acquisitions in the field of industry and commerce, then the successful marriage of Heli Chengda is the "re-start" of the business restructuring model.
Following the successful merger and reorganization of Hangzhou Haicheng Clothing Equipment Co., LTD., at the end of last year, China Apparel Xincheng Clothing Equipment Co., Ltd. and Beijing Fangcheng Kone clothing Equipment Co., LTD., two business enterprises, jointly established Beijing Heli Chengda Machinery Equipment Co., LTD., completed the second full sense of restructuring in the field of industry commerce.
At present, Heli Chengda Company has been established for nearly half a year, what changes has the reorganization brought to the enterprise, and what is the effect of the reorganization on the enterprise operation? With questions, the reporter came to the joint force Chengda company on the reorganization of the interview survey.
Zhang Xiangmin, general manager of resultant Chengda, told reporters that in the past six months of restructuring, the new company has achieved far more than expected, and equipment sales have doubled compared with the combined sales of the previous two companies in the same period. Excluding favorable factors such as peak season, the direct growth income brought by restructuring has exceeded the industry average.
Strong and strong together to break the game
On the morning of April 28, 2013, Beijing Heli Chengda Machinery Equipment Co., LTD., technicians from Japanese brother companies are explaining and training for a new product. In addition to the employees involved in the training, other staff are busy answering and recording business consulting calls, and the next part of the company is busy but orderly.
"From competition to cooperation, the results of the past few months show that the restructuring decision of the two companies was correct." Zhang Xiangmin told reporters that the cooperation between the two enterprises was caused by the influence of Hangzhou Haicheng Company, because they are familiar with each other and have an understanding of the various advantages brought about by Haicheng restructuring.
At that time, Zhongfu Xincheng and Fangcheng Kone belonged to a competitive relationship, belonging to brothers and heavy machine agents. "There are often customers bumping orders, very headache, it is difficult to ensure profits under competitive pressure." As the market becomes more difficult to do, in a sense, this problem has become a bottleneck for the development of enterprises." 'We were hoping to solve the problem,' said Cheng Lianchun, chairman of Heli Chengda. Taking this opportunity, the two sides have strengthened communication and exchanges. Since October 2012, the parties have been working on the reorganization.
After more than a month of preparation, at the end of 2012, the two companies cancelled their independent operation and jointly established Beijing Heli Chengda Machinery Equipment Co., LTD., with Cheng Lianchun and Wei Ning, the chairmen of both sides, as the chairman of the new company, and Zhang Xiangmin, the general manager of Zhongfu Xincheng, as the general manager of the new company.
The road to restructuring is bright
The road to restructuring will not be smooth, and the problems arising from the marriage of the two companies arise. Weining said, "The main thing we do in the early stage of restructuring is to solve various problems that can be foreseen and encountered in practice one by one, so as to achieve the smooth development of the new company."
The first problem is the establishment of enterprise mechanism after reorganization. "Multi-management is obviously not conducive to the development of enterprises, in the early stage of restructuring the two enterprises agreed that the new enterprise team is based on Zhongfu Xincheng, and Fangcheng Tongli assisted." At the same time, the two sides agreed that the equipment sold outside the inventory will be counted as assets, so as to clarify the scope of enterprise assets."
The second is whether the two businesses can be restructured. Although the customer base of the two parties overlaps, there are differences in main business aspects such as agency brand, subordinate secondary agents, sales channels and service model. In response to this problem, the new company communicates with strategic partners one by one, coordinates and optimizes overlapping channels, eliminates duplicate resources, and achieves optimal allocation.
The third is personnel restructuring. If the personnel of the two companies could not be reorganized, it would be very bad for the business development, which was the main problem at that time. The new company adheres to the principle of "be strict with oneself and lenient to others", breaks up and reorganizes the original team, encourages the new team to carry out business, learns from each other's strengths in the process, complements each other's advantages, and summarizes in time. At the same time, establish a strict reward and punishment mechanism to maximize the enthusiasm of employees and realize the recognition of employees' efforts.
At the same time as the internal adjustment, the new company also faced external pressure. Zhang Xiangmin said, "Heavy machine and brother are competitors, the agency of the two brands after our two restructuring will be placed in a joint force Chengda, they will not have concerns." During the restructuring process, the vice president of the heavy machine company and the chairman of the brother company came to understand the situation in person. We have passed on our development ideas and practices to them frankly to maintain their confidence. Through communication, these two big suppliers believe that cooperation is advantageous, is a strong combination. In the end, they were all supportive."
The effect is far greater than expected
By constantly solving problems and overcoming bottlenecks, the new company gradually enters a better position in the running-in. According to statistics, from January to April, the sales volume of heavy machinery in the agent brand was 4 times that of the same period last year, and the total amount of shipments in April alone reached 4 million yuan; Brothers sales doubled from a year earlier; Silver Arrow grew by more than 30%. It is conservatively estimated that the order has been extended to June this year.
"The results are far more than the embodiment of sales", talking about the achievements achieved after restructuring, Zhang Xiangmin is like a number of treasures.
He said, first of all, its own hardware and software resources have been strengthened, forming a resource advantage. After the reorganization of the two assets, the capital flow of the enterprise is more adequate and smooth, and the anti-risk ability is doubled; Channel development optimization and reorganization, the subordinate second and third level agent distributor resources continue to strengthen, the coverage area increases; The company's employees form a positive atmosphere of mutual encouragement, personnel reorganization is smooth, and team cohesion and combat effectiveness are greatly improved; Operating costs have been significantly reduced, and warehouse, office space and other expenses have been effectively controlled.
Secondly, the relationship between manufacturers in the upstream of the industrial chain has changed, forming a scale advantage. After the reorganization, the scale of the new company has been expanded, and the attention of upstream suppliers has increased. Heavy machinery, brothers and other enterprises to the company to organize technical exchanges, new product training, business guidance, etc. are more than 2 times a month. Many manufacturers in the industry take the initiative to negotiate business and hope to reach cooperation. Zhang Xiangmin said frankly, "After the reorganization and suppliers to negotiate prices, talk about support more confident, the position of both sides began to change." And for the control of the source of goods, the ownership of the second and third tier agents and other issues, the supplier has begun to conduct governance and adjustment according to our requirements."
Third, the downstream of the industrial chain, the scope of customers has significantly expanded, forming brand advantages. "In the past, the two companies have a single agent brand, and the products that customers need to configure the production line will involve two or even multiple dealers at the same time, whether it is sales or service, it will be very troublesome." After the reorganization, we can select the best configuration from the brands in our hands to sell in sets. Customers generally find this very convenient, and the configuration scheme can be optimized, which is the most recognized place by customers. At the same time, a large number of potential customers and even downstream leading enterprises have strengthened their cooperation intentions and continued to sign orders, among which large orders have increased."
Fourth, from competition to cooperation, the most obvious benefit is to avoid vicious competition. Restructuring cannot achieve high profits because the market is transparent and competitive pressures exist. However, after reorganization, a relatively reasonable profit margin can be reserved, and it is more confident when negotiating with customers.
Yang Xiaojing, secretary general of the Association and the first deputy director of the Association's Commerce and Trade Committee, said in an interview that it is not difficult to find that the two restructurings from competition to cooperation not only effectively solve the problems and shackles faced by enterprises, but also realize the substantial development and promotion of enterprises after resource integration. The practice and attempt of Heli Chengda and Hangzhou Haicheng on the business restructuring model have undoubtedly provided valuable experience and reference in the direction of transformation and upgrading for the majority of business enterprises in the industry.
At the same time, Secretary General Yang stressed that at the just-concluded ninth Council meeting, Chairman He Ye proposed to "find new impetus for industry development", and pointed out that mergers and acquisitions will become one of the "new impetus" for industry development. In the face of the new level of challenges brought by the current market competition, how to closely follow the development of the industry, form their own competitiveness, the use of mergers and acquisitions, strong alliance, competition and cooperation to achieve new leap-forward, will become one of the efforts of the majority of business enterprises "development of new driving force".