Wang Rongsheng: Seeking cooperation in competition and seeking development in cooperation

Abstract Wang Rongsheng, the chairman of Jiangsu Fengmeng Composite Materials Technology Group Co., Ltd., has been engaged in the manufacture of coated abrasives for so long. It seems that the large-volume products have never risen in price, basically all the way down. But everyone has recently felt that various raw materials have been rising in price. As a manufacturing...

Wang Rongsheng, Chairman of Jiangsu Fengman Composite Materials Technology Group Co., Ltd.
Engaged in the manufacture of coated abrasives for so long, the impression that large rolls of products seem to have never risen in price, basically all the way down. But everyone has recently felt that various raw materials have been rising in price. As a manufacturing company, there are experiences, one side is busy, and the other side is no benefit. Why is this so?
I visited many foreign companies, including German and Japanese counterparts, and learned that they have also experienced this process. At the beginning, I was competing with each other. Like the Three Kingdoms, I want to eat you. You want to eat me. When I finally found out who couldn't eat anyone, then I was sensible. Everyone sat down to talk, rationally adjust their product structure, and find their own superior products to do. So now there is a situation in which customers are introduced to each other, and products that they do not do or that have no advantage in the company are introduced to well-behaved and advantageous peers, and vice versa. In this way, the competition between the peers has become a cooperative relationship. Of course, this road will be a long time. I think our industry should also make efforts in this area.
We can recall that no one in the same industry can be squeezed by peers. The reason for the company's collapse is either an investment error or a management error. There is almost no real war on price wars. Because a company is like a person, there is a gift for survival, but you make a lot of money by making big money. The investment in making big money is also big, and the cost of maintenance is also high. On the contrary, the company is small and the investment is small. It seems that there is not much fixed cost, so it is good to do it. It’s not that big companies can’t do it. It’s hard to do it because the fixed cost is there. Therefore, small enterprises have the advantage of small enterprises, large enterprises have the weakness of large enterprises, do not expect to wash down how many small businesses can be washed through this big reshuffle. Should we reflect on how to change this pattern, find out the direction of our own development, change the current vicious competition, cooperate in competition, and seek common development in cooperation. I think this is more sensible.
At the last meeting, I also showed my point of view. In fact, we can do better. Everyone here is an excellent company with relatively large scale and good efficiency in manufacturing, but where can we be better than foreign giants? Fengman cooperated with a famous German manufacturer of coated abrasives. When I contacted their CEO, I wanted to "blow" my company, but when I listened to the CEO's history of the company and the company's current volume. After the introduction, I suddenly became silent... Compared with them, we really have nothing to say. The sales of the leading "industry giants" and the sales are not only 50% more than they are, but only 170 in total. Individuals may make more money, they didn't say it, but it must be. Our peers here can also make more money, so that the company can develop more lasting and modern, but the premise is that we must form a strong competitive edge, form a good market order, and jump out of this inherent circle to compare with ourselves. High, strong rival competition, such as South Korea, Japan. Don't fight guilt like a child. Play with the strong hands can play the benefits: quality improvement, earn more money, this is the purpose of our business.
It is true that the level of equipment of the domestic counterparts is really worse than that of others. I have seen so many foreign companies, such as several Japanese counterparts, whose equipment is at least not much better than the edge, and many of them are still in the 50s and 70s of the last century. But people have made good things. People's sandpaper 1 yuan a line to be lined up, we 0.6, 0.7 yuan a piece of debt; people's sand belt tens of dollars a square we are more than a dozen yuan a square, the gap is too big. The same, even better equipment, why can't we use better raw materials to make better quality products?
The environmental storm has had a great impact on manufacturing companies, and the emission of emissions will cause a significant increase in corporate costs. As far as we are concerned, the original use of coal, now all turned into natural gas, the cost of consumption data has also come out, the original energy consumption cost is 0.3 yuan / M2, and now it is 1 yuan / M2, of course, this is the preferential price approved by the municipal government, If the cost is higher at the market price. The investment in environmental protection is also a big cost. There is only one set of waste gas incineration equipment of more than 3 million. The daily operation cost of the equipment exceeds 20,000 yuan. I have calculated it. If the real treatment is up to standard, the cost of energy and waste gas treatment will be squared. At least five times the current cost. But environmental protection is something that has to be done. If anyone still wants to use coal as an energy source, the exhaust gas will be discharged without treatment. Even if it is secretly engaged now, it will not last long, because the national environmental protection inspector is no less powerful than anti-corruption, and there is no luck at all. At the same time, this is also As the minimum social responsibility of the company. Everyone must have sufficient mental preparations and will face this problem. I appeal to everyone to take this opportunity to thoroughly manage and meet the standards; to transform equipment and introduce technology; to improve quality, high quality and good price. This is my suggestion, and the edge has already begun to take the lead in doing this. Calling all the princes to be sensible, since it is better to rely on price wars and not to blame others, it is better to take this opportunity with everyone, for the healthy development of the industry, for the survival and interests of the company, make wise choices!

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