Zongshen’s entrepreneurship opens a new manufacturing model

In the past twenty years, Zuo Zongshen has achieved a triple jump.

From an individual mechanic who "smiled all day long and never washed his hands" to becoming one of the top 10 domestic motorcycle companies, and then to taking control of Anhui Tongbao Automobile and getting involved in the automobile manufacturing industry, Zongshen's The growth rate is astonishing, and with the change from "two-wheeled" to "four-wheeled", its growth will be even more remarkable.

Only by doing the remaining 1 well

In the early 1990s, an accidental experience of helping someone buy a motorcycle inspired Zuo Zongshen’s initial entrepreneurial impulse. During this transaction, he keenly sensed the shortage of motorcycle engines in China and the business opportunities behind it. Later, he carried a Yamaha two-stroke engine on his back and visited 59 motorcycle engine production plants across the country, confirming his discovery: At that time, domestic motorcycle engines were in short supply. In 1992, Zuo Zongshen registered Chongqing Zongshen Motorcycle Technology Development Co., Ltd. and entered the motorcycle industry. Relying on the success of the 70CC engine developed and produced by itself, Zongshen quickly completed capital accumulation in 1994 and 1995 when "almost all companies producing engines made money".

If entering this industry relies on keen intuition and good luck, then Zongshen’s subsequent rapid growth relies on solid product and technology development. Regarding product quality, Zuo Zongshen has a famous saying: "Zongshen's engine 99 cannot be said to be of good quality until it is done well. It can only be done if the remaining 1 is done well."

With the company's development With the rapid development, Zongshen reflected on the "high, large and comprehensive" model of producing and investing everything by itself in the past, and began to position itself as the "organizer" of the industry. "In China, the technical content of motorcycle products is not High. There are thousands or even tens of thousands of motorcycle parts manufacturers in the country. How to select the best quality and best priced parts among these parts requires organization and management. "

Leading the new era of manufacturing

There is a joke circulating in Chongqing that just by visiting a motorcycle parts distribution center, anyone can assemble a motorcycle when they return home, and the quality is the same as the regular one. There is not much difference in production among enterprises. Like many motorcycle companies in China, Zongshen, which took the road of assembly, also fell into the industry cycle of severe homogeneity of products, struggling to compete with its Chinese counterparts for cost advantages in the low-end market. In the more profitable high-end product market, international brands such as American Harley, German BMW, Japanese Honda, and Italian Piaggio are all present. At the "China Quality Competitiveness Summit Forum" held last year, Zuo Zongshen set the ambitious goal of "defeating Japanese joint ventures in three years." Zongshen realized that for motorcycle companies to truly become stronger, they must end the assembly era and start a new manufacturing model.

Zong Shen made three moves.

The first step is to build a parts manufacturing system controlled by Zongshen itself and "control product quality from the source." Zongshen has recruited a group of powerful parts factories to settle in Zongshen Industrial Park, and requires some companies to "exclusively supply Zongshen", completely abandoning the "one piece for the world" supporting pattern.

The second step is to enter the high-end market. In 2003, Zongshen began to produce large-displacement motorcycles and launched the 150CC and 200CC "Zongshen Winner" sports cars, directly targeting high-end users. With an investment of more than 200 million yuan, a new factory with an annual output of 3 million motorcycle engines was built in Zongshen Industrial Park. Zuo Zongshen said proudly, "The technical level of Zongshen's new engine production line is so advanced that it cannot be found in the domestic industry." Without the second step, it will be difficult for domestic peers to catch up in the short term. "

The third step is to join forces with world-famous motorcycle companies. Zongshen has finalized a joint venture with Italian Piaggio to produce scooters in Foshan, Guangzhou. At the same time, it cooperates with American Harley-Davidson to launch jointly branded motorcycle products. Zuo Zongshen, who has a strong national complex, said: "When it comes to cooperation with foreign companies, Zongshen's principle is to 'put us first', and our goal is to strengthen ourselves, not to be eaten by foreigners.

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Two wheels become four wheels, rise in a different way

At present, the average profit margin of my country's motorcycle industry is less than 5. The origin of the debate about whether the motorcycle industry is a sunset industry For a long time, Zuo Zongshen has been one of the staunch opponents. However, it is an indisputable fact that "the profits of the motorcycle industry are getting thinner and the development space is very small." Zongshen decided to find another way out. The way out is cars.

In 2004, Zongshen purchased Anhui Tongbao Automobile and entered the automobile manufacturing industry. In 2000, Zuo Zongshen started to make careful plans. In October, it wholly acquired Chongqing Yuhui Engine Manufacturing Co., Ltd. to obtain automobile engine technology; at the end of 2001, it purchased equipment from South Korea and Germany and entered the field of automobile parts manufacturing; in 2004, it reached an agreement with the Italian Piaggio Group to Yaqiao's mini-car production was moved to China; these quiet steps made Zongshen's entry into automobile manufacturing a matter of course. Zongshen's entry into automobiles was not only a simple change in the industry, but also a change in the company's business model. A big change of face. Zuo Zongshen said: "When Zongshen Group enters the automobile industry, it will be impossible to clone its original successful experience in the motorcycle industry and follow the old path of using supporting resources to assemble and engage in price wars. "

Obviously, Zongshen will complete a difficult but promising self-transcendence. ;