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Internet means challenges, opportunities for industries

By Qiu Quanlin (China Daily) Updated: 2014-03-14 08:58

Although Gree's growth plan will focus more on innovation and technology to improve product quality, Dong said Gree won't abandon e-commerce, since the company has started to sell products on its website.

"As an emerging sales channel, e-commerce would complement, rather than replace, the traditional model," she said.

Media reports have said Gree will cooperate with mobile Internet companies, including smartphone maker Meizhu Telecom Equipment Co and Huawei Technologies Co, to develop an online to offline platform.

Internet means challenges, opportunities for industries

Internet means challenges, opportunities for industries

Internet means challenges, opportunities for industries

"So far, we have not reached any deals with these Internet service providers. But we will definitely introduce strategic investors to help expand our business in the near future," Dong said.

Dong said the company "won't give up" on the Internet, since it helps greatly improve production and management efficiency.

"We have developed a big production and sales network, which can be thoroughly monitored by a live online data system," Dong said.

At the company's headquarters in Zhuhai, Guangdong province, customers' use of Gree's air conditioners across the globe can be recorded.

"We can detect faulty products in a timely way through the data system and provide prompt maintenance. In the past, consumers were only offered such service after they reported problems," Dong said.

Dong said manufacturing still has advantages if it is well integrated with the booming Internet industry.

"In the Internet era, I don't think manufacturing is at the lower end of the industrial chain. For traditional manufacturers like us, giving priority to technology and innovation by using the Internet will help maintain sustainable business growth," Dong said.

Gree's sales rose 20 percent last year to 120 billion yuan, according to the company. Sales are expected to increase by 20 billion yuan annually in the next four years, lifted by efforts to improve the quality of its core product of air conditioners, according to Dong.

Gree's own-brand air conditioners have been shipped to more than 100 countries and regions, according to Dong.

"We are no longer engaged in original equipment manufacturing. As a traditional manufacturer, building an internationally recognized brand is one of our major targets," said Dong, who is also an NPC deputy.

Dong said the company will also open more flagship stores, given that Gree's products are quite different from some other consumer goods.

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