Qingdao Haijia Machinery Group Co., Ltd.

Corporate News

Hidden Champion From the Industry Arena

November 10, 2016


When the business and media circles are talking about the "hidden champions" of Germany and Japan, we wonder, does China have "hidden champions"? who are they? where are they? Therefore, we decided to start a series of reports on "Finding China's Hidden Champions" to bring China's "hidden champions" to the fore. 

Soon, Qingdao Haijia Machinery Co., Ltd. came into our sight. This enterprise specializing in the production of looms has the world's largest market share in the sub-sector of water jet looms, and its sales volume is higher than the total number of second to seventh. many. However, Haijia's reputation is only spread in the industry, not known to the public, and rarely received by the media. It is a veritable "invisible champion". 

We decided to make Haijia the first stop of "Finding China's Hidden Champion". Before departure, Dr. Xu Yuan, a special consultant of "Chinese and foreign management", the vice president of the China Planning Institute, and a former executive of Little Swan, heard about it and was very interested, so he decided to go together. Regardless of his 73-year-old age, Mr. Xu rushed to the train station early in the morning to buy a temporary ticket, and ended up arriving in Qingdao half an hour earlier than us. 

The interview was agreed on the next morning, and Haijia arranged for us to go to the hotel to rest first. Mr. Xu immediately said: Time is precious, and food and accommodation are all minor issues. Today, I will take a look at the factory and feel it, which is conducive to the follow-up in-depth discussion. 

This hard-working spirit has really taught our younger generation a lesson. 

The observation and communication on the first day and the interview on the second day did not disappoint us. This company has evolved from a workshop-style factory to a modern governance enterprise. Its market position was created by fighting in the industry arena, from amateur players to professional masters, one step at a time. Step on the throne of the "Speedmaster" champion. 

So, how did Haijia PK down the strong players? Our interview started with Haijia's three "ring matches" as clues...

 Work:Use the "bottom line" to PK domestic heroes 

The predecessor of Qingdao Haijia Machinery Co., Ltd. was "Xinchun Textile Accessories Service Center". The founder, Wang Anjian, was a salesman in a state-owned textile factory. of textile machinery companies provided spare parts and earned "the first pot of gold".

 At that time, China's manufacturing industry was booming, and the supply of textile machinery was in short supply, and some private textile machinery enterprises came into being. Only in Wangtai Town, Huangdao District, Qingdao City, more than 100 textile machinery enterprises have emerged, thus achieving the reputation of "China's Textile Machinery Town". 

Wang Anjian saw this "window" and registered and established Qingdao Haijia Machinery Co., Ltd. in 2001. A factory covering an area of 22,000 square meters was built in Wangtai Town. The main products are water jet looms and air jet looms. 

At that time, textile machinery enterprises only had order awareness, but no quality awareness. When the order came, they would quickly produce and sell quickly to make quick money; textile machinery customers were also very "stupid". . In such a big environment, Haijia also does not have a clear sense of quality, but Wang Anjian has a clear "bottom line" in his heart: he can't make unscrupulous money.

 Because he knows that customers will not be stupid forever, and he always maintains a sense of crisis in his heart, "Every piece of equipment is a living advertisement of Haijia, we have deceived customers now, and customers will definitely not recognize us in the future, we have no market. , what else are you doing?" He said, "Only when we do it well can we have income, and this enterprise can develop healthily and sustainably." 

How to do it? His method is to carefully manufacture the parts processed and produced by himself, and never use inferior parts for the purchased parts. He would rather buy from suppliers in Japan, South Korea, and Taiwan at high prices, which means an increase in costs and a reduction in profits. In the impetuous atmosphere of the entire market, it is not easy to do this! 

Without the guidance of modern business concepts, quality concepts and risk control concepts, "character" plays a decisive role in it. For so many years, Haijia has always adhered to two beliefs.

Wang Anjian decisively rejected the shoddy suggestion. In order to deliver the goods in time, he decided to adopt a workaround: first install the domestic transmission for the customer, and when the imported transmission arrives, he will immediately send Haijia's engineer to the customer's factory to replace it. 

The first belief: Never Cheat Customers 

Once, a batch of transmissions purchased by Haijia from a Japanese manufacturer had not yet arrived, and the delivery time required by the customer was very tight. Some colleagues suggested that they should replace it with domestic imitation products, otherwise the delivery would not be timely, and the customers would go to others. 

At that time, other textile machinery manufacturers used a large number of domestically produced imitation products. Compared with imported products, the price disparity was large and the performance difference was not large, and customers did not have the ability to identify. Assuming that Haijia adopts imitation products, it can not only shorten the delivery time, but also make more money. 

But Wang Anjian decisively rejected the shoddy suggestion. In order to deliver the goods in time, he decided to adopt a workaround: first install the domestic transmission for the customer, and when the imported transmission arrives, he will immediately send someone to the customer's factory to replace it. In the whole loom industry, Haijia is the first and possibly the only company that has done such a sincere business, and moving the customers very much. 

Hand over sincerity, make word of mouth, customer loyalty also has. Hundreds of these replaced spares are still lying in the sundries library, and they have become "living teaching materials" for Haijia to spread the corporate integrity culture. 

The second belief: I would rather throw money than  ruin reputation

In 2010, through the introduction of the intermediary, a customer in Guangdong ordered 222 water-jet looms from Haijia, and the freight should be borne by the customer according to the industry rules, but the intermediary was negligent for a while and forgot to indicate in the contract, and the customer's interpretation was that the price included the freight. The freight of a loom is more than 1,000 yuan, and the total price is as much as more than 200,000, and the loss is inevitably a bit large. In order to redeem the mistake, the middleman gave Wang Anjian an idea: that customer is a novice, he does not understand anything, if some parts replace imported parts with domestic parts, let alone save 1,000 yuan, it is not difficult to save two or three thousand. Wang Anjian was angry when he heard this, and reproached: "I don't approve of your attitude!" We make products, not to make more money or how, product quality is a bottom line of our Haijia, our standard configuration, can not be changed. In the end, the 222 units were supplied exactly as standard, and the losses were eaten by themselves.

I'd rather throw money than ruin reputation , the money is smashed in, the credit is smashed out, and Haijia also has the foundation of standing and the foundation of the foothold.

People in the industry know that in Wangtai, the 190cm reed width standard Haijia equipment weighs 300 kilograms more than the products of other manufacturers, and these 300 kilograms are all costs, which is also a strong proof of "conscience quality".

More than ten years have passed, most of the more than 100 textile machinery enterprises in Wangtai Town have died, and few have survived. They tell people a not-so-profound truth from their own experiences: When you think your customers are stupid and good at cheating, you have turned yourself into the biggest fool. "It is difficult to buy customers back", if you want to do continuously, to be a repeat customer, you must do credit, and you can't stand without credit.

Haijia stuck to its beliefs and became one of the enterprises that stubbornly survived. When one opponent falls, surviving is a matter of pride in itself. In this regard, Wang Anjian is most pleased that " we Haijia have never cut corners, there is no counterfeiting, this point I am not ashamed."

From Haijia's starting experience, we may get a revelation: character is the core competitiveness.

Become stronger: use "value" to PK big names in Taiwan's industry

The time has come to 2010, Haijia has been occupying the top spot in the domestic market share for many consecutive years, the company has considerable strength, and various opportunities will follow, some require cooperation, some suggest to engage in real estate, and so on. . For growing companies, the biggest crisis is not lack of opportunities, but too many opportunities. When companies are chasing various opportunities like a butterfly, they end up somewhere unknown. Wang Anjian doesn't like "flicking butterflies", so he focuses on the manufacture of looms and never ignores it. He stipulated some seemingly conservative principles: no diversification, no financing, no loans, no foreign aid, and no external financing. In this regard, Wang Anjian said: "As much as we have the ability, we can do as much as possible. We never want to increase the scale, we just want to make this product the ultimate. What we call the ultimate is to keep working hard." Haijia is still a sole proprietorship of Wang Anjian, and adopts a "snowball" development model, which is conducive to maintaining "strategic concentration", but will delay the speed of talent introduction, equipment renewal, plant transformation, and technology research and development. As the homogenization competition in the textile industry intensifies, textile machinery customers have higher and higher requirements for textile machinery. The quality of conscience" Haijia also felt powerless. Once, one of Haijia's looms was sent out, but it didn't bring out the effect the customer wanted for a month. Although Haijia quickly raised its product standards, it always felt that it was half a beat behind the market. At that time, the domestically recognized excellent products were Japan's Tsudakoma, Taiwan's Yinchun and other brands, and Haijia was not in the excellent product club. After a painful remorse, he was determined to lead Haijia to carry out a strategic transformation: from assembly to complete machine production. At the same time, it has established the corporate tenet of "creating value for customers with quality" and its mid-to-high-end market positioning, and also put forward a goal: to be the first brand of Chinese looms within five years. Haijia has made a huge leap from assembly to its own production of mainframes. It requires a comprehensive upgrade of equipment, personnel, technology and management. This is already a big challenge, and it is necessary to use mid-to-high-end to defeat the old-fashioned enterprises. Not Arabian Nights? But Wang Anjian firmly believes that as long as he is focused enough and diligent enough, he will be able to achieve his goals. Equipment can be bought and factories can be built, but the key to transformation is people. To this end, Haijia has invested heavily in importing high-end equipment, and at the same time recruiting troops and introducing high-end talents. There are thousands of threads in the process, and the troubles do not need to be detailed. Let’s take a look at the practical changes brought in by the high-end talents introduced to Haijia——

Use the elite of domestic famous enterprises to promote management and service upgrades

During the transformation period, Wang Anjian's main energy was to form a "management team with management ability", and five management and sales elites were recruited from famous domestic enterprises to implant the genes of famous enterprises into Haijia's mother.

Wang Anjian's criteria for selecting people is to look at the character first, and the ability to look at the second, "There is no problem with this person's character, and I can completely delegate the right to let you do it." ”

However, the boss chooses talents, talents also choose the boss, famous enterprises are generally industry giants, and Haijia's volume is small, so why do famous enterprise talents gladly choose Haijia? One depends on treatment, the other relies on sympathy and the same spirit, but the most important thing is to give them a career platform to fully exert. In Haijia's key positions, there is not a single family member of Wang Anjian, and important positions such as general manager, sales director, vice president of production, financial director, HR & administrative director are all entrusted to these high-paid senior talents in the industry.

Talents have come, management processes have been built, service specifications have been established, and from paper to the specific actions of all personnel, it has brought qualitative changes to Haijia. Haijia also stepped out of the workshop model and began to take on a modern corporate style.

The elite of international famous enterprises has promoted technological upgrading

Wang Anjian had the intention of going down to PK, which was superior to his own competitors, and naturally set his eyes on them, and at the same time "loved" their talents.

Wangtai, where Haijia is located, is located in a corner of Qingdao, and the living conditions are not the same; why are talents willing to choose Haijia? Holding hands with Haijia, the core reason is not Wang Anjian's hospitality, or even preferential treatment, but the good research and development platform provided by Haijia.

At that time, the market for water-jet looms was saturated, most loom manufacturers had no choice but to go out, and some of the famous enterprises in the past who were pessimistic about the market prospects lost interest in innovative research and development. Wang Anjian is very optimistic about the future of the industry and is determined to vigorously invest in research and development and stand at the forefront of the market. Therefore, the outstanding talent was attracted by his vision and passion, and resolutely decided to join.

Wang Anjian has not lost his word, to give people, to give money to money, to give equipment to equipment, in terms of investment, Haijia takes out 3-4% of the revenue every year for research and development; in the model, the marketing center and the technical department docking, marketers from the front line to understand customer needs and product information, feedback to the technical department; the technical department according to feedback, for customers to develop products, the equipment for targeted improvement.

The technical department did not disappoint Wang Anjian, a number of inventions and utility model patents, more details to improve and improve, greatly improved the quality of products, can be described as fruitful.

Of course, Haijia's technological upgrading not only relies on the R & D department, but also "employee innovation" is also an important part. Once the new suggestions, new ideas and new inventions of employees are adopted, there will be material rewards and spiritual rewards. Transforming the innovative spirit and innovative achievements of employees into practical value is one of the important ways for Haijia to enhance its core competitiveness.

Through technological transformation, Haijia has basically achieved self-production of important parts on the host, and only some non-key parts are purchased from the outside. The biggest change is the evolution from fixed models to personalized customization, in the past Haijia can only produce a relatively single model, and now can develop different professional models according to the special needs of customers, to adapt to the production of various fabrics in the field of chemical fiber.

  • Use Japanese elites to promote lean management

When Wang Anjian visited Japan, he was deeply impressed by Japan's lean management. In order to implant the lean gene into Haijia, he hired Akira Kakuya, the president of Xinbao Nissan Transmission Japan, who had just retired in 2013, to come to Haijia to guide production operations.

Someone asked Mr. Jiawu why he chose Haijia. He said: "I am planning to build Xinbao Nissan in China, and the first transmission I produced was supplied to Haijia. Mr. Wang Anjian is a very honest person, and Qingdao Haijia is also a very good person. Integrity company. In the past ten years, I have come to Haijia several times every year. It is very speculative to talk with Mr. Wang Anjian. From the development of the industry, the construction of the talent team, to the processing of parts and components, many of our views coincide. When An Jian proposed to let me come to Haijia two years ago, I readily agreed, and I fulfilled my promise after two years."

Mr. Jiawu has a point of view. China's manufacturing industry has entered the era of meager profits. To survive and develop, enterprises must seek breakthroughs in reform and innovation, and must improve product quality in lean management and production in order to seek profits in meager profits.

Lean management and production is a systematic process, involving every system, every link, every process, every form, and every instruction, etc. Under the influence of Mr. Fake House, Haijia's lean management has begun to take shape . Taking production as an example, Haijia has established a system of self-inspection, mutual inspection and special inspection, that is, the combination of employee self-inspection, mutual inspection and professional quality inspection, and checks at every level to filter out defective products thoroughly.

In 2014, due to the relatively tense relations between the people's livelihood and the diplomatic relations between China and Japan, in order to avoid conflicts, Mr. Kakaya was temporarily sent back to Japan.

Due to the continuous exploration of Japan's lean production management model and the pursuit of talents, in 2016, Wang Anjian once again invited Mr. Wuzhi Qingtaka, a senior management talent of a Japanese company in the water jet loom industry, to serve as the production director of Haijia, responsible for guiding the company's lean production, Based on the standard of Japanese enterprise lean production, Haijia is constantly improving the quality of Haijia spare parts and final products under strict requirements. When talking about quality problems, Mr. Xu Yuan talked about a common American quality point of view: if a problem is found before production, it will be solved with a penny; if a problem is found on the assembly line, it will be solved with one yuan; if a problem is found at the customer's home, it will cost ten thousand yuan . Assuming that a machine has 250 parts, the pass rate of each part is 99%, and the 99% is multiplied 250 times, and the final pass rate is only over 60%.

Wang Anjian took this seriously. And Haijia's "three inspections" are also to solve quality problems before and during production, instead of leaving them at the customer's home to solve them.

After the transformation, Haijia's army is strong and strong, and management, technology, and service have undergone reborn changes. So, how has the goal of "surpassing competitors in five years" been implemented? When Haijia products are constantly changing new appearances, they occupy the market time and time again with high quality and cost-effectiveness. As a result, more and more customers of opponents choose Haijia, but Haijia's customers are rarely lost. While Haijia leads the sales volume, the market share increases year by year. The sales volume of both sides is the best PK evaluation of customers, and the result was divided in less than five years - Haijia won.

Wang Anjian said that many competitors in the industry are also studying Haijia and learning from Haijia. Research Haijia's cost control, quality management, marketing model, etc.

Be refined: use "domestic brands" to PK international brands

"To catch up with and surpass the number one competitor" is Hai Jiaren's dream, as well as Wang Anjian's own dream. In August 2015, Haijia held a high-level meeting and put forward a new goal: strive to build the world's first brand of textile machines.

Tsudakoma is undoubtedly the commanding height of the current water jet loom industry. It is very difficult for Haijia to surpass its competitors in quality and research and development, and it is impossible in the short term. Haijia is an outstanding representative of precision manufacturing in the loom industry, but it is not a world-renowned top brand. How does Haijia compete with the old-fashioned Tsudakoma, and what is the confidence? There are several aspects:

First, with the development of water jet looms to this day, the technological innovation of Japan's Tsudakoma, the leader, has also tended to slow down, and the pace of the "leader" has slowed down, which gives Haijia time to continue to narrow the quality gap between Tsudakoma and Tsudakoma's products. and space.

Second, Haijia is the global sales champion in the water jet loom industry. Haijia's customer base is gradually expanding, because the quality is constantly approaching Tsudakoma, and it has surpassed its competitors in terms of cost performance, so there are more and more More and more Tsudakoma customers are buying Haijia machines, and the trend of one ups and downs has been formed;

Third, Haijia's fast service, especially in the gradually emerging markets such as Southeast Asia and India, can ensure that "if customers have needs in the morning, they can do it in the afternoon; if they have needs in the afternoon, they will definitely do it the next day." This is a competitor Unable to do, because the two sides have different investment in services;

Fourth, Haijia looms are not inferior to competitors in the four main indicators of most fabric quality, beating density, start-up efficiency, and start-up speed, but Haijia has an absolute advantage in cost, and the price is only as high as that of competitors. Half of the price, obvious advantages in cost performance;

On the whole, Haijia is speeding up the pace of catching up with the "leader", so what kind of surpassing does Haijia want? Of course, it is the transcendence of the brand. Competitor is a world famous brand and has established its own high-end image in the world, while Haijia is only a famous brand in Qingdao, and there is still a long, long way to go to surpass Competitor.

The international competition has a history of more than 100 years. It has been producing water jet looms since the 1960s. Haijia is a young team. They have been producing water jet looms for more years than anyone in Haijia. . For Hai Jiaren, the top-ranked competitor is a teacher and role model worthy of respect. However, the best way to show admiration for a teacher is to one day be better than others, and the best way to show respect for an example is to one day be better than an example.

For young people to surpass old experts, the biggest obstacle may not be ability but people's habitual thinking. How to erase the firm impression of the No. 1 company in the minds of users? Wen's method is a powerful brand promotion, forcibly implanting its own brand image, but this is not the way Haijia likes. Wu's method is to "fight the ring" in the market. Hai Jia did exactly this, and had many confrontations with competitors——

A real sword fight between Hai Jia and Tsudakoma

A company is an old customer of the industry leader Tsudakoma. Last year, a development engineering department was established to launch a new fabric with higher requirements for density. In order to choose the most ideal loom, the customer decided to choose a "competition sample" of looms from several brands.

According to the needs of customers, Haijia developed a new model, produced several prototypes, and put them in the customer's workshop for trial. Several looms, including Tsudakoma, were also being tested.

This is a fair confrontation between young talents and old experts, and the spirit of innovation and the passion of the century-old foundation collide. I am not afraid of not knowing the goods, but I am afraid of comparing goods with goods, and the results will soon be known: Haijia's fabric quality, speed, startup efficiency, beating density and other indicators are comparable to those of Tsudakoma.

In the end, under the condition that the quality is very close, the price/performance ratio won again. The customer placed the bid to Haijia and ordered more than 300 pieces of equipment at one time.

Haijia won this victory with quality and cost performance. After a series of real sword battles, Haijia now has a market share of more than a dozen countries in Southeast Asia, including mainland China. So, can Haijia surpass the industry leader? For Wang Anjian, the answer is no, he has his own definition. He frankly stated that Haijia "is not beyond, we can't surpass", we can only make more and more high-end markets choose Haijia through continuous efforts, "let their market narrower and narrower", and even let "them Divert your energy from the water jet loom project elsewhere." Why? Tsudakoma of the loom industry is like Jordan on the basketball court. You can take more orders from your opponents and take the championship from Jordan, but it is hard to say that you can surpass Jordan.

However, there is no doubt about the gold content of winning the championship from Jordan. The same is true for Haijia. In the future, he may be able to form his own new myth, or he may not, but in any case, it is also a very honorable thing to surpass himself again and again in the real sword contest.

Long-term: create a brand with customers

During the interview, Mr. Xu Yuan put forward a point of view: create a brand together with customers.

This view has been enthusiastically responded by the senior management of Haijia, and believes that this is the road that Haijia will take in the future.

In fact, Haijia has been walking on this road for so many years, but her consciousness may not be synchronized with her actions. However, doing well is more important than thinking. "Creating value for customers with quality" is the core element of "creating a brand with customers". Haijiaren has done a good job in this regard.

In Haijiaren's concept of "quality", both product quality and service quality are emphasized. Mr. Liu, general manager of Haijia, said: "We sell not only machines, but also a package of services." Haijia's marketing service team has nearly 30 people, and there are sales companies in Suzhou and Nantong, because Jiangsu and Zhejiang are the largest in the world. It also has dispatched personnel in foreign customer centers such as India and Vietnam. The sales staff are close to customers and have the conditions to provide the most convenient service.

Haijia people's active service awareness often leaves an unforgettable impression on customers: after the machine is sold, dispatch debugging personnel to the customer's factory, according to the variety of customer production, the water pressure, angle, speed, etc. are all adjusted, and after a good adjustment, the customer's employees can operate whether they are novices or veterans. In addition to these things, Haijia's service staff also likes to be "nosy", such as how to build a production plant? How is the ground environment arranged? How is the machine placed? These things that the customer is worried about, Haijia people use their own experience and technical advantages to worry about customers, as far as possible to help customers save worry, effort, money and space, while creating value for customers, but also deeply imprinted their own beautiful image in the hearts of customers.

That's how loyal customers are cultivated

Hebei has an old customer of Haijia, the production of interlining, the original use of old machines, old factory buildings, because of the prosperity of business, decided to build a new workshop, replace the new equipment. After the new workshop was built, it was found that the ground could not meet the requirements, so he called Haijia Sales Company and consulted With Mr. Liu. Mr. Liu immediately said happily: You send the drawings of the workshop, and we will help you design them.

After the drawings were sent, Mr. Liu found a designer to design it, and then sent a very experienced employee to guide the installation until everything was done.

The customer did not expect a big problem, so easy to solve, very touched.

Haijia people's emphasis on service stems from a simple idea, in the words of Liu Zong, "we sell the machine and want you to open well, you make money and then buy our machine", "the customer is always loyal to their own value, if we can create more value for him, he will choose us".

Simplicity is the truth, Hai Jia Ren Hello My good simple ideas have been realized into sales performance again and again. In recent years, there has been a wave of closures in textile factories, and the textile machinery industry has also suffered a cold winter, but Haijia can buck the trend, why? Mr. Liu said, "The most important thing is that the customers we have established before do not lose, relying on my quality, relying on my service, relying on my integrity, repeat customers are almost 98%, 99%, which is a big resource for us, and customers also introduce us to customers, and our customers are more and more."

Isn't that about creating a brand with your customers?


Wang Anjian said that Haijia will continue to focus on the field of textile machinery in the future, and hopes that "the last water jet loom in the world is made by Haijia".

He also revealed an ambitious plan: to create an automated standard workshop similar to Industry 4.0, where painting, welding, machining parts and other polluting or heavy work are done by robots or robotic hands.

Mr. Xu Yuan spoke highly of Haijia's performance. At the same time, with his dozens of experience in the manufacturing industry and his sophisticated vision, he also pointed out some shortcomings. For example, there are still traces of the workshop era, and the stacking of workpieces is not standardized. , The material inventory structure is not reasonable and so on.

At the end of the interview, Mr. Xu Yuan made some unique comments and summaries from the perspective of observers:

1. Selling products is more important than selling products. Products are constantly being updated, and branding is only a part of the product. As long as the enterprise is done well, everything will be successful;

Second, the concept is more important than the concept. Creating a brand starts with an employee, turning him into an employee movement rather than just a leadership movement;

Third, the "boss" is the most terrifying. Because the boss who has no opponent is "the most unlucky". In other words, being yourself is more important than defeating your opponent.

Haijia did not start out in perfection, and the process was not perfect. The deficiencies just contained the driving force for improvement and the room for improvement. As Wang Anjian said, "Extreme is continuous effort". I hope that Haijia will become better and better in the pursuit of "extreme".

Interview: Xu Yuan, Hu Weihong, Chang Hongda, Zhang Wei

Written by: Hu Weihong

Source: Chinese and Foreign Management Magazine