Xinfei Liu Rong: Building its HVAC brand



刘荣:三大渠道打造精品企业 暖通行业前景利好

Liu Rong, Manager of Beijing General Branch of Xinfei Group Xinfei Radiator Co., Ltd.


Xinfei Group builds its HVAC brand and enters the home building industry


[Reporter] Welcome Liu to the studio. Xinfei radiator is the first time today, SouFun users are still relatively strange. So at the beginning, please give us a brief introduction to the development of Xinfei Radiator.


[Liu Rong] Ok. Xinfei Radiator is a subsidiary of Xinfei Group. Since 2004, it has entered the two major markets of home improvement and tooling. Before entering these two markets, we have been developing and promoting in the national market since 2004 and 2005. So far, there are 601 stores in the country, with an output value of 2.21 billion last year. For example, some of China's big homes like Red Star Macalline and Real Home, including Jimei and many other home building materials markets, have become partnerships. And some big real estate, such as BCL, including Central Asia Real Estate, including Sunco Real Estate, and so on, are also partners.


[Reporter] Consumers are still very familiar with the brand of Xinfei, and have a deep impression and trust. So since there is such a big support behind us, what kind of core technology, products and core competitiveness do our new flying radiators have?


[Liu Rong] This question is very good. We have advantages in many aspects. First of all, there are group technologies, such as the copper and aluminum radiators we use in radiators. We have this set of technologies. In the past, we used to make refrigerators. There were also copper soldering behind the refrigerator. There was copper at the back of the refrigerator. The refrigerator had to be cooled out. The soldering inside was very thin, and the welding technology was very demanding.


Then, the most critical parts of the copper-aluminum radiator, such as copper welding technology, we use the melting form of the copper surface and the melting of the wire completely melted. Because if the welding is not good, the leakage rate of our products will be relatively high, and the impact on the use will be relatively large. This piece of specialization we do is very strong.


[Reporter] For the brand, the construction of the distribution network is very important for our company. You said that we have 601 stores. Are these 601 stores that we cooperate with agents and distributors, or are we our own direct stores? What are the characteristics of the distribution network of Xinfei Radiator?


[Liu Rong] Our distribution model is very different from the average company, and it adopts the branch company direct operation system. This form is another aspect of our core competencies. In the first-tier cities across the country, especially Beijing and Tianjin; some provincial capital cities, such as Zhengzhou, Xi'an, these large regional markets, we take the company to set up offices to do, this form may be used in other industries at present There are many, but in the heating industry, I don’t know much about it.


[Reporter] We do not have a layered distribution network of agents and distributors?


[Liu Rong] also has. However, the agent is building a distribution network under the guidance of the branch office. The branch of the regional market will give strong support to the agents, such as support in marketing programs, store development and so on. Let's take the Beijing area as an example: In Beijing, we have 65 specialty stores, and in almost all of the building materials market in Beijing, there are stores with new flying radiators.


Some of them are our direct sales stores. For example, we have cooperated with us. The store we actually have is opened by a branch company. Our strategic cooperation with Red Star Macalline, Jimei Home, and Oriental Home is in these big markets, mainly the direct store of our office.


There is also a situation where we rent the store from the store and contract it by the agent. These two forms are alternating. However, there is a big difference between setting up an office and not having an office. From the source of supply, I can stock up at the office, facilitate dealers, dealers, and personnel training. I can also take the office to the school. The staff at the storefront, including store decoration and training, can guide us.


At the annual meeting last year, we gave a very good policy to more than 600 specialty stores nationwide. The company took out a part of the shares as a reward, rewarding the top 50 agents and having equity certificates.


[Reporter] There is a similar operation mode similar to that of a listed company.


[Liu Rong] Yes, the company now has the idea of ​​going public.

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