At the 2023 Annual General Meeting of Shareholders of Gree Electric, Chairman and President Dong Mingzhu responded to the impact of rising copper prices on the company, and her views aroused widespread attention and discussion.
Copper is an important raw material in the production of air conditioners. Dong Mingzhu said that before he was 100% sure, Gree would never use aluminum instead of copper.
Dong Mingzhu pointed out that at present, some companies have begun to try to replace copper with aluminum, but the durability and stability of aluminum cannot be fully guaranteed. In her opinion, quality is always the first criterion, not cost. Only on the premise of quality standards, enterprises will consider the cost issue. This concept of "quality first" is the key to Gree's market competitiveness over the years.
Sticking to the use of copper as a raw material will undoubtedly put a lot of pressure on businesses. Dong Mingzhu said frankly that the rise in copper prices this year has indeed had an impact on Gree. She also stressed that if you want to be a good enterprise, you must be responsible for the country, shareholders and employees. This multifaceted sense of responsibility reflects the pattern and vision of a mature enterprise.
Dong Mingzhu's remarks have triggered us to think deeply about the business philosophy of the enterprise. In the current fierce market competition, some companies may choose to reduce product quality or use cheap alternative materials in order to reduce costs and increase profits.
Gree has chosen a more difficult but also more promising path. Insist on quality and not easily compromise, which requires enterprises to have enough strength and confidence. Gree's market performance over the years also proves this. Through continuous improvement of product quality and technological innovation, Gree has become one of the leading enterprises in China's home appliance industry.
Insisting on high quality doesn't mean completely ignoring cost control. On the premise of ensuring quality, enterprises still need to improve efficiency and reduce costs through technological innovation and management optimization. This requires enterprises to find a balance between quality and cost, neither sacrificing quality due to cost pressure, nor ignoring cost control because of excessive pursuit of quality.
Dong Mingzhu's statement also brought inspiration to other enterprises. In the face of market pressure, companies should not blindly follow the trend or act short-sightedly, but should stick to their core values and long-term development strategies. Only in this way can enterprises gain a firm foothold in the fierce market competition and win the trust and support of consumers.
This also provides consumers with a reference point for choosing products. When buying home appliances such as air conditioners, we should not only pay attention to the price, but also pay attention to the quality and durability of the products. Choosing brands that insist on quality and focus on innovation often leads to a better user experience and better value for money.
Dong Mingzhu's response to the rise in copper prices is not only a response to the current market situation, but also an elaboration of the company's business philosophy. It tells us how companies should weigh the pros and cons and make the right choices in the face of market changes and cost pressures. Only by always insisting on quality first and having the courage to assume social responsibility can enterprises achieve long-term development and occupy a favorable position in the fierce market competition.
We look forward to seeing more companies like Gree that can stick to the bottom line of quality and provide consumers with better products and services while pursuing profits. This will not only benefit the development of the company itself, but also promote the development of the entire industry in a higher quality and more sustainable direction.