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Interpretation of Huitongda's organizational change: industrial upgrading, open platform, and model innovation

Just as organisms continue to evolve in order to adapt to the environment, so as to gain more survival advantages, organizations also need to adapt to changes in the external environment and the needs of internal development, carry out purposeful and systematic adjustments and innovations, improve organizational efficiency, and gain more market competitive advantages.

Huitongda Network (09878), an industrial Internet company listed on the Hong Kong stock market, recently completed an organizational change, which is the first structural adjustment since its listing. The purpose of this change is to continue to focus on its main business, promote sustainable growth, further improve the corporate governance structure, enhance operational efficiency and competitiveness, and more rapidly promote the realization of strategic goals in the next five years.

It is worth noting that the organizational change of Huitongda is not only the grasp and adaptation of the consumption trend of the sinking market in recent years, but also the prediction and practice of industrial structure upgrading, digital supply chain reform and industrial Internet model innovation.

01 The organizational structure was changed, and the four major business divisions were unveiled

According to the announcement of Huitongda, the organizational change focuses on different consumer needs, reorganizes the commodity structure, upgrades the business model and optimizes the structure of the existing business division, so as to make the functions more clear and focused, so as to promote profit maximization and sustainable development.

Specifically, it includes four aspects:

Newly established brand division: with its own brand and the integration of production and marketing as the core, through the innovation of upstream cooperation mode, link the cooperation of leading brand manufacturers, and promote the industrial synergy of the whole industry chain.

Establish a supply chain division: integrate existing supply chain resources, develop high-margin products, accelerate the layout of new industries and new tracks, and strengthen the supply chain capabilities of the headquarters.

Establishment of an independent Apple business unit: Based on the in-depth strategic cooperation with Apple, the original Apple business group was upgraded to an independent business unit, creating a model for brand cooperation, digital construction and customer network construction, and building a more complete Apple product ecosystem.

Upgrade the B2B business department: For B-end customers in the sinking market, carry out digital platform business, build an open B2B distribution platform, and achieve effective docking and efficient matching between supply and demand.

The goal of the organizational structure reform is to further strengthen the supply chain, stick to customers, and build an open platform to help the industrial chain reduce costs and increase efficiency, and improve the quality of the retail end.

It can be seen that on the basis of serving the sinking market with industrial Internet positioning, empowering township mom-and-pop stores with digital technology and supply chain capabilities, and improving the three-in-one operation system of "sky, earth and people", the organizational reform of Huitongda focuses on "integration of production and marketing", "its own brand" and "open platform", and the core of the focus is on industrial upgrading.

02 Focusing on industrial upgrading, multi-core drive

Since the beginning of this year, Huitongda has made frequent moves in industrial upgrading.

In April, Huitongda's own brand, reverse research and development customized cost-effective "Altisha" air conditioner officially rolled off the production line, and has sold nearly 30,000 sets across the country, and simultaneously sold to Central Asia, Southeast Asia and other overseas markets.

Recently, "Altisha" has officially announced its upgrade and officially entered the ice washing market, and it is expected that in mid-October, Altisha's new ice washing will be fully launched on the market.

In September, Huitongda "married" the Akai brand, integrated the upstream intelligent manufacturing factory of the industry, and launched more than 10 small household appliances such as rice cookers, electric pressure cookers, wall breakers, air fryers, coffee machines, etc., and the first batch of products will be put into production in the near future.

Not only that, Huitongda also has similar cases of "integration of production and marketing" cooperation in the fields of liquor and agricultural materials.

It can be seen that the new establishment of the brand division is to continue to deepen these actions: on the one hand, to create its own brand benchmark, build its own brand matrix and strengthen the independent and controllable ability of the supply chain, on the other hand, to optimize the business model, and promote the sustainable and high-quality development of the business through an efficient production and marketing coordination mechanism.

On September 20th, the IPhone 16 series was launched, and Huitongda Home Express provided authorized stores with genuine goods and support for training, marketing, community activities and other aspects for the first time, so that rural consumers can enjoy the same goods and services as urban consumers.

Since September 2021, it has been three years since Huitongda and Apple jointly launched the O2O township store project, and the establishment of an independent Apple business unit means that the cooperation between the two parties will enter a new stage: on the one hand, it will efficiently operate the existing business and create a model for brand cooperation, digital construction and customer network construction; On the other hand, build a more complete Apple product ecosystem to maximize brand value.

Huitongda's "SaaS+" business has a deep accumulation in the digital management and community operation of rural retail entities, and in the technical trend of artificial intelligence, Huitongda has launched products such as intelligent shopping guide AI, marketing planning AI and Qiancheng digital human adapted to rural retail stores.

The B2B open platform mentioned for the first time in the announcement can be regarded as an upgrade of Huitongda's original "SaaS+" business, by optimizing and enriching the digital product matrix, providing customized services for large enterprises and SaaS services for small and medium-sized enterprises, and promoting the growth of enterprise digitalization and digital village business.

In addition, Huitongda is also exploring more new industries and new tracks, such as home cleaning, personal care, beauty, new energy, distributed photovoltaics, and so on.

After integrating the existing supply chain resources to form the supply chain division, Huitongda will not only focus on the development of high-margin products, accelerate the layout of new industries and new tracks, but also integrate personalized and customized channels, broaden new channels, realize diversified channel expansion, improve comprehensive profitability, and form a second growth curve.

03 Industrial Internet 2.0 unleashes multiple values

The "Who is Reconstructing the Industrial Chain - 2023 Industrial Internet Development Report" released by Ebang Think Tank pointed out that the industrial Internet connects the digitalization of production, supply and marketing, reconstructs the industrial chain with digital technology, and realizes the intensive operation of the industrial chain and supply chain with the integration of data and reality and collaborative ecological innovation, which is the platform value of intensive collaborative efficiency improvement and optimal allocation of production factors.

In response to the organizational change of Huitongda, the research of the industrial Internet team of Ebang Think Tank believes that the transformation of the digital supply chain will definitely bring about organizational change and value composition change. The digital supply chain will unleash the value of large-scale supply chain production, supply and distribution integration, product branding, and industrial digital technology services.

The adjustment of Huitongda's organizational structure points to the direction of industrial Internet value, especially the establishment of a supply chain division that exchanges scale for single product gross profit, a brand division that incubates its own brand with category scale, and a B2B business division that carries out digital platform business.

The Huitongda of "Industrial Internet 2.0" provides several development ideas and practical references for the industry:

The trend of production and marketing integration: The transformation of Huitongda reflects the transformation of industrial Internet enterprises to the integration of production and marketing, which can not only enhance the market voice of enterprises, better meet the needs of consumers, but also realize the intensive efficiency of the industrial chain.

Platform openness: The upgrade of the B2B business department marks the progress of Huitongda to the open platform model, which will help enterprises expand their business scope and attract more partners.

Deepening of digital services: Through the development of digital platform business, we provide more refined services for B-end customers and promote the digital transformation of enterprises.

As mentioned in the announcement, "the new organizational structure will further find model innovation and development opportunities for the Group," and the organizational structure change of Huitongda is not only the need of the company's own development, but also the inevitable trend of the evolution of the industrial Internet model. Through this change, Huitongda will further enhance its market competitiveness and contribute new impetus to the development of the industrial Internet. With the deepening of the reform, Huitongda is expected to achieve more ambitious strategic goals in the next three years and become an important force to promote the development of the industrial Internet.

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