Iron lady faces latest challenge
(city weekend)
Updated: 2006-06-13 14:13
Ultimately, Hisense will adopt a dual-branding strategy and build up the
Hisense brand by leveraging Kelon's strengths in white goods such as
refrigerators and air-conditioners. But insiders are quick to point out that so
far there is no precedent of a successfully executed dual-branding strategy:
similar acquisitions in the past all ended in building up of the acquirers'
brand at the expense of the acquired brands.
If Yu succeeds in bringing the needed changes, Hisense will stand to gain
enormously. "Its brand name and marketing channels are particularly attractive
to potential buyers, especially in the electrical appliance industry, where
competition is red hot," says Dong Chen, an analyst with China Securities.
Kelon is a household name and has quality assets, while Hisense desires to
make a breakthrough in refrigerator and air-conditioner manufacturing. Hisense
had started out as a maker of black goods such as TV sets, but is turning its
attention more and more to white-goods. Just as important, as a Shandong-based
company, Hisense's takeover over of Kelon could strengthen its presence in South
China.
A female corporate leader is rare, particularly in Shandong where traditional
culture tends to stress distinct gender roles. Yu has worked her way up from
mechanic to senior management, joining Hisense in 1996. Since Yu took over the
Hisense management in 2000, it has seen robust growth. Annual sales have jumped
from 10.7 billion (US$1.3 billion) to 22.1 billion (US$2.7 billion).
"I like to simplify problems, and prefer to keep personal feelings out of
considerations. Typically I think less of human feelings and relations," Yu has
said of her management style.
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