News

Qianchuan Chairman Luo Zhengren: Promoting Industry Development with an Open Mindset

　　[Sina Home] Recently, news about a wooden door company suspected of plagiarism has been spreading online. In fact, plagiarism has always existed in the home furnishing industry. We have also seen more and more companies standing up to defend their rights, using legal means to protect their interests. What is your view on this phenomenon?

　　[Qianchuan Luo Zhengren] Let's not talk about others, let's talk about ourselves. Our company has long been committed to new product development, and there will always be many companies following the trend. I think this phenomenon is very common. There are counterfeit versions of mobile phones and cars, and it's even easier to copy wooden doors. But people who buy BMWs won't buy Double Ring, even if they look similar. Even if someone imitates our Qianchuan products, although the appearance is similar, the materials and workmanship can never reach our level.

　　Speaking of defending rights, I personally think the cost is too high for companies. We at Qianchuan prefer to adopt an open attitude. We boldly put the structural cross-section diagrams of our wooden doors online, telling all our customers that our product structure is exactly like this, solid and real. If you find that the product you bought has a different structure, we will compensate you in any way you want.

　　(Chairman Luo Zhengren interviewed by Sina.com)

　　[Sina Home] Are you not worried about imitation and plagiarism from peers?

　　[Qianchuan Luo Zhengren] Not worried. Many people in the industry are unwilling to invest in manufacturing this structure and tend to hide things because there are always some problems when making such products. We are open and let everyone learn, but our development is planned and organized. Those who follow behind are always flustered and can never keep up with our pace forward.

　　Especially in projects, when the client pushes the price down, the product changes. We always insist on a brand route; our products are worth what they are, and we must do it accordingly. Among the top ten real estate companies nationwide, five cooperate with us. They like our company that sticks to its principles. Last year, Vanke conducted a surprise inspection from headquarters to Chengdu and then to our company. We received no notice and they took a batch of products directly from the factory for inspection. We passed all 17 inspection indicators.

　　[Sina Home] You mentioned that our product development is planned. Could you reveal approximately how many new products we launch each year?

　　[Qianchuan Luo Zhengren] We launch at least 50-60 new products annually, basically introducing a new product series each year, while also supplementing and improving other series with new models.

　　[Sina Home] With such a high frequency, do we have a strong product design and R&D team? Could you introduce this team?

　　[Qianchuan Luo Zhengren] We have our own dedicated product development department, but actually only a few people do the design. The large scale comes from the huge Qianchuan product user base and consumers behind us, which is our greatest driving force. Our designers receive daily product demand feedback from stores nationwide. The vast marketing terminals are in constant contact with customers. The customers' requests reflect market demand and development direction. We design according to this direction, allowing our professional team to deepen and categorize it. This way, our design has direction and is not done in isolation.

　　[Sina Home] After so many years in the industry, what changes have you observed in consumer demand for wooden door products?

　　[Qianchuan Luo Zhengren] Take Chengdu for example. Five years ago, consumers there were not mature enough in their consumption psychology. Many customers wanted to spend less but get good products, always wanting a bargain to feel comfortable. The new concept now is realistic: you get what you pay for. Companies can't lose money; good products can't be sold at low prices. If your product is good, customers will accept it even if the price is high.

　　[Sina Home] The "three highs" have always troubled traditional furniture companies. With the current sharp rise in prices, will the "three highs" problem affect companies?

　　[Qianchuan Luo Zhengren] We do large-scale procurement and have an advanced management system, plus a high degree of mechanization, so our costs are low. Large-scale purchasing means lower unit prices, and large-scale production means lower management costs, naturally giving us stronger risk resistance. Also worth mentioning is employee wages. Our product unit cost is low, but employees earn good wages because our business is stable and abundant, so employees are willing to work steadily. Small factories work only when there is work and not otherwise, so their employee unit cost is high and unstable. From these aspects, we control our costs, and under cost control, our prices cannot be higher than others. Many people misunderstand and think our prices are high, but the key is to look at the product quality and whether it is the same quality.

　　[Sina Home] One last question for Chairman Luo: how do you view the overall market environment in 2012?

　　[Qianchuan Luo Zhengren] Although our country's economy has recovered, furniture and wooden doors remain weak because there is a buffer period between buying a house and renovation. Our business improves only when policies loosen; when policies tighten, we have to delay. Even if the furniture industry is sluggish now, and policies loosen again, it will still take two years for business to improve due to this delay.

　　[Sina Home] Under such a market environment, what is Qianchuan's market strategy this year?

　　[Qianchuan Luo Zhengren] Last year, we invested in a 400-acre factory in Hubei. When the economy recovers, we will be better off. Other factories need time to scale up. For a company of our size, the development direction is clearer. When the economy is bad, we invest; others don't believe it, but that's how we see it.

　　[Sina Home] Why did you choose to build a factory in Hubei?

　　[Qianchuan Luo Zhengren] Hubei is considered the central region of China. However, in the wooden products industry, Hubei's processing capacity is quite backward, and its development lags behind Sichuan by at least three years. We chose to develop there because of its geographical location and future development potential.