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Wang Junhao: The transition of traditional service industry must find accurate positioning
ReleaseDate: 2013-02-23

February 23, 2013 finance.sina.com.cn

The 13th Annual Meeting of Yabuli China Entrepreneur Forum 2013 opened in Yabuli, Heilongjiang from February 22 to 24, 2013. The following is partial speech script from “Thought Interaction Space C: Traditional Enterprise Vicissitudes Revelations” by Wang Junhao, Vice Chairman of JuneYao Group.

Wang Junhao: I was assigned to the discussion of this topic at short notice, yet I still feel I have something to say after all. Speaking of enterprises’ vicissitudes, there is an old Chinese saying “Failure is the mother of success”. This should be correct, for failure can be summarized into more insightful theories, but sometimes we can learn a lot from success, because we can learn things from success. Therefore we must look at the word vicissitudes in a dialectic way, and should learn more from failure.

About the vicissitudes of traditional enterprise, in my impression, if an enterprise wants to maintain sustainable development, admittedly it has to keep thinking how to make innovations, this is a core. Take myself as an example, we are also a group dedicated to diversified investment and specialized operation. In the very beginning when we were in Wenzhou, there was taxi operation right reform. We were also the first to join, when auctioning a taxi plate needed 680,000 yuan. We just wanted to join this field, and do business in the service industry, and our Group focused on service industry. But later we felt it very difficult, this is because it turned out that the market was very scattered, and we found it hard to operate. Therefore we guided the Group toward modern service industry as transition target, when we were making transition toward modern service industry, we felt the Group’s circumstances wouldn’t allow us to join the modern service industry, so we abandoned it. I kept turning it over in my mind, how should traditional service industry make transition toward modern service industry? When I myself was making transition, I also couldn’t find the benchmark of modern service industry; many people say banking industry is modern service industry, finance industry. Nevertheless, I myself find a positioning for myself, which is called “high caliber talent, high quality service, mid to high end positioning, usage of high technology, and creation of highly efficient return”. Viewed from the service industry, this is enterprise innovation with these “five highs”, and this is modern service industry.

Of course, speaking of an industry, an enterprise, for instance as an OEM enterprise, it cannot be deemed as a complete enterprise, for it has no marketing. For an industrial enterprise with self brand, it should also monitor the industry trends at any given time. And based on technology evolutions in the global industry, it is also very important to point point how to follow up, make innovation, and overtake others. Therefore, in this process, we invariably center on these “Five Highs”, guide each business in the Group onto the path of transition. For instance, take us as an example, in the beginning when we wanted to enter modern service industry, we wished to establish mid to high end positioning; therefore up till now, we have over 30 aircrafts. Speaking a little exaggeratedly, it can be argued that our fleet is world top class. We are a top star fleet in China and even worldwide, in this way we can provide customers with better services. When one concept is put forward, it must not be merely a slogan, this is what an enterprise has to consider, how to be ready to make transition and innovation at any time. An enterprise is like a person, it has to consider birth, aging, illness and death. At the time of birth, whether or not the gene is correct, in other words whether or not you are deformed at birth, this must be considered. Why? In the process of development, many enterprises will experience conflict between shareholders after it has acquired satisfactory development. Why? This is because at the beginning when selecting shareholder entrepreneurs, it is imperative to choose the correct candidates, so that everyone’s vision is the same, and the target is the same. This point is very important, as the birth is very important. As far as we are concerned, we have developed for over 20 years, I myself is also making summary, last year at the time of our 20th anniversary, we put forward the vision to become an explorer of century enterprise in China. Hoping to provide a precedence case to China’s private enterprises, regardless of success or failure, this is what we propose to release to the media to mark the occasion of the 20th anniversary. Therefore we must do some thinking. One very important reason that we can develop for over 20 years is the unity of three brothers. Secondly, we have a family motto. My father said, for whatever things we do, we must touch the part of the chest where the heart was, and asked if it could satisfy our conscience. Also, in 1992 and 1993 when we made money, which was more than we could spend in our lifetime, so what should we do? So we brothers sat down to hold a meeting, hoping to continue this enterprise for as long as we live, therefore this enterprise group is named after my eldest brother, JuneYao. These motivations drove us forward for over 20 years, this is a vey important point.

Of course, sometimes an entrepreneur will feel himself conceited. In the past 5 years our development was very smooth, for it has been 30 years since Reform and Opening up in China, and what are out of date right now? The mind. To put it another way, one feels he is very capable, for instance in the past 5 years, my business grew by 30%, 40% each year. The growth was very fast, and it remained high, so one feels one could control everything, and make investments everywhere. In this way his mind is ill and old, for he feels he himself is omnipotent. This is aging. This is a very important issue about birth, aging, and illness. Sometimes an enterprise is ill, but it does not go for a physical checkup, it feels its instinct is becoming better. For instance whatever he bids for is correct, so he relies on his instinct to bid, rather than relying on modernized and globalized management system to ensure self health. For instance, each year there is annual test, annual performance assessment, or quarterly analysis meeting, these things must grasp the core. Sometimes one feels teamwork spirit and system spirit can be discarded; this is a case of not knowing one is ill. For instance, some officials say, your business is very capable, I give you a project, but you find you are unable to do it alone. Therefore, in the process of our company’s development, I always tell General Manager of Finance that there is one rule, that is at whatever time when we seek financing, if there is collateral, take 80% at most, and the remaining 20% is for “the winter”. Sometimes you will feel your head overheated, and you don’t know you yourself is ill. When you die, you even have no idea how you have died. Therefore in my impression, enterprise is like a human being. We must still return to China’s natural condition, at least we should consider the birth, aging, illness and death of the mankind; if you compare it to an enterprise, I believe you can find many common points.