Zhang Woren: The Marketing Philosophy of Honesty and Sharing

　　Some people believe that "inventory is the root of all evil," but I think positioning inventory as "the root of all evil" is certainly wrong. As is well known, every enterprise must first ensure these four pillars in order to achieve healthy development: "sound finances, excellent marketing, reasonable inventory, and fast delivery"—otherwise there is nothing to talk about. Is on-demand production with zero inventory feasible? Based on China's current national conditions and consumer habits, achieving "zero inventory" is clearly not workable, especially in the LED era, where every segment demands "speed": fast technology updates, fast mold development, fast finished-product manufacturing, fast product updates, fast sales, fast delivery, and fast after-sales service. In this challenging market, speed is the only way to win! To achieve optimal profitability, maintaining a reasonable inventory is actually the best way to profit. Products must be classified into "best-sellers, engineering products, outdoor products, and non-standard/customized products." A definite upper and lower limit of spot inventory must be set for best-sellers; engineering products also need sufficient semi-finished goods prepared for quick assembly; outdoor, non-standard, and customized products can indeed be produced to order. Therefore, a "reasonable" inventory is essential, while "zero" inventory is not workable—at least not for the time being.

　　A few days ago, I introduced a "5W LED milky glass bulb" (exceeding 450Lm, capacitive-resistive step-down (with flicker), traditional bulb production process, designed lifespan of 25,000 hours). For this type of product, I think it is an inevitable trend for LED bulbs to replace traditional energy-saving lamps. I take a balanced view of this product. I have always considered "flicker" to be a problem, yet this issue has consistently been regarded as irrelevant by everyone. If this product were improved in appearance and workmanship, ensuring a luminous flux of more than 450Lm, with a service life of 15,000-30,000 hours, and priced at 6-8 RMB, it would surely be quickly accepted and widely adopted.

　　In a mature market, there is no place for inferior products, and the path to maturity for China's LED lighting market is bound to encounter obstacles and setbacks. The more mature it becomes, the more pressure it bears. The maturity of a market follows the same principle as the maturity of a person: every individual's maturity must go through countless experiences, and every market's maturity has certainly been baptized by inferior products. I believe the maturity period of China's LED lighting market will arrive in 2015. From now until 2015, China's lighting industry market will continue to encounter issues such as quality problems, optical problems, policy issues, and vicious competition.

　　Let me share my understanding of marketing philosophy. I have always positioned myself at a "lost" stage, because only in this way can I better remind myself not to be content with the status quo, and certainly not to become complacent. Maintaining a high level of crisis awareness at all times is essential; although it may feel somewhat tiring, at the very least work will be fulfilling.

　　I don't really understand the so-called marketing philosophy, because I have always held marketing in awe, and the word "marketing" encompasses far too many topics and contents. Personally, in the marketing domain, I have always focused on the operational mindset of "Honesty and Sharing" and "Responsibility and Execution," and I instill this way of thinking completely into each and every one of my colleagues.

　　Honesty is a form of integrity, a true expression of the self, and even an innate "naturalness"—without disguise, without pretense;

　　Sharing is a form of learning, a way of passing on, and above all a healthy attitude—without selfishness, without hoarding;

　　Responsibility is a form of commitment, a kind of pressure, and even a charm of both character and enterprise—without shirking, without evasion;

Execution is a kind of action, a process, and above all a driving force behind the ultimate pursuit of results—a force we have no reason whatsoever to refuse.