Yang Lixin: Seeking truth from facts, picking up Dongpeng ware relay baton

**Yang Lixin: Seeking Truth from Facts, Picking Up the Dongpeng Sanitary Ware Baton** NetEase Home: We know that Yang has just taken over Dongpeng Sanitary Ware this year. Yang Lixin: Yes, I have officially taken on the role this year. NetEase Home: After taking over Dongpeng Sanitary Ware, what kind of vision do you have for its future development and planning? Yang Lixin: In fact, I see myself as a big baton carrier for Dongpeng. This year, I was handed the baton, and the direction and overall plan were actually set several years ago. For instance, our goal has always been to make Dongpeng Sanitary Ware the top brand in China. Whether it was achieved in 2013 or 2015 is just a matter of time, but the direction was clear from the beginning. The specific planning was already well thought out by my predecessor, Cai Zong. I followed the plan and added some of my own ideas to make it even better and more complete. There's no need to say that I've completely redefined the direction. The core strategy remains the same, but the execution might differ slightly. For example, Cai may have focused on distribution starting from July 2012, while I believe we should prioritize project channels first. These differences are natural, but once we move forward, the gap becomes less significant. NetEase Home: After taking over the baton, what new measures have you introduced? Also, with 2012 approaching, how do you evaluate the performance of Dongpeng Sanitary Ware this year? Yang Lixin: In 2012, I think Dongpeng Sanitary Ware performed quite well. Looking at the overall market situation, the domestic sanitary ware industry faced a decline due to limited demand and a sluggish foreign market. The total market dropped by about 20%. Although the demand from affordable housing might not have dropped much, most of those properties weren’t priced to align with our brand. As a result, the entire industry experienced a downturn. However, Dongpeng managed to maintain a 20% growth so far, especially in some of our distribution channels, which showed strong performance. So, in 2012, we were actually growing against the trend. For next year, our target is a bit more ambitious. We’re aiming for a 30% increase in growth. This is based on bottom-up planning and budgeting across all channels. We believe it’s achievable and well-supported. As for taking over the baton, I believe it's important to continue what Cai started but also bring in new initiatives. That includes improving internal operational efficiency, expanding distribution networks, and accelerating the development of our project channel. We're focusing on internal organization and integration, and we’ve already made significant progress in these areas.

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