Left hand whirlpool, right hand pictorial Galanz bet on the whole category

Galanz’s whole category layout is gradually unfolding. On March 28, Galanz chairman and President Liang Zhaoxian disclosed that the company’s acquisition of whirlpool China will enter the acquisition period this week, and has become the single largest shareholder of Japan pictorial. Although it is a leader in the domestic microwave oven industry, the development of Galanz in other home appliance fields is not satisfactory, and how to effectively realize the integration of the three brands is the first problem to be solved in front of Galanz.

Merger and acquisition of two giants

Liang Zhaoxian said that the state regulatory authorities have approved Galanz’s tender offer for whirlpool China, which entered the acquisition period on Wednesday, and Galanz’s acquisition of whirlpool China has come to an end.

On the same day, whirlpool China also announced that the company received the tender offer report and other documents from Galanz home appliances on March 26, 2021. This tender offer is part of the tender offer issued by Galanz household appliances to the shareholders of whirlpool China, with 467527790 shares, accounting for 61% of the total issued shares of whirlpool China, and the offer price is 5.23 yuan / share.

If, after the completion of this tender offer, Galanz holds no less than 51% of the shares of whirlpool China, that is to say, the controlling shareholder and actual controller of whirlpool China will change.

In addition, the announcement also said that the tender offer has obtained the “decision not to further review the antitrust review of concentration of business operators” issued by the antimonopoly Bureau of the State Administration of market supervision, and has completed the antitrust review procedures of the United States, Brazil, Germany, Turkey, Austria and Colombia.

In addition to whirlpool China, Liang Zhaoxian also revealed that Galanz has become the single largest shareholder of Japan pictorial. It is reported that since 2019, Galanz has been increasing its stake in Japanese pictorial Printing, and now it has become a major shareholder in a low-key way.

It is worth mentioning that previously, Liang Zhaoxian disclosed at the Galanz China market annual meeting that in China, Galanz’s goal this year is to “recreate a Chinese market” and to achieve unconditional growth.

Business limitations

Galanz’s entry into the field of home appliances began with microwave ovens, which is famous for small household appliances. Although it has been transforming from a microwave oven manufacturing enterprise to a comprehensive home appliance group in the past decade, Galanz’s sense of existence is not strong in the field of home appliances.

Whirlpool is an old home appliance manufacturer and sales company from the United States, which has been fighting in the Chinese market for more than 20 years. At present, whirlpool China mainly has three brands: whirlpool, DIDU and Rongshida. Whirlpool involves air conditioning, refrigerators, washing machines, household appliances and other products. DIDU mainly includes refrigerators and washing machines, while Rongshida mainly includes refrigerators and washing machines.

On the other hand, information shows that Japan pictograph is a manufacturer and distributor of high-quality consumer electrical products in Japan, including rice cookers, electric water bottles and vacuum water bottles. It has branches in China, South Korea and North America.

According to major general Ding, an industry and economic observer, there are three reasons for Galanz’s merger and acquisition of these two companies: first, to expand the category, Whirlpool’s advantage is to ice wash the big white power, and image printing is a small household appliance, which plays an important role in Galanz’s promotion of the whole category; second, strong brands, whether whirlpool or image printing, have a good influence in the global or other regional markets Third, internationalization. From the existing examples, the global brand creation and market expansion of Haier, Hisense and other home appliance leaders all include the formation of brand matrix through mergers and acquisitions, which is also feasible for Galanz.

Xu Yiqiang, a household appliance observer, pointed out that from Japan pictorial to whirlpool China in the United States, we can see that Galanz’s thinking is very clear: first, it actively looks for the subject matter that can form collaborative operation and become bigger and stronger with its own business in the global market, so as to solve the limitation of the enterprise’s original business development; second, it establishes a more comprehensive business vision, from small household appliances to white power Layout.

It is worth mentioning that on the same day, Galanz also released a series of new products, including integrated microwave oven, double door oven, ultra-thin washing machine, floor sweeping robot, hanging ironing machine, etc. It is revealed that in the next step, Galanz will focus on the development of range hoods and stoves.

Product channel segmentation

However, Galanz’s science and technology territory is not limited to the home appliance industry. Starting in 2019, Galanz began to obviously set foot in the capital market and participate in the high-tech transformation.

In September 2019, Galanz officially announced that it has reached a strategic cooperation with chip company sifivechina to jointly develop a new generation of Internet of things chip “BF Xijiao”, which will be placed in all Galanz household appliances. At the end of 2019, Galanz signed a cooperation agreement with Shunde District government and Henderson (China) to jointly build an open source chip base in Shunde. At the beginning of 2020, Galanz launched the project Guangdong Yuefang Technology Co., Ltd. announced that the open source chip base was officially settled in Shunde.

As for the integration after the merger and acquisition of whirlpool China and Japan pictorial Printing, Xu Yiqiang pointed out that at present, the tender offer for whirlpool China has just started and has not been completed, and I believe that the business ideas and strategies will not be very obvious. However, from the perspective of the outside world, the globalization of Galanz’s whole category and the globalization of small household appliances like printing will become two wings, while whirlpool China will become a breakthrough for large white household appliances, and eventually form a three-dimensional operation pattern of the whole category of household appliances.

Major general Ding also believes that making product matrix should be an inevitable choice for Galanz. At the same time, Galanz, whirlpool and Xiangyin, the main brands of Galanz, are used to focus on the domestic and foreign markets.

When talking about products and channels, Liang Huiqiang, vice chairman of Galanz Group, said: “multi brand and multi series are the development trend in the future. We should aim at different segments to make set products. In terms of channels, this year, Galanz has implemented the strategy of” one place, one generation “in the Chinese market. It also wants to realize the refined operation of the market under the new retail trend, with one agent for each prefecture level city Full coverage, remove the middle of the sales link, direct to consumers. “

When it comes to whether it will be listed, Liang Huiqiang told Beijing Business Daily that the capital market is not Galanz’s goal, but a means to achieve development. Whether it is its own IPO or backdoor listing, it is within Galanz’s consideration.

Beijing Business Daily reporter Shi Feiyue

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