Yintai Shen Guojun Talks About The Fate Of Traditional Enterprises

In December 5, 2015, the annual meeting of Chinese business leaders was held at the Beijing National Convention Center. In 2015, Shen Guojun, chairman of Yintai group, delivered a keynote speech at the 30th anniversary China Entrepreneur Magazine.

Shen Guojun said that now the real economy, especially the traditional industry pressure is particularly large.

But he believes that entrepreneurs should adjust their mindset. "The replacement of scientific and technological progress with business models is a very healthy phenomenon. We should not worry too much. Without the elimination of old enterprises, there can be no better companies. It is impossible to have a better business model, because it is also a progress to experience baptism of wind and rain, and entrepreneurs of traditional enterprises should also adjust their mentality."

However, in this case, we must comprehensively think about how traditional industries and traditional enterprises go out and change.

In his view, if I do not change, I think that over 50% of the traditional enterprises in the next ten years will not be able to survive, so the pressure is very great.

The following is the full text of Shen Guojun's speech:

Good morning, distinguished guests. I am delighted to be invited to share with you about what I have been doing recently. I also congratulate China Entrepreneur Magazine on its establishment of 30th anniversary.

The organizers let me talk about finding the draught of traditional enterprises, perhaps because I have been doing traditional industries for so many years. Under the Yintai group, there are Yintai business group, Yintai land, Yintai agriculture, Yintai investment, intelligent logistics and so on. Several industries are very traditional, and now the employment population is 120 thousand.

Yintai has been looking for changes. How to change traditional industries? For many years, we haven't found our own draught. (laughter) we are still working hard.

The real economy, especially the traditional industry, is very stressful. Just now, Liu talked about the pressure in the industry.

Recently, I have participated in several activities of the Zhejiang chamber of Commerce. I also feel that I am the president of the Zhejiang chamber of Commerce.

In the past few years, the chamber of Commerce's team was smiling.

There are many industries. In recent times, we are all worried. Indeed, the real economic pressure is very, very large, and we are all very confused.

Nowadays, the problems faced by Chinese traditional enterprises are comprehensiveness, nor is it a problem of one or two industries. It is systematic. Many companies exist, and almost all traditional industries are under tremendous pressure.

In the past 30 years, we have been proud of the fact that China is the world's factory. Now it's pretty bad. There is a serious surplus of capacity. In the past, we made a lot of money and earned a lot of foreign exchange. Now it's sad. Now the ecological damage is very serious. Especially on this Monday and Tuesday, everyone is afraid to go out. The pollution is very serious.

Under such circumstances, it is necessary to think comprehensively about how traditional industries and traditional enterprises go out and change.

If we do not change, over the next ten years, more than 50% of the traditional enterprises now do not feel able to survive, so the pressure is very great.

I also think that technological progress and the replacement of business models are a very healthy phenomenon. We should not worry too much. Without the elimination of old enterprises, there can be no better companies. It is impossible to have a better business model because the experience of wind and rain is also an improvement.

Entrepreneurs should also adjust their mindset.

Where is the future direction of the responsible person of traditional enterprises? I think so many enterprises here must have their own understanding and answers. The direction is certainly not single. I believe that new industries, new consumption, new countryside and new ecology will bring greater development.

In the future, many new industries, new industries and new manufacturing industries will be born in the future.

Now the market and customers are undergoing tremendous changes. Now many people say that from the perspective of consumption economy, the major consumer groups are already 80 and 90. They have great differences in the demand for products and services with 60, 70, especially after 50. To meet the new consumption, new industries can play a very important role.

At the same time, consumer oriented brand innovation and innovative manufacturing have great prospects.

A few years ago, the "supply side structural reform" put forward by General Secretary Xi in the central financial and economic leadership group is the focus of the next period of time. It is also an opportunity for entrepreneurs to do business. Just now, Professor Wu has also mentioned that it can solve the problem of imbalanced consumption structure, solve the problem of excess capacity in the low end, and solve the problem of serious shortage of high-end products.

Over the past few years, Chinese people have gone abroad to buy more and more, and more and more money. Recently, a key word in Japan is "explosion buying". Everyone knows that they are all bought by Chinese people.

The reason is that the products produced by the original industrial enterprises are too low and too much.

We have a huge market to buy good things, but all of them have gone abroad to buy. This time, the central government put forward the adjustment of the supply side structure, which is a great business opportunity for enterprises, especially for industrial enterprises.

Personally, it is a trend that the service economy will surpass the industrial economy.

The golden age of service industry has arrived in the next five to ten years. The service for the middle and upper class will have more labor force and capital to service industry.

I also think domestic demand is huge and potential. China now has 1 billion 300 million people. In the next ten years or longer, maybe half of them will become middle class.

The six hundred million or seven hundred million person middle class, the domestic consumption market, is equivalent to two or three times the population of the United States today. How big is this potential? It is a great opportunity for traditional manufacturing and traditional industries.

In the new consumption, the future scenario is very important. In recent years, Yintai has been working hard with the help of the scenario products.

The consumption potential of the new countryside is huge and there are many rural areas in China. The central government has always attached great importance to it. The rural reform has raised the living standard of the peasants, especially the rural poverty alleviation work. The future potential of the rural consumer market is huge.

New ecology, green and low carbon will create many opportunities for traditional enterprises. Now, from industry, agriculture, life and work, the government has very very high requirements for environmental protection from all levels, and has more and more prospects. The new ecological field is also a great opportunity for traditional enterprises in the next five or ten years.

These are the areas that I think traditional enterprises have very big opportunities. Although the whole economic environment is not optimistic, I believe that we are brave in innovation and change, keep abreast of the situation, the traditional enterprise pformation is still possible to succeed, and the upgrading of the industry is possible. Thank you!

Conclusion: for the new industrial economy, Shen Guojun believes that many new industries, new industries and new manufacturing will be born in China, which will bring a lot of space for new industries.

"Now, after 80 and 90, they all pursue individuality and pursue differences. They don't want standardized products. They like to enjoy it. They also like fashion. What should they do to such a group, such a market and industry?" so I think small, beautiful and customized products will have great room for development.

In addition, in the new consumption, the future scenario is very important, and the Yintai has been working hard in recent years, with the aid of the scene - based products.