Online Extra: Kelon: "We Are a Multibrand Company"
Gu Chujun is chairman of the board of Guangdong Kelon Electrical Holdings, based in Shunde in China's Guangdong province. Under his tutelage, Kelon has successfully adopted a multibrand strategy for its refrigerators and air conditioners in China, helping it pull in $4 billion in revenues last year. Unlike competitor Haier, Gu says his company still isn't ready to push its own brand overseas. Dexter Roberts, BusinessWeek's Beijing bureau chief, recently interviewed Gu at company headquarters. Following are edited excerpts:
Q: What have been the most important things to focus on in building your company's brand to date?
A:
This year we'll celebrate our 20th anniversary. As you know China was a planned economy before. You didn't have to worry about whether consumers liked your products. Since the early 1990s, China has moved toward a market economy. People now put great emphasis on brands. At one point there were more than 100 refrigerator factories in China, but as companies like us and Haier produced high-quality refrigerators and won consumers, we became famous brands.