Reporter: Over the past 30 years, the development of China’s domestic industry has seen changes in consumer behavior during this period. Home needs have evolved from being single-focused to a variety characterized by personality, taste, and enjoyment, with people's preferences becoming more prominent. What do you think are the significant features of consumer behavior at this stage?
[Shen Wen]: It should be said that consumers now are increasingly rational in their consumption. They understand information and have more diverse channels for collecting it. There is also a growing trend towards youthfulness. They focus on brand; they focus on product quality; and they are more concerned about the environmental protection aspects of products.
[Reporter]: In response to these changes in consumer behavior, how do you think home enterprises should respond? What is CALEYA doing?
[Shen Wen]: Modern lifestyle changes inevitably force domestic enterprises, whether in marketing, production technology, brand management, or corporate culture construction, to be innovative. So, how can we more effectively improve the operational capabilities of the brand? I believe that product positioning, product mix, innovation, and the building of enterprise culture are essential. Good corporate culture does not happen spontaneously; it depends on the careful long-term training and construction of the enterprise, which enhances brand value. Some people think that doing a little more publicity and increasing exposure makes something a brand, but I do not agree with this. The Chinese approach to branding is anxious, and this issue remains within the conceptual framework. The Chinese talk about brand awareness and reputation, but the real brand does not depend on publicity alone. It builds reputational heritage. Later, I realized that if a mass of ten people recommend something and ten out of ten pass it on to a hundred, then this long-term reputation constitutes a good brand. Kalai Ya never puts quality just on verbal claims but applies it as a belief in actual business management, representing the intrinsic value of the brand. At the same time, we regularly conduct market research and revisit consumers, combining changes in the market and growing personalized pursuits to introduce new products and enhance our level of research and development.
Brand competition must be consumer-driven.
[Correspondent]: Profound changes in consumer behavior today mean many domestic enterprises need to achieve self-upgrade and concept evolution. How do you see this?
[Shen Wen]: Many companies are trying to do the whole wardrobe. In our CALEYA, the entire wardrobe product development, production, sales, and services respond to this concept. We seek new changes to make the greatest efforts to meet consumer demand for home life.
[Reporter]: At this point, we have to focus on one word - ecology. It can be said that every business is trying to establish its own ecosystem and ecological chain. If so, please elaborate on what you understand the home industrial ecology to be, and where CALEYA stands in this regard?
[Shen Wen]: First of all, we must align with the trend of the times and actively respond to challenges. Second, we must work together along the industrial chain to promote ecological processes. To promote ecological processes, led by the National Furniture Association, we initiated the furniture industry to build an eco-home era. Like most industries, the whole wardrobe industry is also closely integrated into the midstream and downstream industry chain. Upstream refers to suppliers of raw materials, including sheet metal and hardware accessories, edge banding, adhesives, and others. The midstream refers to overall wardrobe manufacturers. Downstream refers to the whole wardrobe dealers. As the saying goes, a slap shot does not ring. In order to achieve the ecology of the whole wardrobe, we must rely on the joint efforts of the entire industry chain. Efforts from a single link are not enough. Each link in a chain is closely connected to upgrade and contribute to the development and expansion of the whole wardrobe.
[Reporter]: Some say that the future competitiveness of enterprises is not a business competing with another business, but one ecosystem competing with another ecosystem, or even the main ecological chain competition. Do you have a view?
[Shen Wen-quan]: Personally, I agree with this statement. This competition allows the ecological chain of the entire domestic industry to be better optimized, so that consumers through this competition will maximize benefit. In our home price competition, quality competition, service competition, we cannot blindly do anything to compete. We should always give top priority to the interests of consumers and ongoing technological innovation, institutional innovation, product innovation, and management innovation.
[Reporter]: For SouFun's 2010 Sixth China Home Development Annual, what are your hopes?
[Shen Wen]: SouFun is a good platform for the development of our domestic industry. We all hope and firmly believe that SouFun held this year will be a success, and because necessary AC St., it will be able to play an invaluable role for the further development of the industry to upgrade. And our home business is also very honored to be on this platform for consumers to contribute their meager force to achieve our values. CALEYA also hopes that this year the elites with their peers can discuss related topics.