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Galanz stood witness to the 4 decades of Chinese Economic Reforms and went from a wasteland to a Global player

Galanz is famous for being the world’s first brand of microwave ovens, but many people may not have expected that Galanz started out as a dealer of duck feathers and feather duster. The company was founded in 1978. It is one of the few Chinese companies in China’s home appliance industry which is of the same age as the Chinese Economic Reforms. Looking back at the past 40 years, every step of the development of Galanz is engraved with the imprint of the times.

In 1978, the Chinese Economic Reforms kicked off, and the land of South Guangdong became the frontier of economic change. In the same year, the founder of Galanz, Liang Qingde, adhered to the original intention of “can eat enough” and led 23 members to start a business on a barren beach in Shunde. This completely changed the face of this land and the fate of several generations of Galanz people.

The deserted beach where Galanz started its business

Poor and Blank is the most important social feature in the early days of Chinese Economic Reforms. Adjacent to the Pearl River Delta of Hongkong and Macao, in order to solve the problem of lack of funds, technology, raw materials, etc. it took the lead in introducing the development model of “three to one supplement” in the whole country, which has injected new vitality into economic development. (Three to one means processing of incoming material, samples, assembly of incoming parts and compensation trade)

 

In 1983, Guizhou Down Products Factory (predecessor of Galanz) and Hong Kong businessmen and Guangdong Animal Products Import and Export Corporation jointly established the South China Wool Spinning Factory, which pioneered the export joint venture. When the foreign exchange earned more than 4 million US dollars, it was the largest enterprise in Guizhou Town, Shunde.

In the early days of The Chinese Economic Reform, the country’s foreign exchange was in short supply, and Foshan City encouraged enterprises to engage in export trade through various measures.

“At that time, Galanz’s goal was only at two points. The first is to maintain continuous production so that everyone can eat enough, and the second is to create a more foreign exchange for the country.” Recalling the beginning of Galanz’s, Liang Zhaoxian, chairman and president of Galanz Group, has deep memories.

In the context of the times, Galanz’s products were 100% exported, and the country earned hundreds of millions of foreign exchanges, becoming a star enterprise of that era.

In the 1980s, it was also the era when Chinese township and village enterprises sprang up. In 1984, township and village enterprises finally ushered in a turning point in development.

In this year, the Central Committee of the Communist Party of China and the State Council issued the No. 4 Document, “Notice of Forwarding the Report of the Ministry of Agriculture, Livestock and Fisheries on Creating a New Situation for Social Enterprises”, Not only the “social team enterprise” would be renamed as “township enterprise”, but also the township enterprise had different new nature and content from the social enterprise, and the township enterprise had more autonomy. In the management reform of township enterprises, Galanz was also bathed in the spring breeze of the times.

In the late 1980s, Galanz had been the largest in Asia, with the strongest influence and the best profit in the textile industry. It was praised by the authoritative media as “the Golden Phoenix of the Pearl River Delta”. By 1991, Galanz achieved the goal of “running billion-dollar industrial zone” planned by the Communist Party Committee of the year, and entered the “Top Ten Chinese Township Enterprises”.

Deng Xiaoping’s speech during his visit to South marked the beginning of a new phase of China’s reform. In 1992, Shunde once again demonstrated the spirit of “Dare to be the best in the world” and boldly launched the reform of the enterprise property rights system to further stimulate the vitality of economic development. Galanz, which had just transformed into home appliance manufacturing, once again faces the fate of choice.

Dare to restructure or settle for the status quo? It was a matter of repeated struggles within all of Galanz’s staff. Many local employees had not changed their minds and thoughts. They believed that after the restructuring, they would lose their protection, so they would not be able to succumb to further reforms.

After repeated ideological struggles, Galanz’s restructuring had finally started, and it was this restructuring that had further stimulated the development potential of Galanz. In 1994, Galanz was transformed from a township enterprise into a public-private partnership. The market share of microwave ovens accounted for 25.1% of the country in the following year, becoming a group of dark horses in the industry. In 1994, Galanz was transformed from a township enterprise into a public-private partnership. The market share of microwave ovens accounted for 25.1% of the country in the following year, becoming a group of dark horses in the industry.

With the full launch of Galanz’s global marketing strategy in 1998, its microwave oven production and sales scale reached the world’s first, with an annual production capacity of 4.5 million units.

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The Chinese Economic Reform continued to deepen, and Galanz also followed the times to accelerate the pace of development.

In 2001, China joined the WTO, and the opening up of domestic industries entered a new stage. Galanz seized the new opportunities of globalization and quickly integrated into the global home appliance industry chain with a large division of labour and cooperation.

At present, foreign economic development has achieved remarkable results, and a new pattern of the all-around opening has gradually taken shape. Galanz has nearly 50 million products per year and is moving to families in more than 200 countries and regions around the world. Over the years, Galanz has become the “Top Ten Exporters in China” in the category of kitchen appliances, air conditioners, refrigerators, etc., and has become a beautiful business card for Chinese manufacturing.

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In the 40 years, when the economy flourished and the total economy is connected to a new level, it is the 40th year of success in moving from low-income countries to middle-income countries. The consumption power of society is also increasing. In order to meet the growing consumer demand for “consumption upgrades”, Galanz has continuously strengthened its technology and product research and development and has introduced more and more quality home appliances to the market.

In the face of the supply-side structural reforms in recent years, Galanz has also carried out an automated upgrade of “break pot and sell scrap”. “Only by thoroughly transforming and upgrading and intensifying technological innovation, Galanz can win greater development momentum,” Liang Zhaoxian said.

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With many years of technological transformation, Galanz introduced the manual production line has already been upgraded to automated production lines and has become one of the most efficient enterprises in the home appliance industry well-built whole industry chain manufacturing has also become the pride of Galanz.

“Galanz is a peer of Chinese Economic Reform. We are witnesses, participants and beneficiaries of this great era.” On many different occasions, Liang Zhaoxian often hangs on his lips. In fact, as a private enterprise with a great era, Galanz has brought a better life to people through its own struggles and has continuously contributed to the reform and opening up.

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