Presently, renewable resources account for more than 70% of raw materials of detergents of Liby Group and the biodegradation rate of raw materials reaches above 90%. In the journey of green and environmental protection, Liby pushes “plant power”, a green and healthy gene, to a strategic level this year, advocates applying natural cleaning power of plant to green cleaning, takes care of families from the source and further deepens the brand concept “give you a green and healthy home”. Liby not only persists in green and sustainable development, but also hopes to realize green and sustainable development of the entire industry chain and facilitate green and environmental protection of Chinese cleaning product industry. While protecting the environment and the earth, Liby devotes itself to providing green and healthy products consistent with consumer demand. The brand slogan “Liby gives you a green and healthy home” is a commitment to consumers. 。
Data shows that Liby, a daily chemical enterprise rooted in Guangdong, has ranked among “leaders” of the domestic and even global cleaning product industries. While interviewed by Nanfang Daily in the new office building on the bank of White Swan Pond, Chen Kaixuan, President of Liby Group, said, Liby makes a success just because of “undivided attention, dedication, no speculation, steadfastness, craftsmanship and concentration on daily chemical products for over two decades”. It is just because of such determination that he is full of confidence in the future of “Quality of China”.
“Developing products on the basis of originality” makes Liby succeed
Nanfang Daily: from building up from nothing to becoming a leader of the cleaning product industry, how do you think of “craftsmanship spirit”?
Chen Kaixuan: Both “supply-side structural reform” and “craftsmanship spirit” upheld by the government are very important. To improve market competitiveness, Chinese enterprises and products must keep improving and constantly and actively carry out reform, innovation and upgrading.
Since Liby Group was established 22 years ago until now sales of detergents rank first nationwide and fourth worldwide and market share of washing powder and dishwashing liquid has ranked first nationwide for years, it has benefited from the concept “Developing products on the basis of originality”, kept improving and constantly carried out reform and upgrading.
Nanfang Daily: Except for craftsmanship spirit, is there any other experience you can share with us?
Chen Kaixuan: Based on my startup experience, I think Liby Group makes a success based on excellent culture. Liby has been attaching great importance to innovation and differentiation, which help us overcome many difficulties.
For example, when Liby just entered the cleaning product industry in 1994, “debt chain” was a serious phenomenon. As a result, merchant, manufacturer and supplier had a difficult time. Liby took the lead in changing default on payment into payment before delivery, which broke “debt chain” and offered cash flow to future development.
Then, daily chemical enterprises built a factory and then sold products before. Liby set a precedent of OEM mode through expanding the market and then building a factory. Liby also changed “storekeeper” of the daily chemical industry. Dealers were requested to move out of the wholesale market, rent warehouses, buy cars, engage employees and provide home delivery service. In addition, Liby raised quality awareness and environmental awareness of the cleaning product industry and improved its production and operation level.
In this way, sales of washing powder ranked first in Guangdong in 3 years and ranked first in China in 10 years. Liby surpassed foreign enterprises using native methods and promoted both its own development and the development of Chinese self-owned brands and daily chemical industry.
More than a hundred new products are launched every year
Nanfang Daily: As Liby became “the first” more than once, have you ever thought “I’m number one, so I’m safe now?”
Chen Kaixuan: I’ve never thought I’m safe. I have a strong sense of crisis, since competition is very intense in the daily chemical market. If I feel relaxed one day, I may be surpassed. Considering a low threshold of the daily chemical industry, we should enhance competitiveness on the basis of quality, brand and differentiation. So we must carry out continuous innovation.
According to years to experience, for sustainable development, enterprises must actively carry out transformation and upgrading and stay ahead of others. Therefore, continuous self-reform has become a part of corporate culture of Liby.
Nanfang Daily: Manufacturing innovation should be backed by R&D, what Liby does in this aspect?
Chen Kaixuan: Liby launches more than a hundred new products every year and the output value of new products accounts for about 63% of the total output value. It is supported by innovation and R&D. Liby has first-class R&D and detecting equipment.
Presently, Liby has been titled national level “High-tech enterprise” twice and has one “postdoctoral scientific research station”, one “academician enterprise station”, one “Academician Expert Workstation” and four “provincial level technical R&D centers”. Authorized patents for invention of Liby ranked top in 2014, surpassing a double of the total of those obtained by top 2-5 peers in China. The innovation and R&D center of Liby studies more than 100 new products and new technologies every year, of which 70% are high-tech products.
Meanwhile, Liby has developed 17 national and industrial standards and has participated in the development of 21 national and industrial standards. Liby analysis and test center has passed CNAS certification and is technically capable of carrying out detection according to relevant international standards. The center engages in 79 projects of 11 categories of daily chemical products ahead of P&G and Unilever, which are recognized by 65 organizations of 50 countries/regions and realize “one-off test and international mutual recognition”.
Furthermore, Liby establishes a strategic partnership with Fortune Global 500 Enterprises such as BASF, DOW Chemical, Dupont, Novozymes Biotechnology and Lubrizol, builds international collaborative innovation center and constantly improves technical R&D level and independent innovation capacity.
Liby “is full of confidence in” the future of Made in China
Nanfang Daily: We all know that it is difficult to engage in industries, what do you think of it?
Chen Kaixuan: Indeed, it is difficult to engage in industries, or it is more difficult than starting a business. 。
Compared with high-profit industries, the daily chemical industry is a meager-profit industry and every penny is earned from “hard work”. Besides, there are more and more daily chemical enterprises, competition becomes increasingly tense, many disruptive innovations are conducted and many new models are sold at a loss. So we have to work over ten hours every day.
Then, rising costs of labor, raw material and land increase the difficulty in management of industries. Enterprises should keep abreast of fast-growing living standard and consumer demand and are stressed out.
With the development of Internet, business management becomes increasingly complex. In the past, stores engaged in sales and TV stations advertisement. But now both sales and communication channels become diversified and fragmented.
Of source, in spite of difficulties, we just need to actively accept, adapt to and face them, since we may be eliminated if we remain unchanged.
Nanfang Daily: Since it is difficult to engage in industries, why do you still persist?
Chen Kaixuan: Though it is very hard, but I like this industry. Real estate, finance and Internet prevailed in recent years, but I won’t follow the trend. I don’t want to divert my attention but concentrate on one thing. There is still a large market for such big daily chemical products as cleaning product, shampoo, cosmetics and toothpaste and it will take a long time to explore it.
We have fostered Liby as a child. We love it and will never give up. As a national brand, we feel very proud of starting from the converging attack of foreign brands, competing with international brands and even surpassing them in some aspects. We want to make the domestic daily chemical industry bigger, stronger and more professional and win honor for the country and the nation. It is a matter of dignity; otherwise we will feel ashamed of always buying and use foreign products.
Nanfang Daily: Facing these challenges, are you still confident in the future of Liby and Chinese industries?
Chen Kaixuan: Of course I have, and I’m full of confidence. Our vision is “World famous brand, century-old Liby”. My confidence is from the truth which we firmly believe: Methods are always more than difficulties and problems. Nothing is impossible. Nothing is unreachable. All problems can be solved and all targets and dreams can be realized as long we dare to think, get prepared and take action.
Expert comment
Zheng Wuhong, President of China Association of Cleaning Product Industry:
Building core competitiveness cannot be separated from “quality” and “trademark”
“Core competitiveness of enterprise centers on ‘quality’ and ‘trademark’ of product”. There is no ‘quality’ there is no ‘trademark’. It is the foundation of the business market” Zheng Wuhong points out that “quality” is the fundamental problem of Chinese cleaning product industry: first, the problems of excess production capacity, product homogeneity and unreasonable structure exist; second, there is a gap with international advanced level from a technical aspect.
How to break the ice and realize industry restructuring? In Zheng Wuhong’s point of view, it is best to carry forward “craftsmanship spirit” and carry out “supply-side structural reform”. On May 11, the Executive Meeting of the State Council made arrangements for increasing variety, improving quality and building brand of consumer goods industry and energetically promote “a quality revolution” of consumer goods. Under the guidance of these policies, cleaning product enterprises should elevate core competitiveness, continuously reform management mechanism, study consumer demand, innovate supply and build trustworthy brand.
Zheng Wuhong was full of praise for Liby Group. “From a washing powder formula to a group company which innovate variety, develop new materials, studies new technology and guides a new trend, Liby has sets a precedent of Chinese daily chemical industry more than once, which is inseparable from its continuous innovation and improvement.”
