Facing the two annual reports 24 years apart, Wang Guozhen was quite pleased.
At the end of 1998, when he became the sixth director of Shanghai National Musical Instrument Factory No. 1, his main business was losing money and he relied on renting out shops. The annual report barely maintained a profit of 90,000 yuan, and the average annual income of employees was 17,000 yuan.
By 2022, the company's revenue will be 530 million yuan, profit will be 190 million yuan, and the annual income of employees will increase more than ten times.
In 2023, the gross profit margin of Minle Factory No. 1 reached 59.6%, and its profitability ranked first among the national musical instrument manufacturing enterprises.
has gone from being weak to becoming the leader in the most profitable industry. What is the secret of Minle No. 1 Factory?
Wang Guozhen is the sixth director of Shanghai National Musical Instrument Factory No.1
Thinkers are good at strategies
Shanghai National Musical Instrument No.1 Factory was established in 1958. It produces four major types of musical instruments: blowing, stringing and stringing. In 1962, it registered the "Dunhuang Brand" trademark. Since the 1980s, due to the impact of the introduction of Western musical instruments, the factory has gradually fallen into difficulties.
In 1998, the old factory director retired, and Wang Guozhen, the vice president of the Shanghai Piano Company who was familiar with Western musical instruments, was "called in", but he came prepared - he saw that the traditional musical instruments in piano shops and music bookstores were rough in workmanship, unkempt, and The selling price rarely exceeds a thousand yuan, and he is distressed: This is like begging for food with a golden rice bowl in hand! Therefore, the tone of reform was set - "Dunhuang" is a value-for-money culture, with two wings: one is brand building, and the other is innovation and change.
Since then, Folk Music Factory No. 1 has developed cultural marketing, focusing on promoting the brand. Since 1999, there have been new cultural initiatives every year - signing a contract with the Central Chinese Orchestra, joining hands with the Shanghai Chinese Orchestra, setting up an exhibition at the Shanghai Grand Theater, and The Shanghai Musicians Association co-organizes folk music salons and compiles folk music salons. Professional music teaching materials, community folk music training classes, ethnic chamber orchestra, Dunhuang overseas music classroom, etc., and even gathered 2,520 people to perform zheng music in Macau, setting a new Guinness World Record...
signed a contract with the China National Traditional Orchestra
formed the national indoor orchestra
opened the "Dunhuang Music Classroom" in Malaysia
At the opening ceremony of the first Macau International Guzheng Music Festival in 2017, 2,520 people played "Dunhuang" guzheng on the same stage, setting a Guinness World Record.
These seemingly "useless" cultural marketing are aimed at growing the market. In today's new term, that is, "Growing grass".
With the rise of live streaming in 2020, the New Arts National Chamber Orchestra under the Folk Music Factory No. 1 has also begun to "bring goods" on Bilibili and Xiaohongshu. However, these "goods" are not physical objects, but cultural knowledge of musical instruments, appreciation of musical instrument repertoire, etc. During the live broadcast, Internet celebrity tracks were grafted with the band's original songs, and a brand new version of "Grand Ear" was uniquely output, attracting countless fans. In the video, Zhao Mojia, a guzheng player from the orchestra, visited the flagship store of the Folk Music Factory No. 1 and tried playing. Soon someone went to the store and said they came "for the video" and quickly bought a guzheng worth 30,000 yuan. "Pulling weeds" is such an unexpected encounter.
Cultural marketing is based on innovation. As early as the beginning of this century, "Dunhuang cards" had commemorative editions and limited editions. For example, in the 1960s, master luther maker Han Changshu and famous yueqin performer Feng Shaoxian pioneered the "moon-waning" shape snow plum yueqin, which is the main player in the commemorative edition.
Feng Shaoxian’s 80th birthday limited edition Yueqin (Peking Opera style)
Another example is that at the closing ceremony of the 2008 Beijing Olympics, a stunning ensemble of 64 out-of-print Olympic-made electronic erhus in the shape of auspicious clouds were played. Within one day after the closing, all the "Hu" names were owned. In 2004, an ordinary erhu on the market only cost 300 to 400 yuan, but the limited edition Liushui Qinshou Erhu from the No. 1 Folk Music Factory sold for 13,000 yuan. Its confidence comes from culture - the piano pole is taken from the Ming and Qing rosewood bed frames found across the country like a needle in a haystack; it is made by Wang Zhenxing, a national-level senior erhu technician, and the strings are tuned and stretched to perfection; The appraisal audition will be conducted by the highly prestigious erhu player Min Huifen . Only ten pieces of such cultural erhu are produced every year, and they are sold out every year by the hungry market.
Limited Edition Liushui Qinshou Erhu
There are ideas and more ways
Looking at the current folk music factory, it is difficult to imagine that in the 1980s, it was so difficult that it "borrowed a temple to hide from the rain."The plot twist of
is that it can discover problems and come up with solutions.
In 1999, seeing the warehouse full of unsalable flutes with low added value and the risk of cracking and insect infestation, Wang Guozhen's idea was to decisively cut off the "bleeding points". His approach was to identify three major products: guzheng, pipa and erhu. Especially guzheng, in the opinion of Factory Manager Wang, guzheng is a "Chinese-style piano". He predicted that the domestic piano craze will soon turn into guzheng craze, and the employees were skeptical. But by the end of that year, the output of the first factory reached 11,000 guzheng units, a year-on-year increase of 33%, and demand still exceeded supply.
Minle No. 1 Factory’s ideas and methods are also reflected in the fact that it launches an average of more than 40 new products every year. They are all the result of the steady implementation of unconstrained ideas.
In 2012, Wang Guozhen proposed to create a limited edition guzheng for the 80th birthday of Xu Zhengao, a senior guzheng maker and representative inheritor of national intangible cultural heritage. Since then, it has become a custom to celebrate the birthday of a respected musical instrument maker with specially designed products.
For example, 2016 coincides with the 80th birthday of Gao Zhanchun, a senior pipa production technician and representative inheritor of national intangible cultural heritage, and his friend, the famous pipa player Liu Dehai. The 80 birthday limited edition pipa carefully crafted by the No. 1 Folk Music Factory shows creativity - both old people are born in the year of the Ox. The lacquer master Weng Jijun designed the "Ruziniu" head pattern, which is painted with traditional cinnabar red natural lacquer multiple times as the base. What's even more subtle is that two of Liu Dehai's composition score manuscripts are painted on the back of the pipa with 24k gold powder. Each pipa has different names such as Fishing Boat Sings Evening and Flying Flowers Spot Green according to its timbre effect. All pipa are supervised and appraised by two masters, Gao and Liu. It’s hard not to love such a pipa.
Liu Dehai·Gao Zhanchun's 80th Birthday Limited Edition Pipa
In addition, the Folk Music Factory No.1 has accumulated knowledge on how to incorporate blue and white porcelain, green bamboo carvings, shell carvings, cloisonne, lacquerware, celebrity calligraphy and painting and other crafts and elements into the "Dunhuang brand" national musical instruments. Here are a lot of "landing" tips. Due to the uniqueness, scarcity, and outstanding artistic and craftsmanship of the products, "Dunhuang brand" national musical instruments have entered the auction and collection world.
Dunhuang Rates are always in the double digits. Is this luck?
Wang Guozhen is confident. In the more than 20 years since he became the factory director, he has made several key strategic decisions correctly.
For example, build a factory in Lankao. Lankao paulownia is an excellent material for making soundboards of national musical instruments. Considering that the production scale of guzheng must be expanded exponentially at low cost, in 1999, the factory made a bold decision: to build the factory into the raw material base! By cleverly borrowing the resources of local panel material suppliers and the town where it is located, Minle Factory No. 1 built a factory in Lankao County with a relatively small investment, and Shanghai was mainly responsible for exporting technology and equipment. In 2000, the new factory in Lankao was built, but the first batch of real estate guzhengs had not yet left the factory. Henan dealers were already rushing to place orders because the shipping fee they borne could be reduced from 30 yuan to 2 yuan.
Five years later, the folk music craze was unstoppable, and peers woke up and wanted to increase production scale, but they had no choice but to have limited production capacity and high costs. Looking back at Folk Music Factory No. 1, the guzheng output exceeded 30,000 units for the first time in 2004, and exceeded 110,000 units in 2019. It was the planning and planning many years ago that allowed us to achieve such a success.
Folk Music No.1 Factory established Henan Shaosong Musical Instrument Co., Ltd.
in Lankao County, Henan Province and also built a talent echelon. Wang Guozhen knows that talent is the first resource, and he has always been committed to cultivating a team of craftsmen with superb skills, ideals, ambitions and innovative spirit. Since 2005, Minle Factory No. 1 has been recruiting talents from major universities. Currently, there are more than 80 people working with a bachelor's degree or above. Among the company's middle-level management cadres, nearly 70% are young people with a bachelor's degree or above, laying a solid foundation for the company's long-term development.In order to build a team for the inheritance of intangible cultural heritage skills, the No. 1 Folk Music Factory commissioned the establishment of a technical secondary school class on "Ethnic Instrument Design and Manufacturing" in 1999. In 2012, it cooperated with Shanghai Qunyi Vocational and Technical School to open a professional class for the construction of ethnic instruments. It has allowed new explorations in the production of national musical instruments in the field of vocational education, and also contributed to the development of Chinese folk music and musical instruments.
Over the years, like other market economy entities, Minle No. 1 Factory has also experienced the impacts of the Asian financial crisis, the U.S. subprime mortgage crisis, and the domestic epidemic, but it has often made extraordinary moves. For example, in the procurement of raw materials, Minle Factory No. 1 has repeatedly hunted the bottom and made reserves at prices far lower than the peak. The secret may be the timing - the market is anxious to withdraw funds at the end of the year and often "puts up the price". Factory No. 1 will find the right opportunity to make a move. , the purchase volume will even account for more than half of the whole year. Another example is last year, affected by the economic downturn, market demand "fell to the floor", and peers have discounted to protect themselves. However, in difficult times, Minle No. 1 Factory once again operated in the opposite direction, raising prices by 10% against the trend, miraculously maintaining profits.
Regardless of wind and waves, it is better than taking a leisurely stroll. This is of course not a blessing of luck, but lies in the accurate prediction of the development patterns and trends of things by the company operators. "Those who have strategies can go far. As the head of a company, you must always think about the development trend of the industry in the next five to 10 years or even 20 years from now. If you don't think about the future, you will have no future." Wang Guozhen said.
For this reason, although it is already "the most profitable in China's musical instrument industry", Folk Music Factory No. 1 has planned a transformation direction and will build four major platforms for teaching and performing arts distribution, intangible cultural learning, identification and testing, and international cultural exchanges in the future. Because musical instrument manufacturing will eventually encounter a "ceiling", but service can allow the "Dunhuang Brand" time-honored brand to continue to grow steadily.
In 1998, the gears of fate of Minle No. 1 Factory began to turn. This year, the factory’s most expensive product sold for nearly 5,000 yuan. But since then, this "most expensive" number has been continuously refreshed. The latest number is 1.28 million yuan, which comes from the small-leaf rosewood "Sea Feng Yun" golden zheng in cooperation with Lao Fengxiang, which has been collected by collectors.
Collector's Edition of Small Leaf Rosewood "Feng Yun on the Sea" Golden Zheng
The most expensive change is just a footnote. By accurately balancing the scale between integrity and innovation, radicalness and stability, Minle No. 1 Factory has turned itself into a legend.
Facing the two annual reports 24 years apart, Wang Guozhen was quite pleased.
At the end of 1998, when he became the sixth director of Shanghai National Musical Instrument Factory No. 1, his main business was losing money and he relied on renting out shops. The annual report barely maintained a profit of 90,000 yuan, and the average annual income of employees was 17,000 yuan.
By 2022, the company's revenue will be 530 million yuan, profit will be 190 million yuan, and the annual income of employees will increase more than ten times.
In 2023, the gross profit margin of Minle Factory No. 1 reached 59.6%, and its profitability ranked first among the national musical instrument manufacturing enterprises.
has gone from being weak to becoming the leader in the most profitable industry. What is the secret of Minle No. 1 Factory?
Wang Guozhen is the sixth director of Shanghai National Musical Instrument Factory No.1
Thinkers are good at strategies
Shanghai National Musical Instrument No.1 Factory was established in 1958. It produces four major types of musical instruments: blowing, stringing and stringing. In 1962, it registered the "Dunhuang Brand" trademark. Since the 1980s, due to the impact of the introduction of Western musical instruments, the factory has gradually fallen into difficulties.
In 1998, the old factory director retired, and Wang Guozhen, the vice president of the Shanghai Piano Company who was familiar with Western musical instruments, was "called in", but he came prepared - he saw that the traditional musical instruments in piano shops and music bookstores were rough in workmanship, unkempt, and The selling price rarely exceeds a thousand yuan, and he is distressed: This is like begging for food with a golden rice bowl in hand! Therefore, the tone of reform was set - "Dunhuang" is a value-for-money culture, with two wings: one is brand building, and the other is innovation and change.
Since then, Folk Music Factory No. 1 has developed cultural marketing, focusing on promoting the brand. Since 1999, there have been new cultural initiatives every year - signing a contract with the Central Chinese Orchestra, joining hands with the Shanghai Chinese Orchestra, setting up an exhibition at the Shanghai Grand Theater, and The Shanghai Musicians Association co-organizes folk music salons and compiles folk music salons. Professional music teaching materials, community folk music training classes, ethnic chamber orchestra, Dunhuang overseas music classroom, etc., and even gathered 2,520 people to perform zheng music in Macau, setting a new Guinness World Record...
signed a contract with the China National Traditional Orchestra
formed the national indoor orchestra
opened the "Dunhuang Music Classroom" in Malaysia
At the opening ceremony of the first Macau International Guzheng Music Festival in 2017, 2,520 people played "Dunhuang" guzheng on the same stage, setting a Guinness World Record.
These seemingly "useless" cultural marketing are aimed at growing the market. In today's new term, that is, "Growing grass".
With the rise of live streaming in 2020, the New Arts National Chamber Orchestra under the Folk Music Factory No. 1 has also begun to "bring goods" on Bilibili and Xiaohongshu. However, these "goods" are not physical objects, but cultural knowledge of musical instruments, appreciation of musical instrument repertoire, etc. During the live broadcast, Internet celebrity tracks were grafted with the band's original songs, and a brand new version of "Grand Ear" was uniquely output, attracting countless fans. In the video, Zhao Mojia, a guzheng player from the orchestra, visited the flagship store of the Folk Music Factory No. 1 and tried playing. Soon someone went to the store and said they came "for the video" and quickly bought a guzheng worth 30,000 yuan. "Pulling weeds" is such an unexpected encounter.
Cultural marketing is based on innovation. As early as the beginning of this century, "Dunhuang cards" had commemorative editions and limited editions. For example, in the 1960s, master luther maker Han Changshu and famous yueqin performer Feng Shaoxian pioneered the "moon-waning" shape snow plum yueqin, which is the main player in the commemorative edition.
Feng Shaoxian’s 80th birthday limited edition Yueqin (Peking Opera style)
Another example is that at the closing ceremony of the 2008 Beijing Olympics, a stunning ensemble of 64 out-of-print Olympic-made electronic erhus in the shape of auspicious clouds were played. Within one day after the closing, all the "Hu" names were owned. In 2004, an ordinary erhu on the market only cost 300 to 400 yuan, but the limited edition Liushui Qinshou Erhu from the No. 1 Folk Music Factory sold for 13,000 yuan. Its confidence comes from culture - the piano pole is taken from the Ming and Qing rosewood bed frames found across the country like a needle in a haystack; it is made by Wang Zhenxing, a national-level senior erhu technician, and the strings are tuned and stretched to perfection; The appraisal audition will be conducted by the highly prestigious erhu player Min Huifen . Only ten pieces of such cultural erhu are produced every year, and they are sold out every year by the hungry market.
Limited Edition Liushui Qinshou Erhu
There are ideas and more ways
Looking at the current folk music factory, it is difficult to imagine that in the 1980s, it was so difficult that it "borrowed a temple to hide from the rain."The plot twist of
is that it can discover problems and come up with solutions.
In 1999, seeing the warehouse full of unsalable flutes with low added value and the risk of cracking and insect infestation, Wang Guozhen's idea was to decisively cut off the "bleeding points". His approach was to identify three major products: guzheng, pipa and erhu. Especially guzheng, in the opinion of Factory Manager Wang, guzheng is a "Chinese-style piano". He predicted that the domestic piano craze will soon turn into guzheng craze, and the employees were skeptical. But by the end of that year, the output of the first factory reached 11,000 guzheng units, a year-on-year increase of 33%, and demand still exceeded supply.
Minle No. 1 Factory’s ideas and methods are also reflected in the fact that it launches an average of more than 40 new products every year. They are all the result of the steady implementation of unconstrained ideas.
In 2012, Wang Guozhen proposed to create a limited edition guzheng for the 80th birthday of Xu Zhengao, a senior guzheng maker and representative inheritor of national intangible cultural heritage. Since then, it has become a custom to celebrate the birthday of a respected musical instrument maker with specially designed products.
For example, 2016 coincides with the 80th birthday of Gao Zhanchun, a senior pipa production technician and representative inheritor of national intangible cultural heritage, and his friend, the famous pipa player Liu Dehai. The 80 birthday limited edition pipa carefully crafted by the No. 1 Folk Music Factory shows creativity - both old people are born in the year of the Ox. The lacquer master Weng Jijun designed the "Ruziniu" head pattern, which is painted with traditional cinnabar red natural lacquer multiple times as the base. What's even more subtle is that two of Liu Dehai's composition score manuscripts are painted on the back of the pipa with 24k gold powder. Each pipa has different names such as Fishing Boat Sings Evening and Flying Flowers Spot Green according to its timbre effect. All pipa are supervised and appraised by two masters, Gao and Liu. It’s hard not to love such a pipa.
Liu Dehai·Gao Zhanchun's 80th Birthday Limited Edition Pipa
In addition, the Folk Music Factory No.1 has accumulated knowledge on how to incorporate blue and white porcelain, green bamboo carvings, shell carvings, cloisonne, lacquerware, celebrity calligraphy and painting and other crafts and elements into the "Dunhuang brand" national musical instruments. Here are a lot of "landing" tips. Due to the uniqueness, scarcity, and outstanding artistic and craftsmanship of the products, "Dunhuang brand" national musical instruments have entered the auction and collection world.
Dunhuang Rates are always in the double digits. Is this luck?
Wang Guozhen is confident. In the more than 20 years since he became the factory director, he has made several key strategic decisions correctly.
For example, build a factory in Lankao. Lankao paulownia is an excellent material for making soundboards of national musical instruments. Considering that the production scale of guzheng must be expanded exponentially at low cost, in 1999, the factory made a bold decision: to build the factory into the raw material base! By cleverly borrowing the resources of local panel material suppliers and the town where it is located, Minle Factory No. 1 built a factory in Lankao County with a relatively small investment, and Shanghai was mainly responsible for exporting technology and equipment. In 2000, the new factory in Lankao was built, but the first batch of real estate guzhengs had not yet left the factory. Henan dealers were already rushing to place orders because the shipping fee they borne could be reduced from 30 yuan to 2 yuan.
Five years later, the folk music craze was unstoppable, and peers woke up and wanted to increase production scale, but they had no choice but to have limited production capacity and high costs. Looking back at Folk Music Factory No. 1, the guzheng output exceeded 30,000 units for the first time in 2004, and exceeded 110,000 units in 2019. It was the planning and planning many years ago that allowed us to achieve such a success.
Folk Music No.1 Factory established Henan Shaosong Musical Instrument Co., Ltd.
in Lankao County, Henan Province and also built a talent echelon. Wang Guozhen knows that talent is the first resource, and he has always been committed to cultivating a team of craftsmen with superb skills, ideals, ambitions and innovative spirit. Since 2005, Minle Factory No. 1 has been recruiting talents from major universities. Currently, there are more than 80 people working with a bachelor's degree or above. Among the company's middle-level management cadres, nearly 70% are young people with a bachelor's degree or above, laying a solid foundation for the company's long-term development.In order to build a team for the inheritance of intangible cultural heritage skills, the No. 1 Folk Music Factory commissioned the establishment of a technical secondary school class on "Ethnic Instrument Design and Manufacturing" in 1999. In 2012, it cooperated with Shanghai Qunyi Vocational and Technical School to open a professional class for the construction of ethnic instruments. It has allowed new explorations in the production of national musical instruments in the field of vocational education, and also contributed to the development of Chinese folk music and musical instruments.
Over the years, like other market economy entities, Minle No. 1 Factory has also experienced the impacts of the Asian financial crisis, the U.S. subprime mortgage crisis, and the domestic epidemic, but it has often made extraordinary moves. For example, in the procurement of raw materials, Minle Factory No. 1 has repeatedly hunted the bottom and made reserves at prices far lower than the peak. The secret may be the timing - the market is anxious to withdraw funds at the end of the year and often "puts up the price". Factory No. 1 will find the right opportunity to make a move. , the purchase volume will even account for more than half of the whole year. Another example is last year, affected by the economic downturn, market demand "fell to the floor", and peers have discounted to protect themselves. However, in difficult times, Minle No. 1 Factory once again operated in the opposite direction, raising prices by 10% against the trend, miraculously maintaining profits.
Regardless of wind and waves, it is better than taking a leisurely stroll. This is of course not a blessing of luck, but lies in the accurate prediction of the development patterns and trends of things by the company operators. "Those who have strategies can go far. As the head of a company, you must always think about the development trend of the industry in the next five to 10 years or even 20 years from now. If you don't think about the future, you will have no future." Wang Guozhen said.
For this reason, although it is already "the most profitable in China's musical instrument industry", Folk Music Factory No. 1 has planned a transformation direction and will build four major platforms for teaching and performing arts distribution, intangible cultural learning, identification and testing, and international cultural exchanges in the future. Because musical instrument manufacturing will eventually encounter a "ceiling", but service can allow the "Dunhuang Brand" time-honored brand to continue to grow steadily.
In 1998, the gears of fate of Minle No. 1 Factory began to turn. This year, the factory’s most expensive product sold for nearly 5,000 yuan. But since then, this "most expensive" number has been continuously refreshed. The latest number is 1.28 million yuan, which comes from the small-leaf rosewood "Sea Feng Yun" golden zheng in cooperation with Lao Fengxiang, which has been collected by collectors.
Collector's Edition of Small Leaf Rosewood "Feng Yun on the Sea" Golden Zheng
The most expensive change is just a footnote. By accurately balancing the scale between integrity and innovation, radicalness and stability, Minle No. 1 Factory has turned itself into a legend.