Aisda was involved in bribery cases and mainly relied on OEM to survive and was unable to build independent brands.

　　#Laogao E-commerce News#As a kitchenware company that mainly relies on OEMs, Aisda Group Co., Ltd. (hereinafter referred to as "Aisda") has not been at the forefront of the market. This year, the company finally made up its mind to reshape its independent brand image, but its chairman was recently involved in the case of bribery by officials. In addition to inflexible sales channels, failed multiple quality inspections, and fierce market competition, Aisda's brand reshaping plan may be stranded.

　　Being involved in a bribery incident

　　According to the criminal ruling of the Taizhou Intermediate People's Court of Zhejiang Province ((2016) Zhejiang 10 Criminal Final No. 1191), on April 26, 2012, Chen Helin, chairman of Zhejiang Aisda Group, borrowed RMB 3 million from official Zhang Yongbing at a monthly interest rate of 3% in the name of the company. The defendant Zhang Yongbing accepted RMB 750,000 in Chen Helin's property in this name. The purpose of Aisda's borrowing money was to establish a good relationship with Zhang Yongbing and to seek Zhang Yongbing's care for his company's "retreat two and advance three".

　　According to the criminal ruling, the official involved in the case was named Zhang Yongbing. He started to serve as secretary of the Wenling Economic Development Zone Working Committee in June 2007 and was a member of the Party Leadership Group of the Wenling Municipal People's Government in March 2010. Since 2009, Zhang Yongbing has used his position to make profits for others in projects, personnel transfers, land use arrangements, project funds allocation, etc., and has accepted property from others many times. Aishta is also on the list of companies that have disclosed bribery.

　　Although in the name of loans, the Taizhou Intermediate People's Court determined that Zhang Yongbing took the initiative to borrow money to Aisda, which had no capital needs, and the loan interest was significantly higher than the company's other private loans. At the same time, during the loan period, there was a positional constraint between Aisda and Zhang Yongbing due to "retreat the second and third" work, which constituted the fact of accepting bribes.

　　According to the 2016 annual report of Aisda, in terms of equity relations, Aisda's founder is also the actual controller Chen Helin, and his wife and two children hold 100% of Aisda's shares. Aisda holds 35.07% of the shares of Aisda, and is the controlling shareholder. Chen Helin is the chairman of the listed company Aisda, and Chen Lingqiao, the daughter of Chen Helin.

　　A Beijing Business Daily reporter called the secretary of the board of directors of Aisda. The staff said that the secretary of the board of directors Liu Xueliang and other office staff were on business trips and could not accept interviews.

　　Hong Xingxian, a lawyer at Yingke Law Firm, said that the bribery behavior of enterprises should be analyzed based on specific circumstances. First, the subjective motivation is whether bribery is given to protect the legal behavior of enterprises; second, whether the purpose is legal, and whether the purpose of the enterprise requesting officials to take care of is legal. If the purpose of the enterprise bribery is for legal and legitimate interests, it does not constitute the crime of bribery.

　　OEM corporate label

　　Aisda is a large national-level regional enterprise group with Zhejiang Aisda Electric Appliances Co., Ltd. and Shanghai Aisda Auto Parts Co., Ltd. as its core holding subsidiaries. It involves related businesses such as cooking utensils, kitchen appliances, and automotive parts. Its listed company Aisda's main business is the production of kitchen cookware and kitchen appliances.

　　It is understood that Aisda's exports mainly rely on OEM production, and there are few independent products. According to Chen Helin, Aisda is the only company in the world that produces OEMs for three first-line cooking utensil brands, Germany Berndes, France LE CREUSET and the United States Calphalon.

　　In the kitchen utensils and kitchen appliance market, Aisda's well-known competitor in China is Supor, but compared with Supor, Aisda is obviously far behind. The accumulation of brands caused by early advertising effects has enabled Supor to firmly sit in the No. 1 position in China's cooking utensils. Now Supor has established a strong product lineup in multiple sub-product categories such as woks, soup pots, frying pans, etc. in kitchen cookware, such as woks, soup pots, frying pans, etc., and has completed the brand extension from pressure cookers to the entire cooking utensils, and has the largest market recognition and share in the country as a whole.

　　Faced with Supor's strong brand influence, Aisda took a different path. The company first expanded its export OEM output to achieve rapid capital expansion. Faced with the huge market in China, Aisda took hypermarkets as its main channel. "But compared with Supor's practice of selling products to shopping malls, supermarkets and retail outlets in various places through distributors, Aisda's excessive attention and investment in large stores has caused slow inventory turnover and collection, and lacks an overall brand image." said Liang Zhenpeng, home appliance analyst.

　　After all, without the brand's halo attracting, consumers' choices are still more inclined to Supor. According to the 2016 financial reports of the two companies, Supor's annual operating income was 11.947 billion yuan and net profit was 1.078 billion yuan, while Aisda's operating income was only 2.548 billion yuan and net profit was 137 million yuan. Compared with the two, it can be seen that Supor is at least 4 times that of Aisda.

　　Independent brands are difficult to build

　　Having an independent brand is the support for the long-term progress of the company. In Liang Zhenpeng's view, brands will form an indelible mark in the hearts of consumers, and gradually form a preference and exclusive view of consumption awareness of a certain category of products. Profits are also continuously absorbed by brands. But at present, Aisda is still making products, not brands, or in other words, they are still on the way to brands.

　　Chen Helin also admitted this. He said in February this year: "Chinese independent brands have gone to the world. We cannot always let domestic products take the blame for being worse than foreign brands. We must shoulder the responsibility and responsibility of independent brands."

　　However, the bribery incident may block Aisda's path to reshaping its own brand. Economist Song Qinghui once pointed out that in recent years, listed companies have exposed more and more image crises, among which the bribery incident has the worst impact, which not only causes damage to the company's image, but also has a huge negative impact on the company's development.

　　The brand is not done well, and the product is support, but Aisda has repeatedly been on the blacklist of industrial and commercial bureaus and quality supervision bureaus in various places. The General Administration of Quality Supervision and Inspection released the results of the national supervision and random inspection of the quality of induction cookers in the fourth quarter of 2014, showing that an induction cooker product produced by Zhejiang ASDA Life Electrical Appliances Co., Ltd., with the trademark "ASD" and model "AI-F2131C 2100W" was unqualified; in October 2016, the Gansu Provincial Administration for Industry and Commerce announced the quality sampling results of the 2016 circulation field electric pressure cooker product announced by the Gansu Provincial Administration for Industry and Commerce showed that the electric pressure cooker sold on the market with the trademark "ASD" had quality problems.

　　In the entire kitchenware market, in addition to Supor, Aisda has many competitors to face. In recent years, the domestic cookware product market has been increasing. Due to the low technical threshold, many companies have flocked to the cooking utensil industry, and mid- and low-end companies have occupied 75% of the market share.

　　Although Aisda is also expanding its product line and acquired 51% of the equity of Zhejiang Qianjiang Robot Co., Ltd. last year. "But whether it is the kitchenware market or the robot market, the market competition has been fierce in recent years. Aisda's market performance in both fields is not outstanding, so the challenges it will face in the future will be great." Liang Zhenpeng said.

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