NEW ORIENTAL-S (09901.HK) Chairman Yu Minhong said there are probably only two types of products in the world. One type is products that are created and can touch people's hearts, such as the iPhone created by Steve Jobs. When HUAWEI, XIAOMI-W (01810.HK) and others started making smartphones, Apple Inc. (AAPL.US) had already pioneered the smartphone market, and smartphones are now a mature product.

For mature products, there is only one possibility, which is to make them better than competitors rather than cheaper, he opined. Based on nearly 40 years of business practice, he found that selling cheap products and engaging in price wars can never deliver long-term growth prospects.

The second type is making products remarkably better than competitors, he added. Citing NEW ORIENTAL-S' practice in the food industry, he said there is only one type of product in the food industry: products that are safer than competitors' offerings, with customers clearly recognizing the superior safety standards. In addition, the food must taste better than competitors' products.

In his view, because China's food supply exceeds demand, companies can only operate with an ultimate pursuit of excellence under such circumstances. Therefore, he established a rule for EAST BUY to create only products with "three highs": high safety, high quality and high cost-performance.
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AASTOCKS Financial News
Website: www.aastocks.com

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