Wu Changjiang, who has devoted himself to promoting the transformation of NVC Lighting (hereinafter referred to as "NVC") to LED in the past year, said in an exclusive interview with reporters on March 15 that this year is a "watershed" in the development of China's LED lighting industry.
In 2013, NVC’s LED lighting revenue share increased from less than 5% in 2012 to about 20%. Wu Changjiang said that this year will further increase this proportion to 50%.
This year has become a watershed in the LED industry
The lighting industry is in a period of transformation, and the industry believes that the LED lighting market will be fully launched this year. "The turmoil in 2012 was very damaging. NVC was still 'healing' last year. In addition, the industry accelerated its transformation to LED lighting. NVC invested a lot in brand publicity and promotion, and its gross profit margin decreased." Wu Changjiang said.
But he firmly said, "We must fight." NVC, once the leader in traditional lighting in China, had previously been cautious about entering the immature and mixed LED lighting market, fearing losses. Now, Wu Changjiang has said that there will be no future if he does not "challenge".
Wu Changjiang said: "This year we are still focusing on market share, not profit. Although some shareholders have proposed to consider profits, it is good to not lose money and make a profit of 200 million to 300 million yuan this year and next. Especially for the LED business, we must seize the market scale and share this year." Because "this year is a watershed in the LED lighting industry. Like real estate companies, small ones fall and big ones stay."
Joining hands with Dehao to accelerate transformation
In order to win this "transformation" battle, NVC has formed an alliance with upstream LED chip company Dehao Runda. 2012年年底，德豪润达董事长王冬雷通过收购吴长江等的股权，成为雷士的大股东。作为回报，德豪润达也向吴长江等定向增发。吴长江透露，“争取这个月完成”，他将成为德豪润达第二大股东。
Talking about resource sharing between the two parties, Wu Changjiang said that Dehao Runda focuses on the R&D and production of upstream chips and packaging, while NVC focuses on the application and promotion of downstream lighting products. He believes that after last year’s trial, this year’s LED chips “will be used as much as possible by Dehao as long as Dehao can produce them.” With the same quality, Dehao’s products are more affordable. “We are a family.”
With upstream support, NVC has accelerated its product transformation this year and joined hands with FINA to release 600 new LED lighting products on March 15. "The production process, testing, and molds of LED lighting are different from traditional lighting. Our entire supply chain is undergoing transformation."
Wu Changjiang is good at marketing. In the past, he led more than 30 domestic regional sales companies and more than 5,000 specialty stores, which was the magic weapon for NVC to win. However, entering the LED era, the marketing and channel models of the traditional lighting industry are also quietly changing. Wu Changjiang revealed that after last year’s accumulation, NVC’s “contract energy management” project team has reached hundreds this year.
E-commerce channels are also on the rise. However, Wu Changjiang believes that the current LED lighting e-commerce companies "only know how to lower prices and disrupt market order" and "e-commerce is not used well and has a great impact on traditional channels." This year, NVC will develop e-commerce business at the headquarters level. How to increase new sales and form a "1+1>2" effect with offline dealers, the key is management.
Promote “decentralization” of business units
Following the alliance between NVC and Dehao Runda, Sanan Optoelectronics established a joint venture with Sunshine Lighting, and Tongfang Shares acquired Zhenmingli... Cases of vertical and horizontal mergers between upstream and downstream companies continue to occur. Wu Changjiang believes that in the fierce competition, talent and team are the biggest challenges for NVC to complete its transformation.
This year, NVC will comprehensively promote the business unit system. Wu Changjiang said that the core is to improve the incentive and restraint mechanisms and "decentralize power" on this basis. "NVC needs to attract a large number of new talents in contract energy management, e-commerce, overseas market expansion, etc."
As the founder of NVC, looking back at the internal strife two years ago, Wu Changjiang believes that investors are only consultants and should respect the founders of the company; but only if the founders of the company are "strong themselves" can they win a greater say in the game. "In the future, NVC's board of directors and management will perform their respective duties."
With the introduction of Wang Donglei, Wu Changjiang regained the initiative in the NVC board of directors, but how to handle the interest relationship between Dehao and NVC also tested the wisdom of "Wang Wu Pei". "NVC and Dehao are two independent companies. NVC will still vigorously develop its own brand business in overseas markets." Wu Changjiang said that currently domestic sales account for 80%, and he hopes that export sales can account for 60% to 80% in the future. "In the next three to five years, NVC will hit the top three in the global lighting industry."
ANNA