NVC's integration of the entire industry chain is not a strategic plan that Wu Changjiang established this year or last year. Because he knows very well which direction the industry will go in, how should the company be at the forefront of the industry. In an interview with reporters, Wu Changjiang also unscrupulously analyzed the future development direction of the lighting industry.
Existing industry landscape will be broken
Reporter: In your opinion, what stage is the lighting industry currently developing?
Wu Changjiang: The development of any industry will experience a process from disorder to order, to maturity, and finally to oligarchy. In fact, the lighting industry is still in the transitional stage from disorderly competition to orderly competition. It still has a certain distance from the real maturity of the industry.
Many enterprises have obtained relatively lucrative profits by relying on certain products and certain ideas in the initial stage of industry development, and have achieved staged success. Because the competitors at that time were not strong and the profits were high, the company could easily survive. But this is not a success! Once this pattern is broken, it means the reshuffle of the industry.
Reporter: So, what forces will break the existing pattern and prompt the industry to mature quickly?
Wu Changjiang: There are two kinds of external forces and internal forces in the industry. External power means that if an international giant enters the lighting industry with capital, brands, ideas and talents, and conducts subversive development and reform in the market, it will certainly promote a new industry structure. As we all know, many large home appliance companies such as Xoceco, Haier, Skyworth, etc. test the water lighting industry, they are fascinated by the profit margin and market prospects of the lighting industry. If they used the brand and capital advantages and invested a lot of resources in the lighting industry, it would definitely set off a wave. Unfortunately, they are still just trying and not attacking wholeheartedly.
The internal strength of the industry means that a certain company or a certain type of enterprise in the lighting industry has grown rapidly and broke through the traditional thinking and mode. It will also break the existing pattern of the industry.
Reporter: How long do you think this pattern will break?
Wu Changjiang: The length and shortness of this time and the speed and speed of the speed will not be transferred by the will of the people. This is the result of the development of the market law. However, you can witness that there will definitely be new patterns in 1-2 years.
Do companies grow bigger first, or do they become stronger first?
Reporter: Someone once asked you, is the company going to be bigger when it is bigger, or is it bigger and bigger? This is also a topic that is often discussed in the market economy. According to NVC's growth process, how do you view this "first big or strong first" problem?
Wu Changjiang: Whether the enterprise is bigger or better first, I think there is no eternal law, which depends mainly on the market competition environment. In other words, the market environment determines the direction of the company's development. In a situation where the market competition is not too intense, competitors are generally weak, and the industry's profit margin is still large, companies should seize this more relaxed market environment to make the plate bigger. When industry competition is intensifying and profits are getting lower, companies should consider how to become stronger.
To make a simple analogy, when there is heavy rain outside, if you use a small bucket that is so precise that there is no gap to fill the water, you can only hold a small bucket. But if you use a large bucket to fill the water, even if the bucket has some small holes, you can put more water. However, when the rain gets smaller, you must find a way to fill the hole immediately to avoid water loss. This metaphor of "rain and bucket" best explains the question of "doing bigger first, or being stronger first." However, at present, the loopholes in many lighting companies are easily covered by heavy rain. When the rain gets cold, they do not fill the loopholes in time, and finally become empty barrels. NVC, in fact, has been making up for corporate vulnerabilities since the end of last year.
Reporter: So, where is the leak of NVC?
Wu Changjiang: When the company grows bigger, its shortcomings are completely exposed. I can tell you frankly that NVC’s previous loopholes were: insufficient cost control, high management costs, low work efficiency, reduced service awareness, slower supply, and unreasonable human resources structure; Quality needs to be improved and so on. It is not terrible that a company has a loophole. The terrible thing is that the leader did not find it and immediately remedy it. The reason why NVC is developing faster than the average company is that we discover our shortcomings and defects earlier than others, and then make up earlier and take a step ahead of others.
Resource integration is an inevitable trend
Reporter: As you mentioned earlier, the development of an industry will certainly go through the four stages of “disorderly – orderly – mature – oligarchyâ€. If a lighting company wants to gain a place in the future oligarchy competition, what way should it achieve this goal?
Wu Changjiang: Fully integrate resources and build a broad platform to reflect the scale effect. Only in this way can we quickly establish the position of the company in the future market. Operating a business is actually a process of resource integration, rather than relying on individuals alone. Of course, this vast resource platform must be solid, and the basics must be solid, otherwise it will collapse like a Deron.
Reporter: As we all know, supply chain and production capacity were once the weak link of NVC lighting. Some people think that this will be the Achilles heel of NVC. How do you view this point of view?
Wu Changjiang: This is still a resource integration issue. In the future market, the division of labor of enterprises will become more and more detailed. If NVC was doing its own production and investing a lot of money to build channels, then there must be no NVC today. Therefore, in 2002, I insisted that some products adopt OEM this way.
As long as NVC has built a broad platform, there will be many people willing to sing on this stage. At this time, NVC has become a focus, and all people are focused on NVC, so the production capacity and supply chain will be solved.
Future industry competition ≥ competition
Reporter: How do you view the development potential of Sanxiong? Aurora, Benbang Lighting and other outstanding brands? In the future market competition, what kind of competition pattern will NVC and other excellent brands have?
Wu Changjiang: Under any circumstances, I always think that Sanxiong? Aurora, Benbang Lighting and other enterprises are very good, companies can be so big, leading figures must have their own mistakes, there are places worth learning. However, I am more concerned with the business philosophy, success factors, operational methods, management methods, etc. of world-class advanced enterprises, because these are the more valuable lessons for NVC's future competition.
I believe that in the future, the market structure of NVC and Sanxiong? Aurora, Benbang Lighting and other brands is not in competition, but in competition. The lighting industry has great potential. If a non-NVC company can monopolize it, the industry platform needs everyone to build it together. The development of the industry also needs everyone to promote it.
Link: Why is the NVC listing delayed?
NVC's listing has always been the focus of industry discussions. As early as 2004, Wu Changjiang proposed the listing of NVC. But so far, NVC is still not listed. What is the reason for this to delay the listing plan?
Wu Changjiang told reporters that NVC originally planned to buy a shell on the US Nasdaq and is ready. However, after many discussions, it has been found that the financing ability of the shell market will become very weak and cannot reflect the actual value of NVC lighting. Therefore, he decided to temporarily extend the time to market, and then listed on the “NVC NVC†brand.
Experts pointed out that NVC actually has the potential to read Tsinghua University or Peking University, but the college entrance examination scores are low. If you go to an ordinary college immediately, you can't show his value. However, if you try to re-read for a year to go to Tsinghua University or Peking University, then the impact on his future is far-reaching. This metaphor inspired Wu Changjiang and completely changed his listing idea.
Wu Changjiang revealed to reporters that NVC chose to continue to practice basic skills and plans to re-list in 2008. When the market value reaches three to four billion, NVC will be another scene.
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