Wu Changjiang talks about the future of lighting: resource integration decision failed
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. 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 household electrical appliance enterprises such as Xoceco, Haier and Skyworth have tested the lighting industry, and they have taken a look at 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, 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 first strong and then strong, or do it become stronger first? 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.
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