——Interview with Chen Woshu, Chairman of Hong Kong Sanli Industrial Co., Ltd.
The 2008 Guangzhou International Lighting Exhibition has a very distinctive feature, that is, many internationally renowned lighting brands have made high-profile appearances, trying to expand their influence in the Chinese market. In fact, in the past two years, the pace of foreign brands entering the domestic market has been significantly accelerated, or cooperation or restructuring or mergers, the purpose is only one, quickly seize the domestic quality resources and achieve brand expansion.
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At the same time, Mr. Chen Woshu's work photo, we are also delighted to see that a number of outstanding enterprises in China's lighting industry have gradually begun to extend their reach to the international market and seek greater market space. Whether in the domestic or international market, Chinese local lighting brands are inevitably facing face-to-face collisions with internationally renowned brands, and this level of collision has become increasingly fierce.
In this new competitive environment, how should a domestically-produced enterprise and a considerable number of production enterprises that are still at the low end of the industrial chain value respond? Recently, this newspaper specially invited Mr. Chen Woshu, Chairman of Hong Kong Sanli Industrial Co., Ltd., to express his views on the current competitive situation of domestic and foreign enterprises. The main points of view are now excerpted as follows.
â– The industry as a whole is at the low end of the industrial chain value. After nearly 20 years of development, the Chinese lighting industry has a large scale. The output of China's lighting products ranks first in the world, and its products have entered the global market extensively. However, most of the products are at the low-end level. The products are complicated and lacking in integrity. They lack long-term strategic planning, lack of R&D and innovation capabilities, and stay in the low-level for a long time. Processing trade. In addition to the price advantage, it has not formed an effective core competitiveness. The single low price strategy severely restricts the healthy development of the industry and runs counter to the increasing quality requirements of consumers. We earn low profit margins, but the brand value can't accumulate. We just use our own products to work for other people's brands.
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Sanli Chongqing Light Mart Store reflects the international famous brands, especially the high-end brands in Italy and Germany. With its strong brand advantages, it has rapidly expanded globally, occupying most of the high-end market and gaining an excessive brand premium. A relatively stable status of the rivers and lakes.
While occupying the international market, these brands have accelerated the pace of opening up the Chinese market. Some big brands have established production bases in China, using Chinese-made low-cost and localized talents to implement targeted marketing strategies for the Chinese market. They start from the high-end market and compress the living space of local brands from high to low. Chinese lighting companies will face more severe challenges brought about by global economic integration.
â– Efforts to transform manufacturing advantages into brand value In the face of a new competitive environment of economic globalization, we must calmly analyze, calmly cope, find opportunities in times of crisis, and find a way out in the predicament. First of all, we must make up our minds, upgrade the industrial level, improve the ability of research and development, and bravely embark on the journey of creating our own brands.
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Sanli Lighting Industrial Park is well known. China is a big manufacturing country. Its strong manufacturing capability has been recognized by the world. We have accumulated considerable manufacturing experience in processing trade and self-development, and have a complete industrial base. We are in many The manufacturing level of the field has reached world-class. Many of the well-known international brands are from China. If we can rely on a strong industrial base, emancipate our minds, and review the situation, we will strive to transform manufacturing advantages into product advantages, from product advantages to market advantages, from market advantages to brand values. Learning, digesting, and absorbing the experience of well-known international brands, combined with their own creative thinking, gradual improvement and continuous accumulation, I believe that through unremitting efforts, new quotas for Chinese famous brands will be added to the international brand camp.
â– Seize the opportunity to realize the rise of the national brand The opportunities and challenges brought about by the global economic integration, both Chinese and foreign companies are equal. As far as international famous brand enterprises are concerned, the problems they face mainly focus on the following three points: 1. Cost issues; 2. Technical barriers; 3. Market problems.
On the cost issue, Chinese companies still have a comparative advantage in the short term, but as the international brand manufacturing site shifts to China, our cost advantage will gradually be lost, so we can only maintain time, improve production processes, improve efficiency, and improve quality. Relative competitive advantage; in terms of technical barriers, Chinese companies have basically mastered the high-end product manufacturing technology in addition to new light sources, and many high-end products of international brands can prove problems in Chinese OEMs. Therefore, most high-end products cannot be used by Chinese outstanding enterprises. Forming effective technical barriers; in the market, the core market of international brands is in Europe and the United States, while the European and American markets have been saturated after a long period of development. Due to the impact of the US subprime mortgage crisis, the growth of the European and American markets has slowed down or even declined.
It is known from past experience that when the economy is in recession, people are more sensitive to prices and more cautious about investment, which provides a favorable environment for China's cost-effective products to enter the market. In contrast to the European and American markets, the Chinese market and the Asia-Pacific market have tasted the rapid growth of the South American market. China and Asia have become a powerful driving force for global economic growth, providing Chinese companies with good development in time, location and people. surroundings. In the fast-growing markets of international brands, their brand influence is relatively weak. We must seize the opportunity to lay a solid foundation in these markets, accumulate strength, increase market share, form a local brand advantage, rely on China and emerging markets, and strategically and targetedly penetrate the core brands of international brands. The important principle is to know ourselves and avoid the reality. The high price and high profile of international brands, compared with the Chinese market to taste the Asia-Pacific market and other emerging markets, their service is not in place, the long-term delay, has reduced the trust of customers in these markets, making their original sales system and The order of the market is more difficult to maintain, and the distribution mechanism of the brand value is unbalanced, which leads to the second- and third-tier distributors tending to switch to Chinese products with high cost performance and huge market growth potential. This is our market opportunity.
After the Chinese brand has resisted to accept, from accepting the good feelings, from the process of accepting the love, the Chinese brand will be sublimated in the competition, the Chinese nation is reviving, and the Chinese brand will rise.
Editor: He Chunyan Typography: Huang Jiacunmei refers to: Peng Anjun Final Review: Yao Xiaohong
The 2008 Guangzhou International Lighting Exhibition has a very distinctive feature, that is, many internationally renowned lighting brands have made high-profile appearances, trying to expand their influence in the Chinese market. In fact, in the past two years, the pace of foreign brands entering the domestic market has been significantly accelerated, or cooperation or restructuring or mergers, the purpose is only one, quickly seize the domestic quality resources and achieve brand expansion.
At the same time, Mr. Chen Woshu's work photo, we are also delighted to see that a number of outstanding enterprises in China's lighting industry have gradually begun to extend their reach to the international market and seek greater market space. Whether in the domestic or international market, Chinese local lighting brands are inevitably facing face-to-face collisions with internationally renowned brands, and this level of collision has become increasingly fierce.
In this new competitive environment, how should a domestically-produced enterprise and a considerable number of production enterprises that are still at the low end of the industrial chain value respond? Recently, this newspaper specially invited Mr. Chen Woshu, Chairman of Hong Kong Sanli Industrial Co., Ltd., to express his views on the current competitive situation of domestic and foreign enterprises. The main points of view are now excerpted as follows.
â– The industry as a whole is at the low end of the industrial chain value. After nearly 20 years of development, the Chinese lighting industry has a large scale. The output of China's lighting products ranks first in the world, and its products have entered the global market extensively. However, most of the products are at the low-end level. The products are complicated and lacking in integrity. They lack long-term strategic planning, lack of R&D and innovation capabilities, and stay in the low-level for a long time. Processing trade. In addition to the price advantage, it has not formed an effective core competitiveness. The single low price strategy severely restricts the healthy development of the industry and runs counter to the increasing quality requirements of consumers. We earn low profit margins, but the brand value can't accumulate. We just use our own products to work for other people's brands.
Sanli Chongqing Light Mart Store reflects the international famous brands, especially the high-end brands in Italy and Germany. With its strong brand advantages, it has rapidly expanded globally, occupying most of the high-end market and gaining an excessive brand premium. A relatively stable status of the rivers and lakes.
While occupying the international market, these brands have accelerated the pace of opening up the Chinese market. Some big brands have established production bases in China, using Chinese-made low-cost and localized talents to implement targeted marketing strategies for the Chinese market. They start from the high-end market and compress the living space of local brands from high to low. Chinese lighting companies will face more severe challenges brought about by global economic integration.
â– Efforts to transform manufacturing advantages into brand value In the face of a new competitive environment of economic globalization, we must calmly analyze, calmly cope, find opportunities in times of crisis, and find a way out in the predicament. First of all, we must make up our minds, upgrade the industrial level, improve the ability of research and development, and bravely embark on the journey of creating our own brands.
Sanli Lighting Industrial Park is well known. China is a big manufacturing country. Its strong manufacturing capability has been recognized by the world. We have accumulated considerable manufacturing experience in processing trade and self-development, and have a complete industrial base. We are in many The manufacturing level of the field has reached world-class. Many of the well-known international brands are from China. If we can rely on a strong industrial base, emancipate our minds, and review the situation, we will strive to transform manufacturing advantages into product advantages, from product advantages to market advantages, from market advantages to brand values. Learning, digesting, and absorbing the experience of well-known international brands, combined with their own creative thinking, gradual improvement and continuous accumulation, I believe that through unremitting efforts, new quotas for Chinese famous brands will be added to the international brand camp.
â– Seize the opportunity to realize the rise of the national brand The opportunities and challenges brought about by the global economic integration, both Chinese and foreign companies are equal. As far as international famous brand enterprises are concerned, the problems they face mainly focus on the following three points: 1. Cost issues; 2. Technical barriers; 3. Market problems.
On the cost issue, Chinese companies still have a comparative advantage in the short term, but as the international brand manufacturing site shifts to China, our cost advantage will gradually be lost, so we can only maintain time, improve production processes, improve efficiency, and improve quality. Relative competitive advantage; in terms of technical barriers, Chinese companies have basically mastered the high-end product manufacturing technology in addition to new light sources, and many high-end products of international brands can prove problems in Chinese OEMs. Therefore, most high-end products cannot be used by Chinese outstanding enterprises. Forming effective technical barriers; in the market, the core market of international brands is in Europe and the United States, while the European and American markets have been saturated after a long period of development. Due to the impact of the US subprime mortgage crisis, the growth of the European and American markets has slowed down or even declined.
It is known from past experience that when the economy is in recession, people are more sensitive to prices and more cautious about investment, which provides a favorable environment for China's cost-effective products to enter the market. In contrast to the European and American markets, the Chinese market and the Asia-Pacific market have tasted the rapid growth of the South American market. China and Asia have become a powerful driving force for global economic growth, providing Chinese companies with good development in time, location and people. surroundings. In the fast-growing markets of international brands, their brand influence is relatively weak. We must seize the opportunity to lay a solid foundation in these markets, accumulate strength, increase market share, form a local brand advantage, rely on China and emerging markets, and strategically and targetedly penetrate the core brands of international brands. The important principle is to know ourselves and avoid the reality. The high price and high profile of international brands, compared with the Chinese market to taste the Asia-Pacific market and other emerging markets, their service is not in place, the long-term delay, has reduced the trust of customers in these markets, making their original sales system and The order of the market is more difficult to maintain, and the distribution mechanism of the brand value is unbalanced, which leads to the second- and third-tier distributors tending to switch to Chinese products with high cost performance and huge market growth potential. This is our market opportunity.
After the Chinese brand has resisted to accept, from accepting the good feelings, from the process of accepting the love, the Chinese brand will be sublimated in the competition, the Chinese nation is reviving, and the Chinese brand will rise.
Editor: He Chunyan Typography: Huang Jiacunmei refers to: Peng Anjun Final Review: Yao Xiaohong
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