The transformational attempts of traditional manufacturing companies to export to domestic sales, at least for the time being, may not be successful soon. As early as three years ago, Lingli Home Lighting Factory, located in Zhongshan Town, Guangdong Province (hereinafter referred to as “the ancient townâ€), created two brands, and at the same time made export and domestic sales. Now, the facts show that the export is still better than domestic sales. Well done.
Although the words of a family are not enough to represent the whole, the transformation and attempt of the old-fashioned enterprises of "Lights" is not difficult to see the delicate situation of the transformation of traditional Chinese manufacturing.
On October 18th, the ancient town of Zhongshan, Guangdong, was the site of the 11th International Lighting Fair for four days. A large number of merchants from home and abroad came to discuss cooperation. The reporter also used the lighting industry as a sample to export to traditional manufacturing enterprises. Domestic sales made a series of interviews.
According to the survey of the reporters, compared with export sales, for the domestic enterprises that are transforming domestic sales, they generally face a more complicated domestic market environment, which is also their confusion. In each economic transformation, a group of enterprises are eliminated. At the same time, the surviving companies are also unconsciously upgrading.
Ten years of transformation
The transformation of the ancient town lighting enterprises into a longer time frame, in fact, for a long time before the 2008 international financial crisis, the transformation has already begun.
At the end of the 1970s, the town’s first township enterprise that produced lighting products was successful. A local craze for lighting production was launched. A few years later, a number of couples and brother factories producing lighting products appeared one after another. They purchase parts from the surrounding areas, and simply sell the products to the whole country. In the early 1990s, a street of lighting was formed.
Subsequently, the lighting industry in Taiwan began to shift to the ancient town, along with the capital, technical equipment, management experience and sales channels. At this time, the ancient town government also began to purposely support the lighting industry as a key industry. A large number of Wenzhou merchants came to invest, and the lighting effect of the ancient town lighting industry cluster gradually emerged, becoming the largest production base and sales center for lighting fixtures in China.
On November 8, 2002, China National Light Industry Association and China Lighting Association jointly awarded the honorary title of “China Lighting Capital†in Guzhen. In the second year after the ancient town officially became the lamp capital, Li Weijiang, who is now the head of the brand marketing of Bolanuo Lighting Factory, came to Guizhou from a friend.
"At that time, there was only one road that was slightly prosperous." Li Yijiang witnessed the changes in the ancient town in the past ten years. With the development of the industry, the ancient towns are now high-rise buildings, and the hotels and squares are very stylish. It is hard to think that this is just a small town.
In 2011, the total output value of the lighting industry in Guzhen reached 17.1 billion yuan, accounting for more than 60% of the national market share; the total export value was 500 million US dollars, and it was exported to more than 130 countries and regions such as the United States, Japan, Europe, etc. The industrial output value has increased 4.1 times compared with 3.35 billion yuan in 2001. At present, there are more than 20,000 companies registered in the ancient town.
When it comes to the changes in the lighting industry in Guzhen, Li Weijiang feels a lot. He said that in the past, the lighting industry was still very irregular. The market was full of plagiarism and three no products. These three products have very poor workmanship and have a great impact on regular manufacturers. The quality of the employees is also uneven.
In the past ten years, there have been many changes in customers. Li Weijiang said that the current customer awareness of product quality has increased a lot, and more and more attention to the brand, which constantly explores brand awareness, development potential and business follow-up from the time they visit the exhibition. The ideas can be seen.
Despite the growing scale of the industry, the Light Expo is still lively, but Li Weijiang said that there have been fewer people watching the show in the past two years. "To tell the truth, this is not the past."
According to Li Weijiang's recollection, from 2003 to 2006, it was the best time for the lighting business in Guzhen. "At that time, the profit rate was as high as 50%, and now 30% is quite good."
Wang Gaoxiang, manager of another exhibitor Libit Lighting Co., Ltd., also told this reporter that they have been there for several times. Every year, the exhibitors of the Fair will change a small number, new ones, and some dumped ones. This year, there are a lot of people who have fallen out. "There are almost no brands and no innovation."
Domestic sales are not as good as export
In 2009, the second year after the financial crisis, Lingli Home Lighting Factory, which has a history of more than ten years, made an important decision: to create two new brands. One is called "Bolano", which specializes in LED products and is mainly exported. One is called "Megatte". The main products are ceramic lamps that emphasize original design, and are mainly sold domestically.
LED and design are two new paths set by Guzhen Lighting Company for its own development and transformation.
As the person in charge of marketing, Li Weijiang revealed that the brand products that are sold to Europe and the United States, although some companies around are still not satisfactory, but Bolano’s sales this year are unexpectedly “goodâ€.
Li Weijiang believes that the secret lies in Bolano's continuous investment in product development and marketing. Every year, Bolano will produce 15% of sales for design and R&D, 20% for marketing, and 10% for market support. After all, these items account for almost half of sales.
“At the beginning, Bolano was not willing to spend such a large amount of money on design and marketing,†recalls Li Weijiang. At the beginning of 2009, he originally considered to take 10% of sales to do design development, and finally thought about it. 15%. "This was an extremely difficult decision at the time."
In the same year, the "born" "Megatte", the main product is a neo-classical ceramic lamp. Lin Kezhen, Marketing Director of Megat, believes that it is important to stick to his own characteristics. Ceramic lamps and neo-classical style are the mainstays. They can't deviate from this track, but at the same time, they can design some other styles of products in the periphery as an aid to make the products more diverse.
Although the words of a family are not enough to represent the whole, the transformation and attempt of the old-fashioned enterprises of "Lights" is not difficult to see the delicate situation of the transformation of traditional Chinese manufacturing.
On October 18th, the ancient town of Zhongshan, Guangdong, was the site of the 11th International Lighting Fair for four days. A large number of merchants from home and abroad came to discuss cooperation. The reporter also used the lighting industry as a sample to export to traditional manufacturing enterprises. Domestic sales made a series of interviews.
According to the survey of the reporters, compared with export sales, for the domestic enterprises that are transforming domestic sales, they generally face a more complicated domestic market environment, which is also their confusion. In each economic transformation, a group of enterprises are eliminated. At the same time, the surviving companies are also unconsciously upgrading.
Ten years of transformation
The transformation of the ancient town lighting enterprises into a longer time frame, in fact, for a long time before the 2008 international financial crisis, the transformation has already begun.
At the end of the 1970s, the town’s first township enterprise that produced lighting products was successful. A local craze for lighting production was launched. A few years later, a number of couples and brother factories producing lighting products appeared one after another. They purchase parts from the surrounding areas, and simply sell the products to the whole country. In the early 1990s, a street of lighting was formed.
Subsequently, the lighting industry in Taiwan began to shift to the ancient town, along with the capital, technical equipment, management experience and sales channels. At this time, the ancient town government also began to purposely support the lighting industry as a key industry. A large number of Wenzhou merchants came to invest, and the lighting effect of the ancient town lighting industry cluster gradually emerged, becoming the largest production base and sales center for lighting fixtures in China.
On November 8, 2002, China National Light Industry Association and China Lighting Association jointly awarded the honorary title of “China Lighting Capital†in Guzhen. In the second year after the ancient town officially became the lamp capital, Li Weijiang, who is now the head of the brand marketing of Bolanuo Lighting Factory, came to Guizhou from a friend.
"At that time, there was only one road that was slightly prosperous." Li Yijiang witnessed the changes in the ancient town in the past ten years. With the development of the industry, the ancient towns are now high-rise buildings, and the hotels and squares are very stylish. It is hard to think that this is just a small town.
In 2011, the total output value of the lighting industry in Guzhen reached 17.1 billion yuan, accounting for more than 60% of the national market share; the total export value was 500 million US dollars, and it was exported to more than 130 countries and regions such as the United States, Japan, Europe, etc. The industrial output value has increased 4.1 times compared with 3.35 billion yuan in 2001. At present, there are more than 20,000 companies registered in the ancient town.
When it comes to the changes in the lighting industry in Guzhen, Li Weijiang feels a lot. He said that in the past, the lighting industry was still very irregular. The market was full of plagiarism and three no products. These three products have very poor workmanship and have a great impact on regular manufacturers. The quality of the employees is also uneven.
In the past ten years, there have been many changes in customers. Li Weijiang said that the current customer awareness of product quality has increased a lot, and more and more attention to the brand, which constantly explores brand awareness, development potential and business follow-up from the time they visit the exhibition. The ideas can be seen.
Despite the growing scale of the industry, the Light Expo is still lively, but Li Weijiang said that there have been fewer people watching the show in the past two years. "To tell the truth, this is not the past."
According to Li Weijiang's recollection, from 2003 to 2006, it was the best time for the lighting business in Guzhen. "At that time, the profit rate was as high as 50%, and now 30% is quite good."
Wang Gaoxiang, manager of another exhibitor Libit Lighting Co., Ltd., also told this reporter that they have been there for several times. Every year, the exhibitors of the Fair will change a small number, new ones, and some dumped ones. This year, there are a lot of people who have fallen out. "There are almost no brands and no innovation."
Domestic sales are not as good as export
In 2009, the second year after the financial crisis, Lingli Home Lighting Factory, which has a history of more than ten years, made an important decision: to create two new brands. One is called "Bolano", which specializes in LED products and is mainly exported. One is called "Megatte". The main products are ceramic lamps that emphasize original design, and are mainly sold domestically.
LED and design are two new paths set by Guzhen Lighting Company for its own development and transformation.
As the person in charge of marketing, Li Weijiang revealed that the brand products that are sold to Europe and the United States, although some companies around are still not satisfactory, but Bolano’s sales this year are unexpectedly “goodâ€.
Li Weijiang believes that the secret lies in Bolano's continuous investment in product development and marketing. Every year, Bolano will produce 15% of sales for design and R&D, 20% for marketing, and 10% for market support. After all, these items account for almost half of sales.
“At the beginning, Bolano was not willing to spend such a large amount of money on design and marketing,†recalls Li Weijiang. At the beginning of 2009, he originally considered to take 10% of sales to do design development, and finally thought about it. 15%. "This was an extremely difficult decision at the time."
In the same year, the "born" "Megatte", the main product is a neo-classical ceramic lamp. Lin Kezhen, Marketing Director of Megat, believes that it is important to stick to his own characteristics. Ceramic lamps and neo-classical style are the mainstays. They can't deviate from this track, but at the same time, they can design some other styles of products in the periphery as an aid to make the products more diverse.
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