After 10 years of rapid development, the market pattern of the lighting industry has basically taken shape. Although the brand status and channel advantages of leading enterprises have been leading, with the rapid development of emerging light sources such as LEDs, a large number of enterprises have begun to seize their favorable position, which has a tendency to replace traditional light sources. Coupled with the invasion of the domestic market by international giants such as Philips, leading companies have to change their strategies, seek scale expansion, and step up the pace of development in the emerging light source market.
And some companies that have made outstanding achievements in some areas have begun to step up industrial upgrading. Shanghai Yaming, a professional light source, is a good example of commercial lighting. Yuan Guangde, who has always been a professional image of room lights, has adapted to the market demand and began to transform into office lighting. Power companies continue to enrich product lines, expand production capacity, and expand their scales in order to obtain more profits.
Under the efforts of the strength of the lighting industry, the new industry pattern has already emerged: the integration of big brands will be higher and higher, and the comprehensive brands that accommodate various categories of products will be more and more; with a richer product line. The brand will continue to expand its production capacity, and the establishment of a factory in the enclosure will become a market behavior that matches the leading enterprises.
This article reveals the unique expansion behavior of the lighting enterprise development process.
Opportunities in the crisis
When most companies are thinking about how to hold their own production line for the winter, some people think of expansion.
Under the impact of the financial crisis, the current raw material prices and fixed asset investment costs have begun to decline significantly. According to statistics, the construction cost of the factory has decreased by 20%-30% compared with the same period of last year, and the equipment cost has decreased by 30%-40% compared with the same period of last year. This is undoubtedly an excellent opportunity for enterprises to implement low-cost expansion.
When the shot is shot, the shot is shot quickly, and the lighting company has begun to seize this opportunity to increase investment and seek longer-term development.
In fact, in the economic downturn, the benefits of scale expansion include the following:
First, it is easy to recruit. After the Spring Festival, corporate recruitment is often tense. However, recruitment is much easier this year, and the cost of recruitment has also declined. This is a significant saving in labor costs for companies with large scale expansion.
Second, the supporting equipment is cheap. Taking advantage of the current market price decline, companies and equipment related to procurement can do it themselves. This will not only enrich the product line, enhance the competitive advantage of the company, but also earn more profits.
Third, the government has a strong support. In the lighting industry, Yunxiao County in Fujian is a good example. Driven by the government, enterprises have the support of capital loans, transportation, freight, recruitment, and even employee training, and the government will have thoughtful consideration. This is a good time for companies looking to scale.
Industry upgrades enhance the stamina
After the market changes in 2008, lighting companies, especially brand strength enterprises, are more and more aware of the fierce competition in the industry. Only by continuously strengthening their own strength and following the pace of the times can they gain a foothold in the torrent of great changes. .
On the basis of a rich product line, plant expansion is required to increase production capacity. The form of expansion has the expansion and migration of the factory. Not only does TCL set up a factory in Wuhan, Yuan Guangde purchased a new factory for the new product line, and many enterprises in the ancient town began to expand the plant this year. For enterprises, the increase in factory buildings means an increase in production capacity.
It should not be overlooked that another important task of scale expansion is to recruit talents. Some time ago, under the impact of the economic crisis, some large companies and large groups at home and abroad went out of business, contracted and laid off employees, and a large number of talents were forced to leave their jobs. At this time, many companies seeking to expand their scales have repeatedly set their sights on the future, quickly recruiting talents, and upgrading talents has become an important fulcrum for scale expansion.
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Three wave of expansion of the scale of the lighting industry
During the period of 2003 and 2005, some lighting companies have greatly improved their strength in the initial stage of industry development. As the market demand expands, enterprises begin to challenge production capacity. Enterprises represented by the state and TCL have acquired and acquired factories in the Mainland.
At that time, there were two brands under the state, namely Huaqiang and Yandian. In order to meet the product supply and open the national market network, the state established factories in eight cities in Hunan, Hengyang, Henan and Chongqing. In 2003, TCL, the leading company, acquired the TCL Lighting (Baoji) Co., Ltd. in cooperation with Northern Lighting.
After 2005 and 2005, the strength enterprises represented by NVC and Sanxiong Aurora began to make rapid progress. On the one hand, product quality and brand were greatly improved. On the other hand, their network channels were basically rolled out. This is their The scale expansion has paved the way.
The staking has become the main action of this period. The most outstanding performance is that in 2006, NVC established lighting and lighting industrial bases in Wanzhou, Chongqing, Linyi, Shandong, and Zhangzhou, Zhejiang, and formed the five major industrial bases of NVC in Huizhou. During this period, Sanxiong Aurora built a factory in Chongqing; Hailing Lighting and Pilot Lighting were all expanding their scales, and the factory was relocated to Jiangmen; the lighting on the site was located in Xiaosheng Yusheng Industrial Zone.
After the baptism of the financial crisis in 2008, in 2009, under the fierce competition of market sluggishness and reduced profits, the brand of the lighting industry began to break through. It is hoped that through its own industrial upgrading, it will once again make a new leap from scale expansion.
During this period, lighting companies experienced a scale expansion with product line extension as the main demand. In 2008, leading companies such as NVC, Opp, TCL, Honeywell Langen and others entered the LED industry. Shanghai Yaming advanced into commercial lighting, Sanxiong Aurora entered the electrician, etc., and the strength companies have extended their product lines, and their scale expansion is their The breakthrough point of strength improvement. As a result, TCL relocated the factory to Wuhan, and the original Huizhou plant specialized in producing LEDs; the former professional lighting fixtures also started to set up factories in Wuling, Jiangxi, to produce light source products.
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