For Chinese entrepreneurs, there have been many “beautiful†industries in the past decade, and the lighting industry is one of them.
In the ancient town of a small county town under the jurisdiction of Zhongshan City, Guangdong Province, its total lighting output value in 2008 was nearly 20 billion yuan. According to the statistics of the China Lighting Society, the sales revenue of the lighting industry reached 175 billion in 2008. However, the concentration of the lighting industry is very low. Except for several companies such as NVC and Philips, most of the same industry's sales are difficult to exceed one billion.
Ou Pu Lighting, headquartered in Guzhen, is one of the few big ones. It broke through 1 billion yuan in sales in 2006. From 2005 to 2008, OP's compound growth rate reached 48%, making it the largest home lighting company.
In the face of the opportunistic lighting market, more competitors have narrowed the strategy of scale growth to launch a variety of lighting products, and even many companies across the commercial and domestic markets, the secret of the success of Ou Pu is actually only sales Single product? When the company diversified, the company positioned its strategic focus on the ceiling lamp in home lighting, and its sales of 80% came from dealers' specialty stores.
Sell ​​only one product
The Opus, established in 1996, just caught up with the bull market in the domestic lighting industry. Like other companies, what the market is selling, what Op is doing. At that time, there were more than a thousand lighting companies in the ancient town where only Op, and there were almost no differences in products except for the logo. Everyone is making money, but they can't make it bigger. Opp has also been at the threshold of 100 million yuan for three or four consecutive years.
Opp, who had a bad time, began to do subtraction and focused on household products. However, due to the low industry threshold, the competition for home lighting products is still fierce, and Opp has yet to find a breakthrough. At this time, Wang Yaohai made a bold decision to make the subtraction to the end, just pick a class of products to do fine and fine? The ceiling lamp became the core product of Op. In the following ten years, the brand of Op has never been separated from the "ceiling lamp".
“The lighting industry has 16 market segments, all of which need their own focus and investment.†Wang Yaohai, the founder of Opus, believes that if the products are diversified, the sales channels, production processes and target audiences will be different, which will cause the company to disperse resources. Marketing will also look weak.
At that time, the Ceiling Lamps on the market, the market of more than 300 yuan was occupied by foreign companies such as Philips, and the main price of domestic companies was below 40 yuan, and the gap in the middle provided Opport. In 2000, Wang Yaohai officially registered “Oupu†as the company's trademark and product trademark, and established the company VI system (brand image expression system) to unify the image of the store.
"At that time, the industry still belonged to the stage of 'reaching the money,' and a company of a small size was so awkward in the background." A dealer named Chen Xingguang Lighting said to the author.
Sun Xiaohong, director of sales at Op Lighting, admits that the company's R&D team has not invested much in shape and design, but has paid more attention to the effective use of light sources. “The company has spent a lot of effort on the choice of mask materials, in order to ensure the light transmittance, thus ensuring the lighting effect.†The Opal bulbs and other brand bulbs are displayed side by side, allowing customers to see the luminous efficiency under the same wattage. The level is still a reserved program for the Op. This choice is also different from the peers at the time? They are more devoted to the shape, and the market background at that time is that the shape and the light transmittance are very popular in the market.
I don't want "simple shape" and "functionality" to cater to the longer consumption trend in the home lighting market. In the past two years, the Ceiling Light has exceeded the light source (light bulb product) and became the main profit source of Op. In 2000, the first office of Op was established in Wuhan, but by 2003, there were nearly 400 dealers nationwide.
After opening the sales by the ceiling light, Wang Yaohai began to try to make some changes in the channel. In 2003, Op has set up logistics centers in more than 20 key cities across the country to radiate the surrounding areas. These centers were in the hands of dealers in the region at the time, and downstream dealers basically only deal with dealers in the region. Although Opus manages to worry, it can't control the terminal.
Wang Yaohai tried to change this situation. Opu has expanded its sales force and assigned it to various regions and dealers for collaborative management. Sun Xiaohong entered Opp during this period.
The obvious change is the option to recycle the second- and third-tier dealers from the dealers. OP's sales staff began to select dealers in various regions, find new stores, control inventory and so on. The logistics center has become an operation center, which has both logistics and sales management functions. Logistics distribution is still a dealer's business, and Op's tentacles directly extend to the terminal stores.
After successfully collecting the rights from the regional distributors, Opu began to carry out in-depth distribution of the market. The company has entered the market and opened up neighboring counties and townships. This is undoubtedly an adventure. Some single-store sales in the central area have not stabilized. How to judge the market capacity of the surrounding areas? In order to mobilize dealers, there is no doubt that more financial investment is needed.
Sun Xiaohong still believes that the biggest change in this change is to negotiate with the "owner" dealer. The dealers’ concerns are obvious: “The addition of a store in my area will definitely affect the sales of existing stores. 1 The solution at the time was to provide better policies, subsidies and incentives for dealers.
Sun Xiaohong later saw the potential of the market. He saw a store with a monthly sales volume of more than 30,000. After opening a store in the same area, both stores closed nearly 70,000 monthly. By 2006, the number of dealers in Op has increased from nearly 400 in 2003 to nearly 4,000. In 2004 alone, Sun Xiaohong’s sales in Jiangsu Province increased by nearly four times.
Since 2006, OP has extended its product line beyond the ceiling lamps and light sources and entered the commercial lighting market to promote the company to a larger scale.
The Opal store has begun to set up an LCD screen that introduces ceiling lamps, mirror lights, and desk lamps. The dealer's promoters began to receive regular training to understand the matching sale plan.
But as Wang Yaohai was worried about, the re-diversified Opp still faces the risk of distracting energy. Moreover, Philips and Panasonic, which previously sold gold in the commercial lighting market, plan to kill the home city of Changfei Li, which is to launch 300 new home products and 200 specialty stores this year.
Wang Yaohai’s second game has just begun.
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