Premier Wen said at the beginning of the year: "This year will be the most difficult year for enterprises." Not long ago, there were reports that 76,000 SMEs went bankrupt in the first half of this year. Many people are yelling that "the winter of business is coming", and it is necessary to prepare cotton coats for the winter. What is the impact on NVC on the basic situation that raw materials and labor costs are rising?
Wu Changjiang: This situation of this year, I have already expected it 10 years ago.
Entrepreneurs must have a strategic vision. What is strategic vision? The strategic vision is to have a vision of peace of mind. NVC products were very popular 10 years ago, and dealers are waiting for the goods in front of my factory. Most of the time, the money is first paid to my NVC account, and it can be picked up after one month. At that time, the gross profit was not at the current level, and most of them were around 60%. This is very high. However, in this context, we have no brains, and we only seek profits without long-term interests. At that time, I was forced to invest almost all of NVC's profits in R&D and brand building. This was not understood by many people at the time, including my executives. When I was in the Spring Festival in 2000, I borrowed money from my friends for the New Year, because all the money was invested in marketing and brand building.
Looking back now, if there is no original investment, it is hard to imagine whether NVC will encounter the same difficulties today. Therefore, I believe that doing business should have a strategic vision of being prepared for danger.
It seems that NVC products also use steel.
Wu Changjiang: Of course. And the amount is still very large. For example, ceiling lighting, energy-saving downlights, and energy-saving lamps are all made of high-quality steel.
Chinese businessman: How does NVC respond to rising raw material and labor costs?
Wu Changjiang: We believe that this price increase is a time to test the comprehensive strength and resistance of enterprises, and it is also the beginning of adjusting the standardized operation of enterprises. Of course, the various costs are rising, then the price of our products is also raised accordingly. Through years of support and investment in customers and the market, we have certain brand advantages in the industry. Therefore, our business investment has shown great resistance to pressure for many years. What's more, steel prices are rising, oil prices are rising, labor costs are rising, environmental requirements, energy conservation and consumption reduction requirements, and many of these factors that lead to rising costs are not for the NVC family, but for all companies, or even global growth. . At this time everyone is at the starting line, to see who can digest these factors, who can gain the competitive advantage. For NVC, on the one hand, we optimize the process, save internal expenses and increase market input; on the other hand, we strengthen the independent research and development, increase the added value of products, and enhance the core competitiveness of enterprises. On July 8, we invested tens of millions of yuan to establish the NVC Lighting R&D Center in Shanghai, aiming to develop new energy-saving lighting fixtures, light sources and electrical appliances to provide core power for the continuous development of NVC.
I came to the Bird's Nest yesterday to watch the opening ceremony of the 29th Beijing Olympic Games. Many light source products and lighting products on the court were NVC products. I was very proud of that moment. NVC lighting products can enter the Olympic venues, and it is worthwhile to explain that our investment in technology in recent years is worthwhile.
Listing is mature
Is there any price for NVC products?
Wu Changjiang: If a company has no profit, it is irresponsible to shareholders and is not responsible for the development of the company. We carried out a price adjustment in March of this year. In the early stage, we sorted out different product series. According to different product series and different consumption levels, the price increase range was different. Overall, after the price adjustment, the market is calm, dealers can accept, consumers can accept, the market reflects good. The key is that you have a brand to have a degree of trust, and whether your brand is important in the customer's mind. If your product has technical content and meets the requirements of energy saving and environmental protection, the market will be able to accept it. The appropriate price adjustment can be understood.
This raw material rise seems to have little effect on NVC?
Wu Changjiang: The impact is not big. In the first half of the year, NVC's sales performance maintained a high growth rate, and its sales performance reached our target. In the first half of 2008, it increased by 76% compared with the same period in 2007, far exceeding the average growth rate of the industry. Overseas sales were better, with a year-on-year increase of 300%.
How did NVC enter the overseas market?
Wu Changjiang: For these developing countries in Southeast Asia, NVC started its own brand from the beginning, and entered the market with the advantages of independent brands and quality products, opened specialty stores, established independent sales channels, and gradually divided and occupied the city. In the European and American markets, our strategy is to first OEM. Learning management, learning game planning, paving channels, once the conditions are mature, they will play their own brand, which requires a process.
The industry is very concerned about the pace of listing of NVC.
Wu Changjiang: We have prepared everything for listing. It can be said that it can be listed at any time. However, the current capital market is highly volatile. From the perspective of safeguarding the interests of investors, we will choose a suitable time to go public in the right place.
Will NVC be listed for the purpose of making money?
Wu Changjiang (laughs): We are not short of money. The credit granting funds we only support channel customers this year will reach 200 million yuan. The purpose of the listing is to enable NVC to achieve better and more stable development, especially in overseas markets.
Those who rely on the blood and sweat of crushing workers do not fail.
Which foreign investors are currently introduced by NVC?
Wu Changjiang: After we officially cooperated with Softbank in 2006, the company's operation was more standardized, the process was clearer, and the development was healthier. This is invaluable for NVC's introduction of talent and expansion. It is also a great driving force for NVC to enter the international market in the future. At present, we are still negotiating with other famous international venture capital companies. It is believed that it will promote the development and expansion of NVC's new round.
Will there be a feeling of falling power?
Wu Changjiang: If the business operator has an absolute desire to control the enterprise, then he is irresponsible to the enterprise and irresponsible to the employees of the enterprise. In a sense, it is also irresponsible to the society. Although the introduction of international venture capital diluted my personal share ratio, we have introduced their international management experience to strengthen the management of NVC. Therefore, it is beneficial to the long-term development of NVC, because they not only have good resources, but also have management advantages. NVC should develop into a respected national brand, and it needs constant improvement. Only by continuous improvement, NVC can mature and NVC will grow into a truly influential enterprise in the domestic and international markets. Their participation can just improve this. If the business you run is healthy and benign, and your performance and profits are up to standard, no one will interfere with your position. Of course, if you fail to achieve performance and profit indicators, even if you have a controlling stake, it is meaningless and unfavorable to the development of the company. Therefore, whether I have absolute control over individual stocks is relatively weak. I think it is not important to support the development of the company as long as it is beneficial to the company.
On some major issues, the board of directors gave me a veto. The purpose of this is to make NVC more stable in the development process. As the chairman of the board, the proposed plan or strategy must have sufficient scientific basis and conform to the interests of the company's development, and the board of directors can pass.
Chinese businessman: How do you view this round of “enterprise winter†that is widely recognized by the industry, how will NVC spend the winter?
Wu Changjiang: In the past, there were some bosses who said that the truth was not pure. They hoped to rely on the hard-earned money of the workers to collect money for their own enterprises. Such enterprises would not be closed down. Workers work hard, some companies work more than 12 hours a day, or even more than 16 hours a day, the product technology is not high, do not have their own brand, are not willing to invest, relying on low-cost labor and national preferential policies to maintain enterprises Survival, lack of attention to the future development concept, once the cost of raw materials and labor rises, the enterprise has only one bankruptcy road. The bankruptcy of such a company is not a bad thing for the future development of China's economy.
As for how NVC spent such a special period, I think it is still normal so far, and there is nothing to adapt to. Economic development has its own internal laws, and economic costs will also have cyclical fluctuations. These are normal economic phenomena. The key point is that enterprises must have the "winter" mental preparations in the "spring", and they can stay in danger and prevent problems before they occur, in order to be able to change in order to be in a dominant position in the rapid changes of the market.
Editor: China Lighting Network Wasteland
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