"Excuse me, Mr. Wu, what is the "hot cargo" that NVC is competing for?" Faced with the reporter's question, NVC Chairman Wu Changjiang answered calmly: "I think it is a huge market space for the lighting industry." And NVC's unique business model can bring more benefits to international capital." - This is the reporter's interview on August 18th in Beijing Jingxi Hotel to participate in the "Enterprise Independent Innovation and International Venture Capital" Summit Forum A vivid scene of Wu Changjiang, chairman of Shiguang Lighting.
Earlier this month, NVC Lighting and the General Electric (GE) Consumer and Industrial Products Group officially signed a strategic cooperation agreement in Shanghai for a time to become the "focus" of media attention. Wu Changjiang also revealed here that NVC Lighting has obtained relevant approvals from the state to allow it to list overseas. The listing of NVC on the New York Stock Exchange next year has quietly ranked NVC's work process.
The data show that in recent years, NVC's expansion momentum is rapid. In April 2006, Softbank invested in the Chinese lighting industry for the first time. The first $22 million venture fund was officially invested in NVC. Then, NVC received an interest-free loan of 350 million yuan in China. Obviously, in the face of a more open capital environment, NVC has accelerated the pace of capital operation.
"NVC speed"
NVC's sudden emergence has won the respect of the global lighting giant. When Mr. Ke Cilei, the president of Philips, visited the market in China, he had a detailed understanding of NVC's rookie in the Chinese lighting market. After returning to the Netherlands, he gave instructions to Philips Lighting: pay close attention to and study NVC.
Here is a series of amazing numbers: In 2006, NVC lighting sales approached 1.5 billion yuan, continue to maintain growth rate of more than 80%, four times the average growth rate of the industry; in 2007, NVC sales directly pointed to 3 billion yuan. NVC President Wu Changjiang said: NVC Lighting's sales target is to reach 5 billion in 2008, and in 2010, it will be 100 million yuan.
"The most prosperous emerging enterprise in China's lighting industry" NVC's extraordinary rise has sparked the "NVC speed" in the industry.
Another digital interpretation of "NVC speed" is: By the end of June 2007, NVC products have covered six categories, including lighting fixtures, light source appliances, home lighting, outdoor lighting, intelligent lighting, and NVC, more than 60 Series, thousands of varieties. Its “NVC NVC Lighting†(independent brand) has become a leading brand in the domestic lighting industry.
With the image of national industry and the strength of independent innovation, NVC has attracted the attention of people in the industry at home and abroad.
The choice of multinational giants always has the meaning of "wind vane". NVC Lighting, the most dazzling “high-performance stock†in China's lighting industry, was taken by GE, and the signing of its meaning was not limited to the “general agent†strategic partnership agreement, which confirmed the iron rule of the business sector: can not defeat him, then “ Raise "He, make money together and achieve a win-win situation. In NVC, internationalization has always been a subject of intense research. Since its inception, Wu Changjiang has proposed "creating a world brand and striving for the industry first."
Since the beginning of the year, NVC Lighting has started to explore the operation of overseas markets while striving to complete the strategic planning and adjustment of the domestic market. When more than 90% of the enterprises in China's lighting industry are still relying on OEM (OEM) business channels for export markets, NVC gathers international talents, builds overseas marketing systems, and insists on promoting NVC NVC Lighting (independent brands). The intention is very obvious: to make "NVC" a truly international Chinese lighting boutique.
In 2007, NVC's overseas operations center and NVC brand have been widely distributed in Southeast Asia, South Asia, Russia, Central Asia and some European countries. "For Chinese companies, internationalization will not be smooth sailing. There are many reefs under our ships going out to sea. But global economic integration has become a trend, we have to go out." NVC head Wu The Yangtze River seems to have a well-rounded mind.
Equity dispute
To some extent, Wu Changjiang’s thinking is a typical “paradoxâ€. His "pre-targeting, post-analysis", his company's first big or first strong "big barrel" theory, all show a big strategic plan for a growing company. When the up-and-coming talents of this lighting industry made an ambitious proposal to achieve the "Billions of goals" within five years, the whole industry called him "mad", which is considered to be a plan for the near-night night. Wu Changjiang said: "Many people can't read this sentence. This is not the kind of thinking that people are bold and how big is it. We are sure that we can see, feel, and work through our own efforts. The goal, through your own efforts, to revitalize and mobilize various resources, will be able to achieve the goal."
When the "Billions of Goals" was proposed, NVC's sales were only 1 million. The goal for the first year was to make 30 million. In the second year, it would be doubled and 60 million would be done. The goal set in the third year is that sales must exceed 100 million. Some people think it is an idiotic dream. How can a company develop so fast? The result was done again.
NVC is developing at a rapid pace. People have to slap the boss of this company. What is his trick? Frankly speaking, the impression of NVC’s head is not very outstanding. He claims to do business and never believes in fate, but believes in "emotional intelligence." "80% rely on emotional intelligence, 20% rely on IQ", this is Wu Changjiang's business of "light sea". He has always believed that controlling others is not about power, but about charisma. "The international research on a new achievement is the 'fifth level leader'. The more the highest level of leadership, the more extreme the work is done, the person is very modest." Wu Changjiang's view is from a series of Extracted from the "pain".
NVC's eight-year development has experienced many bottlenecks in the growth of all private enterprises in China: the lack of funds, the bottleneck of extensive enterprise management, the bottleneck that the market is difficult to expand, the conflict of values ​​among corporate shareholders, and the unreasonable corporate governance structure. The bottleneck and so on. Many private enterprises are not overwhelmed. Wu Changjiang told an allusion: "You carry gold in your body and fall into the water. If you don't lose gold, your life will be gone." His choice is to temporarily lose "gold" and walk lightly.
In the second half of 2003, Wu Changjiang once fell into the water with "bearing gold", and NVC almost smashed the sand. At the time, NVC had three shareholders. When the NVC brand brought back their rich profits, Wu Changjiang would increase investment, accelerate expansion, and add momentum to the “Billion Roadâ€. The other two shareholders insisted on paying dividends, and the two sides did not give each other. The decision made by the board of directors of three people is obvious: Wu Changjiang lost, he had to take money to leave. However, the suppliers and sellers did not agree. Qi Qi stood on the side of Wu Changjiang. He had already been out of the game. After three days, he regained the company's big cherry. The other two shareholders had to take the money. "At the time, the company was very dangerous. I only lost the 'gold' and kept the company firmly in my hands." Wu Changjiang said.
Although NVC has escaped a disaster, the company's operating funds are stretched. According to the agreement signed by the two parties, Wu Changjiang must pay the other two shareholders 80 million yuan each, a total of 160 million yuan of equity transfer. The capital chain almost broke. It is a $22 million venture capital of Softbank. It is a more than 3 billion discount loan from the strong NVC brand. It is a rapid remittance of thousands of stores across the country, and it is difficult to stop the rescue of NVC. .
In essence, it is the dispute over equity that has transformed NVC Lighting from a local private enterprise into a joint-stock company with an international capital background. Its governance structure, talent structure, management structure, and market structure have all undergone qualitative changes. Throwing Torres completed a thrilling jump.
Capital Operation
"Now the NVC is very rich?" On the evening of July 31, a reporter asked Wu Changjiang in person. Wu Xiao answered: "NVC's 2006 profit statement is 12 million US dollars. More importantly, many venture capital funds and banks are willing to cooperate with us. Softbank can also pursue investment funds at any time."
Another important reason for the analysis of NVC's success is the successful capital operation and the innovation of products and marketing driven by capital. It is very obvious that it is the timely intervention of Softbank venture capital and huge loans that provided NVC with strong financial support and pushed NVC to transform from “brand first†to “brand productâ€. The three major production bases indicate that NVC has successfully completed the national industrial layout. Huizhou production base, Chongqing Wanzhou production base, one east and one west, plus NVC's Shandong Linyi production base under construction in the north, form a strategic pattern of three points and echoes. The South China area has headquarters radiation, Shandong in the north, and Wanzhou in the west. This will further expand the domestic market for NVC, especially to the third and fourth-tier markets. Based on the principle of market proximity, the company will be greatly reduced. Logistics costs, production costs.
NVC values ​​capital, but pays more attention to what is behind the capital. Wu Changjiang said: "I certainly value the financial support of international capital, but I also value the resources behind the funds. After the softbank came in, the company's entire capital level changed, and the whole operation of the company was formal."
The resources behind the capital also include attracting top talents from many industries. Xia Lei, former president of TCP China, joined NVC in 2006; former two generals of Philips - director of lighting engineering channel, director of product management and development of industrial division Yin Yi, director of logistics sales Zhang Qingyu, both "home" NVC . NVC lighting is even more powerful.
Undoubtedly, a company has developed to a considerable scale, and its vision has begun to focus on the only way to go public. NVC came into being in 2005. The plan is to go public overseas, and the action is tight, targeting the New York Stock Exchange. Overseas listing, in addition to financing to do more things, Wu Changjiang is obviously not only money: "The governance structure of listed companies in the United States is very standardized, NVC can regulate the operation of the company through overseas listing, including financial and management systems, etc. So that the company can achieve sound development; at the same time, go abroad and have more opportunities to learn from large foreign companies and multinational companies."
NVC is also operating more foreign capital to enter, thus creating a more open capital structure. It can be expected that the listing will play an invaluable role in promoting the expansion of NVC in the international market. However, NVC’s strategy seems to be a deeper level: it is more willing to use the market value as an asset evaluation reference after listing, and to absorb international big funds and institutional investors.
"We will not give up the brand of NVC." Wu Changjiang said that his "card" is to achieve annual sales of 5 billion yuan. If he has not achieved this goal, he will never enter other industries or sell his own brand. .
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