With the acceleration of China's urbanization process, the lighting industry has become another ultra-billion-dollar industry outside the office supplies industry. In 2006, the market capacity has exceeded 200 billion yuan.
However, in the face of such a large capacity, in addition to the sales of several foreign brands such as Philips, which exceeds 1 billion yuan, domestic companies only have more than 1 billion yuan in Opt and NVC; and most companies are only around 100 million yuan. The door is closed.
Because of this, the competition in the lighting industry has just begun, Morgan Stanley also began to pay close attention to this industry, and the debut of the banquet began to directly challenge Op and NVC, perhaps indicating the beginning of the industry war!
Op: The challenge of the home empire
Compared with other industries that have entered the mature stage, the home lighting industry is a lot of companies, but the strength is not strong, the scale is small, the industry concentration is not high, and no company in the industry has a market share of more than 2%.
Increasing market competition is also gestating the dark tide of the eve of the industry's integration hurricane.
Op, who is in the status of home lighting, is facing a new round of challenges!
As the leader of the industry, Op has to bear the challenges from many aspects, the state's macro-control of the real estate market, the implementation of energy-saving and environmental protection policies, changes in consumer demand, the participation of many competitors, the integration of upstream and downstream resources, etc. It is worthy to be taken seriously by Op.
Huatai Lighting, as a rising star, relies on innovation in product segmentation and product design, with a glass lamp that broke through 100 million in one fell swoop. In 2006, it produced and sold 160 million yuan, becoming the absolute leader in the field of glass lamps.
If Op is going to get involved in these areas of business, how will it be dealt with in the face of many "big fish in small ponds"?
The pressure of scale is not only reflected in the product line construction, but also in the various levels of supplier management, sales channel construction, and communication promotion.
For example, in order to meet the scale expansion needs of the product line, a complete supplier management system must be established. With the integration of the industry value chain, the upstream part of the expansion-conscious manufacturers no longer meet the OEM's meager profits, and gradually implement the backward integration strategy; while the downstream part of the stronger large retailers to stabilize the product purchase channels and Reducing costs will directly invest in setting up factories and implementing a forward integration strategy.
Therefore, in the brutal competition, Opp formed a strategic alliance with upstream and downstream partners to continuously improve the market competitiveness. Compared with other companies focusing on a certain business field, it must bear more risks.
At the same time, Ou Pu's cohesiveness also has problems. Ding Biwei, the former vice president of marketing of Ou Pu, left to create Heli Bocheng Lighting (China) Co., Ltd., and the former Oupu Marketing Director Hao Xilong operated Haohao Lighting. These executives or backbones who have made significant contributions to the company have successively left. Due to the operation of the lighting industry and the long-term and weak points of Opus at different nodes, this may be the wish to become bigger and stronger. Have to really pay attention to the problem!
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