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Focus on Transformation Development, NVC Plan to Reach the Total Revenue of Ten
2016-08-11 15:33:58
 During the Rio Olympic Games in Brazil, as one of the sponsors of FINA and Chinese diving team, the logo “NVC” of NVC appeared in the dining hall of Rio Olympic Games.

 This reminds the public the “Power Fight” of NVC. If it was not the share holder dispute, as a lighting producing manufacturer, NVC wouldn’t have drawn so much attention. After Wang Donglei, the chairman of Elec-Tech took over the position of chairman and CEO of NVC, the company gradually get rid of the disputes.

 Until now, NVC has got back to normal operation and focused on transformation development.

 The president of NVC Zhang Peng said in the interview in the afternoon on August 9th that the “General NVC” including NVC and other related companies will integrated the resources this years and try to reach the total revenue of 10 billion yuan.

 In recent years, the industry of LED lighting industry grows sharply. OPPLE went public and MLSKMS purchased the light source business of OSRAM. As one of the giants in lighting industry before, how could NVC consolidate its position in the era of LED?

 Industry Chain Integration

 No matter NVC, Elec-Tech or other non-listed companies, Wang Donglei is the controlling person. “The competition of the industry is not only the competition in products and channels, but also the competition in ecology.”

 In 2015, the revenue of NVC was 3.85 billion yuan, the revenue of Elec-Tech was 4.5 billion yuan and the total revenue of the two companies are 8.35 billion yuan. Zhang Peng thought that with the assets of non-listed companies, as long as the “general NVC” can keep the increasing speed of 20%, it is very hopeful that revenue of NVC can reach over 10 billion yuan.

 Zhang Peng said that Wang Donglei is integrating NVC and other related companies into “NVC Group”. The non-listed company will mainly focus on sales channels. Some of the channels are participated and others are controlled by Wang Donglei.

 As the lighting industry moves into the era of LED, the requirement on chip is also increasing. Elec-Tech is now positively developing LED flip-chip technology. Wang Donglei hopes to open up the whole industry chain from LED core parts, lighting sources, intelligent control, electric resources, residential lighting, and commercial lighting to market terminal.  

 In the aspect of research and development, because LED chips will changed every 3 months and LED lighting products will change every 6 months. The chip research and development department will participate in lighting product research and development in advance. The integrating planned  

 In the aspect of manufacturing opto technical platform has already covered 60% product lines of “general NVC” which will increase to 75%.

 In the aspect of sales channel integration, currently NVC has 38 operation centers, 3800 exclusive shops, over 10 thousands dealers. Zhang Peng thought that the channel this year will keep on being optimized. Basing on ensuring the advantage in commercial lighting, enhance the sales ability in residential lighting and increase the income of e-commerce channels in order to realize the mutual development of residential lighting and commercial lighting.

 NVC is very aggressive on oversea market. According to the annual report of NVC in 2015, NVC focused on developing the market of Indonesia, the Middle East, Brazil, Africa and other countries. However, due to the price decrease of LED lighting products, the international sales amount of NVC lighting products decreased 10.1% with an amount of 396.7 million yuan. Zhang Peng said that the next step of NVC is American market.

 1/3 Inventory

 During all the time, brand and channel have always been the advantage of NVC. However, the confidence of distributors are more or less affected by the “dispute” of NVC in past few years.

 “We are now keeping on optimizing plans in order to let distributors provide better service to our customers”. Zhang Peng said that, in the aspect of online channel, after the price war, lighting companies has gradually turned to the competition on brand and service. NVC divided the model of lighting products by online channel and offline channel. The online platform also helps offline distributors to guide the customers.

 On the basis of 3000 exclusive shops of last year, NVC increased near 700 020 experience shops in the first half year of 2016 with an area increased of 50%.

 “The new channel mode is customer-driving. Customers know the information from the internet and have experience at offline exclusive shops. Operators provide better after-sale service.” Zhang Peng believed that the lights need to be assembled. Therefore, it strongly depends on the offline channels. The combination of online and offline is supported by the distributors.

 Even the increase speed of the industry slows down, there are still great potential in LED lighting.

 “LED lights have been promoted in China for 3 years and the inventory is only 1/3.” Zhang Peng believed that under the trend that lights are becoming more standardized and schematized, and many small companies went bankrupt due to the lacking of advantages just like many small factories in Zhognshan. However, the advantages of big brands are becoming more obvious.


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