V. 2006-2007: The first operation center of the lighting industry; cooperate with GE strategy to counter the Philips
Operation center
On April 1st, at the Nanjing meeting, Wu Changjiang, the managing director of NVC Lighting, who had been preparing for almost overnight, said very calmly: "There is no one knows, this meeting and this sentence will light the future of NVC. After 15 days, the revolutionary rehearsal of the company will be officially established. The “perfect storm†has already arrived. Wu Changjiang recently revealed some changes to this reporter. content.
It is imperative to attack the third-tier market
Reporter (hereinafter referred to as the record): NVC reform has become the focus of attention of the industry. Everyone wants to know that NVC has grown at an annual rate of 80% in the past six years. Last year, the sales target of 600 million yuan was completed. But why should we make strategic adjustments at this time?
Wu Changjiang (hereinafter referred to as Wu): This is the need for the development of NVC lighting. NVC Lighting was established at the end of 1998. In 1999, it opened its first domestic specialty store in Shenyang. After that, it developed very fast every year and has certain influence in the lighting industry, especially establishing the absolute position in the commercial lighting field. At present, NVC has reached 800 stores in the country, covering almost all prefecture-level cities in China. Therefore, NVC is actively considering new breakthroughs, focusing on the development of county, township and primary markets, and continue to maintain the speed of the lighting industry. However, if the original three-level market is operated according to the original business model, it is obviously not in line with the market development needs. After discussing with many experts, we believe that change is imperative. It will remain unchanged today, and it will be changed tomorrow. Why not?
The results of the change trial are encouraging
Reporter: Before the 35 major operation center was officially established on April 15, NVC has already piloted in some areas. What is the effect?
Wu: Since mid-March, NVC has been experimenting with changes, and launched a new model promotion marketing strategy called “Perfect Storm†in the domestic market. The first batch of pilot operations was carried out simultaneously in three provinces of Zhejiang, Jiangsu and Shandong. The first pilot campaign lasted for 15 days. Our action team implemented netting operations in 109 cities and counties in three provinces and visited thousands of terminal sales outlets. After 15 days of joint efforts, NVC has added more than 100 effective sales outlets in these three provinces, and the first batch of sales has reached more than 10 million yuan.
Reporter: As soon as the trial work is over, you will immediately hold an important meeting in Nanjing to determine the direction of change, right?
Wu: That's right. The trial performance of the three provinces has strengthened our confidence in change and further defined the direction of change. Therefore, everyone agrees that it is all right!
The number of outlets will reach 18,000 this year.
Reporter: What kind of planning did NVC make this year in terms of channel change?
Wu: After the strategic adjustment of NVC, the sales channels will change, that is, from the previous small regional exclusive distribution system to the operation center responsible for the system transformation, the establishment of a provincial-level operation center, the network will be laid to the county level, deep expansion 95% of county-level networks, the number of outlets is planned to reach 18,000.
In the lighting industry, channel changes often give merchants doubts about “crossing the river and breaking bridgesâ€. However, the establishment of NVC's operation centers has not only harmed the interests of distributors, but also helped them to focus on the intensive cultivation of the urban market under their jurisdiction, enhance their service advantages in the local market, and strengthen their competitive advantage in the local market. At the same time, they also reduced their financial pressure and business risks.
Reporter: Is the operation center directly established by the company or is it jointly established by the distributor?
Wu: Both sides work together to create and operate together.
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