Wang Donglei: The Opportunity And Challenge Of Chinese Lighting Enterprise Globalization

- Sep 23, 2018-

Over the past 100 years, three major international lighting giants, philips, osram and GE, have monopolized the global traditional lighting market with their accumulated technology patents in the field of traditional lighting, making the Chinese enterprises with strong cost advantages lose their voice for a time.

However, in the LED era, the patent of traditional lighting technology became waste paper. The technology reverse and brand rise of Asian enterprises, especially Chinese lighting enterprises, made the monopoly of international giants face severe challenges.

Here, philips lighting has just completed its strategic exit;

Over there, the power downturn has left GE struggling to make the transition, forcing it to sell its old lighting business.

In march last year, the century-old store osram sold its light source business at a lower price. In August this year, it once again announced that it wanted to sell the lighting business to push forward the strategic restructuring.

China is the world's largest producer of lighting.

Upstream, China's LED chip technology level is catching up with the world.

Middle reaches, there are such mature giants as wood forest, and there are also such up-and-comers as zhaochi. The huge packaging industry supports the development of the industry.

Downstream, the ancient town, the lighting capital of China, with tens of thousands of lighting enterprises shining brightly, occupying 60% of the global market share.

There are also leading enterprises like leishi group, which have achieved the technical level of the international first echelon in the field of flip chip, and have a leading scale in the application field of lighting lamps.

After decades of accumulation and survival of the fittest, China's lighting industry has a huge enterprise foundation and increasingly strong market competitiveness.

Therefore, the Chinese lighting enterprise's globalization road, is irresistible.

However, Chinese enterprises should not overlook the risks and challenges associated with globalization when they are advancing rapidly.

Overseas merger and acquisition is an opportunity, but it needs to be prudent to "go to sea". Enterprises should do a good job in "self-protection".

According to wang donglei, chairman of reith group, overseas m&a is an opportunity given to Chinese companies by The Times.

For a business ready to exit, the surface data is dressed up to get a good price.

Back then, it was hard to escape the red ink of Siemens' $1 billion dowry for benq, or of TPV's acquisition of philips's TV business.

In recent years, Mr. Wang said, the company has been involved in a number of merger negotiations, some for two or three years, and spent tens of millions of dollars in financial costs, but ultimately decided to give up.

Though the lanky camel is bigger than the horse, the real risk needs to be weighed carefully.

In recent years, Chinese LED companies have sprung up and are regarded as hypothetical competitors by many international giants.

European and American giants often bludgeon Chinese companies by holding up the "big stick" of patents and intellectual property to prevent them from grabbing global market share.

In February 2015, a lawsuit was filed in the United States by a wholly owned subsidiary of philips, Lumileds, alleging that the company and its executive vice President, Chen gangyi, formerly of Lumileds, had stolen trade secrets and sought compensation.

After three years of litigation, the other party once in a variety of means, including ignoring common sense, can maintain a small USB copy Lumileds thousands of classified documents, modify their definition of trade secrets, bdo, the trial were denied visas to the us embassy could not testify was Lumileds distort to dare not to testify, in an attempt to finally let enterprise suffered huge damages.

According to wang, the legal environment and malicious litigation overseas is terrible, and the road to globalization will never be smooth.

Chinese enterprises should prepare surplus grain, prepare hard and have strong psychological quality.

Of course, Chinese companies should not be afraid and confident in the face of malicious lawsuits and unfair rulings overseas.

At present, d 'holonda is actively taking measures to file complaints and appeals in the United States, as well as counterclaims at home.

The development of overseas markets should attach importance to the international talent pool of experience

Due to China's huge domestic demand market, most Chinese enterprises struggle and grow up at home, and there is a serious lack of overseas talent reserve and market experience.

On the contrary, as the domestic demand market in Taiwan and Japan is very small, enterprises need to explore overseas markets when they reach a certain stage of development. Therefore, their overseas talents are very rich, and the management generally has the operation experience of overseas markets.

Since 1996, dehaurrendar group has been engaged in the export business. It is the first group of pioneers to enter the overseas market.

In recent years, reith group's globalization has also achieved remarkable achievements, ranking in the top ten in the UK, and is one of the top ten fast-growing lighting enterprises in the United States, with its profits in the United States exceeding 100 million RMB.

Still, Mr. Wang, who is at the helm of both leith lighting and DE haolunda, said that the company still feels that its biggest development shortcoming in the future is not technology, design or manufacturing capability, but a shortage of talent.

Talent has everything.

If at the current pace of industrial globalization, it is obviously too late to cultivate talents by enterprises, so enterprises should learn to use and harness talents from globalization.

Chinese enterprises should make steady progress in the process of globalization

As China's economic growth continues to slow, the lure of overseas markets is growing.

In the process of globalization, Chinese enterprises should not expect to accomplish things at one stroke, but make steady progress:

Wang believes that in the process of globalization, for Chinese enterprises to make steady progress, first of all, the monopoly of core technologies and core capabilities is crucial.

In the field of LED, chip is the core technology.

In lighting, design is the core competency.

Second, business thinking needs to be radically changed.

In 2005, the "Chinese shoe-burning" incident in Spain and the story of a jewish restaurant opened the market to see that Chinese companies were used to quickly encroaching on the market by "competing on the same quality, at a lower price," an approach that tends to destroy value rather than create it for an industry.

Integrating high-quality global resources and seeking win-win path with all stakeholders are the correct development approach of globalization.

At the same time, adhere to quality strategy.

In China, none of the imported goods is based on low prices.

The same is true of Chinese products abroad, where success and respect are impossible to achieve by price and cost.

Since last year, the production standards of reith products have been in line with those of Japanese matsushita standards from philips standards.

To go global, wang said, we need to do the best products, the best design, the best service.

In addition, China has a huge market of 1.3 billion people. Although the domestic economy is slowing down at present and the industry is facing fierce competition, lighting enterprises are engaged in the bright industry and produce the needed products. Lighting industry is still the most promising industry.