Is the Chinese market a tempting cake, or a piece of chicken ribs that cannot be shredded? Taiwanese lighting companies are uncertain. When the export market encounters a difficult situation, they look at the overseas while looking at the country and squatting at the crossroads. The martyrs who once defeated the country even made them discouraged. Are they not saved?
MEK wants China
MEK, a Taiwan-owned lighting company, is located in Dongguan, Guangdong. It has more than 2,000 employees and has an annual sales volume of more than 200 million US dollars. It is mainly exported to Europe and the Americas.
Overseas, close cooperation with large supermarket chains such as Wal-Mart, B&Q and Metro, MEK CEOs are accustomed to the rules of the game, trading methods, and even the life of MEK CEOs, with Western colors and styles.
On the surface, he should be satisfied with money, cars, houses, and his own industry. However, the threshold for overseas products to set up products in China is getting higher and higher, and profits are getting lower and lower. He has already realized the difficulty of overseas markets, but he is gradually optimistic about Chinese lighting, and the Taiwanese-owned lighting companies of the League have developed Chinese lighting. Desire and strong thoughts. After all, the Chinese market is so attractive that even overseas companies have entered China, not to mention losing their presence in China, but losing the Chinese market. !
However, he has a lingering fear. At one time, several Taiwanese lighting companies tried water in the early years, but the result was that sadness was greater than happiness and defeat was higher than victory. If he also enters the Chinese market, can he succeed? After nearly half a year of consideration and brewing, he is still determined to gamble. At the beginning of 2006, he began to lay out and officially invited foreign investors.
He learned some of the lessons of corporate failure, and consulted some marketing friends to start formulating market strategies in accordance with the way domestic lighting companies operate.
1. Product portfolio and positioning. Mainly in traditional classical home lighting, positioning in high-end, and subdivided into categories such as concept lights, traffic lights and promotional lights, and specially designed designers, plans to launch 2-3 new products every month. , think of ways to gradually enrich the product line;
2. Price positioning. After positioning the consumer group as a boss or elite with spending power, MEK sets the price of the product 10-20% higher than the similar classical home lighting brand on the market, and the concept light is 50% higher. He pursues value and Classics are not just about sales. This price positioning has his basis - only rich people, but rich people who appreciate appreciation.
3. Mode Positioning: In the first stage, only the primary market or the secondary market with consumption power, set up a store or a monopoly mode, and must find the dealer with the highest level of local stores to operate. The company would rather give high decoration subsidies and a larger profit margin to the dealers so they can make money.
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The strategic outline developed by MEK is very rational and complete. Obviously, this kind of planning has gradually become localized and is specially made for the Chinese market. As the saying goes, the idea determines the way out. The MEK plan seems to let the outside world see the beautiful vision of this Taiwanese lighting brand, and expect it to become a benchmark enterprise for Taiwan-owned lighting companies to enter China.
Lost in execution
MEK is just a typical representative. At present, Taiwan-owned lighting companies are the dominant force in the global lighting market, and are also the products of many lighting lighting companies in China. In Dongguan alone, there are more than 300 Taiwan-funded lighting companies with annual sales of nearly 30 billion, and the average sales volume can reach 100 million. In Huizhou, there are also a number of Taiwanese-owned lighting companies, which have a total sales volume of 60-70 billion a year. No matter the financial strength, product style and type, it is much higher than domestic enterprises, and the strength is not trivial.
After the hardships of policy in overseas markets, in the face of the hugely tempting Chinese market, no foreign-funded enterprises have ever been tempted? ! In the early years, Taiwanese-funded enterprises such as Hilina, Ou Yate, Qianli, Alite, and Xingrui have already tested the country, and the results are both happy and sad. However, there may be only a few brands such as Qianli that have been stubbornly holding their positions. The final impression left by the Chinese market for the losers of Maicheng is: chaos (market chaos, brand chaos, relationship disorder) and poor (poor reputation, poor product) ), unable to adapt, chose to leave.
The history of Taiwanese-owned lighting companies that have tested the Chinese market tells us that they are not losing their ideas, but losing to the implementation process and the deep control of the Chinese market. This is the most realistic and best way to educate the latecomers. MEK also has to beware of this. MEK's trip to China is not the first of the Taiwanese lighting companies, nor the last one.
A closer look at Taiwanese lighting companies that have opened up the Chinese market. Their usual practice is to set up a factory or company that focuses on the domestic market, and assign a Taiwan-funded representative who is better at production management as the general manager, and some directly from the general manager. In addition to domestic sales, some will introduce a local marketing person, responsible for sales execution, the product is the same as the high-end products exported to overseas. This organizational structure is not wrong, but is trapped by the characteristics of the Chinese sales market during the implementation process and cannot be sustained. Their confusion is mainly reflected in the following ten aspects:
1. Why is the reputation of the cooperative dealer so bad?
2. How can the market be confused and controlled?
3. Why do the new lights that are hanged frequently encounter imitation?
4. Why is the professional manager who is invited by high salary so poor?
5. Why is the relationship with the dealer so complicated?
6. Why is the sales policy more complicated than overseas transactions?
7. Why has the after-sales service been messy and cumbersome?
8. How to break down the domestic market?
9. What price should I set for my product?
10. Why do you need to update your product in two or three months?
Several of their living methods
They are trapped in complicated and trivial matters, which is what they have not seen in overseas markets. Therefore, it turns out that under the premise of not fully adapting to China's local characteristics, the power of Taiwanese lighting companies alone is far from enough to control the terminal and conquer the Chinese market. Do they have no cure, no way to go? the answer is negative. Maybe they can try the following six modes to open up the domestic market with the help of outside forces.
The first way to live: self-built channels. Fight like MEK, subdivide channels like MEK, and invest in traditional channels like MEK. However, if we do this, we must have a team that is well versed in the Chinese market and has strong executive power to be able to properly handle the relationship and various problems. The thinking and strength of one person will always be weak.
The second way to live: famous shop. Product quality is one of the biggest advantages of Taiwan-owned lighting companies, and this is actually required by domestic excellent distributors with strong marketing capabilities, but they have not found or are not aware of Taiwan-funded enterprises. As the so-called "famous brand-to-name store", if Taiwan-owned lighting companies want to build traditional distribution channels, they may wish to jointly organize a symposium and promotion meeting of the top 100 national distributors, and have targeted marketing campaigns. Unexpected gains.
The third way to live: focus on high-end. Do not make traditional channels, but seek high-end groups. Taiwan-owned lighting companies do not necessarily have to be traditional channels, but they can focus on high-end projects with strength, products and various relationships, and customize products for lighting projects. It is also a tried-and-test marketing method.
The fourth way to live: borrow chicken and lay eggs. From competition to competition, it is a major trend in the development of the industry. Lighting companies with relatively good domestic marketing networks, such as NVC and Op, are currently in the process of integrating upstream resources. Then, whether Taiwanese-owned lighting companies can consider forming a graft with such brands, import their products into their channels, and formulate good game rules and benefits. In this case, in fact, Taiwanese lighting companies can still focus on product development and production, marketing work is handed over to the cooperative brand.
The fifth way to live: responsibility contracting. Cooperating with a marketing company, entrusting all marketing work to the marketing company, giving the marketing company sufficient points of interest distribution, the form is similar to the rural responsibility contracting system in the early days of China's reform and opening up. Once the operation is successful, in addition to obtaining certain economic benefits, Taiwan-owned lighting companies are more important to obtain the network and popularity of self-operated brands in China. This intangible value is far higher than the tangible benefits.
The sixth living method: share cooperation. Establish a joint-stock cooperative relationship with strong distributors everywhere, and the dealers operate the local market to tie the interests of both parties together. This is actually an upgraded version of the first and second living methods.
Of course, these six methods have their own advantages and disadvantages, and all rely on Taiwan-owned lighting companies to measure and study themselves. In short, looking at today's market, MEK, Garnier, etc., Ouyate is also back, Qianli, Xingrui are still alive, more and more Taiwanese lighting companies gather in China. Can they change the fate of "doing death in China" and get the seats they deserve? We hope to see positive results.
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