Wang Donglei: opportunities and challenges for China's lighting enterprises to globalized

In the past hundred years, the three giants of international lighting, PHILPS, OSRAM and GE, monopolized the global traditional lighting market by relying on the technology patents accumulated in the traditional lighting field, so that Chinese enterprises, despite their strong cost advantages, were once gloomy.

In the era of LED, the patent of traditional lighting technology has become waste paper. The technological counterattack and brand rise of Asian enterprises, especially China's lighting enterprises, have made the monopoly of international giants face severe challenges.

On this side, PHILPS lighting has just completed the strategic exit; over there, the depressed electricity business has caused GE to get bogged down in the Transformation Road and have to sell ancestral lighting business. In March last year, OSRAM sold the light source business for a hundred years. In August this year, it once again declared that it wanted to sell the lamps and lanterns industry to promote strategic restructuring. The curtain fell and the industry pattern changed drastically.

China is the largest power producer in the global lighting industry. Upstream, China's LED chip technology is increasingly catching up with the world; the middle reaches, such as the mature giant of the wood, such as the rising star of trillion Chi, and the huge packaging industry supporting the development of the industry; the lower reaches of the light town of China lighting capital, tens of thousands of lighting enterprises are bright stars, occupying 60% of the global market. Share;

There are also leading enterprises like upstream and downstream industry chain integration such as the Rex group, which have reached the international first tier technology level in the field of flip chip, and have the leading scale in the field of lighting applications. With decades of accumulation and survival of the fittest, China's lighting industry has a huge enterprise foundation and increasingly strong market competitiveness. Therefore, the globalization of Chinese lighting enterprises is irresistible. However, when Chinese enterprises are advancing vigorously, they must not despise the risks and challenges associated with globalization.

Overseas mergers and acquisitions are opportunities, but we need to be cautious about "going out to sea" enterprises to do well in "self protection".

In the view of Wang Donglei, chairman of the group, overseas mergers and acquisitions are opportunities for the Chinese enterprises in the era. A company ready to quit will be carefully dressed to get a good price. Looking back at the beginning, whether SIEMENS mobile posted 1 billion dowry to BenQ or AOC's acquisition of PHILPS TV business, it is difficult to escape the bad luck of losing money.

Wang Donglei said that in recent years, Rex also participated in many mergers and acquisitions negotiations, some talked for two or three years, and spent tens of millions of financial expenses, but finally decided to give up. Though thin and dead camels are bigger than horses, the real risks need to be carefully weighed. Behind the scenes, they are afraid of hidden traps.

In recent years, China's LED enterprises have sprung up and are regarded as hypothetical competitors by many international giants. In order to prevent Chinese enterprises from grabbing the global market share, European and American giants often intimidate the patent and intellectual property "big stick". In February 2015, de ho run Da received a lawsuit initiated by Lumileds, a wholly owned subsidiary of PHILPS at that time, in the United States, accusing Chen Gangyi, the executive vice president of the company and former executive vice president of the company (Lumileds). In the 3 years of litigation time, the other side has used various means, including ignoring the common sense, to insist that a small USB can copy thousands of confidential documents on Lumileds, modify their definition of commercial secrets many times, and the important witness of Dehao run Da is refused to go to the United States visa by the US embassy, but can not be testified in court, but is distorted by Lumileds. Dare to appear in court to testify, trying to finally make the enterprise suffer huge compensation.

Wang Donglei believes that the overseas legal environment and malicious lawsuits are extremely terrible, and the road of globalization will never be smooth sailing. In order to prepare surplus grain, Chinese enterprises must prepare well and have strong psychological quality. Of course, in the face of malicious litigation and unfair rulings abroad, Chinese enterprises should not be afraid and confident. At present, de Hao run Da is actively taking measures to bring appeals and appeals to the United States on the one hand, and to counterclaim in the domestic arena, arguing and never compromising.

Attention should be paid to international experience and talent pool in developing overseas markets.

Because of China's huge domestic demand market, most of China's enterprises are struggling and growing up in China, and overseas talent reserves and market experience are seriously lacking.

On the contrary, as Taiwan and Japan, because the domestic demand market is very small, when the enterprise develops to a certain stage, it needs to open up overseas markets, so their overseas talents are very rich, and management has generally had the operation experience of overseas market.

Since the 96 years, the company has been the first group to navigate the overseas market. The bread maker, oven and coffee maker are the world's leading companies. In recent years, the globalization of the Rex group has made remarkable achievements. It ranks the top ten in the UK, and is one of the ten fastest growing lighting enterprises in the United States, with a profit of over 100 million yuan in the US.

Wang Donglei, as the helm of NVC and steward, however, the company still feels that the biggest shortcoming of the future development of enterprises is not technology, not design, but also lack of manufacturing capability, but a shortage of talents. There are talents and everything. If it is obvious that it is too late to train talents by enterprises according to the current speed of industrial globalization, enterprises must learn to use and control the talents of globalization.

Accelerating the process of globalization and accelerating the steady progress of Chinese Enterprises

With the continuous decline of China's economic growth rate, the temptation of overseas markets is bigger and bigger. In the process of globalization, Chinese enterprises should not go all in one step and move steadily forward:

Wang Donglei believes that in the process of globalization, Chinese enterprises should make steady progress. First of all, the monopoly of core technology and core competence is very important. In the field of LED, chip is the core technology; in the field of lighting, design is the core capability. Secondly, business ideas must be changed. In 2005, the story of "burning Chinese shoes" and the story of a Jewish restaurant opened in Spain, and let the market see that Chinese enterprises were accustomed to quickly occupy the market by means of "homogeneous competition and low price win", which is often destroying value rather than creating value for an industry. It is the correct development idea of globalization to integrate global high-quality resources and seek the road of win-win with all stakeholders. At the same time, adhere to the quality strategy. In China, none of the imported products is won by low price. The same is true for Chinese products overseas. If we want to occupy the foreign market, we can not win and respect by price and cost. Since last year, the production standard of Rex products has been matched from the PHILPS standard to the Panasonic standard of Japan. Wang Donglei said that to go to the world, we must make the best products, the best design and the best service. In addition, China has a large market of 1 billion 300 million people. Although the domestic economy is slowing down and the industry is fiercely competitive, lighting enterprises are engaged in bright business, producing just needed products, and lighting industry is still the most promising industry.

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