NVC Lighting: Difficult to break the OEM dilemma

(Text / high-tech LED reporter Tang Guirong)

In the last issue of this article, "NVC Lighting: LEDs are indefinite or panic-free" article, reported the dilemma between NVC lighting and LED lighting and traditional energy-saving lighting, and for a long time in the future, traditional energy-saving lamps are still The strategic focus of NVC Lighting.

On the 24th of last month, NVC Lighting and the National Development and Reform Commission's Green Photo Project Office held a signing ceremony for the signing of the “China's phase-out of incandescent lamps and accelerated promotion of energy-saving lamps” project at the NVC Industrial Park in Huizhou. The signing of the contract was also interpreted by the industry as a strategic deployment of NVC Lighting's hopes of deepening small and medium-sized cities and rural traditional energy-saving markets.

According to the reporter's understanding, due to the capacity of NVC Lighting's two factories in Zhejiang and Huizhou could not meet their sales demand, some of the company's products still adopt OEM mode OEM production.

In the field of LED lighting, NVC has more than 30 OEMs in China, and 10 of them are already in mass production. According to a traditional lighting company executive, "For OEM brands, price, product quality, and operating mode have always been a lingering pain."

In the face of the illuminating LED lighting business, NVC Lighting is still unable to get rid of the dilemma of the OEM model.

In this regard, NVC Lighting Brand Promotion Director Wang Shiyong denied it and told reporters: "At present, all traditional lighting and LED lighting of NVC Lighting are produced by themselves."

Channel fare increase by over 50%

In March 2011, NVC Lighting released the first six series in the Huizhou base for the first time, and more than 100 varieties of LED lighting products in more than 100 varieties. Among them, LED light source, LED ceiling light, downlight series, LED grille spotlight, LED track spotlight, LED outdoor products, etc. cover almost all types of LED lighting applications circulating in the market.

Without any warning, NVC Lighting suddenly launched 600 LED lighting products, which caused a lot of time in the industry. According to NVC Lighting's OEM Yunxiang (a pseudonym), he told the high-tech LED reporter: "In fact, this is just a means of publicity. In fact, all LED lighting products of NVC are currently produced by OEM."

"At this stage, I am involved in LED lighting, and I don't have much money. I just want to tell the outside world that NVC Lighting is doing high-tech LED products. This is more from the perspective of capital market. For the benefit of some shareholders." A securities industry insider told the high-tech LED reporter.

According to the reporter, NVC Lighting currently has a research and development center of 200-300 people in Shanghai. Although the company has been working with universities such as Peking University and Tsinghua University on LED technology, there has not been any progress until now, and the related technologies have not yet been industrialized.

"NVC lighting has not put much energy on LED products, 600 LED lighting products are just a display," Yunxiang said. "Now the market is gradually divided into two directions, brands and manufacturers. LED lighting applications The product has high technical requirements. NVC has not been able to establish all LED lighting production lines in a short period of time, and OEM is the best strategy for its rapid cutting into the LED lighting market."

Wu Changjiang, chairman of NVC Lighting, once said, “In the field of LED lighting, resources should be integrated to make full use of brands and channels. Why should we produce it ourselves?” Since 2010, NVC Lighting has started to select 30 in the country. -50 OEMs, layout LED lighting product line. According to the investigation of the reporter, there are currently less than 10 of these OEMs.

Not only NVC, but also traditional lighting companies like Foshan Lighting and Midea have adopted the OEM model in the early days of transforming LED lighting. For these traditional lighting companies that win by channel, the biggest advantage is obviously not the production link.

In fact, these traditional lighting companies that are keen on the OEM model are also interested in the high profits of LED lighting products. In the LED lighting market chain, OEMs account for 15% of profits, brand manufacturers account for 30%, first-class agents account for 15%, and second- and third-level operators are around 8-10%. Through the OEM model, the price of LED products in the hands of consumers has been increased by more than 50%, and some even as high as 60%. Brand manufacturers are undoubtedly a big player in this profit chain.

After several LED lighting products, the market price is naturally high, which ultimately affects its marketing. "Compared to traditional lighting, LED lighting products that have not had any price advantage, now it is even worse." Yun Xiang calculated the account for the reporter, NVC lighting 100 million yuan LED lighting products spread to the existing More than 3,000 marketing outlets, each with less than 30,000 yuan in sales. After randomly investigating several NVC dealerships, the reporter found that most of these products are still in stock due to lack of price advantage.

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