The transformation of China's lighting industry

After more than 20 years of development, China's lighting industry has become increasingly mature. Its industrial status is constantly rising, market share is also increasing, there is a huge room for growth, and it has been called "sunrise industry." However, with the development and convergence of the lighting lighting industry, transformation and upgrading have become the “chaotic” in the industry. In fact, transformation and upgrading are indeed the only way to soar into domestic and even international markets.

However, transformation and upgrading cannot stop on the verbal front and must be implemented into action. However, according to China's current situation, there is a serious lack of top-level design. Enterprises have no methodologies that can be manipulated. Most of them are “crossing the river by feeling the stones.” Continuous trial and error has led companies to face one problem after another. The good wishes are only Can stay on paper. Especially in the face of the new type of LED industry, so one by one lighting lighting companies that shouted transformation and upgrading slogans fell.

Crisis I: Frogs in warm water, careful "euthanasia"

In the past decade or so, we have often seen some international giants face the threat of “insurmountable status” and face the embarrassment of splitting market share. We can even see some industry giants that once dominated the world going downhill.

This is a serious topic for entrepreneurs who are still ups and downs in the business world, marketers thinking deeply and watching. We Chinese lighting lighting entrepreneurs must not gloat, maybe someday this "culprit" will come to us, this is only a "time difference."

Indeed, it is not terrible that problems arise. It is awful to treat the problems as indifferent, or complacent to believe that things can be held high if they do not care. You have to understand a simple truth. When each company develops to a certain degree, there will inevitably be some sort of problem that echoes that stage. You want to hide. Therefore, we must be fully prepared for ideological and action plans.

Cornell University once made a famous experiment: the experimenter dropped a frog into the boiled pan. The frog did his best to leap out of the boiling pan that could cause him to die. escape. After an interval of half an hour, the experimenter put cold water in the iron pan of the same size, and then put the frog who had just escaped death into the pot. The frog would still swim back and forth from time to time in the water. Then, the experimenter secretly heated slowly under the pot with a fire. The frog didn't know what to do, still enjoying the "warm" comfortably and comfortably in the lukewarm water, and when it began to realize that the water temperature in the pot had made it unbearable, it was too late and it was finally buried in the iron pan.

Nowadays, many lighting business owners in China lack awareness of the crisis and have not noticed the subtle changes in the surrounding environment. They are lying on the so-called "success" in sleep, like "a frog in warm water". It is inevitable that they will wait. Euthanasia." The ancients often say that “being born with misery and dying of peace”, especially those companies that have done relatively successfully, are often less concerned about the crisis, feel that they have been very successful, and slowly become unable to treat them objectively and intellectually. Changes in the market, look at their own problems, and look at future trends. There is a saying in China: "There are only three generations rich." Because the second generation was born with a golden key and grew up in a carefree environment, the power of work suddenly dropped, and it was difficult to have the enthusiasm and struggle of the first generation of entrepreneurs. Moreover, keeping business is more difficult than starting a business. When a business develops to a certain stage, it will be difficult to surpass the first generation if it is not successful. By the third generation, not to mention, their enthusiasm and spirit of struggle have been exhausted. Various contradictions in the internal development of enterprises have generated "deep grudges" and have been handled inadvertently. "We must fall.

Enterprises want to grasp the future, it is necessary to change from "sense of hindsight" to "prophetic vision." Whether it is individuals or enterprises, success is not a lifetime. We cannot resist the objective facts of change. Therefore, we must constantly think and constantly look at changes. The farther we go and the more time we prepare, the better we can grasp the future. All opportunities.

Enterprises have a correct understanding of this trend, and make timely adjustments to the business model, operating system, and business policy to be able to grasp the initiative and the right to speak.

It is easy to say that if it is difficult to predict what changes will take place in the market, crisis awareness and active transition will not be discussed. It will only be a passive response. In addition, many people always feel that the future is foreseen. It is far from reach, and I always feel that the plan cannot catch up with changes. I always feel that I cannot do it at all. If you have not thought or tried, how can you declare "No"? Looking at China's World War II, by relying on backward weapons and unarmed defeats to defeat Japanese imperialism with advanced weapons, what does it depend on? Reliance is the right strategy for leaders. The policy relies on the tenacious resistance of thousands of people in China. Can people not come to face resistance to death? Can it not be prepared?

For more than 30 years of reform and opening up, Chinese companies have been following the pattern of plagiarism, imitation, and follow-up to follow the development of international giants. Despite considerable achievements, this kind of inertial thinking has already eroded the forward thinking of Chinese companies. The enterprise is also just a "frog in warm water", either dead or unable to grow and mature, let alone go to the world and conquer the world.

Crisis II: The strategy is ambiguous, ostensibly between "firefighting" and "transition". In the eyes of a common entrepreneur, "strategy" is an idea, but it is not. The misunderstanding of the word "strategy" by Chinese lighting companies can be described as a long-standing one. Many of the lighting lighting companies that have been successful in the past and some of them are even the industry leaders. They have been very successful since their establishment and have been widely recognized by the market and customers. For them, this is the result of a clear strategic thinking. In fact, they are wrong.

Companies that operate more successfully in the country but do not necessarily have a clear strategy have a large number of lighting companies. It is because of the rapid development of China’s economy over the past few years. Everyone has caught up to a good opportunity. Even without a strategy, the lanterns can do well if they come back from the world. However, with the development of science and technology and the doubling of talents, it is almost impossible to make money from smart ideas and good ideas. The model of doing business in a relationship has also fallen behind. Therefore, many Chinese lighting companies are already in a state of "heavy tactics and light strategy." Everyone has devoted their energy to "recruitment" and "surgery" while ignoring the control of the strategy in the true sense.

What is the real strategy? First, it is a forward-looking prediction of the industry development trend in the next five years. For example, in the next five years, what direction will the market shift towards? What will happen in the market in the next five years and what factors will consumers focus on? Many lighting lighting business owners think that “plans will not catch up with changes”, especially the two After the economic downturn hits the year, however, this is just an excuse for people who do not plan and have no strategy to find for themselves, because a good plan must be to foresee possible changes, and it is meaningless not to consider a change plan. of. Second, focus. We must know that each company's resources are limited, it is impossible to do everything, and it is impossible to do a lot at the same time. There must be a sequence and priority, and you must temporarily abandon some businesses that will distract energy and are not related to the field of focus. Avoid "choosing sesame seeds lost watermelon." Third, an implementation plan with milestone milestones. Strategy is not an empty concept. It is not an exciting goal. It is a very pragmatic and very practical approach. It discusses the path problem, that is, how to achieve the goal, divide it into several steps, think clearly about what to do first, do a good job of planning, and then implement it step by step, and implement the responsibility to people, evaluation criteria, assessment time, Assessor, etc. Fourth, design for competitors. If even one of their competitors is unclear, how can a strategy be designed? Therefore, companies must first define who they serve, determine their audience, and determine the real competitors.

Organizing ideas and designing strategies requires strong logic analysis capabilities. Without "logical" enterprises and individuals, it is impossible to succeed. At least, today's experience in your exams has been successful and the future will still be awkward. Unless you're lucky, this is really a "cat encounter dead mouse" - too clever. Every company and everybody wants to succeed, but there are always a few or even very few successful people in society. That is because most people have the ability to find "logic" despite their ability to think. This "logic" that leads to success is called strategy for an enterprise, and the process of finding "success logic" for the enterprise is called top-level design.

Due to the lack of top-level design, many business owners have misunderstood the idea as a strategy. This is a common problem for lighting lighting companies and a common problem for Chinese companies. It can even be said to be a fatal problem for Chinese companies. When we visited and surveyed some entrepreneurs, we found that 99% of entrepreneurs think that their own companies have strategies, but their strategy is only some "ideas", or goals and pursuits, that is, "what do you want to do?" The company's turnover in five years, hope to enter the industry's top three in a few years, hope to open up the international market, and so on. Excuse me, are these strategies? No. These are just "ideas."

The word "strategy" is no stranger to entrepreneurs, but its exact meaning is very confusing. Many people misunderstand business goals as strategies, pursuits as strategies, ideas as strategies, and ideas When it becomes a strategy, there will be widespread misunderstandings today.

It is precisely because of these misunderstandings that entrepreneurs ignore the focus of their own company's development and become frightened when they face the complex and rapidly changing market. When “suddenly” coupled with the “unexpected events” that confront all kinds of large and small events every day, business owners have to devote a lot of time to “fire fighting” and the thinking strategy is far away.

In addition, in recent years, lighting lighting industry is talking about transformation from upstream to downstream. In fact, everyone has realized that the only way out of business is to actively transform. However, everyone adopts a strategic transformation based on one's own assumptions. Naturally, it is the Eight Immortals who cross the sea. In the end, everyone was caught in the mistaken "crossing the river by feeling the stones." As the corporate strategy is ambiguous, the thinking of transformation and upgrading is not clear and the path is not correct, and it can only fall into the strategic dilemma of “not transforming is to wait for death, and transformation is to find death”.