In 1996, Shanghai Luyuan, from a precarious small workshop enterprise, has become one of the few professional energy-saving lamp manufacturers in China's lighting industry after 11 years of development. What is the geometry of the doorway? More importantly, Chen Feng, the boss of Shanghai Luyuan, always gave the outside world a low-key and steady impression, which also gave the reporter a mysterious and unfathomable feeling. In order to "open" Shanghai Luyuan's business "doorway" and "crack" Chen Feng's "mystery", the reporter recently approached Chen Feng, and started a peak dialogue on the topic of "how to achieve long-term success in the enterprise" to discuss the lighting industry in China. Under the background of the rising era, as a leading figure of the company, it should have the unique qualities and values ​​and his business ideas.
Entrepreneurship: dreams start
Reporter: Hello, Mr. Chen! We are very curious about a question. Before you set up Shanghai Luyuan, what industry are you engaged in?
Chen Feng: Oh! This time is relatively long. I started my business in Wenzhou in 1983 and I am engaged in the production and operation of fluorescent lighting starters. At that time, it can be said that such a small accessory has achieved one of the best in the domestic industry!
Reporter: Since you have done so well, what is the reason for you to give up your previous career and choose to do energy-saving lamps?
Chen Feng: At that time, despite the large sales volume, the market space was too small. A starter only earned 1-2 cents, and the capacity was limited, and it was impossible to complete the branding operation of the enterprise. Most importantly, due to the widespread use of electronic rectifiers, the industry has become increasingly narrow. In 1996, like many “outside provincesâ€, I came to Shanghai to start my second venture. Starting from a small workshop to do energy-saving lamps, carrying bicycles to sell products on the street, began to create "Shanghai Luyuan."
Reporter: When you look back on this past event, what are the important stages that Shanghai Luyuan has experienced since its establishment and today? What characteristics or valuable experience do they have?
Chen Feng: Actually, in the process of the development of Shanghai Luyuan, the decisive role should be the 2001 “price dip†event. I remember that the low-end energy-saving lamps in the market only sold more than 2 yuan, and the market sales were very large. The price of mid-range products is generally between 7-8 yuan, but the market sales are few. At that time, I realized that sales were low, which was subject to price constraints. How to enable ordinary people to buy good products at a lower price? Therefore, I made a move that shocked the industry. Under the premise of keeping the quality of energy-saving lamps unchanged, the price of the mid-range energy-saving lamps was pulled down to about 5 yuan, almost at the cost price. According to the company's output at the time, it was not profitable. Can be figured. However, I believe that with the increase in sales, it is sure to achieve benefits through scale. Soon Shanghai Luyuan's products were recognized by the market and quickly opened up the market, and the output has also increased by several times. Although, many companies followed, but Shanghai Luyuan has seized the market opportunity, so to speak, Shanghai Luyuan can have today's achievements, this "price diving" event plays a vital role!
Development: professional survival
Reporter: In the face of a market with low entry barriers and similar competitors in product development, brand promotion and marketing, what should you do?
Chen Feng: I think the reason why Shanghai Luyuan can make a big break in the strong market is because at a critical moment, she can always lead half a step ahead of the competition. For example, in 2001, in other companies pursue profits and ignore channels. During the construction, we chose “price diving†to rapidly expand our channel network. In 2005, when other companies were busy with channel expansion and the brand concept was still weak, we began to cooperate with “Guzhen Lighting News†to create “Shanghai Luyuanâ€. Brands; In 2006, when other companies began to focus on brand building and neglected product production, we invested heavily in the establishment of an industrial park in northern Jiangsu, providing strong guarantees for future production capacity; in 2007 when other companies were busy expanding the channel network We started to channel the channels, we launched the "1+N" channel change marketing model, and carry out in-depth marketing! It should be said that in recent years, we have been continuously strengthening the image positioning of domestic professional energy-saving lamp manufacturers of “Shanghai Luyuanâ€!
Reporter: We all know that Shanghai Luyuan is a company specializing in energy-saving lamps. However, due to market competition, the profit of this piece is now getting thinner and thinner. Do you think that such a trend will last for a long time? Is this profit likely to pick up again?
Chen Feng: The future of this industry depends on mass production to make profits. The profit of energy-saving lamps in these years is indeed getting lower and lower. Energy-saving lamps are a daily consumer of ordinary people. They are not luxury goods. Its price will affect its purchasing power. Consumers are very sensitive to price. With the strengthening of the market control and the meager profits of the industry, the market entry threshold for energy-saving lamps will gradually increase. Enterprises that do not have a certain scale of production will be difficult to survive. The only development is to reduce the cost of the company by specialization.
Guarding the business: appointing meritocracy
Reporter: In 2006, Shanghai Luyuan boldly adopted a business model that separated management rights and ownership, and separated production and sales. As the top decision maker of Shanghai Luyuan, how did you consider this issue at that time?
Chen Feng: I have always advocated decentralization of company cadres. One way is to train our cadres and to strengthen their sense of responsibility. My company has not used my family or relatives as a senior management company since its inception. Because I believe that my family members serve as company cadres and work for other cadres to give full play to their enthusiasm. In the long run, it will inevitably affect the cohesiveness of the cadres. The company currently has three independent factories and two sales companies. I basically let them go to the professional managers to manage them. The business matters are handled by them. The company only gives them goals and resources. support. The company has a special supervision and evaluation department, which is responsible for the necessary supervision and assessment of the managers. The purpose of this can make me detach from the cumbersome business and think a lot about the future development of the enterprise. As for the separation of production and sales, it is mainly to achieve real market competition within the enterprise, which will help improve the overall level of the company.
Reporter: Recently, we got a message that there were companies in the same industry who used the headhunter to dig the director of the company and set a double annual salary for your company. However, Mr. Luo did not feel tempted. What do you think about this problem?
Chen Feng: (Laughs) Director Luo has been in Luyuan for nine years. With his personal ability, he has worked diligently from an ordinary salesman to achieve high-level positions in the company. For this matter, I think: First, our personal director's personal character is valuable, he has deep feelings for the company, his personal philosophy and the company's culture can be well integrated. In addition, it is the cultural atmosphere of our company, which is more suitable for the development of company cadres. Because in our company, one's ability can be fully utilized and respected in the company. It should be known that in the world, some people are not just for money.
Prospects: Everlasting Foundation
Reporter: This year, the competition of major well-known brands in the whole industry has been extremely fierce. Then, in terms of development ideas, it involves the choice of enterprises for diversification and diversification. Will Shanghai Luyuan take product diversification in the future? the road?
Chen Feng: I don't object to the diversification of some powerful companies, but we don't choose to diversify just for the sake of the company. I think it is much easier for one person to do one thing than to do a few things. We chose specialization, mainly from the limited resources of our company. Diversification will inevitably lead to the dispersion and shortage of company resources, which will weaken the core competitive advantage of the main business. Therefore, we believe that specialization is the primary choice for the development of Shanghai Luyuan Enterprises. In terms of industry, we will focus on the industrial chain of energy-saving lamps and develop in depth rather than horizontally. However, in order to enhance the influence of the Shanghai Luyuan brand, we can conduct diversified marketing. Therefore, this year we have invested a lot in brand building, OEM product line expansion, and export sales. The purpose is to increase the added value of the “Shanghai Luyuan†brand through this diversification.
Reporter: In your eyes, which one is more important: “bigger and stronger†and “doing specializationâ€.
Chen Feng: For this problem, it is obvious that the world's number one retail giant Wal-Mart, he only retails from beginning to end, no money to buy more land, no real estate; IBM IT giants, only computer Hardware, never involved in the software industry; and Bill Gates, money and more software only... From the analysis of countless cases, many companies are suddenly expanding when they are blindly expanding and arrogant! So my choice is to "do specialization."
Reporter: Please describe the development prospects of Shanghai Luyuan in the next five years?
Chen Feng: We have always wanted to make Shanghai Luyuan the “first brand of domestic energy-saving lampsâ€. This is our goal. We will always work hard in this direction in the next five years. If in a few years (twenty years, fifty years...), in the history of China's lighting industry, the existence of the "Shanghai Luyuan" enterprise is also recorded. In the market, there are also "SHLY" products for sale. Contentment.
Reporter: Ok, Mr. Chen, thank you very much for accepting our interview with the "Cover Characters" section. We also wish that Shanghai Luyuan will grow up healthily under your leadership!
Chen Feng: Thank you also for your support!
1
There are computer board jumpers, optical fiber jumpers, network jumpers and so on.
Entrepreneurship: dreams start
Reporter: Hello, Mr. Chen! We are very curious about a question. Before you set up Shanghai Luyuan, what industry are you engaged in?
Chen Feng: Oh! This time is relatively long. I started my business in Wenzhou in 1983 and I am engaged in the production and operation of fluorescent lighting starters. At that time, it can be said that such a small accessory has achieved one of the best in the domestic industry!
Reporter: Since you have done so well, what is the reason for you to give up your previous career and choose to do energy-saving lamps?
Chen Feng: At that time, despite the large sales volume, the market space was too small. A starter only earned 1-2 cents, and the capacity was limited, and it was impossible to complete the branding operation of the enterprise. Most importantly, due to the widespread use of electronic rectifiers, the industry has become increasingly narrow. In 1996, like many “outside provincesâ€, I came to Shanghai to start my second venture. Starting from a small workshop to do energy-saving lamps, carrying bicycles to sell products on the street, began to create "Shanghai Luyuan."
Reporter: When you look back on this past event, what are the important stages that Shanghai Luyuan has experienced since its establishment and today? What characteristics or valuable experience do they have?
Chen Feng: Actually, in the process of the development of Shanghai Luyuan, the decisive role should be the 2001 “price dip†event. I remember that the low-end energy-saving lamps in the market only sold more than 2 yuan, and the market sales were very large. The price of mid-range products is generally between 7-8 yuan, but the market sales are few. At that time, I realized that sales were low, which was subject to price constraints. How to enable ordinary people to buy good products at a lower price? Therefore, I made a move that shocked the industry. Under the premise of keeping the quality of energy-saving lamps unchanged, the price of the mid-range energy-saving lamps was pulled down to about 5 yuan, almost at the cost price. According to the company's output at the time, it was not profitable. Can be figured. However, I believe that with the increase in sales, it is sure to achieve benefits through scale. Soon Shanghai Luyuan's products were recognized by the market and quickly opened up the market, and the output has also increased by several times. Although, many companies followed, but Shanghai Luyuan has seized the market opportunity, so to speak, Shanghai Luyuan can have today's achievements, this "price diving" event plays a vital role!
Development: professional survival
Reporter: In the face of a market with low entry barriers and similar competitors in product development, brand promotion and marketing, what should you do?
Chen Feng: I think the reason why Shanghai Luyuan can make a big break in the strong market is because at a critical moment, she can always lead half a step ahead of the competition. For example, in 2001, in other companies pursue profits and ignore channels. During the construction, we chose “price diving†to rapidly expand our channel network. In 2005, when other companies were busy with channel expansion and the brand concept was still weak, we began to cooperate with “Guzhen Lighting News†to create “Shanghai Luyuanâ€. Brands; In 2006, when other companies began to focus on brand building and neglected product production, we invested heavily in the establishment of an industrial park in northern Jiangsu, providing strong guarantees for future production capacity; in 2007 when other companies were busy expanding the channel network We started to channel the channels, we launched the "1+N" channel change marketing model, and carry out in-depth marketing! It should be said that in recent years, we have been continuously strengthening the image positioning of domestic professional energy-saving lamp manufacturers of “Shanghai Luyuanâ€!
Reporter: We all know that Shanghai Luyuan is a company specializing in energy-saving lamps. However, due to market competition, the profit of this piece is now getting thinner and thinner. Do you think that such a trend will last for a long time? Is this profit likely to pick up again?
Chen Feng: The future of this industry depends on mass production to make profits. The profit of energy-saving lamps in these years is indeed getting lower and lower. Energy-saving lamps are a daily consumer of ordinary people. They are not luxury goods. Its price will affect its purchasing power. Consumers are very sensitive to price. With the strengthening of the market control and the meager profits of the industry, the market entry threshold for energy-saving lamps will gradually increase. Enterprises that do not have a certain scale of production will be difficult to survive. The only development is to reduce the cost of the company by specialization.
Guarding the business: appointing meritocracy
Reporter: In 2006, Shanghai Luyuan boldly adopted a business model that separated management rights and ownership, and separated production and sales. As the top decision maker of Shanghai Luyuan, how did you consider this issue at that time?
Chen Feng: I have always advocated decentralization of company cadres. One way is to train our cadres and to strengthen their sense of responsibility. My company has not used my family or relatives as a senior management company since its inception. Because I believe that my family members serve as company cadres and work for other cadres to give full play to their enthusiasm. In the long run, it will inevitably affect the cohesiveness of the cadres. The company currently has three independent factories and two sales companies. I basically let them go to the professional managers to manage them. The business matters are handled by them. The company only gives them goals and resources. support. The company has a special supervision and evaluation department, which is responsible for the necessary supervision and assessment of the managers. The purpose of this can make me detach from the cumbersome business and think a lot about the future development of the enterprise. As for the separation of production and sales, it is mainly to achieve real market competition within the enterprise, which will help improve the overall level of the company.
Reporter: Recently, we got a message that there were companies in the same industry who used the headhunter to dig the director of the company and set a double annual salary for your company. However, Mr. Luo did not feel tempted. What do you think about this problem?
Chen Feng: (Laughs) Director Luo has been in Luyuan for nine years. With his personal ability, he has worked diligently from an ordinary salesman to achieve high-level positions in the company. For this matter, I think: First, our personal director's personal character is valuable, he has deep feelings for the company, his personal philosophy and the company's culture can be well integrated. In addition, it is the cultural atmosphere of our company, which is more suitable for the development of company cadres. Because in our company, one's ability can be fully utilized and respected in the company. It should be known that in the world, some people are not just for money.
Prospects: Everlasting Foundation
Reporter: This year, the competition of major well-known brands in the whole industry has been extremely fierce. Then, in terms of development ideas, it involves the choice of enterprises for diversification and diversification. Will Shanghai Luyuan take product diversification in the future? the road?
Chen Feng: I don't object to the diversification of some powerful companies, but we don't choose to diversify just for the sake of the company. I think it is much easier for one person to do one thing than to do a few things. We chose specialization, mainly from the limited resources of our company. Diversification will inevitably lead to the dispersion and shortage of company resources, which will weaken the core competitive advantage of the main business. Therefore, we believe that specialization is the primary choice for the development of Shanghai Luyuan Enterprises. In terms of industry, we will focus on the industrial chain of energy-saving lamps and develop in depth rather than horizontally. However, in order to enhance the influence of the Shanghai Luyuan brand, we can conduct diversified marketing. Therefore, this year we have invested a lot in brand building, OEM product line expansion, and export sales. The purpose is to increase the added value of the “Shanghai Luyuan†brand through this diversification.
Reporter: In your eyes, which one is more important: “bigger and stronger†and “doing specializationâ€.
Chen Feng: For this problem, it is obvious that the world's number one retail giant Wal-Mart, he only retails from beginning to end, no money to buy more land, no real estate; IBM IT giants, only computer Hardware, never involved in the software industry; and Bill Gates, money and more software only... From the analysis of countless cases, many companies are suddenly expanding when they are blindly expanding and arrogant! So my choice is to "do specialization."
Reporter: Please describe the development prospects of Shanghai Luyuan in the next five years?
Chen Feng: We have always wanted to make Shanghai Luyuan the “first brand of domestic energy-saving lampsâ€. This is our goal. We will always work hard in this direction in the next five years. If in a few years (twenty years, fifty years...), in the history of China's lighting industry, the existence of the "Shanghai Luyuan" enterprise is also recorded. In the market, there are also "SHLY" products for sale. Contentment.
Reporter: Ok, Mr. Chen, thank you very much for accepting our interview with the "Cover Characters" section. We also wish that Shanghai Luyuan will grow up healthily under your leadership!
Chen Feng: Thank you also for your support!
1
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The jumper wire is actually a metal connection wire connecting the two demand points of the circuit board (PCB). Due to different product designs, the material and thickness of the jumper wire are different. Most jumpers are used for voltage transmission of the same potential, and there are also reference voltages used for protection circuits. For those with precise voltage requirements, the voltage drop generated by a little metal jumper will also have a great impact on product performance.
There are many small square plastic caps on motherboards, hard drives, and the inside of them is metal (this is the jumper cap, which is used to change the circuit, that is, the jumper).There are computer board jumpers, optical fiber jumpers, network jumpers and so on.
Lc Patchcord,Fc Patchcord,St Patchcord,DIN Patchcord
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