How to successfully transform in the face of challenges? This is a topic that many traditional enterprises cannot escape. Especially in the face of globalization and the Internet, how to adapt to change and change business methods is often the key to determining the life and death of a traditional enterprise. WELLMAX, a company that has successfully transformed from traditional lighting to LED lighting, undoubtedly provides a case for traditional companies to observe.
Since Edison invented the electric light, the lighting industry has been iteratively updated, and several giants have dominated the entire industry. The birth of LED is changing the traditional lighting industry. The invention of solid-state chip technology has not only changed the structure of lighting technology, but also changed the industrial structure of the lighting industry. At the same time, traditional lighting companies, lighting companies and semiconductor companies have entered the LED lighting industry to launch a "competition."
The traditional lighting giants Philips and GE are in the face of innovators in the face of the LED technology wave. WELLMAX (Zhaoguan Lighting), a traditional lighting company, saw the opportunity of this industry upgrade, abandoned the traditional lighting business with a profit of 40 million US dollars a year, and decisively turned to LED lighting to determine the focus on "LED bulbs". Brand opportunity. At present, the products have been exported to 58 countries.
From "WELLMAX sales" to "WELLMAX manufacturing"
In 1987, Wang Yamin founded WELLMAX, engaged in lighting import and export trade and went overseas through the Canton Fair. WELLMAX is rapidly expanding its production scale and business by providing a complete set of solutions that are fast, flexible and customized. In the early years, WELLMAX has become the largest Chinese supplier of ordinary bulb products in the world, and has the reputation of “China Bulb Kingâ€.
In 2002, Wang Yamin realized that simply buying and selling could not meet the company's own development needs, and to build its own brand, from "WELLMAX sales" to "WELLMAX manufacturing" is the best strategy for enterprise development. WELLMAX set up a research and development center in the same year to start research and production of its own lighting products.
While doing self-development, WELLMAX began investing in upstream companies in 2004, hoping to get through the industry. However, this investment has not been collected. This makes Wang Yamin realize that instead of investing in others, it is better to invest in himself and focus on his core business. Wang Yamin began to increase self-development.
WELLMAX takes Huawei as its target company, strengthens research and development of technology, and creates more than 20 patented technologies. At the same time, it cooperates with some universities to develop new technologies and technologies into new products.
This series of strategic layouts has made WELLMAX a fast-growing company in the field of traditional lighting. With customers in more than 50 countries, it has accumulated more than 800 million bulbs worldwide, which has an impact in traditional lighting.
"Strong man broken wrist" difficult upgrade
The rapid expansion of market territory and scale has made WELLMAX the same as most traditional lighting companies in the "blade profit" dilemma.
Wang Yamin, founder of WELLMAX, said that the OEM's production model profit depends on the opponent. Most of the traditional Chinese lighting companies are only at the production end of the global business. They do not possess the barrier protection of high-end advantageous industrial chains such as product technology and brand. In the competition with their peers, they are caught in the price war and have long-term profits.
The emergence of LED technology allowed Wang Yamin to see the hope of overtaking in the corner. As a solid lighting technology, LED breaks through the traditional light source and electric light source, redefines the standard of light, and introduces lighting into the semiconductor field, greatly expanding the industry's extension of lighting.
Wang Yamin decisively abandoned the traditional lighting business that can bring in 40 million US dollars of profits every year, and fully entered the R&D and production of LED lamps. And put 20% of the annual profit into research and development.
At that time, many old employees said that they did not understand and proposed to resign. However, Wang Yamin is unmoved and resolutely implements the LED strategy. Wang Yamin's keen business smell feels the confirmation of the market. In 2015, the traditional giants of the global lighting industry all showed weakness to the Chinese LED industry. Philips sold 80% of Lumileds to Chinese companies, Toshiba exited the white LED market, and OSRAM China reluctantly split CLB and LLS. Panasonic LED production moved back to Japan.
Focus on LED bulbs, quality first
The rapid development of LED has made many Chinese companies enter the LED production, and a price war is inevitable. And Wang Yamin learned from the previous lesson that WELLMAX does not engage in price wars, only to achieve the best quality.
WELLMAX further focused on focusing the brand on LED bulbs and raising this action into a strategy. This branded action not only made its business model clearer, formed a differentiated positioning, but also attracted Samsung. The eyes of Samsung, WELLMAX as China's first strategic partner. The two parties cooperated to combine the technical performance advantages of Samsung LED chip with the unique LED bulb management advantages of WELLMAX, and launched three new series of LED products to become high-end LED products.
Paying attention to quality also made Wang Yamin gain market returns. At present, WELLMAX products are exported to more than 200 countries overseas, and only one country in Poland has reached 10 million US dollars.
In the face of future goals, Wang Yamin said that WELLMAX will continue to focus on overseas markets and strive for annual revenues of $1 billion. To achieve this goal, WELLMAX will then set up distribution overseas and restructure the supply chain to build more overseas factories to expand production.
Finally, General Manager Wang Yamin made several suggestions for his colleagues in the LED industry. First of all, the product should be focused and focused, even if there may be opposition in the first place, but it must be adhered to. Secondly, he feels that enterprises engaged in foreign trade must be familiar with the laws and regulations of various countries, and at the same time be willing to invest in digging international talents. "We are blessing WELLMAX to go better in the future, and we hope that more companies can embark on the road of building brands."
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