In June, Shanghai was mostly cloudy with light rain, and the haze of the air seemed to be filled with the atmosphere of competition. You either run with the city or are ruthlessly eliminated by the city.
At the same time, it is also a place where foreign-funded lighting companies gather. Philips, Thorne and GE have placed their Chinese headquarters in Shanghai.
At less than nine in the morning, people were in a hurry after the traffic gradually dispersed. Several foreign-owned lighting companies began to look for executives through the Internet and even headhunting companies. A Japanese-funded enterprise recruits foreign trade salesmen, requires the experience of indoor and outdoor lighting sales and development of European and American customers; another famous foreign-funded lighting company is looking for channel sales supervisors and engineering project supervisors. The former is responsible for domestic distributor channels. Development and maintenance, the latter's responsibility is the development of engineering projects. This shows their hunger for Chinese native talent.
The entry of foreign-funded lighting companies into China is not a phenomenon that has only recently occurred. Philips, GE, and OSRAM have been in China for many years, and they have gained a lot in engineering lighting. But at the just-concluded Guangzhou Lighting Exhibition, we have seen some foreign-invested companies that have been lingering in the Chinese market for many years, but rarely show their faces, such as Fujitec Lighting, Tridonic Electronics, Yigao Lighting, and Baccarat.
They have lurked in high-end groups, but today they have gradually appeared, and they have turned to high-profile Chinese traditional markets, or set up R&D centers in China, or set up production plants, which also shows their local strategy for the Chinese market.
Their local strategy
EGLO is the largest home lighting company exported to Europe, America and the world. Its global headquarters is located in Austria and its headquarters in Dongguan. In Dongguan, EGLO has two factories covering an area of ​​more than 200,000 square meters. The total number of employees exceeds 5,000 and the annual sales amount is 2.3 billion yuan. In 2006, sales in the EU market reached 2 billion.
EGLO has more than 400 employees in its production base in Hungary, has branches in 60 countries around the world, and expands its global EGLO self-operated brand sales network with a new growth rate of six countries each year.
Overseas, long ago, EGLO has formed strategic partnerships with world-famous chain giants such as B&Q and Metro, and has almost all partnerships with major lighting sales companies around the world. It is hard to imagine that 90% of the lighting products in these multinational supermarkets are EGLO brands. EGLO has become a well-known brand in the global lighting industry.
But despite this, EGLO is very strange in the vast Chinese market. Among the more than 100,000 lighting dealers, I have heard that the EGLO brand is also very few. Is this a gap left by EGLO's global market, or is it a shortcoming? Under the global macroeconomic style that world economists believe that "the future loses the world and loses the world", EGLO's global network cannot be without China!
In fact, it has been planned. In May, EGLO landed in China and made a high-profile appearance at this year's lighting exhibition. Some of the best-selling products in the European and American markets appeared in China, which made it possible for insiders and outsiders to touch the elephant of the "Great Shore".
It is said that EGLO has established offices in major regions such as East China, South China, Central China, North China, Northwest China and Northeast China. In order to adapt to the characteristics of China's domestic market, EGLO will mainly develop the domestic market in the specialty store mode. Although its sales in the European market are all sold through the hypermarket channels, the ideas in China have changed. The store model is at the top position; the second channel is the domestic hypermarkets, such as B&Q, Metro, etc.; the third channel is the lighting and home improvement designer field; the fourth is expecting the matching sales with the furniture brand, entering Furniture and even home channels. EGLO also emphasizes that terminal stores need to achieve one-stop service - all dealers or consumers, after entering the EGLO store, can buy all the products he needs, including living room, kitchen, bathroom, and many more.
It is said that EGLO's introduction of lighting products in China is not as noble and expensive as everyone guessed, but a product suitable for China's general consumption level. EGLO is clearly carrying capital and products to develop the Chinese market in depth, and it is targeted to set products, channels and pricing strategies. Obviously, foreign companies like EGLO have begun to localize.
The hidden dangers they created for the "Chinese big name"
The localization of foreign-owned lighting enterprises is divided into three aspects: one is strategic localization, similar to EGLO; the other is localization of talents, such as 70% of lighting designers from Philips Lighting from China Lighting Source Institute; the third is localization of production. The first joint venture acquisition is a major means of localization of foreign-invested enterprises. Whether it is Philips, GE, or OSRAM, in Jiangsu, Baijiali has also established a joint venture with Jiangsu Shifu Lighting; Japan Koizumi and Op Lighting have jointly established Opal Koizumi Lighting and so on.
But the end result is that many joint ventures have disagreements, leaving many hidden dangers for Chinese companies. Foreign-funded lighting companies either try to cover the Chinese brand, or gradually increase their shares, and take the initiative of the factory in their own hands. Foshan Lighting, known as the "Chinese Light King", when the Foshan State-owned Assets Supervision and Administration Commission transferred the shares to Germany Osram and Hong Kong Prosperity Lighting, the fate of "Light King" began to turn - capital income increased, export business increased However, the actual operating profit of the domestic market declined. At the lighting exhibition, we saw Zhuang Jianyi and the president of Osram Asia Pacific, but they did not see Zhong Xincai.
Shanghai Yaming and Philips jointly established Philips Yaming Company. After many years, the “Asian Brand†brand was handed over to Philips, and its autonomy in the country was greatly weakened. Fortunately, Yaming’s seniors re-launched “1923 photosâ€. Brighten China, in order to save the status and reputation of the state-owned brand; Italy Baccarat had a joint venture with Shifu, but in the end the cooperation between the two sides was not very smooth, Shi Ford re-entered the road of self-operated brands.
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This phenomenon is left to domestic brands more thoughtful and cautious.
Foreign investors vs. domestic losers who win
It is the market, there is a confrontation. At the 2007 Guangzhou Lighting Exhibition, foreign lighting companies and domestic brands competed. In the two major brands of A and B, foreign and domestic brands are in the limelight. In the market, foreign-funded enterprises lose their channels, while domestic brands lose in engineering.
The bidding for the lamps and lanterns of the main project of the 2008 Olympic Games was basically completed. According to informed sources, only Philips Lighting has won nearly 80% of the projects. Domestic brands have only taken a small number of projects in affiliated projects or non-subject projects, such as Sanxiong, Aurora, Benbang Lighting, MCO, Zhenhui Firefighting, etc. .
Where is the “killer†of foreign lighting companies’ competition? According to people familiar with the matter, the first is the public relations means. In the early stage of the bidding for the Olympic Games, the president of Philips Lighting Global made a secret flight to China, visited China's top management and established a good communication relationship. Second, the superiority of foreign lighting enterprise system solutions. There are two types of system solutions: one is the provision of lighting solutions, and the other is the system solution for the product. For example, TridonicAtco, a well-known manufacturer of lighting electronics and electrical products in Europe, is based in Austria and has a wholly-owned subsidiary in Shanghai, China. Its strength lies in the development of a full range of diversified digital lighting electronics and innovation. The digital lighting solution, which has become synonymous with global digital lighting technology. This is a domestic brand that is temporarily unmatched.
Of course, the advantage of Chinese local companies lies in the channels. The power of the channel has created a lot of pressure on foreign-invested companies. For example, the channel power of NVC has also brought a lot of impact to Philips Lighting. Under the new situation of foreign-invested lighting enterprises becoming more and more localized, how can Chinese enterprises further enhance their engineering competitiveness under the premise of consolidating channel advantages, which is a long-term proposition left to Chinese enterprises.
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