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"The dealers don't cooperate with the board of directors. How can we not cooperate? Now the orders are all gone, but the factory can't give the goods!" Recently, the anxiety of NVC Lighting's Shaanxi Provincial Operations Center Chairman Wu Xiaolin is increasing.
In the past few months, the civil war of NVC management has already ignited several important projects of Wu Xiaolin. Seeing the time to enter the sales season in August and September each year, it is at this juncture, and NVC's factory is no longer available.
The dealers who can't get the goods are not only Wu Xiaolin, but some sales areas also face “breaking grainâ€. Zhejiang Province is the second largest sales area of ​​NVC Lighting. The chairman of the regional operation center, He Wei, manages about 200 NVC stores. In 2011, the sales exceeded 300 million yuan. At the moment, he is also plagued by the stock market crisis.
Wu Xiaolin's operation center manages more than 100 NVC products stores in Shaanxi Province. In 2011, the sales volume was close to 100 million. In the 36 regional operation centers of NVC, the scale is still medium. This reporter interviewed a number of first-class dealers of NVC Lighting. These dealers are located in many provinces, north, south and north, with sales ranging from tens of millions to hundreds of millions of yuan.
After in-depth communication, the reporter found that the problem encountered by Wu Xiaolin was not an isolated case. The dealers of several sales regions interviewed by the reporter were facing a shortage of supply.
The financial report shows that in 2011, NVC Lighting's dealer system generated a total of 2.45 billion yuan in revenue for NVC, accounting for 64.5% of the company's total annual revenue. At this time, the collective shrinkage of dealers' performance will undoubtedly make NVC's 2012 interim results announced on the 28th of this month even more touching.
Regardless of the fact that Wu Changjiang and Wu Changjiang were ultimately stunned, it was an indisputable fact that NVC Lighting’s leading dealer system was seriously degraded due to the impact of the NVC inflicted for several months. And investors are also worried that this will cast a shadow over the longer-term future of NVC lighting.
Out of stock crisis
"A lot of engineering projects, the contract signed in early August, is now near the end of August, the goods can not be sent out." Wu Xiaolin complained to reporters.
The engineering project in the light lighting industry is the bulk of the dealer's income. For the dealers, the biggest loss is that the project can not be signed.
"I have ordered 2 million yuan of goods that have not been sent to me so far. In the past, this situation will inform at least one delivery date, but now the delivery date is not mentioned." Wu Xiaolin told reporters It is said that because many old customers have already signed the list, they are still unable to get the goods, and when new customers come, he has no confidence to sign the contract.
Wu Xiaolin's operation center has three engineering project teams, which are responsible for selling lighting products related to outdoor projects, hotels, and traditional projects such as schools, hospitals, and office buildings. This division of labor is widely adopted by NVC's first-tier distributors. Last year, the three teams of more than 20 people completed sales of more than 30 million yuan.
Earlier this year, Wu Xiaolin expanded the engineering team to 50 people and applied for a 150 million yuan mission to NVC Lighting Headquarters, and plans to double the sales of the project. But the current situation is a sharp turn. "From January to the present, not only is sales gradually shrinking, but engineering, wholesale, and retail are combined, and more than 1 million are lost." Wu Xiaolin said.
However, the real reason for the out-of-stocks is not from the NVC factory, but the tightening of the upstream supply chain is the main reason for the current lack of rice.
According to the announcement of the board of directors of NVC Lighting on the 14th, it has been confirmed that 25 raw material suppliers will no longer supply raw materials to NVC. However, the announcement said that NVC's Wanzhou and Huizhou plants still have the ability to continue production. NVC Lighting has a key supplier of 50 raw materials across the country. The NVC Board of Directors stated that the company has the ability to find suitable alternative suppliers within a reasonable time.
Since then, according to media reports, the supplier has stopped supplying raw materials since August 13, which caused the company's Huizhou factory to stop production on the 16th; and because NVC Lighting adopts a unified procurement system, it is located in Wanzhou, Zhejiang and Shanghai. The factory has also been unable to support production for a few days.
In response, NVC Lighting issued a clarification announcement on the evening of the 21st, saying that the report that the Huizhou factory has stopped production is not correct. Although it has an impact, the factories in Wanzhou and Huizhou are still operating.
But the fact that the factory does not stop does not mean that the dealer can get the goods. A person familiar with NVC lighting production told reporters that NVC products have thousands of varieties, and customers usually pick several or dozens of different varieties. If the variety is not complete, the customer will not place an order. And sometimes a product will consist of dozens of hundreds of parts, that is, a box is missing, and it can't be shipped.
"What is missing is the special category products on some engineering projects. Many projects on the construction site have to sign contracts. The owners are chasing the goods. From July to August, we have not been able to pay for the orders of millions of such projects. The loss is very large. Xiao Tianhua, the person in charge of the Hubei Operation Center, also told reporters that the losses on the project in the region have reached 50%.
The more urgent problem is that the sales season in August and September has arrived, and the supply shortage will cause much damage. No one can calculate this account.
Dealers' "shock" self-help?
In desperation, Wu Xiaolin will bring all 50 salesmen back home.
Wu Xiaolin told reporters that his current three engineering teams have all lost money. However, due to the delays in the internal disputes of NVC Lighting, he still has no clear plans in the next step, so he simply stopped all work and used this "shock". Therapy reduces costs.
"The customer's order is coming, but I can't ship it, I can only send the goods of other brands. If the customer doesn't want other brands, I will not supply it." Wu Xiaolin said that at the beginning of this year, NVC Lighting Headquarters assigned His sales mission of 150 million yuan is now watching the moon in the water.
In addition to the decline in revenue caused by the loss of orders, it is difficult to recycle the tail of the project and also cause a closure of the capital chain of many dealers. According to the rules, many engineering customers have to pay the final payment after the project acceptance, and after the outbreak of NVC lighting, a large number of tails are difficult to recover. "Some customers look at what you are now, knowing that the inside of NVC is very chaotic, people with a bad attitude start to drag and not give money." A person in charge of the operation center told reporters.
According to Zhejiang Ye Wei, the total amount of debts owed to major customers and engineering projects of the Zhejiang Operation Center has reached more than 30 million yuan since the outbreak of the NVC storm in May.
According to NVC Lighting's “Regional Operation Center Modelâ€, most of the NVC products in the Chinese market are exclusively sold to the regional operation centers in wholesale form. NVC Lighting will enter into an annual contractual agreement with the Operations Center to manage and constrain the operational systems, including the regional scope of the operations center, product categories, performance targets, and product pricing.
The most important result of this distribution model established during the Wu Changjiang period is that it can absolutely guarantee the annual sales of NVC Lighting. In fact, at the moment when the products are distributed to the operation centers, NVC can confirm the sales revenue. At the same time, market risks are also transferred outside the company, and regional operations centers actually carry very heavy operating costs and risks.
"There has been a lot of money for NVC in so many years. The analogy is very large. For example, the previous operation cost more than 10 million yuan a year. The cost of operation is still so much, but the sales decline is very serious. It is very dangerous for dealers." Xiao Tianhua told reporters.
To what extent can the regional operation center's capital chain be tight? Ye Wei gave the reporter an account: "The annual advertising fee for NVC lighting in the market is very, very small. In such a large Zhejiang province, the advertising fee is only 1 million. The decoration subsidy for each store is only Two or three thousand. Last year, our province's operating expenses were 30 million. The money was taken from our own profits. If we can't get it, who will take it?"
Ye Wei told reporters that at present, all the employees in the Zhejiang Operations Center, including sales, administration and inventory, add up to more than 200 employees. Because the workload is seriously unsaturated, he is now preparing to reduce costs through appropriate downsizing.
In the past few months, the civil war of NVC management has already ignited several important projects of Wu Xiaolin. Seeing the time to enter the sales season in August and September each year, it is at this juncture, and NVC's factory is no longer available.
The dealers who can't get the goods are not only Wu Xiaolin, but some sales areas also face “breaking grainâ€. Zhejiang Province is the second largest sales area of ​​NVC Lighting. The chairman of the regional operation center, He Wei, manages about 200 NVC stores. In 2011, the sales exceeded 300 million yuan. At the moment, he is also plagued by the stock market crisis.
Wu Xiaolin's operation center manages more than 100 NVC products stores in Shaanxi Province. In 2011, the sales volume was close to 100 million. In the 36 regional operation centers of NVC, the scale is still medium. This reporter interviewed a number of first-class dealers of NVC Lighting. These dealers are located in many provinces, north, south and north, with sales ranging from tens of millions to hundreds of millions of yuan.
After in-depth communication, the reporter found that the problem encountered by Wu Xiaolin was not an isolated case. The dealers of several sales regions interviewed by the reporter were facing a shortage of supply.
The financial report shows that in 2011, NVC Lighting's dealer system generated a total of 2.45 billion yuan in revenue for NVC, accounting for 64.5% of the company's total annual revenue. At this time, the collective shrinkage of dealers' performance will undoubtedly make NVC's 2012 interim results announced on the 28th of this month even more touching.
Regardless of the fact that Wu Changjiang and Wu Changjiang were ultimately stunned, it was an indisputable fact that NVC Lighting’s leading dealer system was seriously degraded due to the impact of the NVC inflicted for several months. And investors are also worried that this will cast a shadow over the longer-term future of NVC lighting.
Out of stock crisis
"A lot of engineering projects, the contract signed in early August, is now near the end of August, the goods can not be sent out." Wu Xiaolin complained to reporters.
The engineering project in the light lighting industry is the bulk of the dealer's income. For the dealers, the biggest loss is that the project can not be signed.
"I have ordered 2 million yuan of goods that have not been sent to me so far. In the past, this situation will inform at least one delivery date, but now the delivery date is not mentioned." Wu Xiaolin told reporters It is said that because many old customers have already signed the list, they are still unable to get the goods, and when new customers come, he has no confidence to sign the contract.
Wu Xiaolin's operation center has three engineering project teams, which are responsible for selling lighting products related to outdoor projects, hotels, and traditional projects such as schools, hospitals, and office buildings. This division of labor is widely adopted by NVC's first-tier distributors. Last year, the three teams of more than 20 people completed sales of more than 30 million yuan.
Earlier this year, Wu Xiaolin expanded the engineering team to 50 people and applied for a 150 million yuan mission to NVC Lighting Headquarters, and plans to double the sales of the project. But the current situation is a sharp turn. "From January to the present, not only is sales gradually shrinking, but engineering, wholesale, and retail are combined, and more than 1 million are lost." Wu Xiaolin said.
However, the real reason for the out-of-stocks is not from the NVC factory, but the tightening of the upstream supply chain is the main reason for the current lack of rice.
According to the announcement of the board of directors of NVC Lighting on the 14th, it has been confirmed that 25 raw material suppliers will no longer supply raw materials to NVC. However, the announcement said that NVC's Wanzhou and Huizhou plants still have the ability to continue production. NVC Lighting has a key supplier of 50 raw materials across the country. The NVC Board of Directors stated that the company has the ability to find suitable alternative suppliers within a reasonable time.
Since then, according to media reports, the supplier has stopped supplying raw materials since August 13, which caused the company's Huizhou factory to stop production on the 16th; and because NVC Lighting adopts a unified procurement system, it is located in Wanzhou, Zhejiang and Shanghai. The factory has also been unable to support production for a few days.
In response, NVC Lighting issued a clarification announcement on the evening of the 21st, saying that the report that the Huizhou factory has stopped production is not correct. Although it has an impact, the factories in Wanzhou and Huizhou are still operating.
But the fact that the factory does not stop does not mean that the dealer can get the goods. A person familiar with NVC lighting production told reporters that NVC products have thousands of varieties, and customers usually pick several or dozens of different varieties. If the variety is not complete, the customer will not place an order. And sometimes a product will consist of dozens of hundreds of parts, that is, a box is missing, and it can't be shipped.
"What is missing is the special category products on some engineering projects. Many projects on the construction site have to sign contracts. The owners are chasing the goods. From July to August, we have not been able to pay for the orders of millions of such projects. The loss is very large. Xiao Tianhua, the person in charge of the Hubei Operation Center, also told reporters that the losses on the project in the region have reached 50%.
The more urgent problem is that the sales season in August and September has arrived, and the supply shortage will cause much damage. No one can calculate this account.
Dealers' "shock" self-help?
In desperation, Wu Xiaolin will bring all 50 salesmen back home.
Wu Xiaolin told reporters that his current three engineering teams have all lost money. However, due to the delays in the internal disputes of NVC Lighting, he still has no clear plans in the next step, so he simply stopped all work and used this "shock". Therapy reduces costs.
"The customer's order is coming, but I can't ship it, I can only send the goods of other brands. If the customer doesn't want other brands, I will not supply it." Wu Xiaolin said that at the beginning of this year, NVC Lighting Headquarters assigned His sales mission of 150 million yuan is now watching the moon in the water.
In addition to the decline in revenue caused by the loss of orders, it is difficult to recycle the tail of the project and also cause a closure of the capital chain of many dealers. According to the rules, many engineering customers have to pay the final payment after the project acceptance, and after the outbreak of NVC lighting, a large number of tails are difficult to recover. "Some customers look at what you are now, knowing that the inside of NVC is very chaotic, people with a bad attitude start to drag and not give money." A person in charge of the operation center told reporters.
According to Zhejiang Ye Wei, the total amount of debts owed to major customers and engineering projects of the Zhejiang Operation Center has reached more than 30 million yuan since the outbreak of the NVC storm in May.
According to NVC Lighting's “Regional Operation Center Modelâ€, most of the NVC products in the Chinese market are exclusively sold to the regional operation centers in wholesale form. NVC Lighting will enter into an annual contractual agreement with the Operations Center to manage and constrain the operational systems, including the regional scope of the operations center, product categories, performance targets, and product pricing.
The most important result of this distribution model established during the Wu Changjiang period is that it can absolutely guarantee the annual sales of NVC Lighting. In fact, at the moment when the products are distributed to the operation centers, NVC can confirm the sales revenue. At the same time, market risks are also transferred outside the company, and regional operations centers actually carry very heavy operating costs and risks.
"There has been a lot of money for NVC in so many years. The analogy is very large. For example, the previous operation cost more than 10 million yuan a year. The cost of operation is still so much, but the sales decline is very serious. It is very dangerous for dealers." Xiao Tianhua told reporters.
To what extent can the regional operation center's capital chain be tight? Ye Wei gave the reporter an account: "The annual advertising fee for NVC lighting in the market is very, very small. In such a large Zhejiang province, the advertising fee is only 1 million. The decoration subsidy for each store is only Two or three thousand. Last year, our province's operating expenses were 30 million. The money was taken from our own profits. If we can't get it, who will take it?"
Ye Wei told reporters that at present, all the employees in the Zhejiang Operations Center, including sales, administration and inventory, add up to more than 200 employees. Because the workload is seriously unsaturated, he is now preparing to reduce costs through appropriate downsizing.
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