New Terri Lujiang: Will franchise to the end (Figure)

Lu Jiang, General Manager of New Terry Lighting Marketing Division

Go out first, then come back. This is the simplest abbreviation of the new super-female business of the company after 2000. But it was easy to go out, and when I came back, it took another five years for Xintel Lighting to build a new business model. This is the unique franchise model of New Terri Lighting. Five years later, in 2008, the Chinese economy suffered the biggest challenge in recent decades. The grim situation has made almost all lighting and lighting companies feel unprecedented pressure. Either survive or die, there is no third way. Under such circumstances, Xintel Lighting has re-adjusted its product market positioning, continued to expand its franchise system, and quietly sprinkled a large net into the domestic market.
In 2000, Xinteli succumbed to the domestic market and devoted all three years to the export market. In 2003, New Terri returned to the domestic market, opening the model of the franchise operation of the lighting industry, and quickly opened up the territory in the domestic market. . After five years of development, today's new Teli has already had about 200 franchise points in major first-tier cities in China, and has formed a complete franchise system. In 2008, under the premise of continuing to franchise, Xinteli launched the 1+X wealth fusion strategy, changed the product style of the high-end line in the past, and launched the three major channel brands of True Color, Zhizhuo and Jinshifang. The high-end city often cooperates with this adjustment of the new franchise franchise management system. According to Lu Jiang, general manager of the company's marketing division, Xinteli will expand the number of domestic franchise points to about 600 in a year or two, mainly for the third-tier market in the more developed prefectures and counties, and fully spread the sales network. To seize the domestic high-end market

The following is an interview with Lu Jiang, general manager of the marketing department of Xinteli Lighting Co., Ltd.:

Reporter: First of all, I would like to thank Lu for accepting our interview. We know that the economic situation this year is severe, especially the downturn in the real estate market. What impact do you think these factors have on the lighting industry? Compared with the past, what is the situation in the whole industry? What is the feeling of the new Teli?

Lu Jiang: This year's domestic economic environment is indeed not optimistic. In particular, the financial investment market, such as the real estate market and stock funds that have a great influence on the lighting industry, have shown a large stagnation or decline, causing no problem for the entire domestic lighting industry. Small pressure. In addition, the renminbi is constantly on the rise, putting pressure on exporting companies. These factors of the big environment have had a significant impact on China's overall lighting industry, including New Terri. It can be said that the entire lighting industry is now undergoing a process of reshuffling. Some small companies can't stand the pressure and go out. The big companies with strong strength can survive the past and survive when they survive.

Reporter: Do you think that after the development of the lighting industry over the past few years, what major changes have been made compared with the past? What is the basic situation of the entire industry now?

Lu Jiang: After years of development, our entire industry has now grown to a considerable scale. However, due to the particularity of the industry itself, there are still some problems, such as numerous production enterprises, irregular circulation environment, serious product homogeneity, and fierce competition. This is like the situation of the Chinese home appliance industry in the late 1990s. However, we can see that the current development trend of China's lighting industry is that a number of outstanding enterprises have begun to move toward the road of scale and branding, and have achieved great results.

Reporter: In 2003, starting from reopening the domestic market, the new franchise franchise model made a great contribution to the expansion of the local market. How do you know about the franchise model? What is the extent to which the new franchise has been developed?

Lu Jiang: Before 2003, we mainly worked in foreign markets. After returning to the domestic market in 2003, we started the franchise model. This model is currently a popular business model in the world, mainly used in some commodity circulation and catering service industries. To be a franchise, first of all, the overall strength of the company is very high. For example, the scale of the company, brand awareness, product development, manufacturing, marketing management, capital strength, logistics and other aspects must reach a market and market. The height of recognition, especially in the independent intellectual property rights and profit model. Xinteli has been a franchise system. Since 2004, it has been fully rolled out in the first-tier cities of the provincial capital city and the secondary real estate network in some developed regions. So far, more than 200 franchise stores have been developed nationwide. It also includes parts of Hong Kong, Macao and Taiwan.

Reporter: As you said, this kind of marketing method of franchising has relatively many requirements for the production enterprise. So, has Xinteli encountered this problem during the operation of the franchise mode?

Lu Jiang: Yes. We are learning from foreign experience, but China's national conditions have different places. We found that the biggest obstacles encountered in the implementation process were not product development and scale issues, but the ability of China's relatively backward circulation industry to understand and accept franchises. During the four years of franchising, we have spent a lot of energy on continually training and guiding franchisees to ensure that our franchise system works effectively.


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For the flex circuit Membrane Switches, there are two types. They are silver printed PET circuit and copper etched FPC circuit. Their difference and advantages&disadvantages listed bellow:

Items	Silver Printed Circuit	Copper Etched FPC Circuit
Material	PET (Polyester)	Copper
Conductor	Printed silver	Copper
Contact Fingers	Silver and Carbon	Gold plated
Contact Buttons Pads	Silver	Gold plated
Life & Reliability	normal	good
Stability	normal	good
Resistance	low	Very low
Cost	low	high
Lead Time	2-3 days	7-10 days
Pitch	0.5mm (not suggested), 1.0mm,1.27mm,2.54mm	0.5mm, 1.0mm,1.27mm,2.54mm

Usually if the membrane switches need assembled many LEDs, then we suggest to use FPC circuit, it can get more stable LED soldering quality. For the normal application the PET circuit is enough, which is more economical. In addition if the conductor pitch is 0.5mm, although we also can print it, but we still suggest to use FPC circuit. Because of that 0.5mm pitch is too small and it is easy to occur the short circuit problem.

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