Philips Lighting opens up new horizons in the market

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The advent of the financial crisis has made the collapse of private small and medium-sized enterprises one of the most sensitive topics at present; along with it, the expansion of large enterprises against the market has become one of the hottest topics at the moment. Among the domestic lighting companies, Zhong Xincai, who first had Foshan Lighting, raised the banner of crisis expansion theory, and then Huizhou NVC, which had just received Goldbank’s injection of US$37 million, invested 500 million in the Rongchang Lighting Base and at the same time 200 million credit dealers use the economic winter to accelerate industry integration.
The anti-market expansion of the domestic lighting giants represented by Foshan Lighting and Huizhou NVC is due to its courage and confidence. The source of courage and enthusiasm, in the final analysis, is created by its strong capital chain. For example, Foshan Lighting, the account has maintained a total of 8-10 billion in cash all year round, which is good for domestic enterprises; and the total of three international venture capital acquired before and after NVC has reached 47 million US dollars. Its sales have doubled even this year.
Foshan Lighting and Huizhou NVC's expansion strategy has different focuses, but in terms of its nature and expansion mode and region, it has a foothold in the country and focuses on the current commonalities. Contrary to this, the expansion of Philips in the Chinese market is typically international and far-sighted.
The Philips Lighting Group will implement a program called Occupy Office Lighting Heights. Before the end of 2012, Philips Lighting Group will invest 1 billion euros in the development of energy-saving products and through a series of strategic long-term cooperation and mergers and acquisitions to complete the layout of LED lighting. The report said: In China, Philips will adopt a more focused strategy and focus its business on the high-end market for office lighting with stronger profitability.
As a diversified multinational company, Philips has been firmly implementing the slimming program for a long time, but while slimming, Philips is also firmly implementing the focus plan. Through slimming, Philips cut off projects with low profitability; and through focus, it has expanded its inherent advantage projects and strengthened its profitability. The combination of the two allows Philips to achieve the goal of business expansion through shrinking business. In the Chinese market and lighting, Philips has adopted a policy of maintaining pressure and step by step to strengthen its scale advantage.
At present, the global market is shrouded in the shadow of the financial crisis. The demand in the global market is shrinking sharply. Although the Chinese market is also shrinking, with the introduction of the large-scale economic stimulus plan of the Chinese government and the 4 trillion yuan before 2010. With the large-scale investment of yuan investment, China's market demand will continue to grow steadily. For this stimulus plan, economists believe that this is the biggest contribution to the stability of the global economy. The famous economist Lin Yifu said that if China can maintain steady and rapid economic growth, it will be the biggest contribution to the world. The steady and rapid growth of the Chinese economy is also a powerful guarantee for the steady growth of its profits for multinational corporations and economic organizations that are engaged in the Chinese market. Perhaps this is why GM, Fujitsu, Oji Paper, Boeing, and Siemens continue to invest in China.

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