In the past two years, rising costs of metal raw materials, components, and labor have significantly squeezed the profit margins of lighting manufacturers. To strengthen its core competitiveness and ensure long-term sustainability, NVC Lighting launched a strategic transformation in 2018, shifting from a traditional manufacturing company to a channel-driven enterprise.
On March 15, NVC Lighting announced a non-binding cooperation framework agreement with Mr. Fang Dehao Runda and Mr. Wang Donglei. Under this agreement, the company plans to transfer its domestic lighting products manufacturing business, including the entire share capital of Huizhou NVC, directly or indirectly to the two individuals. This move is expected to reduce the proportion of manufacturing within the group, aligning with its long-term development strategy and interests.
Following the sale of its domestic LED manufacturing operations, NVC Lighting has taken further steps to strengthen its distribution channels. On March 16, 2018, the company signed a purchase agreement with Hong Kong Luoman International Co., Ltd., acquiring a 40% stake in Hong Kong Weilan Core Light Trading Co., Ltd. for RMB 315 million.
Hong Kong Weilan Core Light Trading Co., Ltd. engages in investment holding, lighting, LED technology, home appliance design, and international trade. Its main business involves selling and distributing lighting products through e-commerce platforms and distribution networks. At the time of the announcement, Hong Kong Weilan held an 85% stake in Wuhu NVC, while NVC itself held a 10% stake. After the transaction, NVC will own 40% of Hong Kong Weilan and indirectly hold 44% of Wuhu NVC.
The acquisition is aimed at enhancing NVC's ability to collaborate on online sales and distribution channels. The company plans to expand its sales network and leverage big data analytics to better understand consumer behavior and improve customer experience.
Whether through offline or online channels, NVC has demonstrated strong resource integration capabilities and achieved significant success. Since 2016, the company has implemented the “Business Photo + Home†dual-wheel drive model, successfully expanding its sales network. By June 30, 2017, it had 37 exclusive regional distributors and 3,275 specialty stores under them.
In the online space, NVC has performed exceptionally well on major platforms like Tmall, JD.com, Suning, and Vipshop. During last year’s Singles Day, the company achieved total online sales of 279 million yuan, with a 128% increase in daily customer turnover, a 29% rise in average customer spending, and 92% of traffic coming from mobile devices.
With the rise of the Internet+ era and evolving consumer demands, the new retail model has become a key trend in China’s e-commerce sector. NVC has been proactive, setting up O2O experience stores across China and deepening its presence in the offline market.
Through strategic partnerships, such as with Yujing Technology, NVC has integrated the online advantages of the “China Lighting†app and Yujing’s “LED Lighting Industry Platform†to offer consumers a more convenient, efficient, and high-quality retail experience.
After implementing its 2018 transformation strategy, NVC Lighting is once again focusing on channel development. It’s clear that the company is preparing for a major expansion and is poised to make a strong impact in the market.
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