2015.01.16
Source: Business Weekly Issue 1443
You want to start a business, but the industry is covered by the four major brands with 80% of the global market share. With only 20% of the remaining opportunities, you have to compete with more than 20 companies. At this time, will you choose to give up or stick to it?
Five and a half years ago, Jingshuo Optics, a subsidiary of Pegatron United Technology, chose the latter. This made it the brightest contact lens stocks when it entered the Xing Cabinet on December 30, 2014. Its stock price rose by 104% on the first day. The eye.
Now, Jingshuo has defeated the three major international brands of Bausch & Lomb, Cooper, and Vision, and squeezed into the top 3 in Taiwan's market share. Even the stock of Singou Optics, which Wang Da Liguang has invested in for nearly ten years, is not its opponent.
In 2009, Pegatron, a manufacturer of notebooks and mobile phones, and its printed circuit board manufacturer Jingshuo jointly invested in Jingshuo and entered the contact lens industry. However, in addition to international manufacturers such as Jiaosheng, there are more than 30 years of local industry F-Jinke, biotech stock king Jinghua Optics, Jingshuo as a layman, this attempt is not favored.
"Everyone feels that they are not doing their jobs properly and doing this in electronics..." recalled Guo Mingdong, CEO of Jingshuo.
Guo Mingdong, CEO of Jingshuo. (Photographer. Lai Jianhong)
Compared with Largan's optical background, Essence Optics has the advantage of contact lens foundry. However, companies that produce printed circuit boards have entered this industry, which naturally arouses criticism. Because at the beginning, Jing Shuo chose to open the market on his own. This was something that even Wang Da Liguang didn't dare to do at the time.
Do not take the traditional way of consignment
Burning money to open the market, nearly 90% of repeat customers
This is indeed a very money-consuming investment. Based on the calculation that Jingshuo currently has more than 40 stores, one month’s rent and personnel expenses would have to burn up to 12 million. Taking the first half of 2014 as an example, its operating expense ratio is only It is as high as 44.5%, which is nearly 5 times that of Essence Optics.
But Jing Shuo calculated the account in this way. If you take the traditional route, "You are only one of ten, and the eyewear shop may not help sell," Guo Mingdong said.
More importantly, this investment can be offset by the reduced inventory management costs, and the further customer information in exchange for the brand effect of exposure is priceless.
According to Pegatron's internal analysis, the inventory management of contact lenses is more complicated than that of mobile phones. In addition to dividing each 25 degrees into one specification, plus astigmatism, color films, different materials..., there are hundreds of product portfolios, and they have to be distributed to nearly a thousand glasses in Taiwan. Yes, although the industry will distribute a large number of products for the common frequency, if it is a special product, it can only recommend that the customer first place an order before picking it up, but it is difficult to avoid some people who can’t buy the product and switch to other places for consumption.
Jingshuo chose to establish direct sales channels, and it was simple for more than 40 stores to support each other's inventory, saving inventory costs. Moreover, when customers come to the door, if there is any situation, they can directly report to the store staff, as a reference for the development of new products.
Guo Mingdong said with a smile, like a box of six-color limited edition "Macaron" series, special styles such as leopard print and love heart are all ideas provided by customers.
Although it was losing for 4 consecutive years at the beginning, by the end of 2013, after the number of stores approached 40, profitability began throughout the year and the economy was established. If the opponent wants to catch up, it will take at least another 5 years.
Dare to take the path of innovation
When cosmetics are sold, open a counter
Now, Jingshuo has entered the Watsons channel with more than 400 stores in Taiwan with its brand momentum.
"Don't be like ordinary hard contact lenses. We make them look like cosmetics, and the name is like a French brand..." Guo Mingdong explained that in the past, most of the stations were set up in Taipei MRT stations and it was difficult to expand their business to the central and southern regions. Therefore, since the end of last year Started cooperating with Watsons to set up an open-frame counter to sell contact lenses as cosmetics.
Before Jingshuo made contact lenses, everyone said it was impossible. However, it saw that the industry was not yet automated enough, and recruited Pegatron and Jingshuo talents who are good at optics and mechanics, rebuilt equipment and testing instruments, and changed the rules of the game of manual testing in the past.
When the industry is worried that the market will turn into a red sea, Guo Mingdong said that opportunities are always there. Don't be afraid to be the second or third in starting a business. This is the secret that the opponent has lost more than 10 years in a row, but Jingshuo has made profits in less than 5 years, and revenue is expected to double in 2015.
