Xie Gongxiao, chairman of Mingyue Lens: “It was originally one kilometer wide and one meter deep. Now it is only one meter wide, ten kilometers deep and one hundred kilometers deep.” Jumping out of the price war trap, Mingyue Lens is moving towards the first brand of Chinese lenses.

Targeting and Leading Strategy China’s Enterprise Practice Enlightenment 8 Permanently withdraw from price war, Mingyue Lens will become the first brand of Chinese lens

In the past, when people buy glasses, they tend to pay more attention to the beauty of the frames, while ignoring the lens that is really responsible for eye health.

The “lens” of the consumer mind is still blank, which is the biggest strategic opportunity in the lens industry. In 2017, Trout and the Moonlight Lens have established a strategic position – equating the moon and the lens in the mind of the consumer, making the moon lens the first choice for consumers.

Mingyue is a historic company that started in the optical retail store in 1980 and established the first resin lens factory in Shanghai in 2000. Today it is the leading lens manufacturer in the country. After the positioning was confirmed in 2017, it began to exert strength. In 2018 and 2019, the price was raised for two consecutive years, but the company’s performance did not fall and rose. Because of the bright moon, the entire lens industry is moving away from the price war and entering a benign development track.

Chairman Xie Gongzhao believes that the role of positioning is to point out the general direction and big opportunities for the company’s development through external perspectives. Once the direction is clear, companies only need to concentrate resources and work hard toward new goals and new directions. “It was originally one kilometer wide and one meter deep. Now it is only one meter wide, ten kilometers deep and one hundred kilometers deep.”

The moonlight lens that bypasses the price war trap is moving toward the first brand of Chinese lenses.

Here are the videos:

Deng Delong, global president of Trout Partners, commented:

The strategic history of Mingyue Lens can be summarized from “invisible champion” to “mind preferred”. From a business perspective, Mingyue is a supplier of lenses, and direct customers are optical shops. On the surface, it is a B2B enterprise that does not need to connect with end consumers. But most B2B companies have to think about it, and you still have to establish a position in the C-end users, in order to strengthen competitiveness and enhance the discussion of B-side customers.Valuity ability, through the establishment of the bright moon as the lens leadership position in the end user’s mind of the C-end, the reliable strategic positioning, provides a continuous source of power for the reconstruction of the entire industry.

Before the strategic adjustment of the moon, the domestic lens industry has entered a very dangerous situation. Consumers pay almost no attention to the lens at the time of purchase, and only pay attention to the frame, so that the lens supplier is insignificant in the industry. The price war, the bad money drives out good money, and the industry enters a vicious circle. As the leader of domestic lenses, Mingyue Lens stands up to reconstruct the value chain and establishes a position in the minds of the end users, thus promising to permanently exit the price war, continuously investing in upgrading products, and leading the industry to return to a benign development track.

Mengyue Lens has strategically positioned itself to redefine the industry in which it operates – not just the supplier of myopia lenses, but to protect the eyes of humans through optical devices, thus discovering “anti-blue glasses” with new positioning. This is a vast blue ocean, and it is easier to use the existing advantages to occupy the head position on this track. At present, the head resources of various industries are rapidly moving closer to the bright moon to jointly promote the strategy of “protecting the eyes for human beings”, and the future development opportunities are infinitely broad.

Principal Content Officer Li Yang Comments:

Because the upstream and downstream prices are opaque, the optical industry has always given the impression of huge profits. In fact, pricing power is in the hands of optical shops and other channels, lens suppliers have a relatively small voice, and easily fall into the price war. If you don’t want to be dragged into the mud of the price war, you must remove the noise and allocate the resources to the most critical places. This is also why the Mingyue glasses, although they are home to B companies, also need to use the special theory of the special plane, when you are confused, find the clear direction that can best exert its own advantages, that is, the main attack lens, the endorsement lens, registered in the mind of the terminal consumer The word “lens”.

This is related to the history of the moon. In 2000, it established Shanghai’s first resin lens factory, which is also related to the actual needs of consumers. Compared with the frame, the lens really plays the role of eye protection. Trout let Mingyue realize that if the moon lens enters the consumer’s mind and becomes its first choice, its bargaining power on the channel will be greatly improved. Once the direction is clear, the next step is implementation and implementation. Mingyue successfully jumped out of the price war between peers, and maintained a high-speed growth in the case of a poor macro environment.

Video text recording

Xie Gong, Chairman of Mingyue Lens:

Our peers, China’s lens companies are actually bought by foreign capital. Foreign investors also want to buy us every day, and the price is very high, then why don’t we sell it? There is one very important reason: I always feel that the opportunities in our industry have not been tapped.

Xie Gongxing, President of Mingyue Lens:

The entire spectacle industry is now blank in the minds of consumers. Traut later told us very clearly: “The moon should beThis is the lens, and the moon should represent the lens. The bright moon must set off the development path of China’s optical lens brand.

Mingyue Lens Entrepreneurship

Xie Gongxing, President of Mingyue Lens:

Our predecessor was an optical shop, probably in the early 1990s. At that time, we wanted to buy goods, and we wanted to get good products. It is such a very simple reason, we went to make glasses.

In 2000, we established the first resin lens factory in Shanghai.

At that time, all raw materials for domestic resin lenses were all imported. When I participated in the International Optical Fair, I contacted us at home to say that there was no raw material at home. Why did you have no raw materials? The answer is that because foreign companies want to raise prices, they cannot provide raw materials until they have negotiated the price.

This matter is very touching for our bright moon. In 2007, Mingyue established its own raw material factory, which is also an important turning point for us. Later, it gradually formed certain capabilities and scale in research and development and manufacturing.

About around 2010, we are considering whether we can try to make a brand. Some ads were put in, but the more you feel, the more confused you are, because the cost of advertising is high, but the return is not very obvious.

(At the time) including our products are also very mixed, high-end, low-end, mid-end, but no one product is particularly top-notch, although the company’s total sales revenue is growing every year, but it depends on The scattered (products) pile up.

Although the company is still in the ascendant stage in the development stage, and even the status of the industry is still acceptable, there are some doubts about it: After three or five years, what is the road of Mingyue? We have no bottom in our hearts.

How does positioning drive corporate strategy?

Xie Gongxing, President of Mingyue Lens:

For example, India has a population of over one billion and consumes a lot, but its current labor wage is only 500 yuan a month. If we still stay in manufacturing, China’s various costs are rising and will soon be replaced by countries like India. Only by transforming and forming their own competitiveness will they not stay at the manufacturing stage to fight for costs and price.

In 2017, we met Trout, and the solutions they gave us really made us shine.

Zeng Zhe, Vice President of Mingyue Lens:

So we made it clear that we are the first brand to be a Chinese lens and to be the first choice for consumers.

The consumer will wear glasses and glasses in China in the future. He doesn’t have to worry about other things that are very reckless. He only knows that he can choose the moon lens.

This company, it will use all its energy, do everything possible, mentionTo enhance the user experience, to develop more and better products, suitable for Chinese products.

In the past, when you were wearing glasses, you paid more attention to the frames, and there was not much attention to the lenses that really brought him light. In other words, the value of the lens is not recognized enough. We must go through a series of actions to make everyone realize that a pair of glasses is really important for lenses.

Trout can help us find new opportunities on the outside, find new opportunities, and help us see where there are risks, where we need to defend, etc., and even give us a way of doing business. The way of thinking has brought about earth-shaking changes.

Positioning allows the entire enterprise to take the power of the whole company and even mobilize the power of the whole industry to target one of the biggest opportunities. Just like Huawei’s general lecture, aim at a wall and concentrate all the power. Go and bang this wall.

Xie Gong, Chairman of Mingyue Lens:

After the implementation of the positioning, it is equivalent to Trout pulling the car in front of the external perspective, and the company is working hard in the back. This direction is right.

What is the thinking behind the permanent exit price war

Zeng Zhe, Vice President of Mingyue Lens:

We used to have a period of unconsciously entered the trap of price wars. At the end of 2017 and the beginning of 2018, we have clearly exited the price war cycle. Especially when we launched a strategic launch conference at the Shanghai Center at the beginning of this year, we made it clear that the moon lens will permanently withdraw from the price war.

Objectively speaking, we initially quit the price war and announced the return of value. We are ready to go down the business, but in fact we did not. In the case that the overall macro environment is not good, we are year-on-year (growth). More than 20%, high-end (product) growth of more than 80%, is a very good sign.

In fact, behind the (permanent exit price war) represents a very big strategic upgrade for the moon. The core of this strategic upgrade is that we must aim at the first brand of China lens. The first brand, it should have the first quality, the first consumer perception, the internal support of all aspects, should be forced in this direction, the price is only one aspect.

Xie Gong, Chairman of Mingyue Lens:

It’s very clear now, where is the direction of the entire company in the future. In which direction we are going to configure the company resources, it is very clear, remove the noise and useless movements, and let yourself focus more.

In our own words: It was originally one kilometer wide and one meter deep; now it is only one meter wide and ten kilometers deep and one hundred kilometers deep.

The high level of our company reached a consensus: Mingyue entered the second venture, we found the opportunity to regenerate, we found the direction and goal of our second venture.

Evaluation of the Trout China team

Zeng Zhe, Vice President of Mingyue Lens:

We are also joking with Deng. Your consultation fee is really expensive, but we feel very worthwhile.

It’s a core point. What really brings the most value to the company is not how much specific work is done, but when the company needs to make major decisions about the direction of road selection, it will give the company a clear and firm Feedback from the value of money, this is the greatest help that Trout has brought to us.

Trout is very mysterious. It has never participated, evaluated, or opposed something about the outside world. This mystery has deepened everyone’s guess. But after we have cooperated with it, I feel that mystery is also very good. Popular knowledge is usually not first-class knowledge. Although first-class knowledge ultimately creates value for the general public, there must be a minority of people who can truly use first-class knowledge.

Xie Gongxing, President of Mingyue Lens:

Trout’s plan for us is based on our reality and completely out of our original knowledge.

After the interpretation, we don’t think we need to change it. We don’t need to change a word. Everyone agrees, and more is designed to communicate. This program is what I want. More exchanges say that this solution can solve our problem. problem. This thing is very interesting to say, and even feels incredible.

Xie Gong, Chairman of Mingyue Lens:

I feel that he (Deng Delong) is still a very affectionate person, looking for one thing, he will insist on doing this thing, although the industry we are engaged in is not the same, but we are now An entrepreneurial partner.

Blessings for the 50th anniversary of the birth of positioning theory

Xie Gong, Chairman of Mingyue Lens:

I hope that positioning theory can be recognized and accepted by more people in China.

Xie Gongxing, President of Mingyue Lens:

I hope that more local companies will stand out from the competition by positioning theory, so that more consumers can directly enjoy the value brought by local brands.

Zeng Zhe, Vice President of Mingyue Lens:

Blessing Positioning Theory In the future and more ambitious companies, create a model of the industry to promote and set off a truly global productivity revolution.