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ÒëÕß´÷º£Á« (Helen)
Copyright
2004-6 by Sue Brown and Dr.
Bill
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and Fujian
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Mag. Guide to Xiamen and Fujian
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Mag. Guide to Xiamen and Fujian
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Visit Firefly Lighting at: www.fireflylighting.com.cn
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Last revised: Sept.
16, 2006
Mr. David Chia, founder of Firefly Lighting and one of China’s fastest
rising young entrepreneurs, had nothing but a suitcase when he showed
up in Xiàmén in 1991—and that was stolen the first
week. “The thieves didn’t know all I had in it was a sweater
from my mother,” David said.
David graduated from Xi’an Jiaotong
University in 1991 with a degree in international trade and moved to Xiàmén
because his girl friend was from Fújiàn and he thought he’d
have a better future in a Special Economic Zone. After 2 years as interpreter
and assistant to the Taiwanese president of a carpet factory, the president
said, “David, I want to tell you a true story. When my dad was your
age he was very poor. He had to transport materials 50km. just to get
enough money for lunch. Now he has USD 100 million. You have an even brighter
future than he did. You have an education, and the opportunity in China
today is as good as it was in Táiwan 20 years ago.”
David thought, “If I don’t do something with my own life,
in 20 years my son will ask why!” He tried working as a trading
agent for a German textile company but after one year was so broke he
could not afford a bus ticket, and had to get lunch money from his girl
friend. But he had learned several lessons:
Back to Top Amoy Mag. Guide to
Xiamen and Fujian
1. Choose the right business for my background.
2. Build a team of friends and partners.
3. Stress relationships over ability when choosing team
members.
David’s sister, who was studying
in Belgium, met a man who said Xiàmén had a factory producing
the energy-saving lighting products he needed. A former classmate of David’s
who was in Xiàmén knew about that factory, which they visited.
And since David knew trade and his classmate knew technology, they went
into business together.
In February, 1995, they opened Donglin Electronics—a 100m2 operation
with 6 people. The Xiàmén firm they sold for could not provide
the high quality their client demanded so with trial and error they developed
quality lamps of their own—only to have their client in Belgium
give up the lamp business because of a patent conflict with Phillips.
They had invested big money to develop a quality product, but now didn’t
have enough money to pay the phone bill. David said, “This was my
year of darkness. My wife was making big money but I was broke.”
While walking to his home in a poor area of town in 1996, David saw a
nice office with fashionably dressed people. “It was totally out
of place,” he said. It turned how to be a company that created corporate
branding and images. The owner, Mr. Chui, was to become David’s
best friend (David even named his dog after him).
Back to Top Amoy Mag. Guide to
Xiamen and Fujian
David he had no money to pay the company, but Mr. Chui signed a contract
to create a brand and a logo in return for a penny a box on lamps sold.
David went to a bar to drink and think. He suggested the name “1/5”
because their lamps used 20% of the energy of normal lamps, but Mr. Chui
said, “No emotion in that name.” And then David thought of
“firefly.”
“That’s the name!” Mr. Chui said. And they finalized
the name and logo that night, and created the motto, “Light the
world with heart.” David said, “Fireflies light the world
from their heart; firefly people light the world from our heart.”
A week later a German friend told David that many German bars were named
“Firefly” because it was soft, romantic.
All or nothing. Mr. Chui’s next
suggestion was to make Firefly either fly or fry. He told David to buy
a $10,000 booth at the Canton fair. David’s partners objected this
would use every penny they had, but David said, “We’re losing
every day anyway, so in three months we’ll be bankrupt. This way
we have a chance.” After an all night consultation and further talks
with Mr. Chiu, they bought the booth.
Back to Top Amoy Mag. Guide to
Xiamen and Fujian
Image Only. David said that most booths were like supermarkets, displaying
everything the companies made. But the Firefly booth was almost empty.
“I only had 5 lamps displayed,” David said. “Our booth
was so empty that people thought I was selling my notebook computer!”
David kept the booth simple because his focus was not on product but image
and emotions, with an environmental theme of blue sky, earth, firefly
logo. And David returned home after the fair without a single order.
Two weeks later, the bank told David they’d received a Letter of
Credit from the U.K. for a USD 200,000 order. “Impossible!”
he said. “No company has contacted me. It must be a mistake.”
But it was no mistake. David phoned Mark Luce in the UK and told him,
“I don’t even know you.”
Mark said, “But I remember you. Three things impressed me about
you at the Canton Fair. One, you spoke the best English and you were the
president of the company; you personally represented your products. Two,
you were the only company with a clear image. Three, you make only energy-saving
lamps. I trust you, and I’m sure you have a good future.
Back to Top Amoy Mag. Guide to
Xiamen and Fujian
Now that Firefly had a big order, they obtained a USD $100,000 3-month
loan from the bank to build a factory big enough to deliver the order.
“The lamps cost four times as much to make then as now,” David
said, “and most energy-saving lamps were still poor quality. After
a friend asked me if ours would last longer than a week, we developed
a slogan, “The lifetime of our factory depends upon the quality
of our lamps.”
Do or Die—Literally. Firefly was very successful
from 1997-1998, but like most companies they struggled with the transition
from an entrepreneurial seat-of-the-pants operation to a professionally
managed company. They invested big, and grew fast, but had cash flow problems
that were complicated when a third partner embezzled funds. In 1999, suppliers
halted shipments and demanded payment. David called all suppliers to his
office and wrote out two debit notes, one from the company and one from
himself. He said, “If I can’t pay this debt in 3 months, I
will jump from this 5/F window.” Firefly was flying high by the
end of 1999.
Dueling with the EU While on vacation in the Black Forest in 2000, David
received a phone call from China. The EU had accused Chinese firms of
dumping. David canceled his holiday and flew to Brussels, where EU officials
told him, “Chinese companies are unprofessional, and aren’t
really private companies at all. They are all State-run and subsidized,
and have no concern for profit, just for getting foreign currency.”
Back to Top Amoy Mag. Guide to
Xiamen and Fujian
David was angry. Firefly had never received government funding, and so
he became the first Chinese businessman to fight the EU. He obtained a
lawyer from Brussels, but made a mistake in hiring an inexpensive lawyer
who was also inexperienced in anti-dumping cases. The EU said Firefly
was not following international accounting practices and levied a 66%
duty, which cut out 70% of their European business.
David could not sleep. “It was the end of Firefly,” he said.
But he bounced back by building a factory in the Karachi Special Economic
Zone. “Pakistanis speak English and encourage foreign investment,”
he said. Components from Xiàmén were assembled in Karachi
and sent to the EU. In spite of the higher cost they were able to make
a profit—until Siemens registered Firefly’s name.
Osram (Siemens) was wary of this small but up and coming company, so Osram
registered the name “Firefly” in all European countries. David
protested at the patent and intellectual property bureau in Germany, and
with the EU office in Beijing. On 1 June, 2005, Osram compromised. Firefly
could keep its name on lamps, but Osram would use it for LEDs.
Back to Top Amoy Mag. Guide to
Xiamen and Fujian
Today, Firefly has 1000 workers and does USD 15 million annually in business.
“We’re still small,” David said, “but we have
a good team, patented products, and we’re good in Chinese and global
markets. We supply Wal-Mart, Carrefour, Metro—all the large chains.
And as of today, August 20th, we have orders all the way through to December.”
The new Xiamen factory will be 5x larger than the present one and right
next door to Philips. “I asked the government first,” David
said. “I told them I want to be a global factory and be compared
with Philips, and they agreed.”
David believes Firefly will become a global leader, and he said he owes
his success to Xiàmén—both the city and the people.
“I came with only a suitcase and didn’t even have that after
a week. Today I have millions of dollars. This is because of Firefly’s
spirit, Xiamen’s system of government, and the openness of Xiamen
people. Outsiders, foreigners—all are welcome. “Xiamen people
are honest and don’t trick us—though I’m sometimes tricky!”
“We have a great port, convenient transportation, and a wonderful
living environment. Every day I drive the beautiful Island Ring Road to
work and back. There is nowhere else like this on earth!
“I came to the right place, met the right people, and have the right
life. What more could I want? God is good to me!
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Top Amoy Mag. Guide to Xiamen
and Fujian
Visit Firefly Lighting at: www.fireflylighting.com.cn
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