Welfare mode

When the supply and demand relationship in the photovoltaic market has an inflection point and the prices of domestic PV manufacturers have been thrown into the market, some people have already looked into the mode in which they can dig gold. In September 2011, the F&N Group established the "European New Energy Sunshine Valley" covering 800 acres in Chataudun, France. It is Europe's first solar energy center integrating distribution, logistics and research and development. Liu Jiayong, chairman of the F&N Group, told Global Entrepreneurs that domestic PV module manufacturers plan to build the production line into the New Energy Sunny Valley.

“The real turning point for this industry was in 2011, before it was in short supply. It used to be that the goods were sold before they were shipped to Hong Kong, or they were sold out before they arrived in Hong Kong, regardless of your restocking. As a result, the supply of goods was far greater than the demand in 2011. , then we must consider the distribution, logistics, warehousing and other services." Liu Jiayong said. Liu Jiayong, who frequently travels to and from both sides of China, has predicted the change of market conditions by the end of 2010. “Everyone is crazy about expanding production. It's terribly scary. Where will these capacities be released in the future?” said Liu.

Under the oversupplied market, these components produced in China require more warehousing, logistics, and distribution services in Europe than ever before. Less than six months, New Energy Sunshine Valley has attracted LDK, Artis, Tianwei New Energy and Henderson Photovoltaic.

Liu Jiayong’s career track coincides with the development path of the entire photovoltaic industry. At the end of 2003, Liu Jiayong had just got a master's degree in cognitive psychology in Germany, and he founded a trading company with two schoolmates in Germany. At that time, one customer found Liu and needed a 10MW PV module order. In 2003, the global PV market started from Germany. The component purchase price was US$4.2/W, and the 10MW order price was more than US$40 million. That year, Liu Jiayong was 25 years old.

Liu Jiayong returned to China and searched for all domestic component suppliers. Although this single business did not end up, but Liu Yin vaguely smelled the explosive power of the photovoltaic market, he began to consciously establish links with domestic component suppliers. In the three years from 2003 to 2005, Germany's photovoltaic market expanded rapidly, and at the same time it fostered the ferocious development of photovoltaic module manufacturing in China.

In 2006, Liu Jiayong, who had spent three years in the distribution of photovoltaic modules, sold the company to 300,000 Euros to Sumitan, a state-owned company in Jiangsu. “They valued our sales channels in Germany. At that time, the industry was in a state of madness for the first time. Everyone was desperate to come in.” Liu Jiayong recalled that the profits of component distribution at that time had fallen from 0.2 euro/watt in 2004 to 0.1 euro/watt, and At that time, the market was single and concentrated in Germany, so Liu Jiayong completely withdrew and explored new ways of earning money.

After contacting with a Spanish customer in 2006, Liu Jiayong discovered that Spain's lighting conditions and government policies are conducive to the development of the photovoltaic market, and Liu's interest has been placed in a more complex business, photovoltaic power plant development. This year, Suweili, a key figure in the dispute between Tianwei and Yingli, gave up his share and came to Spain, aiming at power station development.

From 2006 to 2008, the Spanish market was booming. In 2008, Spain’s installed capacity reached 2660 MW, an increase of 300% over the previous year, and nearly occupies half of the global installed capacity.

Su Weili, Liu Jiayong, and one of Spain’s locals, the three of them founded Tianhua Sunshine in Spain in 2006. Tianhua founds a capital of 1 million euros, Liu Jiayong took shares in cash with 150,000 euros, and served as vice president responsible for international business, began to develop other markets such as Greece, Italy. This experience made Liu Jiayong feel that the global market for photovoltaics is taking shape.

One year later, Liu Jiayong withdrew from Tianhua because of differences in management philosophy. Afterwards, he founded Fu Neng. The experience of the past year has enabled Liu Jiayong to realize that the complexities and pitfalls of power station development are far more than imagined, and that market fluctuations have begun. At the same time, the photovoltaic market in Europe is rapidly starting up. Liu Jiayong decided to return to the distribution business and develop new business models based on this.

Now, in the photovoltaic distribution market, Fuengeng has ranked among the top five in Europe, with sales of 300 million euros in 2011. Liu Jiayong summed up his own method of distribution model. Fonergy has more than 5,000 customers in Europe, most of which are photovoltaic installation companies. Liu Jiayong gave the marketing team a very accurate description of the target positioning - the installation company of a team of 10 to 20 people in the community. Liu explained that the installation company with more than 20 people will have its own warehouse and will directly contact with the component suppliers. 10 to 20 installation companies will not have warehousing services, but also to be flexible. In this way, the advantages of being able to provide warehousing services and timely and flexible delivery can be demonstrated.

Based on the consolidation of its distribution business, Liu Jiayong also continued to try new business models. When the photovoltaic industry was hit hardest by the financial crisis in 2009, Liu felt that the biggest problem was in terminal project financing. “At that time we were considering how to solve the financing channels and financing barriers. The installer of the financial crisis terminal did not have the funds to enter the installation. It stopped. China had components, but because the terminal did not provide this fund, he could not supply it and it stopped. "Liu Jiayong said.

Liu Jiayong began to try to reach an agreement with the downstream developers, Fu can provide components, developers to share the cost of power plant equity mortgages, so that the entire chain can flow even without funds. After the completion of the power station, a bank loan will be obtained and Fukeng will withdraw money and will not hold the power station for a long time. In this model, Fujin sold 30 MW components in Germany in 2009.

The adoption of new business models to promote the market, so the two years after the financial crisis, but Fu is the fastest growing two years.

Now Liu Jiayong has raised his tentacles to the EPC field. In 2011, F&N made a 37MW EPC project. Liu Jiayong's position on F&N is to serve as a comprehensive service provider for the solar industry, including the construction of the New Energy Sunshine Valley and the establishment of an e-commerce platform for component sales. "Everything involving solar energy, you can think of the concept of terminal services, can find our foothold." Liu Jiayong said.