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international lighting giant led industry still need to break out

With the increase in domestic labor costs, international brands will move production base from China to Southeast Asia, the practice is not uncommon. But the lighting industry giant GE from the Chinese market exit story, has become a “farce.” GE Lighting will terminate all direct commercial activities in Asia and Latin America since November 30, the company’s CEO said in a message to internal employees. Lighting industry giants in China this market even so quietly launched, can not help but sigh, but the development trend of the lighting industry in recent years, we can easily see the original intention of GE away.

Profitable for many years atrophy

Business profit, which is whether the domestic brands or the world’s top 500 enterprises are the same, GE the introduction of the Chinese market is the primary reason for the market is shrinking for many years.

National Semiconductor Lighting Engineering Research and Development and Industry Alliance, Deputy Secretary-General Geng Bo once said that in recent years, GE Lighting has been in the continuation of the exit from the Asian market. Five years ago, due to poor efficiency, GE in China’s development has begun to decline. GE lighting in China only channels, not a physical plant, its products are mainly commissioned by a company called Xiamen Topstar foundry. Topstar also helps GE Lighting to produce lighting products for the North American market. Information, the above-mentioned Topstar full name to become “Xiamen Topstar Limited”, Xiamen Light Industry Group affiliated enterprises, mainly engaged in energy-saving electric light products, lighting appliances, plastic products research, development, production and management. Among its subsidiaries, through Topstar lighting, through the new technology and Topstar GE have cooperation.

Perhaps GE in the Chinese market had no idea “play really”, GE lighting in the Chinese market promotion efforts, has been inferior to Philips and other brands, one of the important reasons related to the former product layout. GE lighting in the Chinese market to promote the main industrial lighting, mainly to tender, so the promotion methods and other home-oriented, commercial applications, such as the promotion of different lighting products. GE lighting out of Asia or Latin America market, its impact is not large, because the two market revenue is very small. Such as the size of the Chinese market revenue may account for only about 10% of GE Lighting’s entire revenue. GE Lighting brand awareness is mainly concentrated in the North American market.

But with the lighting industry giants, Philips and other brands in the Chinese market action even more intriguing.

The traditional lighting giant stripping lighting business, is the general trend. Philips Lighting and OSRAM lighting business are “selling themselves” before GE Lighting is told to exit the Asian market. In addition, as early as 2014, Samsung has decided to suspend in the overseas market in the LED lighting sales and other related businesses.

Illumination of the urgent need to change from manufacturing to “intellectual creation”

GE and other giants have stripped lighting business, the domestic lighting brand is even more need to improve the technical threshold, to “intellectual transformation”. In recent years, the mainstream of LED lighting, for example, LED industry, low technical threshold, so more and more enterprises to enter the industry, and eventually lead to the same as the PV industry – serious overcapacity between enterprises big price war. After a round of reshuffle, many companies closed down.

2x4 led panel home depot

LED chip in 2012 to 2015 more than three years time, the price dropped to the original one-tenth. As the second largest LED chip manufacturer, Huacan Optoelectronics in the last round of sharp decline in prices, can be described as experiencing pains, the company’s performance showed a sharp decline in the situation. However, the current chip prices remain at around 200 yuan, the competition between enterprises has become stable.

It is worth mentioning that the level of government subsidies to LED companies, making many companies enter the industry’s purpose is not to develop LED, but to subsidize, which is one of the reasons leading to excess capacity in the industry.

LED industry after 2000, has undergone rapid development, Huacan photoelectric, three security optoelectronic LED companies also take the industry development of the wind, from the original small business, developed into today’s LED listed companies. As the LED industry, a lower threshold of technology, but also makes a lot of money into the industry, and eventually lead to the same photovoltaic industry, the formation of excess capacity situation.

In order to break through, companies began to price war between the disorder of competition, this competition in 2015 peak. According to the relevant data show that in 2015 more than 20%, about 5,000 LED-related businesses out of the market.

Among them, as the LED chip industry, also experienced a price war competition, industry has undergone another round of reshuffle. According to report, the current domestic LED chip companies in the normal operation of about 15, which is 50 from 2010, after the price war reshuffle the rest of the enterprise.

Green transition long way to go

Green transition as one of the key industries, lighting industry in the clean production, green transformation of the task is more important. Through the implementation of the green lighting project, energy efficiency labeling management, environmental labeling certification, the implementation of green lighting projects, energy efficiency labeling management, environmental labeling certification, the implementation of green production, Energy-saving product certification and energy-saving projects to improve the proportion of green energy-saving products market.

In which, LED lighting and application of new materials and enhance the intelligent lighting system; and key equipment manufacturing level upgrade project, including tube-type LED lights automated assembly equipment, LED flat-panel lights are the focus of automated assembly equipment development. Can be expected, the future, intelligent lighting, or will become an important growth pole of the industry, is an important opportunity for the development of lighting business.

In recent years, many lighting companies have been actively layout smart lighting, the industry is the topic of intelligent lighting to start a big discussion. However, the real smart lighting is what? Intelligent lighting will be how to develop? At present, intelligent lighting in the lighting industry has not yet completely erupted, but the industry prospects for intelligent lighting and trend recognition is no doubt. GE and other industry giants stripping lighting business moves again for the domestic lighting industry has sounded the alarm, intelligent transformation has become the trend, the industry is already imminent collapse.

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