The advantages and disadvantages of LED traditional lighting transformation

It is undeniable that from the international lighting giant, the domestic traditional lighting boss to the unknown small-scale foundry, have begun to pay attention and invest in LED projects. From the 18th Guangzhou Lighting Exhibition that has just passed, it can be seen that LED lighting products have become the protagonist of the exhibition. Whether it is a traditional lighting company or an LED lighting company, almost all LED lighting products are displayed, and the types and functions are more and more. many. In particular, international industry giants Osram and Philips have also focused on increasing LED investment and seizing the Chinese market. The trend of LED is unquestionable and the market signal is getting stronger. This situation also makes us have to enter the LED lighting era.

In fact, many companies in traditional lighting are very contradictory. On the one hand, they hope that the pace of LED development will slow down and that companies will be replaced by new ones. On the other hand, they are actively involved in LED lighting and expect to keep pace with the times. Even for the traditional lighting companies that have cut into the LED lighting, some are not spared. On the one hand, it is left-handed and right-handed. These manufacturers are forced to promote LED lighting for various reasons. At the same time, they are constantly increasing the improvement of the performance of traditional lighting products of their core products and major profit sources. On the other hand, the current LED cost is also On the high side, the more LED lights produced and sold, the lower their benefits may be. Traditional lighting companies have relatively limited efforts to develop LEDs, and they are very cautious.

Traditional lighting companies have different concepts of transformation

In the era of LED lighting, various traditional lighting companies have different attitudes and practices for transformation. Some traditional lighting companies are more aggressive and have begun to invest in R&D, production and sales of LED lighting in all directions. While some traditional enterprises are relatively conservative and calm in their attitudes, they stick to the original city's foundation, and they also provide LED lighting. Still in the early stage of investment. In the traditional lighting companies that have begun to transform, many have set up LED business divisions. They have clear and definite plans for the development of LEDs and focus on R&D; some focus on the development of application solutions and application modules; others base on providing consumers with Cost-effective, safe and reliable complete LED product solutions; some companies in order to speed up the layout in the LED industry, directly through the acquisition of LED professional lighting companies, quickly make up for the lack of LED technology; or through the acquisition of semiconductor companies directly cut into the LED The field of chip manufacturing, thereby controlling the upstream industrial chain of the LED industry.

Sunshine Lighting is one of the earliest and most active companies investing in LED in many traditional lighting industries. It has established a relatively complete R&D and technical team and has first-mover advantage in technology. In addition, the company is a traditional export-oriented enterprise and has extensive overseas channels. Currently, it has cooperated with Philips, OSRAM and GM. In the domestic market, it performed well in government procurement. With sufficient funds, the expansion of production is proactive and rapid. Last year, the company issued a private offering of 8.99 billion yuan. It intended to invest half of the micro mercury energy-saving lamp and half of it to invest in LED. Due to the outbreak of demand in the LED market this year, the company has revised the direction of investment, and will invest all the investment funds to LED. And the expansion of production is rapid. In the first half of this year, LED sales revenue is expected to exceed 400 million, surpassing last year's full year.

Another traditional lighting company, Shletler Optoelectronics, has chosen to form a strategic cooperation alliance with TSMC solid-state lighting, and both sides jointly explore the Chinese mainland and global LED lighting market. Snowlight's LED lighting products will fully utilize TSMC solid-state lighting components for product design and application development, while TSMC solid-state lighting will also be supported by the latest LED modules and electromechanical thermal integration technologies. The future direction of cooperation between both parties is not only in general lighting products, but also in forward-looking lighting applications such as photobiological lighting and automotive lighting. TSMC solid-state lighting technology is leading, has strong technical development capabilities and high-quality production capacity, can provide the highest quality LED chip and technical support; Snow Wright deeply cultivating lighting for 20 years, has a deep understanding of lighting, more powerful The production capacity and sales channels. The cooperation between the two parties can be described as a combination of strengths and strengths.

Mitsuo Aurora also stated that it is necessary to fully layout the LED lighting market. One of its major initiatives is to establish an LED experience hall. As one of the important means for Sanxiong Aurora to deploy the LED lighting market, the LED Experience Pavilion is set to open in major cities in the future. The experience hall is mainly used to simulate different light environments and show the actual results of the three male Aurora LED lighting, allowing consumers to intuitively feel the special atmosphere and effects created by different light source designs and LED product applications. In addition, the three male Aurora also held a number of LED lighting technology application seminars, actively promoting LED lighting in the second and third-tier cities.

As the "ceiling lamp king," Op Lighting has held a National Distributors Conference for the Commercial Division at the beginning of this year. It intends to continue the development trend of LED lighting and promote the common development of the commercial lighting market and the home lighting market. Op Lighting will fully exert its efforts in the field of commercial lighting in hardcover rooms, commercial real estate, hotels, supermarkets, chain stores, offices, schools, hospitals, etc., and launch a series of LED lighting application solutions to create a high-quality lighting experience. The company has carried out a full range of specialized strategic deployments in landmark projects, professional large-scale projects and small and medium-sized projects, etc. The project sales will be sold to the industry, and the traditional lighting will rapidly intervene in LED lighting to accelerate the transformation.

The traditional manufacturer NVC Lighting Co., Ltd. chose to cooperate with the packaging company Ruifeng Optoelectronics Co., Ltd. to co-finance LED projects, mainly engaged in LED packaging technology research and development and LED packaging product manufacturing and sales. For NVC Lighting, the cooperation further means that NVC Lighting has fully entered the LED development strategy. To meet the strategic development needs, NVC Lighting has also set up a strategic investment center. NVC Lighting will continue to take mergers and acquisitions. , joint venture or cooperation to continue to improve the LED industry. At the same time NVC Lighting's introduction of BDO Runda, while solving the internal contradictions, but also accelerate the pace of LED transformation, while the investment in the upper reaches of the industry chain, can also ensure that NVC LED lighting products in the quality and delivery time advantage . In the recent CHEMBA China Marketing Master Forum jointly organized by the China Marketing Innovation Alliance and the Zhongshan University CHEMBA Project, NVC NVC pointed out that after several years of development, LED technology has basically matured and costs have dropped. Therefore, NVC will increase investment in LED production in the future, and strive to achieve more than 50% of NVC sales.

Traditional lighting business transformation advantage <br> <br> In fact, no matter what kind of concept of the traditional lighting companies to take into the field of LED, more and more traditional businesses cut into the LED lighting is an indisputable fact. Today, the traditional lighting transformation LED is a general trend, including Foshan Lighting, Sunshine Lighting, Sanxiu Aurora, Jiamei Lighting, NVC lighting and other companies have launched LED projects, to seize the market. So what are the advantages of these old traditional lighting companies entering LED lighting?

1. Brand awareness In the era of traditional lighting, various segments have formed a complete brand gradient. In the field of LED lighting, there is no monopoly type of Philips, OSRAM and other traditional lighting companies. The market concentration is very low. LED lighting brand, the market pattern is uncertain. Among the traditional lighting companies, there are already some strong brand influences. The brands such as Fozhao, NVC, Op, and Yaming have been well-known by the public. Traditional established companies have been working hard for many years in the channel, and sales outlets are relatively sound. The number is often several thousand, and some brands are designated as partners in the minds of distributors and project developers. In LED lighting companies, many companies have good products, but no good brands, can only engage in OEM and other OEM, as a brand company's coolies, there is no big monopoly of well-known brands.

In addition, for consumers, LED lighting is a new thing, and the concept of brand consumption has not yet formed. However, some experts believe that if the project purchaser designated brand, it is generally the traditional big advantage, because now the big LED has not yet appeared. However, if it is public bidding, it is generally easy to win professional LED brand, after all, program professional, product highlights.

2. Channel maturity Traditional lighting companies have an unparalleled advantage, that is, they have the basis of the market channels, traditional lighting companies after years of tempering marketing policies are more mature, close to market demand, the image of the franchise is also deeply rooted. For example, 40% of Foshan Lighting's products are exported to more than 20 countries and regions such as Europe, America, and Southeast Asia. The domestic market is based in Guangdong Province. “Foshan Lighting” products are seen everywhere, and sales outlets have been set up in other provinces and cities in the country. More than 2,000, Buddha's products have been decentralized to various hardware stores within the sales point, sales channels can not be described as not widely. Another traditional company, NVC Lighting, has 36 operating centers and more than 3,000 stores in the country. Optronics also has thousands of stores and direct-operated stores. The advantages of traditional lighting companies make new LED lighting companies untouchable. .

For LED lighting companies, the laying of end channels requires companies to invest a lot of time and money, and it is difficult to see results in the short term, there is no strong financial strength and reasonable marketing strategy, new LED lighting companies are often afraid to easily risk, Therefore, many LED lighting companies choose to work hard in the engineering channels or export channels. Therefore, the use of the original lighting market channels, the development of a scientific corporate development strategy, traditional lighting brands can still occupy a place in the LED brand market.

Traditional lighting business transformation and more difficulty <br> <br> Although the traditional lighting manufacturers have the channel edge, but the face of domestic Kingsun Investment Conference, the country star power, Everlight LED lighting manufacturers continue to be held, the traditional lighting manufacturers have been Threatened. Because LED lighting presents different development characteristics than previous light sources, traditional lighting manufacturers have encountered unprecedented challenges. Whether they can maintain their channel advantages and whether they can keep their market share is particularly critical.

1. Decreased control over traditional channels LED lighting is rapidly developing, and product replacement is very fast. This determines that dealers cannot operate in accordance with past marketing models. If the LED product is not suitable for excessive inventory, if the produced product cannot be sold within 3 months, it is likely to become a slow-moving product. Although traditional lighting has developed a large number of dealers, the transition of the dealer's operating model still requires a process, and in the process it is likely to fluctuate together, that is, the control of dealers in the hands of traditional lighting manufacturers is reduced. In the face of the looting of LED lighting manufacturers, traditional lighting manufacturers will take various measures to keep their channels, such as prohibiting their own channel distributors from participating in investment conferences of other manufacturers. NVC "blocked" billion light is a typical example.

In 2013, Everlight formally established Yiguang Lighting Management (Shanghai) Co., Ltd. in China, and vowed to attack China's lighting market with its own branded products, and hired Wu Zhengyi, who had been responsible for the channel layout of NVC, as the general manager under the direction of Wu Zhengyu. Since the beginning of March, Everlight has started to recruit a large number of marketing talents nationwide, and has launched the first shot of domestic channel layout in Jiangsu and Zhejiang. Today, Everlight has completed market development in Jiangsu, Hubei, Anhui, Henan, Shandong, and other provinces through “concentrated operations,” and will continue to implement channel deployment on a large scale. Yiguang is such a high-profile "attacking city", NVC Lighting is also taking a strong case, in the face of LED lighting companies to promote the distribution of goods, traditional lighting companies are also worried, seeing the traditional channels are eroded impossible Indifferent. In fact, after Everlight developed its own brand, the strategic alliance relationship with Shanghai Yaming Lighting was also at an ice-cold point and the two sides were tit for tat. It can be seen that although the traditional brand makers have the advantage of brand and scale and threaten the capital of dealers, they have less and less confidence in their own channel advantages, plus the profit of the second and third-tier dealers, NVC. Such big loyalty is not high. Many cities and counties within the stores operating the brand is not limited to NVC, Op, and even can see a lot of Zhongshan, Foshan LED lighting brand. The control of traditional lighting companies on the channels is decreasing, and competition for channels has become inevitable.

In addition, when traditional lighting is in transition, it also faces the problem of channel innovation and upgrading. Many dealers have been working in the traditional lighting field for many years, have accumulated a large number of stable customers, restless and do not want to invest too much effort in LED lighting. At the same time, due to the characteristics of LED lighting, many traditional enterprises also hope to open up existing channels and open up new channels. This stands at the same starting line with LED lighting companies. At present, LED development is now better focused mainly on landscape lighting, backlight display and other fields, mature technology, obvious advantages, extensive application, and this part of the market has been dominated by some of the old LED companies that have the advantage of taking the initiative. occupy. In the general high-power LED lighting, due to factors such as price and consumer cognition, is still mainly to take commercial lighting channels, so traditional lighting companies may not have an advantage.

2. R&D technology and talent accumulation still lacks traditional lighting in terms of brand and channel, but there are disadvantages in the professional and technical fields. Because LED's competition can not be separated from the core of the product, LED professional technology can not learn immediately if you want to learn. Only diligent on the optoelectronics, it has 200-300 R & D personnel devoted to spend more than 10 years dedicated to LED technology research and development, and traditional lighting companies can not be LED light, machine, electricity, thermal technology in the short term, so it appears The traditional lighting brand mergers and acquisitions LED companies, or LED companies mergers and acquisitions of traditional lighting companies, in order to achieve both sides in the technical and channel advantages complement each other.

For traditional lighting companies, the design and technical problems of LED lighting fixtures differ greatly from traditional lighting. LED lighting is a systematic and complex high-tech technology. LED applications in lighting require scientific design through packaging, optics, power supply, heat dissipation, and light distribution. The design of each link will ultimately affect LED lighting. Actual light efficiency, cost, life expectancy, etc. While many traditional lighting companies have focused on lighting fixtures for many years, their most direct approach is to do downstream applications in the LED lighting industry chain with a relatively low technological content and to develop various functional LED lamps.

Traditional lighting generally only requires that the structure of the lamp be well-handed and can be lightened. Companies rarely have high-tech talent. However, the production of LED lighting products involves many links, and every aspect needs professional-level talents, so that the quality of products at all stages can be guaranteed. Due to the rapid development of the LED lighting industry, the entire industry is relatively lack of talent itself, which makes the transformation of traditional lighting companies also face the problem of talent. Therefore, the traditional enterprise transformation LED still needs time to run in R&D and design, talent accumulation, and marketing system. The manufacturing side mostly depends on OEM/ODM supply, and the price/performance and style advantages are not obvious.

3. Slow response to the market In the LED field, traditional lighting companies responded to market changes at a slower pace, and new product launch speeds, variety and styles were not able to keep up with the terminal sales rhythm, and LED lighting companies were relatively A lot of flexibility. In particular, large manufacturers of traditional lighting products have a large number of product categories. The internal structure of the company is complex, and sometimes it can affect the entire body. When making any decision, it is cautious and cautious. This can lead to a quick response to the market and miss some development opportunities. And now the traditional lighting market is still profitable, many traditional lighting companies are not willing to throw away this fat, still vigorously develop traditional lighting, LED lighting is not enough attention.

Have to admit that, with the continuous maturity of LED lighting technology, coupled with the support and guidance of national policies, many traditional lighting companies at home and abroad have invested in the development of LED lighting, the industry reshuffle further aggravated, the traditional lighting industry upgrade is imminent Whether or not the transformation is successful is directly related to the survival of the company.