In the past two years, the fate of Philips Lighting seems to be ups and downs. It was first divided by the Philips Group. It recently dissolved a Shenzhen subsidiary and was absent from Guangya Exhibition for two consecutive years. On the other hand, China's LED leading companies have raised funds to expand production, such as the day, especially the Shanghai Securities News (China Securities Network) and other capital markets believe that Mulinsen "has become the world's largest LED production company", the original does not have "one ".
Quite a few of the operators felt that Philips lighting was too angry to exit the Chinese lighting market; soap powder lost momentum, and some wood powders shouted "the future Chinese lighting market, Mulinsen has the final say." Is that true? Regarding Mulinsen, you can discuss it separately. This article only discusses Philips Lighting (hereinafter referred to as "Fei Zhao").
1 global
Philips's stripping of the flying photos does not mean that the flying photos are dying. Since Marriott took over Philips, Philips has announced that it will focus on the healthcare industry. Ironically, Philips started out in lighting but insisted on divesting its lighting business, and its health care business is based on its lighting business. Although Philips plans to short all of the shares of Feizhao in the next few years, the share of the half of the global lighting market will continue to exist, and the change may be just the form or name.
Flying photos have never been lowered as a global lighting leader. At this year's Frankfurt exhibition, Feizhao promoted its "Light Beyond IlluminaTIon" concept to showcase a variety of lighting applications, but did not give the industry a lot of surprises.
Flying photo to participate in the Frankfurt exhibition is just to brush the sense of existence. Feizhao does not care about the absence of Guangya Exhibition, but as the world's highest lighting brand with the highest market share in the world, Feizhao cannot leave the world's top lighting platform.
Feizhao has never relaxed its influence on the Chinese lighting market, and has not withdrawn from the Chinese lighting market. At present, Feizhao's profits in China account for more than 30%. Hong Zhaoli, CEO of Feizhao, once stressed that China is the second largest market in the world, and the Chinese market is very important for Feizhao, and it has always been the case in the future.
However, after years of hard work, the market share of China's lighting industry has been set at the beginning. Feizhao has encountered bottlenecks in the space of China's lighting market. The technical level of Feizhao has also encountered ceilings, and China's LED enterprises have risen under the support of governments at all levels. These factors have made it necessary for Feizhao to adjust its strategy in the Chinese market.
When the Chinese market does not have much new space to expand, it is better to use more energy to seize the blank spots in the lighting market in India and Southeast Asia.
Feizhao has taken the lead in the Indian government's LED lighting standards. At present, Feizhao has a 40% market share in India. Feizhao also responded to the vision of the ESCO energy management and smart energy-saving city promoted by the Thai government, actively participated in this year's Thailand Lighting Exhibition, and also launched an integrated marketing campaign of 20% LED bulbs.
It is a new pattern of flying photos to cultivate the lighting market in other countries and form a mature regionalization system. The mature regionalization system will help Feizhao to reduce the excessive dependence on the Chinese lighting market to a certain extent, improve the safety factor of the global strategy, and allocate production and resources among the lighting markets of various countries in the region to form a “check and balance†state. Implement a wide range of strong marketing strategies to contain Chinese LED companies.
2 means
Feizhao affects the Chinese lighting market. The first means is of course price. The above regionalization system will strengthen the effect of the implementation of price measures by Feizhao. Feizhao has not held a major new product launch conference in China for 14 months.
The most recent one was in April 2015. Feizhao released a new product of “Mingshang Family†in Hangzhou, indicating that the price of Philips lamps in the future may be lower than that of Buddha and Mulinsen, which has become the fuse of price war. In October, the number of LED bulbs in 2016 will drop to 0.8 US dollars, which is very popular.
Recently, it was reported that Feizhao and the supply chain negotiated the price of the product. Feizhao intends to reduce the price by another 20%. The supplier hopes to raise the price. After the bargaining, Feizhao agrees that the price decline is controlled within 10%. This news has not been confirmed or denied by the official photo.
However, according to the observation of Feizhao, most analysts believe that this year's lighting market prices will stabilize even if they do not rebound. Even some Taiwanese media keen to create a panic atmosphere said that the signs of a warming up of the lighting market in the third quarter of this year will be more obvious.
The industry's attention to the action of the price of the flying photo proves the lethality of the price of the flying photo. This kind of lethality is not something that other LED companies in the world can do. At present, the demand for LED bulbs in India has skyrocketed, but the price of products has collapsed rapidly. The biggest price killer in the market is also flying. With the establishment of a mature regionalization system, the implementation of price measures in the lighting market of various countries will be more important.
Feizhao affects the Chinese lighting market. The second method is foundry. This is the secret of Feizhao's ulterior motives, and it is also the reason why he does not lose money. Flying photos continue to drive down product prices, which intensifies competition among Chinese LED foundries. In order to grab OEM orders, foundries have to rack their brains and adjust production strategies.
The profits of the foundry companies tend to be meager, and the profit of Feizhao is relatively small. Many veterans in the industry believe that even if the LED bulb drops to 0.8 US dollars, Fei Zhao can still get good profits from it.
What is even more secret is that with the Chinese LED foundry, the price of the above-mentioned Feizhao has evolved into a stifle between the Chinese LED foundry and the Chinese LED brand enterprise, while Feizhao enjoys revenue from it, and the Chinese LED foundry also Fighting for the international market.
It is said that the current LED products dumped in India, Thailand and Southeast Asia are mainly from Chinese foundries, followed by Vietnamese foundries. In this sense, Feizhao still controls the Chinese lighting market.
3 items
Delivering the low-end production to the Chinese LED foundry, Feizhao will spare no effort to complete its transformation. As mentioned above, the technical level of Feizhao itself has also encountered ceilings, especially after being stripped from Philips, in order to obtain lasting profitability, the transformational pressure of Feizhao is even greater. In the era of incandescent lamps and energy-saving lamps, Feizhao has a strong technical accumulation, and now has to adapt to every innovation advantage of the LED industry.
It is observed that the first content of the Feizhao transformation is technological transformation, which mainly includes intelligent connected lighting, automotive lighting, and plant lighting. "Smart Connected Lighting" is the official statement of Feizhao, and another saying in the industry is "Internet of Things Lighting."
Feizhao has made a heavy contribution to smart connected lighting, and has cooperated extensively with IoT technology companies such as Cisco to seek intelligent, integrated and information-based lighting solutions. In terms of automotive lighting, Feizhao hopes to highlight the car culture and life in the new era. In terms of plant lighting, Feizhao proposes to protect the growth of plants with “light formulaâ€.
The second component of the Feizhao transformation is service transformation, renting light bulbs and selling services. Feizhao launched the commercial building service plan “pay-per-lux (pay only for the light you use)â€. Users do not need to buy the light bulb, but use the rent method to pay according to the amount of lighting used, that is, how much to pay.
Analysts believe that this new strategy will be sold from low prices to better services. Consumers can enjoy products and services at low prices, which will help Feizhao gain a large market share.
The third component of the Feizhao transformation is channel transformation and opening up new markets for e-commerce. Feizhao attaches great importance to e-commerce. In September last year, Feizhao CEO Hong Anli personally visited the Shanghai headquarters of Baozun E-commerce, indicating that the development of China's e-commerce has attracted worldwide attention, and Baozun E-commerce is China's leading e-commerce service provider. Conduct more channel cooperation with Baozun e-commerce to bring more intelligent lighting products to consumers. However, it has not been found that Feizhao has unique strategies and remarkable results in the e-commerce channel. This aspect needs to be further observed.
The above three items, technology research and development, service optimization, marketing channels, Feizhao is at the upper end of the “smile curve†of the technology industry chain (as shown below), while the Chinese LED foundry is basically at the bottom of the “smile curveâ€. Feizhao earns the first-class profit, and the Chinese LED foundry only feeds between the teeth of the flying photos, making a small profit.
Technology industry chain "smile curve"
4 conclusions
Compared with the high-profile Chinese LED companies, it is expected that the future will be hidden behind the "backstage" of the Chinese lighting market. However, if Chinese LED companies ignore the existence of Feizhao in the Chinese lighting market, they may cause mistakes in decision-making. When one day, Feizhao believes that its own technology has achieved an ideal breakthrough, new market space and profit growth points have been formed, and Feizhao will return to “before the stage†from the “behind the scenes†of the Chinese lighting market.
Under the initial situation of China's lighting market share, Feizhao began to cultivate a mature regionalization system in the lighting market of China's neighboring countries, deploying production and resources, and forming a “check and balance†state in the lighting market of various countries to contain Chinese LED enterprises.
At the same time, Feizhao actively transformed, with the opinion of the chief innovation officer of the company, Olivia Qiu, to accelerate the research and development of the Chinese region in the next five years to counter the Chinese competitors. Flying Photo even plans to release more than 1,000 new lighting products in China every year.
China's LED foundry has promoted the international regionalization system and price means of Feizhao, playing a sly role in it, in a dilemma. Perhaps the Chinese foundry can bid farewell to "OEM", but in the current LED industry situation, "bone gas" can not be eaten, Feishao OEM orders are not easy to grab, there are OEM orders have work, foundry The order became the life gate of the foundry.
Chinese LED companies will be easy to die if they are exposed to smart lighting, but the development of the smart connected lighting development of Feizhao is worthy of attention. Since Feizhao does not hesitate to develop smart connected lighting, it seems that smart connected lighting has huge market potential.
In theory, intelligent lighting is in line with the development trend of human technology and smart cities, and the prospects are good. However, Chinese LED companies generally lack technology precipitation, unless there is deep and unique technical insights, or carefully use smart lighting as a business direction.
Some R&D teams in China are said to have achieved initial results in smart lighting, such as Zhejiang Shengdi, Shenzhen Guangqi, Xiaoming Technology and the Mingming Commune with grassroots color. However, Qinshang Optoelectronics provided a more painful lesson. In the second half of last year, it launched a series of intelligent lighting, launched smart products such as Tianyan, Yaoyao, and Hyun, but in May this year it claimed to be selling LED business and transforming into education. .
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