[Source: "High-tech LED - Research and Review" June issue / Tang Guirong]
In recent years, the LED industry has created one wealth myth. Shenzhen Puhui Lighting Co., Ltd. (hereinafter referred to as “Puihui Lightingâ€) has grown from a start-up capital of 200,000 yuan to an annual sales of over 100 million yuan in just three years. It was once called legendary by the industry. Today, the LED industry's market chaos and price wars are still one after another. The business model of Pratt & Whitney Lighting still has certain reference significance.
Puhui Lighting was established in 2008. In the early days, the company was mainly positioned in the processing of LED strips, with power as an accessory business. At the same time, in the development strategy, the company's general manager Fan Zhichao chose a two-legged walking mode. On the one hand, the construction of processing plants in the country, on the other hand, launched a fierce attack on the foreign LED lighting market.
“Because of power supply and support, the production cost and quality of LED lighting have been further improved.†Fan Zhichao said that the company was established only one year, and the LED sales scale reached 30 million yuan.
However, with the continuous increase in the number of enterprises in the industry, the phenomenon of product homogenization has become increasingly serious, and the competition in the LED market has become increasingly fierce. “The reason why companies feel fiercely competitive is that there is no differentiated product and supplier support.†Fan Zhichao said.
In 2010, Pratt & Whitney Lighting decided to develop and design its own products, focusing on the development of downlights, spotlights, ceiling lamps and other products. In order to distinguish the market, the company achieved self-sufficiency in raw materials through mergers and acquisitions of two accessory manufacturers, and at the same time formed a certain differentiation with competitors.
Fan Zhichao said that because of its differentiated products and cost advantages, Pratt & Whitney Lighting quickly gained a foothold in the market. In 2010, the company's annual sales reached 60 million yuan, and last year's sales exceeded 100 million yuan for the first time.
"This year, we will focus on opening up the domestic market." Fan Zhichao said that LED lighting orders this year increased by 30% over the same period last year. “For the company, it is the second time. We are changing the way our customers have dispersed their layouts in the past, and we are looking forward to establishing a sound product quality management system with a focus on big customer marketing.â€
Accessory support application
Like most LED manufacturers, Pratt & Whitney Lighting also faced the problem of lack of parts and high production costs.
“At that time, the company’s move to acquire M&A parts manufacturers became a secret weapon for subsequent market competition.†Fan Zhichao said frankly that in recent years, many application vendors have begun to expand into the packaging field, setting up packaging factories, and some application companies have cooperated with upstream and midstream companies. The cost is minimized. He has some opinions on the advantages of upstream and downstream resource integration.
Although the packaged products have high profits and large market capacity, the packaging has high technical requirements and the entry threshold for enterprises is relatively high. At the same time, the domestic packaging market has always been oversupply. Everyone grabs orders and speculates, and the competition is fierce. "However, due to the low cost, the LED accessory market has received little attention from everyone." Fan Zhichao said.
In fact, there are twenty or thirty kinds of accessories for LED lighting. Although the cost of LED lighting for a single component is very low, the total cost of accessories is not low in LED lighting. According to data from the High-Tech LED Industry Research Institute (GLII), 30% of the cost of the chip is removed, and the cost of the accessory accounts for nearly 35%.
In addition, accessories have also been high-margin products. Take an 18W 90lm/w T8 fluorescent tube as an example. The average market price of the whole lamp is 150 yuan/piece. Among them, the average price of the power supply is 20 yuan, the average gross profit margin is 30%; the average price of the PCB circuit board is 8 yuan, and the average gross profit margin is 35%.
In the past few years, due to the immature power supply technology and high price, it has once become a major bottleneck for LED lighting application manufacturers. At the end of 2009, in the early stage of development, Pratt & Whitney Lighting, in order to change the situation of tight supply of power, invested 1 million yuan to set up a power company, independent design, mold opening and production.
"Power supply is only an auxiliary business for LED lighting applications. The power plant was not designed to make money at the beginning." Fan Zhichao revealed that, however, with the improvement of power technology, the company's power supply business has greatly improved this year. "In the first half of this year, the company's LED power supply reached a maximum of 16 million yuan per month."
In addition to the power supply, Pratt & Whitney Lighting is expanding into other accessories.
In 2011, the mobile phone industry was in a downturn, and many mobile phone circuit board manufacturers have closed down. "Mobile phone circuit boards and circuit boards used in LED lighting have the same effect." Fan Zhichao decided to invest 5 million yuan to buy a circuit board company that is on the verge of bankruptcy and develop LED flexible circuit boards to support the LED lighting business.
Although the accessories are only used as an auxiliary business, they have a double meaning for Pratt & Whitney. Fan Zhichao revealed that as of the end of 2011, the annual sales of the company's parts factories have reached 30 million yuan. At the same time, the performance of Pratt & Whitney's LED lighting has also been rapidly improved, with sales in 2011 approaching 100 million yuan.
“Accessories are our secret weapon. In order to further expand the accessories business, the company also established a control system company this year.†Fan Zhichao said that in the future, our plan is to establish a one-stop procurement platform for accessories.
“The one-stop procurement platform for accessories can save procurement costs for LED application companies.†Fan Zhichao said that for Pratt & Whitney Lighting, the price and quality of LED lighting products are very advantageous.
Turn to big customers
While improving the layout of the accessories business, Fan Zhichao also began to transform the original "small" market strategy.
With the rapid development of the LED lighting market, there are more and more domestic LED lighting companies, and the choice of international customers is growing, and the price and profit of products have become lower and lower. “It is difficult to meet the needs of rapid development of lighting only by expanding the sales force team.†Fan Zhichao said that there are 100 salesmen in the sales department of Pratt & Whitney Lighting LED Lighting. Each salesperson has a single annual sales performance of only 1 million yuan. .
“The big customers are different. In addition to high profits and large quantities, the order of a large customer is also a key factor.†Fan Zhichao said that at the beginning of the establishment of Pratt & Whitney Lighting, due to lack of channels and lack of precipitation, Targeting small customers who are easy to break, but as the company's popularity increases, it also has the strength to win some big customers.
At the end of last year, Pratt & Whitney Lighting established a large customer department and selected excellent salesmen to focus on the large customer market. However, the threshold for large customers is relatively high, and the requirements for enterprises and products are more stringent.
At present, large international buyers prefer to select companies with social responsibility, quality control and product certification. At the end of last year, Pratt & Whitney first carried out UL, ETL, GS, VDE certification for LED fluorescent tube power supply, and at the same time adjusted the company's internal management system and began the transformation.
At the beginning of this year, Pratt & Whitney Lighting signed a 20 million yuan order with a major customer. "This is a good start for the change of market strategy for Pratt & Whitney Lighting." Fan Zhichao's face showed a smile.
The engineering channel is on the one hand, on the other hand, Pratt & Whitney Lighting is also preparing for the retail channel. "In the future, the retail channel for civilian and public lighting is the most potential market for LED lighting." Fan Zhichao said that the establishment of retail channels requires strong financial strength. At present, the company mainly takes engineering and develops LED lighting by means of engineering maintenance channels.
For the retail market, Pratt & Whitney will adopt a market segmentation strategy to improve the series of products in a single segment. “China is a global LED lighting application center, and it can only be more competitive in certain segments.†Fan Zhichao revealed that Pratt & Whitney Lighting will expand its production base and move its marketing center to South China City. The production base is established in the triangle and the Yangtze River Delta.
In recent years, the LED industry has created one wealth myth. Shenzhen Puhui Lighting Co., Ltd. (hereinafter referred to as “Puihui Lightingâ€) has grown from a start-up capital of 200,000 yuan to an annual sales of over 100 million yuan in just three years. It was once called legendary by the industry. Today, the LED industry's market chaos and price wars are still one after another. The business model of Pratt & Whitney Lighting still has certain reference significance.
Puhui Lighting was established in 2008. In the early days, the company was mainly positioned in the processing of LED strips, with power as an accessory business. At the same time, in the development strategy, the company's general manager Fan Zhichao chose a two-legged walking mode. On the one hand, the construction of processing plants in the country, on the other hand, launched a fierce attack on the foreign LED lighting market.
“Because of power supply and support, the production cost and quality of LED lighting have been further improved.†Fan Zhichao said that the company was established only one year, and the LED sales scale reached 30 million yuan.
However, with the continuous increase in the number of enterprises in the industry, the phenomenon of product homogenization has become increasingly serious, and the competition in the LED market has become increasingly fierce. “The reason why companies feel fiercely competitive is that there is no differentiated product and supplier support.†Fan Zhichao said.
In 2010, Pratt & Whitney Lighting decided to develop and design its own products, focusing on the development of downlights, spotlights, ceiling lamps and other products. In order to distinguish the market, the company achieved self-sufficiency in raw materials through mergers and acquisitions of two accessory manufacturers, and at the same time formed a certain differentiation with competitors.
Fan Zhichao said that because of its differentiated products and cost advantages, Pratt & Whitney Lighting quickly gained a foothold in the market. In 2010, the company's annual sales reached 60 million yuan, and last year's sales exceeded 100 million yuan for the first time.
"This year, we will focus on opening up the domestic market." Fan Zhichao said that LED lighting orders this year increased by 30% over the same period last year. “For the company, it is the second time. We are changing the way our customers have dispersed their layouts in the past, and we are looking forward to establishing a sound product quality management system with a focus on big customer marketing.â€
Accessory support application
Like most LED manufacturers, Pratt & Whitney Lighting also faced the problem of lack of parts and high production costs.
“At that time, the company’s move to acquire M&A parts manufacturers became a secret weapon for subsequent market competition.†Fan Zhichao said frankly that in recent years, many application vendors have begun to expand into the packaging field, setting up packaging factories, and some application companies have cooperated with upstream and midstream companies. The cost is minimized. He has some opinions on the advantages of upstream and downstream resource integration.
Although the packaged products have high profits and large market capacity, the packaging has high technical requirements and the entry threshold for enterprises is relatively high. At the same time, the domestic packaging market has always been oversupply. Everyone grabs orders and speculates, and the competition is fierce. "However, due to the low cost, the LED accessory market has received little attention from everyone." Fan Zhichao said.
In fact, there are twenty or thirty kinds of accessories for LED lighting. Although the cost of LED lighting for a single component is very low, the total cost of accessories is not low in LED lighting. According to data from the High-Tech LED Industry Research Institute (GLII), 30% of the cost of the chip is removed, and the cost of the accessory accounts for nearly 35%.
In addition, accessories have also been high-margin products. Take an 18W 90lm/w T8 fluorescent tube as an example. The average market price of the whole lamp is 150 yuan/piece. Among them, the average price of the power supply is 20 yuan, the average gross profit margin is 30%; the average price of the PCB circuit board is 8 yuan, and the average gross profit margin is 35%.
In the past few years, due to the immature power supply technology and high price, it has once become a major bottleneck for LED lighting application manufacturers. At the end of 2009, in the early stage of development, Pratt & Whitney Lighting, in order to change the situation of tight supply of power, invested 1 million yuan to set up a power company, independent design, mold opening and production.
"Power supply is only an auxiliary business for LED lighting applications. The power plant was not designed to make money at the beginning." Fan Zhichao revealed that, however, with the improvement of power technology, the company's power supply business has greatly improved this year. "In the first half of this year, the company's LED power supply reached a maximum of 16 million yuan per month."
In addition to the power supply, Pratt & Whitney Lighting is expanding into other accessories.
In 2011, the mobile phone industry was in a downturn, and many mobile phone circuit board manufacturers have closed down. "Mobile phone circuit boards and circuit boards used in LED lighting have the same effect." Fan Zhichao decided to invest 5 million yuan to buy a circuit board company that is on the verge of bankruptcy and develop LED flexible circuit boards to support the LED lighting business.
Although the accessories are only used as an auxiliary business, they have a double meaning for Pratt & Whitney. Fan Zhichao revealed that as of the end of 2011, the annual sales of the company's parts factories have reached 30 million yuan. At the same time, the performance of Pratt & Whitney's LED lighting has also been rapidly improved, with sales in 2011 approaching 100 million yuan.
“Accessories are our secret weapon. In order to further expand the accessories business, the company also established a control system company this year.†Fan Zhichao said that in the future, our plan is to establish a one-stop procurement platform for accessories.
“The one-stop procurement platform for accessories can save procurement costs for LED application companies.†Fan Zhichao said that for Pratt & Whitney Lighting, the price and quality of LED lighting products are very advantageous.
Turn to big customers
While improving the layout of the accessories business, Fan Zhichao also began to transform the original "small" market strategy.
With the rapid development of the LED lighting market, there are more and more domestic LED lighting companies, and the choice of international customers is growing, and the price and profit of products have become lower and lower. “It is difficult to meet the needs of rapid development of lighting only by expanding the sales force team.†Fan Zhichao said that there are 100 salesmen in the sales department of Pratt & Whitney Lighting LED Lighting. Each salesperson has a single annual sales performance of only 1 million yuan. .
“The big customers are different. In addition to high profits and large quantities, the order of a large customer is also a key factor.†Fan Zhichao said that at the beginning of the establishment of Pratt & Whitney Lighting, due to lack of channels and lack of precipitation, Targeting small customers who are easy to break, but as the company's popularity increases, it also has the strength to win some big customers.
At the end of last year, Pratt & Whitney Lighting established a large customer department and selected excellent salesmen to focus on the large customer market. However, the threshold for large customers is relatively high, and the requirements for enterprises and products are more stringent.
At present, large international buyers prefer to select companies with social responsibility, quality control and product certification. At the end of last year, Pratt & Whitney first carried out UL, ETL, GS, VDE certification for LED fluorescent tube power supply, and at the same time adjusted the company's internal management system and began the transformation.
At the beginning of this year, Pratt & Whitney Lighting signed a 20 million yuan order with a major customer. "This is a good start for the change of market strategy for Pratt & Whitney Lighting." Fan Zhichao's face showed a smile.
The engineering channel is on the one hand, on the other hand, Pratt & Whitney Lighting is also preparing for the retail channel. "In the future, the retail channel for civilian and public lighting is the most potential market for LED lighting." Fan Zhichao said that the establishment of retail channels requires strong financial strength. At present, the company mainly takes engineering and develops LED lighting by means of engineering maintenance channels.
For the retail market, Pratt & Whitney will adopt a market segmentation strategy to improve the series of products in a single segment. “China is a global LED lighting application center, and it can only be more competitive in certain segments.†Fan Zhichao revealed that Pratt & Whitney Lighting will expand its production base and move its marketing center to South China City. The production base is established in the triangle and the Yangtze River Delta.
The definition of dual frequency band refers to the characteristic that the same communication device can work in two frequency bands. For example, a dual-band router means that it can work in 2.4GHz and 5.0GHz modes at the same time. Single frequency wireless router: It can only work in 2.4GHz mode. Its applied disciplines include communication technology (first-level discipline) and mobile communication (second-level discipline)
ONU (Optical Network Unit) optical network unit, ONU is divided into active optical network unit and passive optical network unit. Generally, devices equipped with network monitoring including optical receivers, upstream optical transmitters, and multiple bridge amplifiers are called optical nodes. The PON uses a single optical fiber to connect to the OLT, and then the OLT connects to the ONU. ONU provides services such as data, IPTV (i.e. interactive network television), and voice (using IAD, i.e. Integrated Access Device), truly realizing "triple-play" applications. The ONU has two functions: it selectively receives the broadcast sent by the OLT, and responds to the OLT if the data needs to be received; collects and buffers the Ethernet data that the user needs to send, and sends it to the OLT according to the assigned sending window The end sends the buffered data. The application of ONU can effectively improve the uplink bandwidth utilization of the entire system, and it can also configure the channel bandwidth according to the network application environment and applicable service characteristics to carry as many end users as possible without affecting the communication efficiency and communication quality, and improve the network utilization Rate and reduce user costs.
5.0G WIFI GPON ONU, 2.4G+5.0G WIFI GPON ONU, WIFI GPON ONU with 2.4G and 5.0G, GPON ONU with Dual Band, Dual Band WIFI GPON ONU
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