What is the development of the lighting industry?

In 2012, for many LED companies, fierce price warfare and tender bidding seemed to be the main form of market competition, and the quality of products, brands, and so on that really related to the sound development of an industry can be said to be many in the industry. The company "ignored" it. If we say that many of these are helpless and there are many objective and inevitable factors, then what will be meant for the LED industry in 2013? The surging price war will continue to deepen, or it may turn to pay more attention to quality and brands. "Value War"? Turn to branding, technology and quality? Looking ahead to 2013, besides the price war continues to deepen, what are the aspects of the lighting industry development?

The new year is coming in 2013. No matter what the year that will be in the past, it will bring us both joy and misfortune. In the end of the year, people who have been busy for LED for a year will inevitably have to sit round the stove, talk easily, or The past year has been summed up, or various forward-looking plans have been made for the upcoming 2013, and at the threshold of this resignation, “What will the future LED industry in 2013 be like?” is obviously better than What happened was even more interesting. Based on the communication and exchanges with all parties, we have compiled a number of representative views, especially those that were quite constructive for 2013's industrial development, for reference in the industry.

Has the "price war" continued to deepen, or has it turned to "value warfare?"

It can be foreseen that "efforts to increase corporate profits in the face of increasing price competition will be the main theme under the premise of a stable market". For the market competition in 2013, the price war under the background of homogenization will continue, but the market competition is not only a simple competition between enterprises, the competition of the industry's ecological chain is equally prominent.

As far as the chip industry is concerned, it can be predicted that in the future, the mainland LED chip manufacturers will struggle in the ever-released production capacity and homogenization environment in 2013. In addition, the mainland will announce the limited opening of Taiwan's LED lighting standard certification in the near future. The applications that can be immediately adopted by the mainland and open to Taiwan will inevitably make the future market competition environment more intense, and the price war will continue to deepen.

For application companies, in 2013, the price decline will still be the main theme. “Fozhao, Huaqiang, etc. are already in action. I have already seen 3W bulbs below 6 yuan in the market”, an LED company. Marketers reflect the price changes in the market in this way, and at this time it depends on who can combine the best quality and price.

"Price warfare is not very much related to the middle and high-end. Cost control and differentiation are always right. Creating value is always right, but the pricing of value is not under your control. When your main product is no longer competitive, it still has to be The main profit point is equal to the opening of the door. A small price war will make you fall into crisis," said an LED lighting company manager who expressed his own point of view. He also proposed that the company Say, at this time, the most important thing is to do a good product. The quality of the product and the corresponding technology are still the core level of differentiation. At the same time, the rhythm of the product's life cycle must keep up, because the market changes quickly and the cycle of the product is accelerated. Now.

In 2013, it will be destined to be a year of “surge”, and if there is a big wave of Ebbing, will the survival of the fittest be the same as stimulating the market to mature? "In 2013, it must be a year of precision marketing. LED manufacturers will face more severe competition than 2012. At this time, we are concerned about the country's support policies, and at the same time, we should stick to our own strategic direction and step by step." The entrepreneurs said in this way that companies must be invincible and must bring products with higher quality and process technology down to the market. They must have characteristic, high-tech product systems and have a three-dimensional product strategy. These are truly recognized by the market before they can truly realize their own rapid development.

At the same time, in 2013, more companies will begin to pay attention to the shaping of the brand, not only relying on the scale advantages of low prices, but also the brand advantages will become “the rising power behind the scale”.

Integration, to the development of polarized "M" type?

In 2013, in the deep environment of further integration, LED companies will begin to transition towards polarization. Just as the current competition trend of the smart phone industry is the “M” type of development toward the two poles, this also has certain similarities with the LED industry.

In fact, industrial integration has started since 2012. Following a series of mergers and acquisitions and equity acquisitions (including the acquisition of Guangyuan Solar, Guangda Lunda Powerline, Sanan Optoelectronics, etc.), in 2013, large companies will continue to use capital to expand their operations to reduce costs. However, the pressure for survival of SMEs will continue to increase, and the difficult market conditions for profitability will continue.

At the same time, another trend is that LED device manufacturers tend to adopt medium-power devices (0.2 to 0.5W) and gradually replace traditional low-power devices (0.06 to 0.1W) as LED device price decreases. , Applied to indoor lighting, medium power or will continue to be the trend of market development in 2013.

In addition, in 2013, mainland China sapphire substrate manufacturers will again invest in graphical substrate development to increase the productivity of patterned substrates. Some analysts said that the permeability of sapphire substrates made from patterned substrates in the mainland in 2013 will be expected to approach 50%.

"E-commerce", how far away from the LED?

“E-commerce” has become a “keyword” in some industries that are currently radical and unabated. It may be merely a representation. In fact, at the moment, there are no more concerns for entrepreneurs than how to lay out the channels.

A supportive viewpoint holds that "the development of the lighting e-commerce model is not a promising and unspectacular issue, and it is an inevitable development of the information society; when e-commerce emerged, has anyone ever been optimistic about it? But e-commerce has changed our lives. And subverted the tradition,” said Xu Fengyun, former vice president of NVC Lighting Holdings Limited. “In order to study the e-commerce marketing model, I also carefully looked at the online platforms and found that the entire home building materials brand, do Less favored is the lighting brand.The date of November 11, 2012 can be written into history, and several major giants in the lighting industry are lacking collectively, including second-tier brands, and the lighting industry bosses are not going to be good. Think about it?"

For “E-Commerce”, there is such a clear and radical point of view, or from the former senior executives of traditional lighting companies, can not help but think deeply. But at the same time, some people have raised their own doubts. Is electricity supplier suitable for LED lighting?

At this time, not only the LED industry, the outside world of the e-commerce identity debate is also very different, for example, Wanda Group recently announced high-profile e-commerce, while Wanda Wang Jianlin also said that e-commerce can not completely replace the retail market, and bet a billion and electricity Merchant representative Alibaba Mayun gambling ("10 years later, if the e-commerce market share in China's retail market accounted for 50%, I gave him a billion, if I did not return him to a hundred million;" Wang Jianlin said in the gambling), Let more people pay attention to the development prospects of “e-commerce”.

At present, most of the e-commerce models commonly used in the LED industry are entered into comprehensive e-commerce platforms such as JD.com or Tmall (such as Tsinghua Tongfang, etc.), or enter the professional e-commerce platform for LED lamps. One is for more people at present. The accepted view is that with the improvement of the mainland e-commerce platform and the sharp rise in the number of users, the combination of “online and offline, e-commerce and physical store model” in 2013 will be a better way for LED to enter the civilian market.

"E-commerce", whether it will become one of the mainstream marketing tools or ancillary marketing methods are worth exploring. At the same time worth thinking is: e-commerce itself is good, but which companies and products are more suitable for e-commerce, which is not suitable? There is a view that the price must be very competitive through the e-commerce platform, and those brands or products that target mid-to-high end should be very cautious.

LED industry, when will the real representative?

At present, when it comes to LED chips and packaging companies, they can say a few fairly loud names. When it comes to lighting applications, what are the pure LED lighting application brands that are eye-catching and impressive? ? Obviously, at present, the LED application industry still lacks a recognized leading brand, even if the annual sales revenue of leading traditional lighting companies with annual revenues of 3 to 4 billion yuan in LED is only two billion yuan in the past two years, with a medium LED. The annual revenue of lighting companies is comparable, and the proportion of the entire industry is minimal.

In particular, the future of indoor lighting will be an important area for future LED. With the price reduction, technological advancement, and product maturity, LED is expected to enter the indoor general lighting field in the near future. At this time, a group of companies have experienced Market-quenched LED companies with high quality, products, and manufacturing technology may be the first to stand out.

"Already there are some LED companies that have made distinctive products. For example, O's and Liang, Sidon lighting, etc., all have some actions." In fact, I have heard more than once on the traditional lighting business executives and multinational companies. Marketing executives mentioned the names of some LED brands. Perhaps these companies also have a low-key temperament that is in line with the “feeling of quality,” but this does not prevent them from winning a reputation for themselves while maintaining a low profile.

As for the comparison between traditional lighting companies and LED companies, "the foundational advantage of traditional enterprises is still quite obvious, and the timing is wrong. It doesn't matter if it is wrong. Whether it will continue to be wrong or it may be awake." An LED business manager Said with a smile. "Learning, innovating, repurposing, and further cultivating, the more large companies must have sufficient resilience, they are afraid to take it for granted or completely indulge in past experience."

At this time, there is also a leader in the traditional lighting company in 2012 due to executive storms to make enough money in the industry, a long-term attitude of the old manager, "in five years to make LED lighting revenue to achieve half of the current total revenue."

Obviously, the most powerful channel power of traditional lighting companies is still a short board for LED companies. Because of this, it can be seen that some LED companies that do not lose their vitality and technological accumulation, but also have the awareness of marketing and development have been deeply embedded in the designer channel to create a brand image.

In the future, the old-fashioned “Nokia” companies or the cutting-edge “Apple” companies will be the first to make headway. It seems to be left to be seen. Compared to the traditional performance of the traditional lighting companies in 2012, the transition was weak, and they even fell into the management turmoil and made new and decisive decisions. LED companies or more worthy of good reason.

Especially in commercial lighting, “At present, the market is very competitive, and everyone is constantly introducing new products and technologies. We must ensure that we are at the forefront.” said an LED business manager who specializes in hotel lighting and shopping mall lighting. “The technology and quality will continue to be accumulated and precipitated, especially in different areas such as hotels, retail, hypermarkets, and supermarkets, to really meet their requirements,” he said at the same time, along with the With continued expansion, the LED commercial lighting market will show an inflection point of growth in 2013. “It is time for LED to infiltrate commercial lighting in large quantities”; and his company’s sales revenue from commercial lighting has also been realized since last year. %growth of.

How will the "business ideas and profit model" change, and is it possible for manufacturers to bundle?

"Some people have seen the dramatic market changes. Someone is still aware of it. Some people still think that after a long time, good days will come again." And eventually, no matter when a good day will come or when it will come. In order to win the cruel market competition in 2013, the most important one is the innovation of business ideas and profit models.

This is also one of the most exciting and exciting aspects of change. Because this is not only for a company, but also for the development of the entire industry, business ideas and profit models are undoubtedly the top priority.

Various thoughts thus unfolded. For example, some people think that “doing a single product or two products” is the correct way of thinking for the factory, but what the terminal business wants is a full range of products; then, between the LED manufacturer and the terminal manufacturer, is there a need? Is there an integrated platform that can deliver the fine and specialized products of excellent manufacturers to the terminal in a timely manner? Who will be the platform for this? Is it a big brand e-commerce or a channel chain brand? Is there any possibility of a big alliance of dealers?

“Is it possible for the channel business alliance? Is it possible for the production companies to hold a group?” An LED entrepreneur also put forward such a constructive point of view. Even the resource sharing of traditional lighting companies and LED emerging companies, channel integration or acquisitions may? Is it possible for agents and production companies to hold shares with each other? LED product customization production is possible? There is no possibility for the marketing outsourcing of production companies. Obviously, these are all "in the future," and will be based on the overall maturity of the entire industry, higher integration, and various forms of cooperation based on mutual benefit and common development. "may".

An entrepreneur expressed his recognition of the idea that “manufacturers hold each other's shares”. “I think that in the current LED industry environment, companies and merchants should be deeply tied up to establish a new sales company. After all, the ability of the manufacturers is still reflected. In terms of manufacturing, sales are the strengths of businesses, so that manufacturers and sellers can perform their duties in a dedicated and dedicated manner.

It can be seen that at present, many dealers are investing in factories on a large scale, but the results are often unsatisfactory, and some manufacturers are also more than a sense of "marketing," if the depth of binding between manufacturers and merchants is a kind of Way out. Some people also said that the mode of bundling (combination of manufacturers) is still relatively large in the home appliance industry, and the lighting industry is still relatively small. The premise is that this model should be based on the depth of business understanding of manufacturers and affirmation.

"Everything is possible. Dealers have a share of the cooperative factory and are going to become a reality." An entrepreneur who has already walked on the road made his own answer.

In 2013, there will probably be more LED entrepreneurs on the road to change and exploration.

Regardless of how the industry's future changes, 2013 is cold, warm, sick, and slow. Both will place hope and imagination on the future. In 2013, LED entrepreneurs with social responsibility and professionalism will also be faithfully witnessed. The footsteps the makers are making as they move forward.

At the same time, we also wish that, like China's association, like TCL and Hisense, like Gree, in 2013, there will be LED industry brands worthy of long-term remember to hang on it.