LED lighting competition is excessive: it is more difficult to do in three to five years

On October 22nd, a message broke out in the ancient town of Zhongshan, China. The owner of the medium-sized brand lighting company Fengguang Lighting “runs the road” and owes more than 70 million yuan in payment. At the same time, Internet companies such as Xiaomi, 360, and Ali have entered the LED intelligent lighting “cross-border”. In the glamorous LED lighting industry, due to excessive competition, the days of the industry are not good.

It is understood that the number of domestic lighting companies has reached 20,000, doubling within ten years. LED lighting is very competitive at low prices. There is a bulb that sells for 0.99 yuan on the street of Guzhen. Coupled with the bad real estate market this year, the demand for home improvement has slowed down, causing some companies to have a tight or even broken capital chain. "Fengguang Lighting" had invited the legend of Phoenix to the ancient town at the beginning of this year. I didn't expect to "fly".

The harder days are still behind. This year is the year of popularization of LED lighting in China, and LED lamps have a longer life than traditional incandescent lamps and fluorescent lamps. Therefore, experts predict that the replacement of traditional lighting and new market double stacking will bring high growth of LED lighting. However, after the replacement of traditional lighting by LED lights in three to five years, the growth rate of the LED lighting industry will inevitably decline. From the growth period to the stable period, “the competition will be more intense within three to five years”.

How to live and live well? On October 22nd, the leaders of many listed lighting companies in China gathered in the ancient town and discussed with the members of the National Federation of Lighting Integrators to achieve win-win cooperation.

Guan Yong, general manager of Sunshine Lighting, said that one wants to find innovative points, through cooperation with engineering companies such as China Southern Power Grid, and hopes to innovate products and business models. Second, to achieve integration, leading lighting companies have gone through the stage of products and brands and entered capital. At the stage of social resource integration, I hope to discuss resource integration with engineering companies.

Foshan Lighting is another well-known company that has transformed from traditional lighting to LED lighting. Pan Jie, chairman of Foshan Lighting, said that the Buddha photo is now two sets of systems, traditional lighting has more than 2 billion sales; the other is LED lighting. “From the light bulb to LED, the pressure is great.” Pan Jie said, “The product of six months ago can’t be sold now, and the replacement is very fast.” The lighting industry chain is long. Now everyone likes to cross the border. As an engineering contractor, "in the face of temptation, you must learn to do 'subtraction'."

Chau Ming Technology is an enterprise that cuts into LED lighting from the IT field. Lin Yifeng, chairman of the company, said that as a latecomer, it is difficult to compete with existing lighting brands. In the past two years, Zhouming Technology and China Southern Power Grid have cooperated to find a way in the field of engineering lighting. "We are still thinking about how to use the Internet thinking to do lighting." Last year, I became a member of an e-commerce company.

"We not only compete with traditional lighting companies, but today Lei Jun also does LED lighting, and other smart home enterprises are also cutting in. Today is a 360-degree competition in all directions. The competition will become more and more fierce in the next three years. In this case, how to get out A road, this needs to collide with everyone." Lin Yifeng said frankly.

Wang Donglei, chairman and interim CEO of NVC, who has recently received much attention due to the NVC turmoil, also attended the meeting yesterday (22nd) to share the experience of industry integration and capital operation. Wang Donglei said: "The lighting industry is like the home appliance industry more than 20 years ago. There are many manufacturers, the company is small, and every day, the NVC is the first place, and the market share is less than 5%. The industry is scattered, so the capital will play a role."

Wang Donglei believes that LED makes the lighting industry IT and technology innovation accelerates. "The LED chip is less than 24 months, from 10 yuan to 1 yuan", so Lei Jun came. In the future, smart homes will be united and lighting will become part of the IT industry. Optical communication will mature in the next five to ten years, and some basic patents and basic technologies are in full swing.

The upstream LED chips are being integrated, and Wang Donglei expects that there will be only five large companies left in the future for global LED chips. At the same time, the downstream is also consolidating. He revealed that many lighting companies in the United States are looking for buyers. "The next step in capital integration has just opened, there are many opportunities, but we must also focus on integration. The world's LED lighting manufacturing center in China, there will be 30 billion to 50 billion yuan of companies."

Midea is also a company that cuts into lighting from home appliances. He Wei, general manager of Midea Lighting Electric Co., said that after the strategic transformation, the United States is very pragmatic about diversification, cutting into the field of LED lighting, and more is focusing on the next 100 billion growth strategy, and will integrate with smart home. At present, Midea's lighting is mainly for residential lighting, but it is also willing to cooperate with engineering companies to develop commercial markets.

Representatives of the engineering firm also believe that in the past they may find a lower-priced product supplier when they bid. However, the current industry reshuffle is intensifying, and the contractor should consider whether “the supplier can survive tomorrow”. If the road runs, the maintenance of the next ten years and eight years will be difficult. Therefore, they will now be more inclined to consider cooperation with brand LED lighting manufacturers.

Insiders pointed out that industry consolidation is intensifying, the industry chain is becoming more detailed, and everyone can work together to achieve win-win results.

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