Abstract: All along, the lighting industry in China is in a scattered and messy pattern. There are many small businesses, few large companies, and low levels of industry concentration. Compared with foreign countries, China's lighting industry has small economies of scale, the cost does not go down, the quality does not come, and more importantly, the company's technology is difficult to improve, and the ability to resist risks is extremely low.

All along, the lighting industry in China is presented in a scattered and messy pattern. There are many small businesses, few large companies, and low levels of industry concentration. Compared with foreign countries, China's lighting industry has small economies of scale, the cost does not go down, the quality does not come, and more importantly, the company's technology is difficult to improve, and the ability to resist risks is extremely low.

With the development of the green lighting industry and the rise of LED lighting technology, the technical barriers to the lighting industry have begun to increase, and the industry has begun to develop in the direction of centralization. Some small businesses that lack core technical strength have begun to face difficulties in survival while others have accumulated. Lighting companies with sufficient strength began to use this opportunity to large-scale local lighting industry, trying hard to get the top spot in a new round of industry competition. In the Chinese market, the most influential lighting companies include NVC, Op, Foshan Lighting, OSRAM and Philips. Faced with a new round of industry reshuffle, major lighting giants have long been gearing up to describe their own strategic blueprint.

NVC 800 million layout of energy-saving lighting industry to actively explore overseas In the new form of economic development, energy-saving lamps have become the focus of major lighting giants to develop. NVC set up a light source electrical R&D center in Shanghai in July last year. With an investment of several tens of millions, the center has successfully developed a new generation of energy-saving lamp products.

NVC’s ambition in the lighting industry is even more apparent in another project, which is its full use in a large production base in Zhejiang. After all the bases are put into operation, 20 automatic energy-saving lamp production lines will be formed and the annual output of 200 million energy-saving lamps will be on a scale. In the field of energy-saving lamp production, the global production capacity is 3 billion, and China accounts for 80%, of which 60% is exported and 40% is sold domestically. The base's 200 million production scale will account for nearly 10% of China's energy-saving lamp production. NVC's large-scale distribution of energy-saving lamp industry in Zhejiang will undoubtedly capture a huge opportunity for the future lighting market.

So far, NVC has established four major production bases: they are Guangdong Leizhou Industrial Park in Huizhou, Chongqing Wanzhou NVC Industrial Park, Shandong Linyi production base, Zhejiang production base, the total area of ​​these four production bases reached nearly 1 million Flat meters. The complete construction of the four major bases marks that NVC has taken the lead over other rivals and has taken the lead in completing the strategic layout of the country's production bases, forming a manufacturing system with abundant products, complete categories, and large scale. Compared with other lighting giants, the increasingly powerful manufacturing capacity has become the core competitive advantage of NVC, supporting the rapid expansion of NVC Industries and the continuous expansion of the market.

In addition to building a large-scale production base for investment, NVC has also conducted large-scale expansion and refinement of its channels in the past two years. Currently, NVC lighting products channel has nearly 3,000 brand stores, which cover all levels of the country's markets. The perfection and autonomy of the channel provided a good path for NVC's energy-saving lamp products to quickly occupy the market.

In addition to the overall layout of the lighting industry in the domestic production chain, NVC also attacked on four sides, and actively explore foreign markets. At the 2009 International Building Materials Expo in Sao Paulo, Brazil, NVC Lighting attracted global customers with its simple and fresh design style and a rich product line.

In order to go abroad, NVC actively explores its own overseas expansion model. Now NVC has opened more than 10 branded stores overseas, and established offices and sales outlets in Vietnam, Malaysia, India, the Philippines, Bahrain, Russia and other countries and regions, and NVC UK UK has introduced a number of Experienced sales personnel have accumulated abundant human resources for the expansion of the entire European market in the later period.

Oupu invested 1 billion in Suzhou to build factories in addition to NVC, the other lighting giant Oupu also actively increase investment, spend money to build factories, trying to be invincible in the lighting industry before the arrival of a new round of competition storm.

Optech recently announced that it will invest 10 billion yuan to build a garden-style factory in Wuhu, Suzhou. In the global economic downturn, most companies have adopted conservative attitudes of prudent investment. Op Lighting has turned against the market and has spent huge sums to build factories, which has aroused great concern in the industry.

In fact, the crisis is also an opportunity. Who can grasp the opportunity in the crisis, then who will be the ultimate winner. Opp's fallen into the Yangtze River Delta, on the one hand, is the layout of the whole of China. On the other hand, it also lays a foundation for future international expansion. At the same time, the construction of the Suzhou plant will also contribute to Op Diversification, multi-network development, three-dimensional channels and brand building, and improve the overall performance of the Op-Europe.

Insiders pointed out that once the new Oupu Wuhu plant is completed, it will be able to make full use of the two lucrative resources of the Yangtze River Delta and the Pearl River Delta, and accelerate the development of domestic and international markets. First of all, the advantages of superior sea and air transportation in this area provide great convenience for the export of Op products abroad, and the implementation of its overseas independent brand marketing strategy will be even more powerful. Secondly, the new plant is located in the Yangtze River Delta economic circle, connecting the most economically developed provinces and cities in East China. It is arguably the largest market with the most potential and vitality in China, and the mature logistics system in the region will surely help the Optronics East China strategy. upgrade. In addition, after the establishment of the Yangtze River Delta, the Yangtze River Delta will form a double-headed drive with the Zhongshan Base in the Pearl River Delta to enhance the economies of scale of the company. What is worth mentioning is that Op Lighting's marketing center is in Shanghai, and the Wuhu area is directly affected by Shanghai's economic development in the half-hour economic circle of Shanghai. The establishment of a new plant will form a new marketing structure.

Against the backdrop of the economic crisis, Opto dared to invest heavily in building factories, demonstrating its unique strategic vision and accumulating enterprise strength. The medium-term development goal of Op will be to become the leading brand with the largest market share among Chinese lighting companies by 2013. Opp’s investment of 1 billion yuan to build a factory reflects its determination and will to achieve this vision. As to whether it can be achieved in the end, let us wait and see.

Foshan Lighting's old style is still the same. Japan and South Korea partners Foshan Electrical Lighting Co., Ltd. was established in 1958 as a national ownership of state-owned enterprises, in October 1992 reorganized as Foshan City, the first joint-stock pilot enterprises. In 1993, the state approved Guangdong's first batch of A- and B-share listed companies. Since the restructuring, Foshan Lighting has developed rapidly, creating many miracles in China's lighting industry and becoming a leading company and role model in China's lighting industry.

From 1999 to 2006, the company completed profits tax of over 200 million yuan each year, of which four years were the first to pay taxes in Foshan City. At present, the company’s total assets are 2.9 billion yuan and its net assets are 2.8 billion yuan. Foshan Lighting Co., Ltd. has become the largest export-oriented enterprise in the country's electric light source industry with the largest production scale, highest foreign exchange earnings, and the best economic benefits. Each of the indicators ranks first in the same industry in the country, and is the only domestic company in the whole industry that can be famous internationally. The national national industrial enterprises that compete with the products of the three major lighting companies enjoy the reputation of "Chinese lamp king" in the domestic and foreign markets. In addition, due to the outstanding performance of Foshan Lighting in the securities market, it persists in giving high returns to the investors every year, so that it has been called "cash cows."

Although China’s Dengwang has many impressive achievements and honors, the lighting industry is becoming increasingly fierce, and it is falling into a situation of interception and pursuit. Said interception, that is the international lighting giants have a technical blockade of Foshan lighting. In 2005, Foshan Lighting once accepted OSRAM's shareholding. The purpose was to get more advanced technology from the latter, but four years later, Foshan Lighting did not get much of the technology they needed, especially lighting LED technology. OSRAM used the huge production capacity and perfect channel network of Foshan Lighting to open the brand and market. It is said that chasing soldiers, that is, Foshan Lighting is being quickly catch up with Zhejiang Sun, Snow Wright and other rising stars.

Then "China Lamp King" is not blown out. Relying on the huge production capacity of Foshan Lighting, it is still the leader of the lighting industry in China. In terms of green and efficient lighting products, Foshan Lighting produces 50 million energy-saving lamps per year, and OSRAM plans to provide 14.5 million green lighting products to China during 2008-2009. The overall advantage of Foshan Lighting is still very obvious. This is also the most solid foundation for it to have enough strength to participate in the hegemony of the lighting industry.

In the field of LED lighting, Foshan Lighting has realized that relying solely on external introduction is not a viable path. The key is to rely on itself. Chairman Zhong Xin of Foshan Lighting revealed that Foshan Lighting is currently looking for overseas partners, and partners must be willing to provide patented technology.


OSRAM's new plant built and put into operation Philips aimed at China's LED market Not long ago, Siemens' wholly-owned subsidiary OSRAM (China) Lighting Co., Ltd won the bid for the curtain wall lighting LED product at Guangzhou International Financial Center (Xita), becoming a new landmark in Guangzhou. Construction product supplier. This Sita curtain wall lighting order value of more than 32 million yuan, is by far the largest single OSRAM lighting in China. OSRAM has also been active in the LED market recently. In addition to continuously participating in the exhibition to vigorously expand the northern market, it also used the strength of the parent company Siemens to become the global partner of the lighting system for the Shanghai World Expo.

On July 4, OSRAM inaugurated two new plants at its Foshan plant. The new plant will significantly increase the production and R&D capabilities of OSRAM's energy-saving and environmentally-friendly lighting products to meet the growing demand in the Asia-Pacific and especially China markets. The total investment of the new plant is expected to reach 400 million yuan. By then, the Foshan plant will become one of OSRAM's largest global production and research and development bases. OSRAM’s plan is to increase its sales of high-efficiency lighting products in China by 80% within 10 years, which shows OSRAM’s great interest in the Chinese market and its determination to seize the Chinese market.

In addition, it is worth mentioning that OSRAM is still the majority shareholder of Foshan Lighting, which is known as the "Chinese lamp king," and holds 13.47% of the shares. Through the mature channels and huge production capacity of Foshan Lighting, OSRAM can more easily develop its own market channels and establish its own brand. At present, Osram's acquisition of Foshan Lighting Co., Ltd. is very successful.

In addition to vigorously developing traditional lighting and energy-saving lamp lighting, OSRAM's greatest feature is the development of LED solid-state lighting.

At present, the biggest reason to hinder the popularity of LED in the general lighting market is the high cost, but with the national "green lighting" project to promote, although the price of LED is more expensive than energy-saving lamps, incandescent lamps, but if you consider the service life, Power consumption and other comprehensive factors, LED will have a huge market in the future. Therefore, LED is more to test the manufacturer's R & D strength and production capacity, and OSRAM has always had certain advantages in the core technology of LED, which is also the domestic lighting brands, including Foshan Lighting, do not have.

In addition to Osram, Philips Lighting, another leading global lighting brand, is also active in China recently. Recently, Philips and Dongguan Qinshang Optoelectronic Co., Ltd. have reached a cooperation intention. The two sides will form an LED lighting application development alliance. The Qinshang Group will undertake the operation of the Philips LED lighting product global technology R&D center and production base. In addition, Philips Greater China also cooperates with IBM, which implements the "Business Innovation and Risk Management" project. This project aims to rapidly customize a set of easy-to-use processes for Philips' professional lighting department to manage the possible risks in sales, finance, and other business dimensions of very large and complex projects; the project will also help Philips' professional lighting department There is a re-division of channel markets and exploration of innovative business models to capture market opportunities. This shows Philips' emphasis on the Chinese lighting market and its determination to seize the Chinese market.

Constrained technology bottlenecks How to seek breakthroughs for domestic brands Due to technical constraints, the right to speak in the LED lighting industry is in the hands of Philips, OSRAM, Japan and South Korea, and a few lighting companies. This has also become the biggest constraining Chinese local lighting companies to develop LED lighting. The bottleneck. Without technical breakthroughs, the future lighting market will inevitably be firmly occupied by international lighting giants.

In addition, Foshan Lighting and Osram's case also tells Chinese lighting companies a reason that people's technology is not easy to get, want people to give you technology, you must first have enough weight.

Compared with international lighting giants, the biggest advantages of Chinese local lighting companies are mature and perfect product sales channels, huge product production capabilities, and understanding of China's domestic market, which are not available to international lighting giants. If domestic brands want to take the initiative in the war-torn industry competition, they must first firmly grasp and continue to solidify their own advantages. Use their own advantages to cooperate with each other, and the basis of cooperation is that the other party must provide technology.

At the same time, the technology research and development of local companies is also the key to the ultimate success of companies in the competition. Numerous examples show that if you have advanced technology, you will succeed half. Cooperation may lead to a win-win situation. Only if they actually master the core technology, they can "win" even if they do not cooperate.

Low level of centralization of the lighting industry is imperative. Although after nearly a decade of development, China has grown many first-line lighting brands and a large number of second-tier brands including NVC, Op, Fozhao, Sunshine, and Tripolar. The overall degree of concentration of the lighting industry in China is still very low. In China, Ops and Raytheon are relatively well-known two companies, but the annual sales industry does not exceed RMB 2 billion, and almost no lighting company has a market share of more than 1% in the entire industry.

It is understood that in the developed countries with advanced lighting technology and fairly mature industries such as Germany, the United States, and Japan, the entire lighting industry has been integrated, and strong companies in 2-3 industries have controlled more than 95% of the market share in the country. At present, China's lighting industry is characterized by large and decentralized, but the number of enterprises with large numbers but limited scale production is limited, so that it is impossible to produce economies of scale, costs do not go down, and quality does not go. At the same time, it will also lead to difficulties in improving the technological level, inefficient use of resources, and weak corporate competitiveness.

With the advent of luminaires, green lighting products, such as energy-saving lamps and LED lamps, have begun to enter the mainstream consumer market. The market share is also increasing. This is a rare opportunity for companies with certain strengths to expand their own lighting. Due to the technical threshold, a large number of small lamps and lanterns factories are declining. This is the inevitable result of the development of the lighting industry to a certain stage. If large-scale lighting companies can seize the opportunity of this industry's concentration, it will inevitably gain a share in the future lighting market. The financial crisis may also play a role in promoting industry reshuffle to a certain extent, because large lighting companies are more capable of resisting risks.

NVC, Op, Osram and other lighting giants are actively conducting the "enclosure movement", it is fancy to see the lighting industry is about to reshuffle the opportunity.

At present, the overall situation of China's lighting industry is like the spring and autumn period in history. There are countless kingdoms in size, but the ultimate dominance is also the top five princes. Perhaps in the near future, the pattern of reshuffling China's lighting industry will be clearly presented to us. It can be concluded that the number of companies that will eventually survive will be extremely limited. At that time, perhaps the major lighting giants are still carrying out brutal competition, but as a company that survives, they will all be winners.