Interest rate cuts a large number of LED companies die from the price war vortex

As the price war of LED continues, the gross profit of products continues to decline, resulting in a decline in LED enterprise revenue and net profit. To this end, international lighting giants such as OSRAM, Philips, GE Lighting, etc. have gradually shifted from low-profit general lighting to high-profit segmentation lighting market to find new profit growth points. In 2015, Philips opened the price cut of LED products. Subsequently, lighting giants such as Mulinsen, Foshan Lighting and Op Lighting also joined the price war, which led to a decline in the profit margin of LED lighting. The market competition intensified and the living environment of domestic small and medium-sized enterprises was squeezed. A large number of companies have died from the price war vortex. As the price war of LED continues, the gross profit of products continues to decline, resulting in a decline in LED enterprise revenue and net profit. To this end, international lighting giants such as OSRAM, Philips, GE Lighting, etc. have gradually shifted from low-profit general lighting to high-profit segmentation lighting market to find new profit growth points. Interest rate cuts a large number of LED companies die from the price war vortex Philips: Turn to smart things. When the LED replacement tide comes, many traditional lighting companies have felt a pain. At present, the LED lighting industry is showing a situation of accelerated shuffling and increased competition. In this context, Philips Lighting adjusted its business structure, shut down some unprofitable manufacturing plants, and threw away the burdens, and its business gradually turned to the development of intelligent IoT. According to public information, Philips' lighting intelligent goods association includes home, government, office, commerce, and urban areas. Intelligent IoT has only emerged in the past two years. Intelligent lighting is currently mainly used in the high-end market, and there are many applications in the professional lighting field. Intelligent lighting is more about energy saving in the field of public services, and it will be used in buildings and street lights. In the field of smart IoT home consumption, people generally value the function of the brightness of the lamps is relatively large, relatively energy-saving. The advantage of Philips lighting is the high-end lighting, on the road. Large-scale lighting market for public services such as shopping malls. Philips Lighting's adjustment of its business structure, the need to develop smart interconnects and enhance industry competitiveness is an important part of the company's overall strategic layout. Philips Lighting continues to lead the industry in its 125-year history. Whether it's leading the conversion of lighting from traditional light sources to LEDs or leading the transition to smart connectivity, Philips is always the industry leader. Philips Lighting emphasizes that the Chinese market is the second largest market for Philips Lighting. Philips Lighting will continue to increase its development in China, and the importance of the Chinese market will not change. Philips Lighting will continue to abide by its commitment to the Chinese market, continuously launch products and solutions that meet the needs of the Chinese market and consumers, and improve people's quality of life through meaningful innovation. According to the observation of OFweek Semiconductor Lighting Network, Philips has the advantage of being a light source. Compared with Chinese local brands, it is not competitive with Chinese local brands. It is wise to turn off some unprofitable manufacturing plants and focus on the smart field. In fact, as early as 2014, Philips proposed the concept of intelligent connected lighting. Now this series of actions is nothing more than a manifestation of the intelligent interconnected theme that Philips has always advocated. It can be seen that at the 2016 International Lighting Fair in Frankfurt, all exhibits are also echoed by the theme of smart internet, including Philips Active Site intelligent connected lighting system, Philips PCK lighting system, Hue White Ambiance in smart home, etc. Its world-leading smart connected LED lighting technology, smart lighting products and solutions, covering home, office, business, urban and other fields, create more value than lighting. At present, Philips Lighting's intelligent IoT is mainly in smart solutions. Experts say that the main force of the current lighting intelligent IoT market is not an existing enterprise. The main force of the future will be in Internet companies and information appliance companies, similar to Google. Xiaomi, etc., these companies consume their products through fans and platform data. The enterprises of information appliances include Huawei and Haier. They do standard parts. Compared with the transformation of the smart Internet field, the operation of Philips Lighting in the capital market is more concerned by the industry. Since Philips wanted to sell the Philips lighting business last year, it has been looking for suitable buyers, and many factors interfered with it. Philips finally chose to separate the lighting business. It can be seen that Philips has been actively adapting to the new normal of the development of the lighting industry, constantly adjusting its development strategy and transforming it into a service provider that provides high added value. Whether it is splitting, closing the factory's subtraction strategy, or entering the capital industry's addition strategy, this is an inevitable trend in the development of the lighting industry. Although Philips is an international giant in the lighting industry, its development needs to take advantage of the trend. Adapting to the changes in the lighting industry, maintaining continuity and staying ahead is the eternal challenge for lighting companies. OSRAM: Turning to high-end lighting as the international giant of the lighting industry, Osram, in 2015, it is a frequent action, first splitting its CLB (traditional lighting and ballast) and LLS (LED lights and systems) business, and then with Foshan Lighting Signing a share sale and purchase agreement and transferring 100% of the equity to Guangdong Electronic Information Industry Group Co., Ltd. This series of slimming campaigns has drawn much attention in the industry. It is understood that Osram's downsizing is due to the unsatisfactory sales of traditional businesses such as traditional bulbs and fluorescent tubes. In the lighting industry, LED products account for an increasing proportion of the market, while the market share of traditional lighting sources, incandescent bulbs and fluorescent tubes, has been shrinking, and transformation has become the only choice for traditional lighting to survive. It can be seen that Osram's business split and withdrawal is to further adjust the production capacity structure and adapt to the development trend of the industry. In the future, OSRAM will gradually shift to higher-end areas such as automotive lighting and special lighting. In the view of OFweek Semiconductor Lighting Network, Osram has a natural advantage in automotive lighting and special lighting. In addition to early intervention, Chinese LED companies are far behind in terms of automotive lighting. According to public information, the Chinese auto market is growing at a rate of 10% per year, and the proportion of LED lighting in the Chinese auto market has also increased rapidly, reaching 20%-30%. Osram said that in order to adapt to the rapidly changing market, the company continued to adjust its business and systematically implemented restructuring. According to the Xiaoke of OFweek Semiconductor Lighting Network, OSRAM focuses on special lighting factories, one in China, namely OSRAM Special Lighting (Kunshan) Co., Ltd. According to industry and commerce, the company was established in July 2014 with a registered capital of 35 million yuan. In the process of transformation and upgrading, OSRAM has always adhered to three focuses, one is customer leadership; the second is innovation, Osram's annual investment in OLED automotive lighting, business capabilities, business services and product innovation is very large; third is quality. If these three aspects are carried out around the main business and customers, then the company will be easy to succeed in the transition, which is also the basis for the survival of Osram. In addition, the adjustment of the company is also very important. At present, OSRAM is reorganizing its corporate organization around the growth of its future and the growth of its attributes. This is the specific path of OSRAM. GE Lighting: Focus on the field of smart lighting As the LED market continues to change, major lighting companies are constantly adjusting their business, and GE Lighting is no exception. On April 26, 2016, GE's Current Company spent $100 million to acquire Daintree Networks, a well-known manufacturer in the wireless communications and smart lighting industry, and became the largest private sales transaction for Australian technology business assets in the past decade. In May last year, GE teamed up with Apple Qualcomm to enter the connected lighting market, using digital technology and market interest in big data to drive the recovery of the lighting business. After abandoning the traditional CFL business, GE focused its lighting on the LEDs. As one of the important drivers of smart lighting, GE Lighting has never stopped exploring intelligent lighting solutions. Whether it's smart building lighting or intelligent LED street light networking, GE Lighting solutions save customers a lot of energy. As a pioneer in the lighting industry, GE Lighting integrates intelligent systems into its products, enabling remote control of luminaires via wireless gateways, via the GE Industrial Internet platform, Predix, through sensors, controllers, wireless transmitters and microprocessors. And other components to collect and analyze data. At present, GE Lighting has successfully developed a series of new technologies that embody smart environment lighting, and used it to improve customers' energy management level, experience and lighting efficiency, and intelligent asset management. It can be illustrated by two specific examples of LightGrid Smart Street Light System and Networked LED Light Bulb Link. GE's wireless control technology, LightGrid, is a solid part of GE's smart city development. As the most advanced road lighting system, LightGrid incorporates industry-leading features such as measurement, energy management, wireless central control, brightness control, data acquisition and communication, and security. At present, GE's intelligent lighting system has begun to be piloted in San Diego, California. San Diego's streets have been replaced with energy-efficient LED street lights, helping San Diego to reduce energy consumption and save taxpayers' spending. Subsequently, sensors that sense the surrounding environment such as weather, traffic, etc. will be gradually installed on these street lights, further enhancing the intelligence of the system. GE's new economical connected light bulb Link allows consumers to remotely synchronize their home lighting through other connected devices wherever they are. Networking with the Wink application eliminates the need for expensive add-on components for connecting devices, making it easier and more cost-effective to open a new chapter for consumers' smart homes. The focus of the intelligent lighting network is on environmental monitoring and signal feedback, so effective and reliable communication means and control technology become the key to the network. Daintree Networks' application technology in smart lighting, especially its stable and reliable communication technology and control technology, will become the technical barrier for GE's smart lighting solutions. The battlefield of smart wireless control system has always been a battleground for military strategists. GE has a good foundation in smart buildings, but lacks effective integration technology. Daintree has mastered many years of experience and successful models in the industry. Lighting and smart buildings will create a complete platform, which will be more beneficial to the promotion of the future smart lighting market. Summary: In recent years, with the increasingly fierce competition in the general lighting market, international lighting companies have divested the traditional lighting business, launched LED segmentation areas, moved to the high end of the LED value chain, and strengthened innovative research and development in automotive lighting, smart lighting and other segments. In order to provide alternative lighting solutions for different application environments, lighting products applications are diversified and intelligent. In addition, international lighting giants Philips, Osram, GE gradually split or sell lighting business, Chinese companies began to participate in the acquisition of international lighting companies, such as the Group's transfer of 13.47% stake in Foshan Lighting held by Osram, Feile Audio acquired Xi Wannian 80% of the group's equity, which gives Chinese lighting brands the opportunity to enter the international market.

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