8 Billion Purchase Plan Boosts Transformation of Industry Lighting Giants

The country’s 8 billion LED lighting procurement plan has just begun. Just at this time, the China (Beijing) International Lighting Fair (February 29th - March 2nd) opened in Beijing. 200 companies at home and abroad gathered here, of which 70%- 80% of corporate business involves semiconductor lighting products. Beijing Lighting Exhibition has always been regarded as a benchmark for the development of the lighting industry throughout the year, and major companies are showing the latest lineup to attract orders. The participating companies stated that they are making efforts to carry out innovative transformations such as products, channels, and business models to meet the needs of the LED lighting market.

The policy helped the LED lighting market blowout "12th Five-Year" green lighting festival demonstration project announcement, the China Central Capital Commission revealed that the Commission will arrange 8 billion central budget extrabudgetary procurement 4 million during the "Twelfth Five-Year Plan" period LED high-efficiency road lighting products will simultaneously bring local matching funds of no less than 3 billion yuan. In the pilot areas, 10 provincial cities, 50 prefecture-level cities, and 100 counties will be identified in phases to implement the demonstration project of green lighting energy-saving renovation.

As a star of energy conservation and emission reduction, LED has been frequently supported. The recently released "12th Five-Year Development Plan for Electronic Information Manufacturing Industry" has listed LED as a development priority. The three ministries and commissions of the Ministry of Finance have recently launched 2012 financial subsidies for semiconductor lighting products to promote the project, subsidy funds to take indirect subsidies, including indoor lighting, street lamps, tunnel lights and other four types of products. “The construction of China's infrastructure has led to the rapid growth of LED lighting,” said Liang Hanfeng, president of Philips Lighting Greater China. Taking the company as an example, landscape and road lighting are the two fastest growing areas in China. Last year, Philips China's lighting business grew by 17%, and China became the largest market outside Europe and the United States.

Xu Huai, secretary-general of the China Illuminating Engineering Society, said that China's lighting power consumption accounts for about 13% of the country's total electricity generation, and lighting is a long way to go to save energy. "LED lighting has developed rapidly in recent years, and the lighting industry is ushering in a huge shift from traditional lighting to LED lighting." Data show that in 2011 China's LED lighting market will reach 23 billion yuan, and it is estimated that China's LED in 2012 The lighting market will reach RMB 34 billion, accounting for 15.5% of the lighting market.

Changjiang Securities analysis pointed out that before the procurement of LED street lamps was mainly promoted by local governments at all levels, and now the national support for LED lighting has risen to the central level, reflecting that the country’s support for strategic emerging industries is gradually increasing.

Lighting giants increase investment and innovation transformation "Based on the high growth of China's LED, Philips decided to increase investment, integration of upstream and downstream industries." Liang Hanfeng said that Philips recently invested in the construction of Philips LED lighting regional headquarters in Chengdu, will invest a total of 2500 before 2015 More than 10,000 Euros is the largest investment in Philips LED lighting in recent years.

“The market contains huge opportunities. Enterprises need to provide the market with integrated lighting solutions instead of single lighting products.” Xu Huai pointed out in particular that domestic companies still lack the advantages of industrial chains and relatively weak input in R&D compared with established companies such as Philips. Even Philips has to change. Liang Hanfeng said that the company has exhibited a full range of LED lighting solutions, including a total of five projects named “Jin Cui” commercial lighting, office lighting, landscape, roads, and industry. It is the most comprehensive and systematic display. . "The competitive landscape has changed, and standardized products are suitable for the general market, and LEDs need more customized solutions." Philips Lighting repositioned the company this year, from the production of general-purpose products to customization, pay attention to market segments; from product-oriented It is oriented towards service and solution marketing; it is transformed from a pure supplier to a partner. In addition, it also increased the expansion of market channels from one to four levels. Qinshang Optoelectronics stated that it is promoting the business model of “incubator factory”. That is, it provides the core modules to the partners, shares the supply chain with the partners, and provides all-round support for production management, technology research and development, project testing, project reporting, patent authorization, and marketing strategies, while the partners do not need to use Diligence Optoelectronics. Brand, this will effectively break the local protection and further reduce costs.