One side of the sea is the flame, the LED industry shuffling encounter inflection point and the recent introduction of various supporting policies, constitutes two distinct expressions of China's LED industry development.
"The first two years have been related to lighting and LED companies have engaged in, and now has developed into the lighting industry has not been related to the company, but also to take advantage of LED ride policy, began to turn LED lighting market, but their purpose is not production, and It was the government subsidies that led to an increase in disorderly industry competition.†On the evening of June 13, Mr. Xu, head of a LED company in Shenzhen, told the reporter that, on the one hand, companies have expanded blindly in the past few years, and their production capacity has been excessive; On the other hand, the production cycle of new LED products is about 3-6 months. The shortage of funds and the slow technology update also make some SMEs lack of core competitiveness. Based on this, the international lighting giant and some of the domestic listed LED companies have become the dominant players in the industry reshuffle.
Philips, a world leader in energy-efficient lighting solutions and new lighting applications, had sales of €22.6 billion in 2011. With China being defined as a “home market,†China’s position on the global strategic map of Philips is increasing.
“Our goal is to achieve 50% of the total business volume of LED business in 2015.†The 17th Guangzhou International Lighting Exhibition held at the China Import and Export Fair Complex (Pazhou) from June 9th to December 12th. At the same time, Marc de Jong, CEO of Philips Professional Lighting Solutions Business Unit, said in an exclusive interview with this reporter that "In the future, the Asian LED lighting market is expected to grow by 70%-80%."
"21st Century": The LED lighting market in Europe is developing relatively rapidly. Apart from the concept of environmental protection and energy conservation in Europe, another important factor is the energy saving effect brought by high electricity prices in Europe. How does Philips view China's LED lighting market?
Marc de Jong: The rapid development of LED lighting in Europe, the European government's government subsidy for LED, and other factors that have driven LED lighting widely promoted from an economic perspective. In addition, LED lighting has many inherent advantages, such as LED lighting effects are more beautiful, not only can provide higher quality lighting, but also more colorful colors; In addition, LED lighting can provide more design possibilities. This is also the reason why LED lighting fixtures were popular in Europe in previous years.
We are full of confidence in China's LED lighting market and continue to increase investment and support in the Chinese market.
In the field of lighting, Philips announced in December last year that the construction of LED professional lighting projects in Chengdu Hi-tech Zone, plans to invest 25 million euros in 5 years to improve its LED value chain in China, and consolidate the industry's leading position.
"21st Century": LED as an emerging industry are all supporting and developing, but all local governments are supporting the development of their own brand within the region. When Philips enters the Chinese market, is there any dissatisfaction? Will Philips take an investment-for-order change in the development of the Chinese market? For example, when you invest and build a factory in Chengdu, it is possible that the Chengdu government department will give you an order for government procurement.
Marc de Jong: As you mentioned, LED is being promoted throughout the country as an emerging industry. There are more than 3,000 cities in China, but we cannot invest in ordering every city. Therefore, our investment in LED lighting projects in Chengdu is actually part of Philips' overall strategy. Traditionally speaking, our business is more focused on some provinces along the coast of China, but now, in response to China’s western development strategy, we have also further expanded our business in western China in terms of overall investment. Chengdu’s investment is only our western development. One of the components of the project.
Although Philips is a multinational company, we are also a company that has taken root in China and has a very high degree of localization. We define China as another local market for Philips. Our employees in China already exceed the number of employees in the Netherlands.
In addition, in the long run, we hope that the LED related standards will be consistent throughout the region to promote the orderly and healthy development of the LED lighting market.
"21st Century": At present, China's LED lighting companies are facing the main problem is the lack of core technology. Does this give Philips the opportunity to accelerate its expansion in China?
Marc de Jong: The advantages of Philips lighting in the field of LED lighting are mainly reflected in four aspects: First, we have a core leading technology. Second, based on our extensive experience accumulated over 120 years in the field of lighting, we have a profound understanding of lighting applications. Third, we have a large number of intellectual property patents. Fourth, we have covered the entire LED industry chain from LED chips, packages, modules, light sources, lamps and systems.
Based on this, if we want to make some optimizations for LED solutions, we can proceed with optimization from different aspects of the industry chain. The domestic counterparts or other lighting manufacturers may only focus on a certain part of the industry chain, that is, only a partial optimization.
"The first two years have been related to lighting and LED companies have engaged in, and now has developed into the lighting industry has not been related to the company, but also to take advantage of LED ride policy, began to turn LED lighting market, but their purpose is not production, and It was the government subsidies that led to an increase in disorderly industry competition.†On the evening of June 13, Mr. Xu, head of a LED company in Shenzhen, told the reporter that, on the one hand, companies have expanded blindly in the past few years, and their production capacity has been excessive; On the other hand, the production cycle of new LED products is about 3-6 months. The shortage of funds and the slow technology update also make some SMEs lack of core competitiveness. Based on this, the international lighting giant and some of the domestic listed LED companies have become the dominant players in the industry reshuffle.
Philips, a world leader in energy-efficient lighting solutions and new lighting applications, had sales of €22.6 billion in 2011. With China being defined as a “home market,†China’s position on the global strategic map of Philips is increasing.
“Our goal is to achieve 50% of the total business volume of LED business in 2015.†The 17th Guangzhou International Lighting Exhibition held at the China Import and Export Fair Complex (Pazhou) from June 9th to December 12th. At the same time, Marc de Jong, CEO of Philips Professional Lighting Solutions Business Unit, said in an exclusive interview with this reporter that "In the future, the Asian LED lighting market is expected to grow by 70%-80%."
"21st Century": The LED lighting market in Europe is developing relatively rapidly. Apart from the concept of environmental protection and energy conservation in Europe, another important factor is the energy saving effect brought by high electricity prices in Europe. How does Philips view China's LED lighting market?
Marc de Jong: The rapid development of LED lighting in Europe, the European government's government subsidy for LED, and other factors that have driven LED lighting widely promoted from an economic perspective. In addition, LED lighting has many inherent advantages, such as LED lighting effects are more beautiful, not only can provide higher quality lighting, but also more colorful colors; In addition, LED lighting can provide more design possibilities. This is also the reason why LED lighting fixtures were popular in Europe in previous years.
We are full of confidence in China's LED lighting market and continue to increase investment and support in the Chinese market.
In the field of lighting, Philips announced in December last year that the construction of LED professional lighting projects in Chengdu Hi-tech Zone, plans to invest 25 million euros in 5 years to improve its LED value chain in China, and consolidate the industry's leading position.
"21st Century": LED as an emerging industry are all supporting and developing, but all local governments are supporting the development of their own brand within the region. When Philips enters the Chinese market, is there any dissatisfaction? Will Philips take an investment-for-order change in the development of the Chinese market? For example, when you invest and build a factory in Chengdu, it is possible that the Chengdu government department will give you an order for government procurement.
Marc de Jong: As you mentioned, LED is being promoted throughout the country as an emerging industry. There are more than 3,000 cities in China, but we cannot invest in ordering every city. Therefore, our investment in LED lighting projects in Chengdu is actually part of Philips' overall strategy. Traditionally speaking, our business is more focused on some provinces along the coast of China, but now, in response to China’s western development strategy, we have also further expanded our business in western China in terms of overall investment. Chengdu’s investment is only our western development. One of the components of the project.
Although Philips is a multinational company, we are also a company that has taken root in China and has a very high degree of localization. We define China as another local market for Philips. Our employees in China already exceed the number of employees in the Netherlands.
In addition, in the long run, we hope that the LED related standards will be consistent throughout the region to promote the orderly and healthy development of the LED lighting market.
"21st Century": At present, China's LED lighting companies are facing the main problem is the lack of core technology. Does this give Philips the opportunity to accelerate its expansion in China?
Marc de Jong: The advantages of Philips lighting in the field of LED lighting are mainly reflected in four aspects: First, we have a core leading technology. Second, based on our extensive experience accumulated over 120 years in the field of lighting, we have a profound understanding of lighting applications. Third, we have a large number of intellectual property patents. Fourth, we have covered the entire LED industry chain from LED chips, packages, modules, light sources, lamps and systems.
Based on this, if we want to make some optimizations for LED solutions, we can proceed with optimization from different aspects of the industry chain. The domestic counterparts or other lighting manufacturers may only focus on a certain part of the industry chain, that is, only a partial optimization.
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