Wu Changjiang: LED industry integration and restructuring is the only way

Recently, the alliance between NVC Lighting and Dehao Runda has ignited the first horn of industrial integration in the LED lighting industry, and it is still a hot spot in the industry.

Recently, at the China LED Midstream and Downstream Industry Conference, NVC Lighting President Wu Changjiang started his business with the theme of "NVC Lighting and Dehao Runda" as the starting point, and "Industry Integration and Industry Future".

Wu Changjiang said that it is necessary to use a sentence to summarize the current status of the domestic LED industry is "chaotic world", as the saying goes, "the hero in the chaos", so for many LED companies is now a huge opportunity. "China's opportunities are very good. Enterprises should integrate with each other. LED is a light source. It is a standard thing. It will inevitably move toward large-scale development. Therefore, strong cooperation and integration are the only way to go. Only by using the market can we use the market. Let the company develop rapidly."

He revealed that NVC had already planned to integrate as early as many years ago, but did not determine which company to cooperate with. Therefore, the cooperation with Dehao Runda is not an internal shareholder dispute that is speculated outside, but a strong cooperation. . It is understood that as the leading position in the domestic lighting industry, NVC Lighting's brand appeal and strong channel advantages are obvious in the circle. This is the high-quality asset of NVC Lighting, and it is also a force that makes the competitors daunting. This just makes up for the shortcomings of Dehao Runda.

The industry insiders who have a good view of the doorway said that Wu Changjiang’s integration risk is greater and the opportunity is greater. Given the leading position of NVC Lighting and the position of Wu Changjiang in the lighting industry, and the feat of Dehao Runda’s share swap, It has played a catalytic role in the transformation of the lighting industry. According to the analysis, Dehao Runda can use this to expand downstream applications, and at the same time, it can use NRW Lighting's powerful brands and channels to sell its own LED lighting products. NVC Lighting can also grasp the technology and product resources in the upstream and middle of the industry. To make up for its own shortcomings, the LED industry looks high in the future.

Goldman Sachs also published a research report to maintain its long-term growth prospects for LED lighting. It is expected that the demand for LED lighting will maintain long-term growth from this year, mainly due to the increase in demand with the decline in the average price of LED lighting products, the reduction of production costs brought about by technological advancement, and the increase in government support. Goldman Sachs is optimistic about the downstream market share leader, and believes that such companies should be able to benefit the most from the accelerated growth of LED lighting demand in 2013.

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