Midea: Advance layout to grasp the future lighting industry opportunities

â–  Improve product quality and focus on transformation and upgrading

â– Strengthen corporate brand building

â–  Intensify innovation, strengthen management of production links, and focus on protecting the environment

â– Industry enterprises should further strengthen norms and self-discipline, and establish an internal self-discipline evaluation and guarantee system.

Midea Group officially announced that its US-based Nippon Electric Group has signed a strategic cooperation agreement with Guixi City, Jiangxi Province, and Midea Lighting Electric has acquired Guiya Lighting Co., Ltd. Midea plans to invest 500 million yuan to build a beautiful new source of Jiangxi light source. This move marks the full launch of the diversified market strategy of Midea Group's entry into the lighting industry. A stone has stirred up thousands of waves, and this move has caused widespread concern in the industry.

China's lighting industry is in a period of rapid development. More companies with high economic strength and high management level are bound to improve the overall level of the industry. Liu Shengping, secretary-general of China Lighting Association, said in an interview with reporters that at present, China's lighting industry has problems such as low industrial concentration, research and development capabilities to be strengthened, and product quality to be improved. The industry as a whole needs to be integrated and upgraded.

It is understood that in recent years, the output value of China's lighting industry has grown rapidly. According to statistics from the China Lighting Association, the annual sales of China's lighting products has exceeded $38 billion. Among them, the growth rate of LED is particularly alarming. In the first quarter of this year, the output value of LED applications in China was 19.9 billion yuan, a year-on-year increase of 42%.

Undoubtedly, the lighting industry has ushered in new opportunities for rapid development. However, there are still many places in the industry that need to be upgraded in terms of marketing methods and brand building. The entry of big brands can inject new strength into the lighting industry, which is of great significance for building their own national brands. According to Liu Shengping, the current status of the lighting industry is that almost no lighting company has a market share of more than 2%. When it comes to brands, people often think of foreign brands such as Philips and Osram. Although in recent years, domestic companies have gradually begun to focus on brand building, however, compared with mature industries such as home appliances, there may be a long way to go.

According to the data, the new base invested by the US for 500 million yuan will be mainly used to produce energy-saving lamps. After the project is completed and put into production, it is estimated that the annual production capacity will not be less than 200 million, and it is expected to achieve a sales scale of 2 billion yuan. Midea said that lighting electrical is positioned to do industry quality, will not participate in the existing market competition through low-cost, low-end products, and will not repeat investment and construction of low value-added or backward industrial chain, and will focus on LED research and development in the future. And production, committed to providing consumers with energy-efficient green lighting products.

In a low-carbon, environmentally-friendly social and economic environment, more responsible enterprises are required to actively implement and strive to build a green industry, and the lighting industry, which is in a period of rapid development, needs the demonstration effect of the first sheep. Liu Shengping said that with the increasing attention to energy conservation, emission reduction and low carbon economy in the world, industrial upgrading and technological innovation in the lighting industry are urgently needed. Midea's entry into the lighting industry will make new contributions to the overall development of the Chinese lighting industry. With the continuous investment of Midea in the lighting industry, Guixi may even become another important production base of the domestic lighting industry after the five major production areas of Guangdong, Zhejiang, Jiangsu, Fujian and Shanghai, and will include supporting supply chains. The entire industrial chain, including production technology and R&D investment, has a positive impact from many aspects.

During the 11th Five-Year Plan period, the state supported high-efficiency lighting products to replace incandescent lamps and other inefficient lighting products through financial subsidies, and accelerated the promotion and use of high-efficiency lighting products. Benefiting from the construction of infrastructure such as the Shanghai World Expo and the Guangzhou Asian Games, the Chinese lighting industry may enter a new round of gold development.

In order to enable industry enterprises to take the lead in the fierce market competition and remain invincible, we should further accelerate the application and promotion of energy-saving products in the lighting industry. For this reason, Liu Shengping recommends:

First of all, industry companies should work hard to improve product quality and focus on transformation and upgrading.

Second, strengthen corporate brand building.

Third, increase innovation, strengthen management of production links, and focus on protecting the environment.

Fourth, industry enterprises should further strengthen norms and self-discipline, and establish an internal self-discipline evaluation and guarantee system.