Homogeneous competition "Life and death bureau" How can LED enterprises develop sustainably?

In recent years, the domestic LED industry has turned into a situation of overcapacity in the blink of an eye from the glare of the stars and the blue ocean influx of capital. At present, the homogenization of market competition is particularly serious, and market competition based on commodity homogenization is called “homogeneous competition”. Under the homogeneous environment of diversified products of similar products, enterprises are most likely to have a "hard fight" situation in the face of competition, leading to vicious competition. Among them, in addition to the low entry barrier, the industry's plagiarism is prevalent, and product homogeneity is serious, leading companies to be keen on price wars, coupled with the market becoming saturated, demand is reduced, and excess capacity. Under the rapid development of LED enterprises, the homogenization of products will inevitably cause a large number of enterprises to be eliminated. This phenomenon is both a huge challenge and a rare opportunity for enterprises.

“In the future, people will have higher and higher requirements for product quality and functional characteristics. It is difficult for low-cost and low-quality products to form unique customers, not to mention sustained and profitable.” Wu Yulin, president of Foshan Lighting Association, said .

In order to maintain sustainable competitiveness, how to strengthen the ability to innovate has become a problem that enterprises must face and solve. As one of the global lighting giants, Philips Lighting has been able to compete for centuries in the brutal industry since its inception in 1891, relying on its strong innovation capabilities. In the 100-year history of Philips Lighting, its global influence has grown and become an industry benchmark through continuous innovation in products, systems and business models.

Innovative products

As the most intuitive way to reflect the value of an enterprise, its ability to continue to innovate has become one of the criteria for measuring the sustainability of a company's development. As one of the most innovative companies in the lighting industry, Philips Lighting is innovative in its products, both in LED system components and in finished products.

For example, at the LED Product Components China Product Strategy Conference held in Shenzhen on December 21, 2016, Mr. Dong Peng, Senior Product Manager of Philips Lighting China, introduced the advantages of the “Fuxing” series COB modules and various models. R&D progress. The Philips Lighting "Fuxing" series will provide users with the best performance and system solutions at a reasonable price. "Fuxing" series products not only have a great improvement in light efficiency, but also solve the technical bottleneck of COB heat dissipation, and completely help customers eliminate the trouble of color consistency.

In addition, in terms of finished products, since the Philips Hue series products were officially introduced to the domestic market in 2014, both decorative products represented by light strips and functional lamps represented by ceiling lamps are continuously upgraded and updated. As the number of product members continues to increase, the Philips hue series has grown into a large family of products.

Philips Hue Go LED Lighting

Of course, due to the variety of Philips lighting products, the results of their product innovation can not be exemplified. The continuous updating and exploration of Philips Lighting's products is undoubtedly one of the important magic weapons to penetrate the market.

If you don't advance in the business war, you must retreat in an invincible position. Old products will cause customers to experience aesthetic fatigue and lose market share; new products with new atmosphere, representing a new aesthetic, giving people a refreshing vision, giving people a development trend, so that they will win more More customers. Therefore, for a company, only by maintaining its own product innovation, can it have a place in the fierce market competition.

Innovative system

Recently, Philips Lighting has publicly demonstrated its latest intelligent Internet LED lighting systems and products in the Internet of Things era in China. Including architectural lighting Active Site system, hotel lighting Dynalite system, office lighting PoE system and InterAct system, retail lighting Dynamic Shop Window system and many other incredible intelligent connected lighting systems.

Philips Lighting InterAct Wireless Smart Interconnect Lighting System

From the perspective of a series of new products released by Philips Lighting, the focus of its products is shifting towards smart connected lighting. "The future of lighting must be smart interconnection. So after two years of hard work, in the context of the entire Internet of Things, Smart Internet helps our company sell products from a single product, sell light sources, sell lamps, and serve the system. The overall provider transition." Wang said.

The new smart connected lighting system can help to transfer data information through various industries, and can achieve the high efficiency, energy saving, livability, safety, sustainability and so on. Here, it must be mentioned that Philips Smart Connected Lighting System has made outstanding contributions in the field of smart city construction. Not long ago, Philips Lighting announced that it will participate in the Smart Connected Road Lighting Pilot Project in Los Angeles to enhance public safety and urban services, creating new applications for residents, tourists and local businesses. The City of Los Angeles has a large network of smart connected street lights, and Philips Lighting has deployed new IoT technologies and functions to collect and analyze data through sensors and software equipped with street lights. The results of the analysis will help improve the transparency of urban operations and promote the development of new smart city applications.

In China, Philips Lighting pioneered the CityTouch flex smart connected road lighting system in May 2017. Recently, Philips Lighting announced that it will deploy the first batch of Philips CityTouch flex intelligent interconnected road lighting systems in Changzhou City and Kunshan City, Jiangsu Province, to help build smart cities in the two places. With the efforts of Philips Lighting, I believe that there will be more and more cases of such intelligent lighting systems in China.

In recent years, intelligent lighting has become the beast of many capital hunting. With the development of the Internet and information technology, the future of lighting must be intelligent and interconnected. Introducing lighting into the concept of smart interconnection will not only affect the future of the home field, but the global smart home market will undoubtedly be affected by this storm, and will certainly play a positive role in promoting the construction of smart cities. In the LED industry of homogenization competition, smart connected lighting will also become a bright way for lighting companies.

Innovative business model

"With the maturity of LED technology, Philips Lighting is changing from selling products to selling services. We actively adapt to the new normal of the development of the lighting industry, constantly adjust the development strategy, and transform into a service provider that provides high added value." Philips Lighting Wang Haoru, president of Greater China, said.

This "product as a service" concept, Philips is being applied to the lighting industry. In 2011, the innovative service “Pay per Lux”, “No Light Bulbs, Selling Lighting Hours”, was launched and has been applied at Schiphol Airport in the Netherlands. Philips and Schiphol Airport signed a fifteen-year "Lighting Service Solution" contract, designed by Philips to meet 3,700 LED luminaires and lighting equipment according to airport demand. Philips retains ownership of the lighting equipment and arranges all management and maintenance during the contract period. The airport only needs to pay a fixed service fee per month.

Holland Schiphol Airport

In the era of service economy, the famous management guru Peter Drucker said: "The competition between enterprises today is not the competition between products, but the competition between business models." When lighting companies are still trying to sell their products, Philips Lighting's business model of “products as a service” is a major innovation in the industry. In the business model of “product is service”, the product use process is the service process, and the fundamental purpose of the service model is to gain competitive advantage in the fierce market competition.

Conclusion:

Although China's LED industry has developed rapidly, it has formed a large industrial scale, and still has huge market potential. However, the shortcomings of the core and key technologies and the scattered, small, and chaotic industrial organization pattern still restrict China's LED industry international. Increased competitiveness. Technological innovation is an important way and foundation for the development of the LED industry, and it is an important breakthrough for enterprises to win business opportunities in the future. To some extent, future competition is largely reflected in competition in the technology field.

From the current competitive environment, the integration speed of the entire LED industry is accelerating, because the industry itself has many low-end manufacturers, and the unspoken rules that focus on price competition regardless of product quality will lead to a large number of enterprises disappearing. This is a very normal thing in the development of the industry. LED companies want to stand out in this environment, and to maintain their competitive edge and improve their ability to innovate is an important quality.


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