Secretary General of China Lighting Society analyzes the status quo of domestic lighting industry

In recent years, the technology upgrade and price reduction of semiconductor lighting products have enabled them to enter the market quickly, triggering industry changes and industrial transformation and upgrading. At the same time of dramatic changes in the industry, the lighting industry is also facing the impact of various uncertain factors. The adjustment of the domestic economic structure, e-commerce, Internet + affects the traditional sales model, the international economic development slows down, and market demand declines. On June 4th, the LED Industry Model Innovation Summit Forum of Zhizhi Times was held in Qitaihe. Dou Linping, Secretary General of China Lighting Society, gave a speech entitled “Analysis of the Status Quo of Domestic Lighting Industry”. In recent years, the technology upgrade and price reduction of semiconductor lighting products have enabled them to enter the market quickly, triggering industry changes and industrial transformation and upgrading. At the same time of dramatic changes in the industry, the lighting industry is also facing the impact of various uncertain factors. The adjustment of the domestic economic structure, e-commerce, Internet + affects the traditional sales model, the international economic development slows down, and market demand declines. Characteristics of China's lighting industry (1) First decline in sales In the past 30 years, the rapid, stable and sustainable development of China's lighting industry was broken in 2016, with exports falling and total sales falling for the first time. The main reason for the impact on the total sales of the industry was the decline in exports, which was reduced by approximately RMB 40 billion at a rate of 13.7%. The domestic market demand still rose slightly. There are three reasons for the decline in exports: a. The global economic development is slowing down, and the lag effect of demand decline; b. Traditional lighting products continue to maintain a downward trend; c. The price of LED lighting products continues to decline. (2) The industrial concentration has been improved, and the profit has gradually returned to reasonable. In the past few years, due to the rapid development of LED lighting, the number of lighting enterprises has increased rapidly, and many reasons have caused the market to be disorderly and the competition is fierce. In the case that most enterprises in the industry feel that the market environment is not good in 2016, the survival is difficult, and some enterprises have closed down, the performance of representative enterprises has increased, and the profit rate has increased, indicating that the concentration of the industry is gradually increasing. This laid the foundation for the healthy and orderly development of the LED lighting industry in the future. (3) The number of listed companies has increased, becoming an important force in the lighting industry. Before 2010, there were only a few listed companies in the domestic lighting industry, and the development of LED lighting accelerated the pace of listing in the lighting industry. At present, there are more than 50 lighting companies listed on the main board, and more than 100 in the third edition. The listed companies have become an important part of the lighting industry. (4) The role of the capital market has emerged. The acquisition has intensified the capital strength of listed companies in capital markets. The acquisition of similar enterprises has become bigger and stronger, or mergers and acquisitions in other industries, and cross-border integration has fully proved that enterprises can quickly become bigger and stronger through capital mergers and acquisitions. . (5) Increased influence of lighting industry LED lighting, which integrates green environmental protection, energy saving and high efficiency, high technology and emerging industries, has developed rapidly. In the past two years, the development of intelligent lighting and the changes in market demand, the role of lighting in urban landscapes and various indoor environments has become more and more important, and the attention of the government and users has increased, and the influence of the lighting industry has increased. (6) The establishment of LED lighting, e-commerce, PPP and other health service systems The complexity of LED lighting applications, the design and distribution of e-commerce platforms, the operation of PPP, etc. all require us to provide professional services, which changed us before. The identity of a pure manufacturer or distributor provides space for companies in the lighting sector to further expand their business downstream.

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