How to Layout LED Lighting Industry in 2014

The news of the closure, integration, and shuffling of SMEs continued to spread. 2013 is undoubtedly another winter of LED lighting. In the coming 2014, what kind of development will LED lighting meet? Will it continue to usher in the winter or warm spring? How do LED lighting companies with their own brands lay out and plan? How will the fiery EMC model play a role in the development of the LED industry? With these questions, OFweek Semiconductor Lighting Network interviewed Mr. Chen Gang, General Manager of BYD Lighting.

BYD began to set foot in lighting in 2003 and has been in the LED industry for 10 years. From the initial focus on the development and production of packaged products to the formation of the LED industry chain, and shape their own brand - BYD Lighting, a decade of experience and technology precipitation, BYD has now developed to what extent? What kind of influence has the industry brought? OFweek Semiconductor Lighting Editor brings you to talk about BYD's ten-year history and explore the past and future of LED companies.

Lighting is an important layout of BYD's new energy strategy Looking at the development of LED lighting in recent years, the entire industry is in an undulating state. However, since 2013, the LED lighting industry has ushered in a number of favorable policies and a prosperous environment. In 2014, LED lighting will enter a booming era in a real sense. In an interview with the editor of OFweek Lighting Network, Mr. Chen said that BYD Lighting will provide more exposure and better products to the LED industry from next year, which will help LED lighting develop rapidly.

At the same time, Mr. Chen also stated that "BYD Lighting Brand is an important layout of BYD Group's new energy strategy in the three major industries involved in BYD Group's automobile, IT and new energy. In 2014, BYD will have an updated chapter. The LED lighting group invested 10 years to build will strengthen the channel construction and help further improve its market system.

The three-channel full-scale layout BYD Group began in 2010 and 2011 in the lighting area based on multiple channels simultaneously:

First: Layout of traditional supermarkets BYD Lighting is the first company to enter traditional supermarkets such as Wal-Mart. From the very beginning of entering the lighting industry, it focused on making semiconductor lighting. It is a pure LED lighting company in China.

Second: Layout of e-commerce channels The fastest-growing e-commerce channel in the past two years is the e-commerce channel. The speed of JD.com, Amazon.com, or Taobao is now beyond our imagination. BYD Chen, the editor of OFweek Semiconductor Lighting Network, revealed: “The consumer groups now have a large proportion of e-commerce. BYD has been actively developing e-commerce channels in the past two years. BYD will increase its investment in e-commerce next year.”

Third: Layout of government projects From 2013, the government's support for LED is undeniable, and the amount of subsidy has continued one after another. The amount of subsidy is also quite alarming. BYD Lighting also benefited from this. Mr. Chen said: "On the government's project, BYD will start bidding for one or two major projects in one month from the second half of this year. The promotion of LED lighting by the government far exceeds expectations due to the government's price/performance ratio. The after-sale system of LED lighting has certain requirements, and the big brands will gain more favor from the government. BYD lighting will gain more bidding projects from the government next year due to its competitive advantage in the industry."

BYD has implemented several channels at the same time. The construction speed of channel agencies in various provinces and cities has also increased. The sales growth rate of next year will also be faster than the sales growth of previous years. Chen Quan admits to the growth rate of next year for OFweek semiconductor lighting network. It will reach 200% to 300%. "Vertical Integration Strategy Cope with Market Changes and Practice "Three Commitments"

From the earliest days of mobile phone parts to the subsequent investment in the automotive industry and the development of new energy sources, the BYD Group's strategy of vertical integration is well known. In the emerging industries such as solar and LED, BYD still upholds vertical integration. Mr. Chen stressed that the significance of vertical integration is to understand the core technology, continue to extend upstream and understand the true core. Nowadays, the mainland LED industry is very chaotic. Cheap and low-quality products flood the market. Many people question whether China's LED technology does not have its own core patents. In this regard, Mr. Chen said, “With the two companies’ understanding of the LED industry in the past two years, Fully, we will have a better grasp of the core technology of LED."

As soon as BYD entered the LED industry, it focused on R&D and research for the first five years, and it really started production in 2009. When BYD first started to enter the LED high-profile, it purchased a large number of MOCVD equipment. From the perspective of the LED lighting industry chain, BYD is actually doing a series of operations including epitaxy, chips, packaging, applications, and corporate government lighting solutions. . In the future, BYD will continue to adhere to its vertical integration strategy. It will continue to adopt vertically integrated strategies to manage LED lighting in many aspects such as capital investment, equipment investment, R&D investment, etc. If it enters thousands of households, only local products will not work. Consumers and customer groups are less selective. For example, government projects include commercial projects, hotel projects, and if companies only produce one bulb or only one lamp, they cannot support the entire building or the entire hotel's lighting plan. In a large project, the green energy-saving and environmental-friendly products to be applied must have an overall replacement plan or an overall construction plan. In order to deal with these points, BYD strives to diversify its product lines. At the same time, BYD Lighting also needs to be precise and produce products that meet the BYD brand image with high lifespan and high light efficiency.

Price has always been an important factor hindering the development of LED lighting. While ensuring quality, it is not easy to control prices at consumers' recognized boundaries. And how does BYD balance the relationship between the two?

Mr. Chen edited the OFweek semiconductor lighting network editor's three promises to consumers: "First: BYD Lighting will use the quality of the car to create new energy products. This is the core concept of our product quality assurance; Two: The cost control depends on vertical integration.The detailed division of labor in the industrial chain will make the company more focused, but it will also increase the cost. Now that these companies are pursuing their own profits, the chain is often pulled when they reach consumers. Too long, the product cost advantage that the last consumer gets is not obvious, so BYD goes to the idea of ​​vertical integration.Many BYD's terminal products are manufactured by themselves, trying to reduce the profit space in the middle of the industrial chain and finally contributing to the product. Third, BYD Lighting is a new company in the LED industry, but it is backed by the powerful BYD Group. The scale effect of the Group will make BYD lighting more cost-effective in materials and manufacturing.

Full support for the EMC model: EMC is a good plan for advancing LED The Guangdong Provincial Government is pushing the EMC model for all street lighting projects. This is also true in other provinces. The EMC model has become the mainstream trend and will drive the LED industry forward. However, the EMC model is stressful for the manufacturers. The large capital chain is invested in, and the repayment is not timely. The risk is self-evident. How does BYD Lighting see this? Regarding this issue, Mr. Chen said that the driving force of the EMC model to the development of the entire LED industry is obvious. As a socially responsible company, BYD is very willing to push the entire industry forward.

The EMC model is indeed risky in collecting money, but BYD is fully supporting and agreeing with the EMC model. On the one hand, we agree that the EMC model will become a very important driving force for the LED industry in the next 5-10 years. On the other hand, we believe EMC is a good model for consumers and users of terminals to be confident. Reliability and longevity are the most important for the manufacturing industry, and the EMC model requires no quality problems throughout the product's life cycle, which is exactly the same. BYD supports contract energy management with strong quality assurance and long-term after-sales service. At the same time, with the full support of the Group, BYD will also participate in the settlement of EMC's fund reserves.

Adopting the EMC model to promote the application of LED lighting products can guarantee product quality, standardize the lighting market, greatly promote the development of the entire LED industry, and achieve a win-win situation for all parties involved, but the EMC model also has high project maintenance costs and long recovery periods. , Saving energy-saving benefits, investor risk and many other issues. A lot of small companies with shortage of funds, when it comes to EMC, often take a long way to go. This requires large companies with sound financing platforms and strong financial support to shoulder the heavy responsibility of promoting the EMC model, and lead the LED industry in healthy and orderly development and drive the year 2014. LED lighting industry take off.