LED lighting industry's MediaTek business model conjecture


Wu Zongxian took the class. Don't get me wrong, this funny and versatile variety has not withdrawn from the ranks of the host who brought infinite happiness to the audience. Instead, he resigned as the chairman of the board of directors of Xiangsheng Electronics for 168 days. This comic-filled person emphasized on many occasions that “It took three years to study the LED lighting industry.” Every interview will habitually display an LED light to the reporter. Usually he will say “to do LED lighting industry”. The dream of MediaTek. Although Wu Zongxian's words are more like jokes, the LED lighting industry will not have a business model similar to MediaTek.

China has become the largest producer of LED lamps, but since the upstream manufacturers in the United States, Japan, Germany, and South Korea have established an insurmountable obstacle with patented technology, the price of LED lamps has remained high, and the capacity of China's LED lighting industry has developed to this day. There is still no scale. In the past few years, enterprises have to cross the two major difficulties in entering the LED lighting industry: one is the investment of 10 million yuan, and the other is the technical and quality control. Relatively speaking, the latter is more difficult to cross than the former. This makes many traditional lighting companies regard it as “a fearful way”, but if this circle lacks the participation of traditional lighting companies, it will be difficult to become bigger and stronger. For them, the LED lighting industry in recent years is an area that cannot be far removed and cannot be close. To some extent, the current LED lighting industry is dominated by a group of technical engineers, while the traditional lighting industry is controlled by a group of professional marketers, it seems that this is two different rivers and lakes. If there is a new business model that allows the traditional lighting industry to create high quality and low cost LED lamps with little effort, what will happen to the world?

Five years ago, the voice of the mobile phone industry was in the hands of a small number of companies with both technology and capital. They enjoyed the huge profits brought by technology leadership. However, their good days were mixed up by a company called MediaTek, which reinstated the entire industry with the "Turn key solution" model. “Turn key solution” is literally translated as “turnkey solution”, which means that the upstream and middle reaches of the industry chain are integrated to form a solution. Mobile phone manufacturers can produce mobile phones by purchasing some simple components. A mobile phone manufacturer can operate in theory as long as three people: one person is responsible for purchasing modules, one person is responsible for finding a foundry, and one person is responsible for sales and payment. In 2009, MediaTek led the majority of China's cottage mobile phone manufacturers to produce 145 million mobile phones.

Nowadays, the market structure of the LED lighting industry is exactly the same as that of the mobile phone market five years ago: a few companies control the market, and most companies are not allowed to enter the market. Under the strong contrast of scissors, once the MediaTek business model emerges, it is bound to subvert and rewrite the rules of the entire industry.





Many experts believe that the development model of LED lighting enterprises has violated the law of industrial development. Each enterprise is a whole industry chain. Only vertical integration, no horizontal division of labor, can not form large-scale manufacturing, and the cost has always remained high. Traditional lighting companies must invest at least 10 million yuan from the packaging stage to the final product, and it is often difficult to solve the technical problems of circuit cooling. If a modular package is introduced, these two difficulties will be solved.

The so-called modularization is to make the original LED lighting R & D and manufacturing work fool and standardization, integrate the light source, heat dissipating component and driving power supply into a unified module. The lighting enterprise only needs to buy the module, then add some simple parts and design. It is possible to manufacture LED lamps with beautiful appearance and low price. This breaks the manufacturing mode of LED lamps in the past, so that the rules of LED lighting are no longer in the hands of a few players. Many SMEs and even individuals can participate in it. Once they are aggregated, they will form a powerful subversive. power. These SMEs no longer have to worry about manufacturing, and they don’t have to worry about the threshold of 10 million yuan. They only need to collect the latest market information and establish a wide range of business contacts every day to get the market in the shortest time. Demand becomes a product. At that time, the sales myth created by Shanzhai mobile phone is very likely to be born in the LED lighting industry.

This new mode of division of labor is the redistribution of the original market power. The most discourse power is undoubtedly a company and individuals who are dispersed in the terminal and have a keen eye. They will ultimately determine the direction of the LED lighting business model. When the module became the standard adopted by most lighting companies, it was not far from the era of LED lighting. After a lot of meticulous interviews, “New Marketing” reporters analyzed the trend of the LED lighting industry and found that the modular transformation force is bringing an imaginative market structure to the lighting industry:

First, the control of chip prices does not necessarily continue to control the upstream chip makers. The large-scale centralized procurement formed by downstream product users will have more voices than the previous purchases. Second, the investment will enter the threshold. Significantly reduced, so that in any region of China, it is highly probable that there will be a "China LED Lights" similar to "China Lights? Ancient Towns"...


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