The 2nd G20-LED Guangzhou Summit: From the integration of supply chain to channel synergy

[Engineering LED reporters Tang Guirong Guangzhou reports】 "As energy-saving benefits are obvious, since last year, LED commercial lighting have relatively large increase, growth rate of 70% -100%." G20- LED Summit member companies sunshine lighting (600261) General Manager Guan Yong said at the press conference of the first G20-LED Summit held on the 16th that from the perspective of commercial lighting, the market performance of LED commercial lighting in the first half of this year should have achieved the expected results.

The 2012 semi-annual report data released by Sunshine Lighting also seems to confirm the judgment of Guan Yong. Data show that from January to June 2012, Sunshine Lighting received revenue of 1.195 billion yuan, a year-on-year increase of 12.6%. The net profit attributable to shareholders of the parent company was 88.36 million yuan, a year-on-year increase of 21.6%. Among them, the revenue of LED lamps and related lamps exceeded 90 million yuan, which has exceeded the revenue of the whole year and achieved rapid growth. Last year, the company's annual LED business revenue was about 60 million yuan.

With the development of LED commercial lighting, LED applications will inevitably usher in a channel war. Dr. Zhang Xiaofei, Secretary General of G20-LED Summit, said that the mission of G20 is to form a huge LED industry supply chain, provide excellent suppliers, jointly innovate and establish a special channel network.

Channel synergy

In the game with traditional lighting channels, LED lighting companies can only become the biggest powerhouse by joint innovation.

There is no essential difference between traditional lighting channels and LED lighting channels. Because the final consumer object is not much different, it is engineering, or family, or government. However, because the entire distribution channel is in the hands of traditional lighting companies, LED companies must compete with them and have difficulties.

Although LED companies can borrow traditional lighting channels, this approach is also facing difficulties. Because of the establishment of channels in LED companies, traditional lighting companies are also transforming into LED lighting.

So how can LED lighting companies use traditional lighting channels reasonably and effectively?

“Although traditional lighting companies occupy the channel advantage, LED companies can seize market share by directly diversifying and establishing new channels in parallel.” Dr. Zhang Xiaofei believes that the online channels of traditional lighting are relatively weak, and LED lighting companies can Seize this channel through innovation.

Although there are many new opportunities in the LED lighting industry, some of its own characteristics also make the product have many complexities in the promotion process. "Consumers in the price difference between products, will still carefully consider, what products and brands are the best, and currently LED lighting companies are not strong in the brand." Dr. Zhang Xiaofei said at a press conference.

G20-LED Summit members agreed that a single LED company should establish a perfect channel, compete with NVC, compete with the top ten traditional lighting companies, and need a large amount of talent, capital, and time. “When you improve these things, traditional lighting companies have successfully transferred to LED lighting to produce products of the same quality and cost.” Dr. Zhang Xiaofei said that it is more difficult for LED lighting companies to re-establish channels. This time, more cooperation is needed. .

Therefore, to create a common channel system and form a strong channel brand, we can compete with traditional lighting companies. For the specific operation mode of the joint channel, Dr. Zhang Xiaofei said that the follow-up will announce detailed plans to the industry.

Integrated supply chain

In addition to discussing the joint creation of joint channels, G20-LED Summit member companies also announced a plan for upstream and downstream procurement platforms based on member companies at the press conference.

“One of the biggest advantages of the G20 is the cooperation between member companies in the internal industry chain.” Dr. Zhang Xiaofei said that the purpose of setting up a procurement platform is to enable excellent suppliers to obtain centralized orders, thereby reducing the procurement cost of products. Helping procurement companies to quickly make large-scale, and ultimately form a virtuous circle.

At the GTO meeting of the G20-LED Summit held on July 16 this year, member companies reached an agreement to launch the G20-LED product specification for four series of LED lighting, which also marked the official start of internal cooperation among member companies. "We will push this product specification to the global market and set a brand example from China. Products that conform to the standard will condense the upper, middle and lower reaches of G20 member companies. Such products can stand the test of the market, its life, light efficiency, etc. All have a complete security system." Zhang Xiaofei said.

Based on such products, the G20 will be widely promoted to establish the G20 brand.

When the reporter put forward, the impact of the LED industry integration wave on LED companies, in the end, to what extent can the industry price become more transparent, G20-LED summit member company Tsinghua Tongfang vice president Wang Lianghai said that in this year In a lot of time, G20 members are getting closer and closer to each other, from materials, chips, to packaging, to applications. “As everyone understands the advantages of their respective companies, everyone can see a clearer way of cooperation. In fact, this is an integration.”

In fact, the G20 procurement platform is not only to provide industrial chain cooperation between the member companies of the summit, but also open to the outside world, and cooperate with all the excellent enterprises in the LED industry to form a complementary. Dr. Zhang Xiaofei said that we will find that on this platform, various types and various product lines are very rich, and it can basically meet the supply needs of the upper, middle and lower reaches.

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