Appliance companies enter the lighting industry now diversified competition

It is not new for home appliance companies to enter the lighting industry. TCL, Skyworth, Konka, and the enterprises created by the “Chinese workers Three Musketeers” that have enjoyed reputation in the past have entered the lighting industry. In 2010, Midea Lighting made a big acquisition of Guiya and built a Jiangxi light source base, which again caused vibration in the lighting industry.

Beautiful Lighting: A High-profile Lighting Path

The US-based group, which has more than 40 years of history, is already a leading alumni in the field of home appliances. In 2010, an initiative of the US Group caused the lighting industry in China to vibrate: On June 30, the US-based NEC Group announced the signing of Guixi City, Jiangxi Province. Strategic cooperation agreement, the United States and the lighting electrical acquisition of Guiya Lighting Co., Ltd., and plans to invest 500 million yuan in Jiangxi to establish a new base of light sources. The rumors of Midea Group's entry into the lighting industry have not been one or two days. However, when the United States actually took off, its large-scale writing still shocked the industry.

The development of Midea Lighting began in 2008. In early 2008, Midea Lighting established the Lighting Project Department, which was affiliated with the Microwave Division, and Zhang Wuli served as the general manager. In the second half of the year, the company opened the first franchised store in Beijing Wanlong Huiyang Lamps City. At that time, the lighting of the United States did not cause enough concern in the industry and the media. However, Midea's lighting continued to develop in a low-key manner. By December 2009, the beautiful lighting project department, which had accumulated certain product and channel experience, had upgraded to Mei Lighting Electric Manufacturing Co., Ltd.

Since then, the United States lighting all the way high-profile advance: in May 2010, reference home appliances development experience sogou, the country more than 1,400 indoor and outdoor promotional activities to attack the market; in early June, 240 square meters exhibition hall in Guangzhou International Lighting Exhibition, gorgeous completed the first industry appearance; 6 At the end of the month, 200 million mergers and acquisitions of Jiangxi Guiya Lighting 85% of the shares, and announced to spend 500 million to build a new Jiangxi light source base; September, "Butterfly Change 2010," the four major cities in the country 10 new product launches and orders will soon kick off. After two years of accumulation, Midea Lighting finally broke out in 2010, adding a fresh air to the relatively calm atmosphere of the lighting industry in China.

TCL Lighting: Samples of Home Appliances Entering Lighting

Midea Group is not the first home appliance company to enter the lighting industry. In the past, the companies created by the “Chinese workers Three Musketeers” (TCL, Skyworth, and Konka) all entered the lighting industry. Among them, TCL Group was involved in the lighting industry as early as 2000. Ten years of development has also made TCL Lighting a sample of home appliance companies entering the lighting industry.

In 2004, TCL Lighting simply did not have NVC and Op.com, and Yu Wei, who had listed TCL as a whole, had a lot of cash in hand, and the TCL Group's “Longhu Project” came into being. The strategic plan of LCL Kun, general manager of TCL Lighting at the time: Upstream acquisition of Guiya, Jiangxi, TCL is preparing to take over some shares of Foshan Lighting from the government and at the same time 100 acres in Baocang Chencang District, and then on 10 production lines to establish TCL Baoji Industry. Park.

However, adulthood is a matter of course. The personnel contacted by the Foshan Municipal Government had no intention of returning. The purchase of Guiya Group personnel was not in favor. The northern lighting area had already made a good payment and it had already arrived. The country came up to investigate the wasteland and the industrial park could not be built. Soon, the internationalization process of TCL Group was hindered, funds were limited, and TCL Lighting’s support was reduced.

In December 2005, TCL Group transferred 100% equity of TCL International Electrotechnical to France Legrand Group at a 37-fold premium of 1.457 billion to establish TCL-Legrand; in February 2008, TCL Group took a 10-fold premium in this regard. Low-voltage electrical business. At the same time, the Group is also preparing to sell TCL Lighting, but TCL Lighting failed to sell at a premium like international electricians and low-voltage electrical appliances. The net profit of more than RMB 10 million a year has become a tasteless problem. At the end of 2008, Li Yimin became the general manager of TCL Lighting, declaring the end of Liao Kun era. From sales of nearly 500 million in 2004 to less than 200 million in 2009, profits have never been lost since the establishment of the plant for 8 years, and the gloomy operation in 2009 has begun to enter a downward trend.

Lighting Industry: Diversified Competitive Future

The rapid development of the lighting industry in China for nearly two decades has resulted in a lot of achievements in the industry, business management, and brand building. However, the current number of companies in the industry is extremely high, and the status of low brand concentration is still significant. So how does the home appliance company enter the lighting industry's success or failure? How will the entry of home appliance companies bring changes to the lighting industry?

In addition to a strong capital background, household appliances companies have entered the lighting industry. What is more important is the impact of the mature industry model on the traditional lighting industry. Rumei's nationwide promotional activities, launched in May 2010, applied the promotion methods of the home appliance industry to the lighting market. However, the lighting industry is also quite specific. The lighting product lines are numerous and complex. Light source, electrical appliances, home lighting, commercial lighting, LED, etc.... How to carry out product positioning after the appliance enterprises enter? At the same time, the lighting industry channels are also different from the traditional circulation channels of the home appliance industry, stores, stores, hardware stores. ...... How do household appliances build independent lighting channels, how to improve the overall quality and competitiveness of the channels? These all affect the development of these latecomers.

Home appliance giants are advancing into lighting. Midea is not the first case and it will not be the last case. From the perspective of industry development, the entry of capital and cross-industry brands will bring new blood to the industry and will also promote the entire industry.