1. The 2nd CEO Conference of the 2016 G20-LED Lighting Summit (hereinafter referred to as the “G20 Conferenceâ€) was successfully held in Shenzhen on January 5, 2017.
Second, the G20 meeting has a total of 18 member companies participating in the conference, including upstream enterprises - Tongfang shares, midstream packaging companies - Guoxing Optoelectronics, Mulinsen, Hongli Zhihui, Yantong Electronics, Jingke Electronics, Lianchuang Optoelectronics, Power and IC companies--Ming Microelectronics, Maoshuo Power, Jiansen Technology, equipment enterprises--Zhongwei Optoelectronics, Hyun Shuo Optoelectronics, Xinyichang, downstream lighting enterprises--Sunlight Lighting, Sanxiong Aurora, Jiamei Lighting, Xinli Light Source , Guangyu lighting.
Third, the theme of this G20 meeting is the new normal, new space, and new challenges. In the past eight years, the entire LED lighting industry has undergone earth-shaking changes. On the one hand, there are LEDs that directly enter the lighting, and there are also enterprises that extend from the upstream to the middle and downstream.
2016 is an important turning point in the history of LED industry development. On the one hand, the industry enters a new normal development cycle, which is reflected in the stage of deep integration of industry.
From the upstream point of view, the top five chip manufacturers have occupied about 75% of the market.
From the midstream perspective, domestic packaging companies have successfully dominated the domestic market. Localization of upstream chips, packaging materials and equipment is high, but there are still some patent barriers in overseas markets.
From the downstream point of view, the LED business of some large lighting companies has accounted for more than 80%. The LED lighting industry has already bid farewell to the replacement stage of traditional lighting in the past and entered a new growth cycle.
Since the beginning of this year, the upstream epitaxial chips have continued to increase in price, and downstream lighting products still have a lot of price drop pressure. For the midstream enterprises, they are in a state of being squeezed on both sides.
In the past few years, the rapid expansion of scale has led to a rapid decline in manufacturing costs. However, the inevitable objective factors such as rising raw material prices and rising labor costs have led to an increase in the automation of production lines, the development of market segments, and the improvement of product quality. Become a new challenge to the new normal.
Fourth, G20 conference members agreed that the LED industry is still in a relatively optimistic development cycle. Due to the lack of sustained market competitiveness, small enterprises have been shrinking and withdrawing over the past year, thus giving more market space for medium and large enterprises.
We believe that in the next three years, the business strategy of LED companies will also undergo fundamental changes, and the business philosophy of insisting on profit-centered management will continue throughout. In addition to income, profit, ROE, per capita revenue contribution, per capita profit rate and other indicators will become a key factor in judging whether a company is healthy and sustainable.
Large and medium-sized enterprises will begin to clean up and rectify businesses that have suffered losses for many years; invest and technologically transform industries with market prospects; introduce and acquire emerging industries and even cross-border integration.
V. Members of the G20 conference agreed that the LED lighting terminal market is shifting from the past general lighting to more market segments.
For high-end, differentiated applications such as hotels and commercial real estate, the overall market capacity, although incomparable to the general market, is still a segment with great potential.
How LED lighting products in these market segments can meet the needs of designers and niche markets, as well as standardization and large-scale manufacturing, will be opportunities and challenges in the future.
Sixth, members of the G20 conference agreed that the penetration rate of LED replacement light sources will reach a peak around 2018, but the lighting market may be the next growth point of LED lighting.
By the end of 2016, the global LED penetration rate of lighting is only about 30%, and there is still a large market space. The transformation of LED lighting companies from traditional light source products to lighting products and intelligent products will be the general trend.
7. The G20 conference members agreed that the market competition in 2017 will return to the trend of large-scale competition. Compared with 2015 and 2016, the industry is not so impetuous and is no longer interfered by too many external factors.
Compared with the "one-of-a-kind" in the traditional lighting era, due to the characteristics of LED products and the advantages of the common product platform, the LED lighting enterprise's all-product product strategy has become the mainstream.
For LED lighting companies, in addition to continuing to maintain large-scale manufacturing advantages in 2017, the expansion of product lines, especially in lighting products, will have greater growth.
We believe that LED lighting companies will look for new spaces in the segmentation area. On the one hand, international brands are undergoing great changes, and traditional OEM manufacturers are also looking for new directions, even creating their own brands.
From the application point of view, landscape lighting will enjoy more policy dividends with the acceleration of China's urbanization construction and smart city construction in the next few years.
At the same time, with the gradual improvement of living standards in China's second- and third-tier cities, the rapid improvement of basic communication facilities such as 5G, smart lighting will gradually land and become the real main force in the future of LED lighting.
8. The members of the G20 conference agreed that as the trend of LED scale, industrialization and standardization becomes more and more obvious, their technical characteristics and thresholds are disappearing.
The trend of LED manufacturing is shifting to traditional manufacturing. Therefore, LED enterprises will face new challenges such as manufacturing efficiency, cost control, and automation. For equipment companies, they have put forward more new requirements and brought more new opportunities.
In addition to the manufacturing line of equipment, production logistics systems and intelligent warehousing logistics systems will also be the focus of the next step in manufacturing upgrades. It includes an MES system that seamlessly interfaces with the production line, real-time production monitoring and feedback production data.
In addition, high-end equipment and intelligent manufacturing are the top priorities of the national “13th Five-Year Plan†strategic emerging industry. In the future, with the automation and intelligentization of enterprise production lines, more equipment manufacturing enterprises will become system integrators. It will not only be the R&D and manufacturing of stand-alone equipment, but will also provide overall solutions from the perspective of intelligent production lines and digital factories.
9. The members of the G20 meeting agreed that SMEs will no longer be suitable for scale expansion. The focus should be on developing the products customers need in the shortest cycle.
On the one hand, it is technically more advanced than alternative products; on the other hand, it costs 20%-30% less than alternative products. Only with a rapid alternative product development model can small businesses continue to be viable.
X. The members of the G20 conference agreed that integration and intelligence will be the two major directions in the technological innovation of driving power. Centralized innovation is to turn the power of a single carrier into integrated control; intelligent innovation, from analog power to digital power, further reduce the size of the power supply, higher efficiency, higher cost performance.
At the same time, the products are characterized by platformization, process standardization and quality informationization. The product line of the drive power enterprise will gradually shift from single outdoor road lighting or indoor and commercial lighting products to industrial lighting, landscape lighting, rail transit and other market segments.
XI. Members of the G20 meeting agreed that in the next three years, for Chinese LED companies, the Chinese market is far from meeting the development of Chinese companies, and “going out†to open up overseas markets will be one of the trends.
However, the competitiveness of overseas brands is high, and patent barriers are difficult to develop. But from the perspective of future development, this is a very large market that needs to be developed by us.
However, we still believe that with the improvement of the strength of domestic enterprises, the improvement of technological capabilities and the improvement of management capabilities, the globalization of LED in China will no longer be a dream in the next five to ten years. This is also the main feature of the new normal cycle of the LED industry. .
12. The members of the G20 meeting agreed that unfavorable factors such as rising raw material prices and rising labor costs from the second half of 2016 have had a certain impact on the company's annual profit growth. In particular, this price increase is not entirely due to changes in the supply and demand structure of the LED lighting market itself.
Price hikes are both difficulties and opportunities. If companies can make a difference in internal cost control, product quality improvement, and new market segment development, they will gain a portion of market share.
Fiber Optic Splice Closure,Fiber Optic Splice Case,Fiber Splice Closures,Outdoor Fiber Optic Splice Closure
Cixi Dani Plastic Products Co.,Ltd , https://www.danifiberoptic.com