Behind the backdrop of lighting multinational brands betting on China

In 2015, LED lighting multinational brand news continued. First, Philips Lumileds was acquired by the Jinsha River Venture Capital M&A Fund for $3.3 billion in an 80.1% stake. Immediately thereafter, Osram split the general light source section in search of buyers. The frequent movements and unimpressive attitudes of the two international giants in the lighting business have become a hot topic in the domestic lighting industry. Some people think that these continuous changes are somewhat contingent, and the author believes that even if it happens accidentally, it only catalyzes the advent of inevitable results.

Interested colleagues can find that Philips sells auto lamp panels and retains common light sources. What OSRAM tried to split was precisely the Philips-reserved universal light source, retaining automotive lights, chips, and lamps. The two giants seem to be operating on the same level of capital, but in actuality they are acting in a self-protecting manner. This indicates that the global lighting market is undergoing a change. From an individual point of view, this is not just a change in one industry, but rather an inevitable difference between the Chinese economy and the international economy.

Since the reform and opening up, under the predominance of the government's economic system, the domestic economy has undergone earth-shaking changes. Some time ago, the reorganization of China's North-South vehicles merged, and the market value of the integrated "combined fleet" has exceeded that of the global aerospace giant Boeing. Although there may be a certain bubble among them, this is also a strong testimony to the rapid development of China's economy and is an important milestone in China's economic development. Under such a macroscopic background, the inevitability of the rise of domestic companies is self-evident.

China has never lacked talents. This is one of the important advantages of China’s rapid economic development. At the end of April, I and several friends went to poverty-stricken areas in Yunnan to do charitable funding. We were embarrassed by the poverty and backwardness there. In the process of rapid development in China, poverty still exists. However, behind this, we have even seen intangible forces—a force that seeks to change. The wisdom of the Chinese people in the world, smart Chinese plus diligent literacy, will continue to have a strong impact on the international talent market. Such an impact will inevitably accelerate the long-term elimination of the Chinese economy and the international economy. The excellent companies in all walks of life in China will also go abroad and lead the world with such a long-term trend.

With this inevitability, we return to the lighting industry. The prediction of the development of the industry by the international industry giants is an estimate of this inevitable trend. The lighting industry is a very small part of China's economic system, and it is also a relatively slow and relatively slow part. To analyze and foresee our future position in the world, we can first look at other industries with relatively strong capital. Alibaba, Tencent in the Internet industry, Lenovo, Huawei in the consumer electronics industry, and Mengniu and Yili in the food industry have reached the ranks of internationally renowned companies and have taken a firm position as internationally renowned companies. For the lighting industry, we have the advantages that these industries have, such as capital, talent, and market space. More importantly, in the lighting industry from the traditional lighting revolution to the LED era, we have the starting line that is consistent with the international giants, there is no technical first come. And from the current market situation, we have faster human resources and capital advantages than international brands.

In recent years, the function and quality of LED lighting products have become increasingly stable, and the price of products has been declining. This is an excellent illustration of the domestic lighting companies gradually controlling the international market trends. As this trend becomes more and more obvious, it has become an inevitable result that we have drawn up rules for the international lighting market. Betting on China will be the first choice for the capital market.