The home appliance industry has entered the lighting industry with great strength (Figure)

The lighting industry is very attractive, and many companies are now transforming or involved in the lighting industry, especially in the home appliance industry. It is not a new thing for home appliance companies to enter the lighting industry. TCL, Skyworth, Konka, and the “Chinese Workers Three Musketeers” (Li Dongsheng, Huang Hongsheng, Chen Weirong, who were the 78th grade students of South China University of Technology, respectively, created TCL and Skyworth respectively. The companies created by Konka, known as “Huagong Three Musketeers”, have entered the lighting industry. In 2010, Midea’s large-scale lighting acquisition of Guiya and the construction of Jiangxi’s light source base once again caused the lighting industry to vibrate.

Home appliances enter the lighting industry

Beautiful lighting: a high-profile lighting road

Midea Group, which has more than 40 years of history, is already a leading company in the field of home appliances. In 2010, a move by Midea Group shocked the Chinese lighting industry: On June 30, Midea Group announced that it had signed a strategic cooperation with Guixi, Jiangxi. Agreement, Midea Lighting Electric M&A Guiya Lighting Co., Ltd., and plans to invest 500 million yuan to establish a new light source base in Jiangxi. The rumors that Midea Group entered the lighting industry is not a day or two. However, when the United States really shot, its big handwriting still shocked the industry.

The road to the development of beautiful lighting began in 2008. At the beginning of 2008, Midea Lighting established the Lighting Project Department, which was subordinated to the Microwave Business Unit. Zhang Wuli became the general manager and opened the first store in Beijing Wanlong Huiyang Lighting City in the second half of the year. The lighting of the United States at the time did not attract enough attention from the industry and the media. However, Midea Lighting continued to develop Tianlong Babu in a low-key manner. By December 2009, the US Lighting Project Department, which had accumulated a certain product and channel experience, upgraded to Midea Lighting Electric Manufacturing Co., Ltd.

Since then, the United States has made great progress in high-end lighting: in May 2010, drawing on the experience of home appliance development, more than 1,400 indoor and outdoor promotions in the country attacked the market; in early June, more than 240 square meters of exhibition halls participated in the Guangzhou International Lighting Exhibition, and the first industry debut was completed; at the end of June 200 million acquisition of Jiangxi Guiya Lighting 85% shares, and announced the investment of 500 million new Jiangxi light source base; September, Butterfly Transform 2010 national four major cities 10 new product release and ordering will kick off. After two years of accumulation, Midea’s lighting finally broke out in 2010, injecting a fresh air into the relatively calm atmosphere of the Chinese lighting industry.

TCL lighting: a sample of home appliance companies entering the lighting

Midea Group is not the first home appliance company to enter the lighting industry. At present, the enterprises (TCL, Skyworth, Konka) founded by the three Chinese swordsmen in the past have entered the lighting industry. Among them, TCL Group has been 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 did not have NVC and Opp at all. The overall listing of TCL in the TCL, the Group's hands in a lot of cash, the TCL Group Dragon and Tiger plan came into being. At that time, General Manager of TCL Lighting, Liao Kun's strategic plan was: upstream acquisition of Jiangxi Guiya, TCL is ready to take over the government-sold Foshan Lighting part of the shares, while enclosing 100 acres in Baoji Chencang District, and then 10 production lines to establish TCL Baoji Industry Park.

However, to be an adult, things are in the sky. The personnel who contacted the Foshan Municipal Government failed to return. The acquisition of the personnel of the Guiya Group did not agree. The northern lighting area has already been settled, and the country has investigated and dealt with the wasteland, and the industrial park has not been built. Soon, the internationalization process of TCL Group was blocked, funds were limited, and support for TCL lighting was reduced.

In December 2005, TCL Group transferred 100% equity of TCL International Electric to the French Legrand Group at 37 times premium of 1.457 billion to establish TCL-Rogrange; in February 2008, TCL Group took a 10 times premium. Low-voltage electrical business. At the same time, the group is also preparing to sell TCL lighting, but TCL lighting has not been as lucky as the international electrician and low-voltage electrical appliances to sell at a high price, the net profit of more than 10 million yuan a year has become a tasteless. At the end of 2008, Li Yimin became the general manager of TCL Lighting, announcing the end of the Liao Kun era. From 2004 sales of nearly 500 million to less than 200 million in 2009, from the establishment of the factory for 8 years has been profitable from the loss to the bleak operation in 2009, began to enter a downward trend.

Lighting industry: the future of diversified competition

China's lighting industry has developed rapidly in the past 20 years. In addition to the growing market cakes, many achievements have been made in industry, business management and brand building. However, the current number of companies in the industry is extremely large, and the current situation of low brand concentration is still obvious. So how is the success or failure of home appliance enterprises entering the lighting industry? What changes will the entry of home appliance companies bring to the lighting industry?

In addition to a strong capital background, home appliance companies have entered the lighting industry. What is more important is the impact of mature industry models on the traditional lighting industry. Rumei’s national promotion campaign launched in May 2010 applied the promotion method of the home appliance industry to the lighting market, which made people shine. However, the lighting industry is also quite specific. Lighting product lines are complicated, light source, electrical appliances, home lighting, commercial lighting, LED... How to position products after entering the home appliance industry? At the same time, the lighting industry channel is also different from the traditional distribution channels of the home appliance industry, specialty stores, Selling hardware stores... How to build independent lighting channels for home appliances, how to improve the overall quality and competitiveness of the channels? These all affect the development of these latecomers.

The home appliance giant is entering the lighting, the beauty is not the first case, it will not be the last case. From the perspective of industry development, the entry of strength capital and cross-industry brands will bring fresh blood to the industry and will also promote the entire industry.

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