Philips 4 billion euros into the "green lighting" Nugget lighting industry
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This is an exciting news. From a global perspective, the traditional European and American markets have always been the pioneers of the residential lighting market. Due to different consumption habits, especially the regular replacement of their energy-saving light sources, a huge market has already formed.
The Philips Lighting Business Group has also earned a lot of money in these markets. At that time, the entire value chain was also built around the light source, and about two-thirds of the value chain served the light source.
But the situation has begun to change. The lighting market (view map) is emerging and forming a new value chain system. In the traditional industrial lighting market, Philips, together with several giants, has captured market share. But Philips is clearly not satisfied with making a difference in the industrial lighting market alone. This company, which has been working in the field of lighting for more than a hundred years, is experiencing a new impulse to shape itself. Its new goal is to make civilian lamps a commonplace.
Green drive
The year before, after a drastic transformation, the communications business, security and graphics business, health products business, mobile phone business, and semiconductor business were all stripped out of Royal Philips Electronics of the Netherlands. Together with the consumer goods business and the medical device business, the lighting business has become the three pillars of business that Philips has retained.
Health and development, this is a general evaluation of the Philips lighting business. In the history of more than 100 years of development, this Philips start-up business has maintained a steady growth momentum, and its profitability is always satisfactory to investors.
From understanding the changes in the market and the industry, we drive our self-shaping. Philips Lighting (China) CEO Olivier Piccolin said. In fact, one of Philips' most famous cases is the transition from CRT TVs to LCD TVs and LED TVs. It is also the result of the market-driven general technology shift to electronic technology.
In Philips, similar cases abound. In the lighting business sector, from tungsten filament illumination, to argon emission, to LED illumination, it is also a product of market-driven general technology to electronic technology.
Most of the above changes are due to active observation and exploration. We want to be a leader in the industry, not a follower. Bishop said. This prompted the Philips lighting business to constantly seek new business growth points and growth patterns.
The data shows that about 90% of the world's electricity consumption comes from lighting, and lighting is undoubtedly one of the main entry points for energy conservation. Philips' energy-saving solutions have saved about 40% of its power, and its applications are mainly concentrated in industrial lighting.
As an important part of the lighting field, who can provide solutions for residential lighting? The decision makers of the Philips lighting business know that it is necessary to seize this new profit growth point with strong market demand.
Acquisition promotes growth
In the past few years, we have been taking very determined actions to grasp market opportunities. Bishop said that Philips spent nearly 4 billion euros on acquisitions, investments, and research and development of green lighting.
In terms of civilian lighting alone, PLI, the world's largest home lighting manufacturer, was captured by Philips. With this acquisition, Philips became the world's largest company in this field. Our entire acquisition is in response to the market and is in line with our long-term market strategy. Bishop explained the evaluation criteria for the acquisition. Second, Philips has confidence in itself in terms of brand, innovation and technology.
At the same time, Philips Lighting is also focusing on the emerging city of China is its most important goal. Next we will start to enter the Chinese market. The most important part here is to build our channels. In addition to using the existing agent channels, Bi Baiwei revealed that Philips will build its own home lighting center, and the number will reach 1,200 by next year; self-built brand stores will be targeted at high-end consumers.
At present, China's home lighting is still a brand-oriented city and Philips hopes to enter the industry with the advantages of brand, understanding of consumer demand and innovative technology. Bishop believes that more and more high-end consumers in China are willing to pay for brands and ideas, rather than simply considering price factors.
Choosing such an investment opportunity, Bishop does not think it is a hasty decision. When deciding to enter the civilian lighting market, the decision-making layer almost passed the investment plan.
The financial tsunami does not have any impact on Philips' new investment. Our huge investment in civilian lighting is in fact not directly related to the current financial crisis. This is not a simple technical decision, but a strategic decision. In the long run, we have surpassed the current stage of the financial crisis, and we are seeing a long-term investment plan in the future. Bishop said.
There are 365 days in a year and 365 nights. How can people not use lighting equipment? Bishop is full of confidence in the future.
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