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2013 is an exciting year. Due to the rapid development of the lighting industry, the production capacity of the upper, middle and lower reaches has been fully utilized, and the overcapacity has slowed down. No matter whether it is made of materials, equipment or equipment, the whole industry is flourishing. China's export lighting will account for 70% of the global market. Most foreign LED lighting will be made by Chinese enterprises. The penetration rate of LEDs in 2015 will exceed 60. More than the previous forecast, that is, the traditional lighting of the mountain is basically overcome. At the end of 2018, LED lighting production accounted for 80% of total lighting output. However, from the annual report of major lighting companies, although the general sales are in a relatively fast growth period, revenues are rising, but the profitability is not optimistic. The reason is that the price of LED lighting products has dropped too fast, and lighting companies have increased their investment in channel construction and brand promotion, resulting in the failure of listed companies in LED lighting to grow at the same time as revenue.
As described in the Changfang Lighting Annual Report, in 2013, in order to consolidate and expand the market, the company continued to channel the channels, increased channel investment and efforts, increased sales expenses, and carried out brand integration, and made a large amount of inventory depreciation. At the same time, the price decline has also led to a decline in product gross profit.
This increase in income without gains was initially improved in 2014.
With the further improvement of lighting penetration rate, major lighting manufacturers continue to squeeze the living space of small and medium-sized lighting enterprises by virtue of brand, channel and product cost-effective advantages, and the lighting market pattern is initially laid. As the general manager of Sunshine Lighting, Guan Yong said, the LED lighting industry performed very well in 2014, and the growth rate of 50 is appropriate. Branded enterprises will occupy a large market share.
Lighting companies face profit pressure After experiencing a period of overcapacity in 2012 and shrinking downstream demand, LED lighting companies gradually entered the spring in 2013. The street lamp market has been promoted by local governments to promote energy-saving lighting. Street lamps are constantly being shipped. increase. Demand for indoor lighting has also begun to surge. The status of LED as mainstream lighting has been determined, outdoor is basically 100LED application, commercial 80 new project is to use LED, home 90 new product is to use LED. Now is not to discuss the proportion of LED when, but to discuss the remaining traditional lighting products How much time.
Although demand is on the rise, lighting companies generally feel the pressure of profitability.
Declining product prices, large channel investment and brand promotion are eroding the profits of LED lighting companies. The annual report shows that the major LED lighting listed companies have fallen into the predicament of increasing revenues and not increasing profits last year. In addition to the slight increase in net profit of the old lighting company Sunshine Lighting last year, the net profit of other companies has declined. NVC Lighting is due to the low net profit base in 2012, resulting in a high growth in net profit in 2013. The outbreak of the lighting market has not only eased the pressure on most lighting companies, but it has become even bigger. On the one hand, international manufacturers and Taiwanese enterprises have accelerated the development of domestic lighting layout, and on the other hand, the competition for channels. More and more fierce, consumers are increasingly demanding brands, and the situation of small and medium-sized lighting companies is not optimistic.
Since last year, LED downstream applications such as Zhongshan Xiongji, Shenzhen Yiguang, and Leixing Optoelectronics have accelerated their closure. In the first four months of this year, it was also reported that Zhongshan’s lighting factory owners were running and the company closed. With the advent of the LED lighting market, traditional lighting companies have also accelerated the pace of transformation to LED. Many traditional lighting manufacturers have begun to seek integration with high-quality resources in the middle and upper reaches of LED.
At the end of July 2013, Hangzhou Yuzhong Gaohong Lighting Appliance Co., Ltd. and Jingyuan Optoelectronics jointly established Jingyang Lighting Co., Ltd. At the beginning of September, Sunshine Lighting teamed up with domestic LED chip giant Sanan Optoelectronics to establish a joint venture lighting company to continue to develop the LED lighting market. Traditional lighting companies have brand and channel advantages. As long as the determination to transform LEDs is firm enough and the pace is fast enough, it will continue to maintain a large market share in the LED lighting era. Compared with traditional lighting companies, LED lighting companies lack channel and brand influence, and now it is necessary to pay for this lesson.
This kind of price is undoubtedly reflected in the annual performance of listed lighting companies. The continuous decline in prices is a headache for LED lighting companies. In 2013, the price of major lighting products fell by more than 30%. Among them, LED bulbs only dropped by about 36 in the first half of last year. The price of LED lamps has dropped more than 30% last year. The listed company's statements are open. From the report, the application companies are not increasing revenues, profits are falling, and sales are rising. The display is in this state, and the lighting is also in this state, and the increase in production does not increase. LED lighting is still a challenge in profitability, but sales may grow faster. NVC Lighting also said in the annual report that with the government's strong support and promotion, and the phasing out of incandescent lamps, the LED lighting industry has grown significantly in 2013. However, there are a large number of enterprises in the lighting market, and the price war is fierce. LED lighting application companies have more income growth and no profit growth.
The channel is vying for the hot words, and the channel is the best. For LED lighting companies, the channel is always a big problem. In the era of traditional lighting. NVC, Opp, Sanxiong and other lighting giants have spread their products to the township level by virtue of their own dealer network in all provinces, cities and counties in China, and the brand is deeply rooted in the hearts of the people. At its peak, NVC Lighting has more than 30 marketing centers across the country, and thousands of distributors, including provincial and city-level distributors, which are the envy and scruples of emerging LED lighting companies. In order to make up this lesson as soon as possible, LED lighting manufacturers have accelerated their investment in channel layout since last year. In 2012, Mulinsen began to build brands and channels in China. The reason for choosing this point in time is related to the larger LED package size of Mulinsen. We have a chip capacity of 1.3kk per month. Specifically, we choose products that are easier to control and can master, and can also highlight the characteristics of the company. In April 2012, Mulinsen launched the first wave of roadshows in nine cities in China. By the end of the year, 22 first-level agents had been established. By the end of November 2013, the number of outlets and stores had reached 8,000 and 300 respectively. In 2014, this goal will also double. The marketing team of 300 people has also been trained at the headquarters. This year, it will be fully invested in market development and service, in order to further explore the channel resources of the third- and fourth-tier cities and complete the goal of sales of channel products of 1 billion yuan.
Another outdoor lighting manufacturer, Qinshang Optoelectronics, also paid special attention to channel construction in the last year to increase the transformation of indoor lighting. In the past, Qinshang Optoelectronics mainly used street lighting outdoor products, and had orders to do it. Now, circulating lighting products must be in stock. To plan the products well, we must do the preliminary market research and meet the needs of consumers. Zhu Bingzhong, deputy general manager of Qinshang Broadcasting and Television, said that channel construction is the top priority of Qinshang Optoelectronics. It is necessary to build a channel platform through channel construction and diligent workshop incubation plan, relying on this platform to compete with dealers. Diligence last year's development focus is channel construction and brand building, using high-cost products to occupy the channel and enhance the brand's reputation. Li Xuliang, chairman of Qinshang Optoelectronics, said that if the brand is done well, it will win more dealers' trust in the company, and the dealers will be willing to grow together with the company. It is understood that Qinshang Optoelectronics' distribution network and outlets will reach 1,000 in 2013. By 2015, the entire channel will reach 5,000 distribution networks and outlets. In 2013, Qinshang also held a number of investment conferences for distributors around the world. Since last year, the investment associations and ordering meetings of various lighting companies have continued, and companies such as Mulinsen and Guoxing Optoelectronics have achieved good results.
Mu Linsen held the annual Super Ordering Conference last June and released a new image of the company. At the same time, he announced that his products have been insured for 10 million yuan in product liability insurance, and seized nearly 90 million yuan in orders, while Jiangsu in September. Shandong Handling Fair, the on-site signing amount reached more than 4 million yuan and 6.28 million yuan respectively. In the channel construction in 2013, by the end of the year, there were a total of 52 factories providing direct supply, circulation agents, and project agents. The second-level core distribution customers have improved in quality and quantity in 2013, more than 100,000, or even more than three or five hundred thousand. Some of them have made special projects, reaching 1 million, and there are 500 such distributors.
However, the old lighting companies have been cultivating the channels for many years, and the high-quality channel resources have been divided. In order to establish a dealer network in Shenda County, the time and cost required are undoubtedly unaffordable for the average company.
The e-commerce channel has become the first choice for many LED lighting companies last year.
In September last year, Chau Ming Technology invested in Shanghai Wuyuan, a leading company in the field of LED lighting and e-commerce in China. The two sides have formulated in-depth strategic cooperation in technology research and development, product production, marketing and brand promotion to jointly expand the LED lighting market. . After the shareholding, the two parties quickly launched the joint venture brand Chau Ming Hanyuan, and achieved sales of tens of millions of yuan in the Tmall Double Eleven event that year.
Sunshine Lighting has officially launched the flagship store of Tmall and JD. There will be some promotion activities. At present, the person in charge of the e-commerce has a wealth of experience in e-commerce operations. Previously, other companies have had good sales performance in the industry.
According to the sunshine lighting, the current proportion of e-commerce channels in the domestic lighting sector is about 7 or so. In 2014, the company's revenue target for e-commerce is not high, between 20 million and 30 million yuan. The channel of e-commerce will not have a big impact on existing dealers. The company will follow the three-step development strategy and finally realize the online and offline interaction. At present, the cost of Tmall is in accordance with the deduction point. JD is determined according to the annual agreement.
Although the major manufacturers have made outstanding achievements in channel construction, at present, the gains obtained are not large, and it is not easy to find a channel that suits them. I have done a lot of research, analysis and research on the domestic channel model, and then think about how to do it better. The cooperation between the manufacturers is quite like the communication between the husband and the wife. In the end, there must be compromises to achieve the goal of mutual benefit. Every company has its own positioning, choose the channel that suits you, this needs to be cautious, not to rush. The channel is king, but you should use the product to speak.
Deep reshuffle integration has accelerated with the gradual development and improvement of lighting industry channels, and the profitability of lighting companies is expected to improve this year. Some brokerage analysts believe that many manufacturers were busy expanding the distribution channels last year, and the price war led to a decline in profits. This year, with the reduction of various costs and expenses, the profits of lighting listed companies can be expected.
The further improvement of lighting penetration rate ensures that the sales of enterprises continue to rise. In 2014, LED indoor and outdoor functional lighting continued the explosive growth trend in 2013 and is the main engine for the development of the LED industry. China's LED indoor and outdoor functional lighting output model will exceed 100 billion yuan, and the acceptance of the global market has increased significantly. At the same time, LED indoor lighting will be quickly introduced into the civilian market.
A quarterly report recently released also confirmed this prediction. According to the data of the first quarterly report, Foshan Lighting's operating income in the first quarter of 2014 was 70011.26 million yuan, and the net profit attributable to shareholders of listed companies was 71.325 million yuan, a year-on-year increase of 6.05. Sunshine Lighting 2014Q1 operating income reached 7749.94 million yuan, an increase of 14.65. The net profit attributable to shareholders of listed companies was 80.266 million yuan, an increase of 22.39.
At the same time that profits have improved, the deep reshuffle integration of the lighting market is also accelerating. The big situation, starting in 2014, including starting from last year, has already been integrated by companies. Integration includes integration between lighting brands, integration of lighting and midstream and upstream. In 2015, there will be a tug-of-war, a brand camp, and a supply chain camp. Including some time ago, I saw a joint venture between Sanan and Sunshine. In 2015, the lighting market will form a faction. There will be an integration phase in 2016. 2017 is a decisive battle for lighting. In 2018, there is already a market segment of its own, and this time it will enter the Cold War phase.
Judging from last year's situation, the elimination of the LED lighting industry has already started, especially the traditional lighting companies have accelerated the integration and alliance with the LED midstream enterprises. More LED midstream companies have also begun to enter the downstream lighting application market. On December 11, 2013, Ganzhao Optoelectronics announced that it was near