Jiamei Lighting: Traditional Lighting Transformation LED Samples

[Source: Gaogong LED's "LED Research Review" magazine February issue Reporter / Tang Guirong] In February 2013, the Ministry of Industry and Information Technology released the "China's gradual reduction of mercury lamps in the roadmap", proposed to eliminate compact fluorescent liquids by the end of 2013 Mercury production process; by the end of 2014, strive to completely eliminate the goal of liquid mercury production process.

"This move will inevitably stimulate the rapid development of the LED lighting industry." Zhou Shuiming, general manager of Foshan Jiamei Times Lighting Co., Ltd. (hereinafter referred to as "Jiamei") said that although LED lighting has not been launched for a long time, it has experienced a severe market test.

LED lighting started in 2008, experienced the hot period of 2010 and 2011, and then became rational in 2012. It is expected to grow steadily in 2013 and 2014. Zhou Shuiming predicts that by 2015, the three forces of government, enterprises and consumer demand will come together, and there will be a big outbreak in the LED lighting market.

Based on this, Jiamei also accelerated the pace of transformation. The South China Sea LED Industrial Park, which just started, can be described as an important part of Jiamei's transformation of LED lighting. At this point, Jiamei's LED industry has taken shape.

According to Zhou Shuiming, Jiamei's LED transformation is mainly divided into two steps. The first step is to complete the transformation of manufacturing, during which the production base, R&D center, and LED laboratory are established. The second step is to complete the transformation of the marketing system, help dealers transform and establish LED lighting brands.

"The development speed of LED lighting industry exceeds our expectations. The development of Jiamei LED lighting business has exceeded our own expectations." Zhou Shuming said that in 2012, the company's LED lighting sales reached 150 million yuan, accounting for 35% of the overall lighting revenue. It increased by 163.16% year-on-year.

Seize the market opportunity

In Zhou Shuiming's view, LED lighting is not only a transformation, but also a revolution. “LED lighting is bound to change the current market landscape of traditional lighting.”

Jiamei, which is in the market with commercial lighting, tried to achieve the first brand of LED lighting application with LED lighting.

At the beginning of 2010, Jiamei began to get involved in LED lighting. In 2011, it achieved a related business income of 57 million yuan, accounting for 11.4% of the company's total lighting business revenue. This figure has risen to 35% by the end of last year.

"We must seize the market opportunity and fully prepare before the restructuring of the market." Zhou Shuiming said that the company is expected to double the LED business revenue this year, reaching 280 million yuan.

At present, Jiamei's positioning is mainly based on the positioning of traditional commercial lighting, focusing on the most cost-effective LED commercial lighting applications.

In the traditional lighting market, Foshan lighting and sunlight lighting are positioned in light source products, while NVC and Jiamei are positioned in commercial lighting, and Oupu is positioned in home lighting.

“The market performance of each field is different. Jiamei has accumulated decades of commercial lighting and has a certain brand awareness. In the field of LED indoor lighting, commercial lighting is also the fastest growing.” Zhou Shuiming revealed that the company’s current LED Most of the lighting revenue comes from commercial lighting.

However, Jiamei's goal is not just commercial lighting. In the company's future business planning, LEDs are still mainly based on engineering orders in recent years. With the increasing awareness of consumers, they will promote civilian lighting.

Zhou Shuiming introduced that the factor that supports Jiamei's rapid transformation of LEDs lies in the mutual support of the company's existing related businesses.

It is understood that Jiamei divides the company's business into three major parts: home, lighting and electrician. In 2010, it established the home business department and electrician business department, established a diversified product operation platform, supported the LED business unit, and strived to build Jiamei. The first brand of LED lighting application in the industry.

Zhou Shuiming stressed that 2013 is still a year of company layout and preparation for LED. In the next few years, the company will also increase investment in funds, equipment, technology reserves and marketing.

Competition manufacturing

In fact, in recent years, both traditional lighting companies and LED lighting companies have made layouts in terms of production or channels. Some traditional lighting transformation enterprises, on the one hand, are stepping up the layout channels and putting on LED lighting products; on the other hand, they are building their own LED production lines and recruiting technical talents.

"LED lighting is very different from traditional lighting." Zhou Shui-ming stressed that in the past few years, LED is a simple alternative to traditional lighting, but the future LED changes to lighting are huge. "Only if you are involved in production, you can grasp the latest information in the market and master the overall situation."

Jiamei's LED transformation path is not long. From 2010, it started to get involved in LED. In 2013, Jiamei LED Lighting was incubated in Foshan Shishan Industrial Zone Planning Jiamei Technology Industrial Park. In Zhou Shuiming's words: Jiamei's LED lighting business realized There is no big leap.

The reporter learned that the current Jiamei Industrial Park will complement the Xiebian (now the factory address) commercial base, the first phase of investment is nearly 100 million yuan, covering an area of ​​200 acres, with a planned area of ​​100,000-120,000 square meters, and strive to create " Five bases for home, electrician, LED, R&D and export.

At the same time, Jiamei has formulated a three-step strategy in the past three years: in 2010, it began to build LED production lines, gradually transforming the manufacturing advantages of traditional lighting into the field of LED lighting; in 2011, it mainly established LED R&D centers and laboratories to capture LED lighting technology. Experience; in 2012, began to install LED lighting products. In 2013, we focused on the overall layout of the market and branding.

Seize the LED market opportunity, the competition is not only the channel, but also technology and production.

Zhou Shuiming has repeatedly stressed that the innate advantage of LED companies is very strong. For Jiamei, only by leading in production can we lead step by step. Therefore, Jiamei has defined the company's LED product roadmap, upstream cooperation with large enterprises; the midstream is determined not to touch; downstream application products are their own strengths, strengthening the development and production of light source products.

According to the plan, Jiamei will invest 5%-8% of the total sales in LED technology research and development every year. “In 2013, Jiamei LED lighting products will achieve more than 80% independent independent design and development.” Zhou Shuiming said.

Traditional channel boost

"The strategy for traditional lighting is to live within its means, and LED lighting is fully developed. This is the basic overview of Jiamei's transformation of LEDs." Zhou Shuiming said that the current resource advantages of the company, whether it is production or channel, are gradually transitioning to LED lighting.

At present, 80% of Jiamei's lighting revenue comes from engineering orders. Zhou Shui-ming said that Jiamei's engineering advantages are obvious. In 2011, the company invested in LED lighting and obtained sales of 57 million yuan, all of which came from engineering projects.

The biggest problem encountered in the promotion of LED lighting is the channel. It is often necessary for LED lighting companies to establish channels and brands for several years. There is no need to re-lay the channel, which is perhaps the biggest advantage for Jiamei. It is reported that Jiamei has established more than 5,000 dealers and distribution outlets and more than 3,600 product stores nationwide.

However, Jiamei's layout of the LED channel is not just that. The channel is not a simple copy, Zhou Shui-ming revealed that for LED lighting, the company is also actively exploring its own engineering channels and designer channels, and now it has achieved initial results. Thanks to the cooperation of home, electrician and specialty stores, Jiamei's LED lighting quickly entered the market and quickly obtained engineering orders.

At present, Jiamei has two brands, one is the original retail “Jiamei” brand, and the other is the new “Monfina” brand, targeting the high-end engineering market.

Zhou Shui-ming said that many retail outlets did not have LED lighting products last year, mainly because of low consumer awareness, poor purchasing convenience and lack of uniform standards for LED lighting.

"This year is still a year of the company's layout market." Zhou Shuiming said that in the LED field, enterprises must have a better marketing system, product positioning, marketing positioning close to the market, and comprehensive, multi-channel brand promotion.

When the price of LED lighting is only 15%-20% higher than that of traditional lighting, the market conditions will be transitioned from policy support to the natural acceptance stage of the market, and now this is the time. “Jiamei has now started to fully promote LED lighting products in the market.” Zhou Shuiming said.

For Jiamei, whether it can successfully replicate the manufacturing and marketing advantages of traditional lighting, and innovate in terms of products, prices, channels, marketing, etc. according to the special circumstances of LED lighting will be the key to success.

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