Since the beginning of this year, the international LED lighting giant has been diversifying the sale of assets frequently. Chinese companies have also responded positively to the willingness to be a “successor.†So why are Chinese companies willing to take over the assets that the international giants have given up? What is the intention? What to think about? To this end, I interviewed former Osram executives - Jin Xin, vice president of North Asia, who just resigned in October this year.
Q: Since the beginning of this year, the two international giants Philips and Osram have sold related lighting assets because the sale of light bulbs has become a non-profit business, or is it because of the industry changes brought about by LED technology innovation?
Jin Xin: I prefer the latter. Undoubtedly, the advent of the LED era has greatly improved the homogenization of many lighting products, especially the LED-based civilian light source. The homogenization has indeed broken some traditional advantages. The barriers to market competition have made the market more like the semiconductor market that we have known for the past 30 years.
Today's semiconductor industry landscape, especially the manufacturing pattern, the industrial supply chain has been highly concentrated in Japan, South Korea, China and other regions. With the advent of the LED era, this pattern will inevitably be derived from the lighting industry, and the global lighting supply chain will move eastward. Such changes will definitely bring about a new pattern of distribution of benefits, and there will be constant entanglement and struggle until a new balance emerges. The process is also a few happy ones.
Q: Will the changes brought about by the coming of the LED era incite the status of Philips and Osram, is it that the giants such as Osram are withdrawing strategically?
Jin Xin: I think there will be a change, but it is too early to incite it. Philips as the world's number one brand of lighting will continue, at least no one can easily surpass in the short to medium term; as for OSRAM's divested light source business, it plans to retain modules, lamps, system control and other services, and the market where these businesses are located may be the future The entire lighting market is 80%. In combination with these factors, who dares to say that this stripping is not for unloading the baggage, it is lightly loaded?
Recently, Philips and Osram's lighting business spin-off plan has been released, which has led many people to interpret these companies' profit decline in the new LED era. They can't play any more. In fact, these are very normal capital operations. In the past few decades, in the process of new technology booming and industry not breaking, the changes in corporate form are numerous, AT&T's differentiation, IBM's transformation, GE's sale of plastics and chemicals, and many other classics. Are the spin-off cases not all hot topics we discussed?
The operating habits of the capital market seem to favor companies that focus on and have innovative and sustainable profit models in their areas of expertise, not necessarily large and comprehensive.
Q: Why are Chinese companies willing to bid for the assets that the lighting giants have given up, and what are they looking at?
Jin Xin: Indeed, the divestiture of these giants has caused a lot of positive attention and response from Chinese companies. I personally feel that the response from Chinese companies is the general trend.
This trend includes three aspects: first, China's strong industrial base and huge reserves of LED lighting capacity; second, huge production capacity coupled with foreign trade barriers caused by foreign trade barriers, companies are looking for blue ocean Third, China’s 30-year development has brought about greater national strength, increased industrial voice, improved talent pools, and increased international awareness of outstanding companies and entrepreneurs. Opportunities for the promotion of potential global discourse power in the lighting industry are becoming more and more obvious, and the call to go international is more urgent. Some international sellers also seem to be deliberately catering to such demands from China. But the more so, the more cautious Chinese companies must be, like the retail investors in the stock market, especially for the industry.
Q: What issues should Chinese companies pay attention to when bidding for the lighting giant?
Jin Xin: When Chinese companies bid for assets, they must first assess what the underlying assets are and how to connect them. Pick up the brand, pick up the technology, connect the channels, pick up an effective management system, and then graft it with its own capacity and cost advantages. That is the future. A wave of developmental savings, of course, must be picked up. These five elements are indispensable. In the face of temptation, we should be serious observation and careful thinking. Observe whether the first four elements are complete, whether we can operate a larger system and whether we have fully understood whether our reserves are fully understood. International competition rules.
Longhua Manxueling Trading Company , https://www.mxlvape.com