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GE Lighting or withdrawing from the Asian market to divest the lighting business is the trend
The international lighting giant's shrinking lighting business front line continues. After Philips, Osram, etc., the international lighting giant GE (General Electric) lighting also seems to retreat. Recently, it was reported that it would withdraw from the Asian and Latin American markets. Informed sources revealed to reporters that GE Lighting CEO did express its intention to withdraw from the internal mails issued. However, GE Lighting will withdraw from it. It should be said that there is no clear plan yet. The news has not been announced yet. The reporter contacted GE Lighting China for many times, but as of press time, no reply was received. A number of interviewees believe that the traditional lighting giant's divestiture of the lighting business is the trend of the times, the most important reason is that the traditional lighting turned to the LED lighting era, the profit margin has been greatly compressed. Or withdraw from the Asian market Recently, the network rumors that GE Lighting CEO in an email to internal employees said that since November 30 this year, GE Lighting will terminate all direct commercial activities in Asia and Latin America. The rumor is like throwing a blockbuster in the lighting industry. The reporter tried to verify the above rumors on the official website of GE Lighting China, but as of press time, no reply was received. The reporter also contacted the senior executives of GE Lighting Asia at the same time to try to understand the situation, and there was no response. As far as I know, GE Lighting's employees did receive such an internal mail about GE Lighting or exiting the Asian market. However, GE Lighting will withdraw from it. It should be said that it has not yet been implemented, and the internal situation is still on the sidelines. A person familiar with the matter disclosed to reporters. Zibo, deputy secretary general of the National Semiconductor Lighting Engineering R&D and Industry Alliance, told reporters that in recent years, GE Lighting has been withdrawing from the Asian market. For example, five years ago, I have heard that it wants to withdraw from China, mainly due to poor performance, and its development in China is declining. Zibo said that GE Lighting only has channels in China and does not have physical factories. Its products are mainly commissioned by a company called Tongshida in Xiamen. Topstar also helped GE Lighting produce and sell lighting products for the North American market. According to the data, the above-mentioned Tongshida full name has become Xiamen Tongshida Co., Ltd., which is a subsidiary of Xiamen Light Industry Group. It is mainly engaged in the research, development, production and operation of energy-saving electric light source products, lighting appliances and plastic products. Among its subsidiaries, Tongshida Lighting and Tongshida New Technology have cooperated with GE. The reporter tried to further understand the trend of GE Lighting to withdraw from the Asian market through the inside of Tongshida, but there were internal employees who said that they did not understand the specific situation. Being marginalized in China GE Lighting, along with Philips and Osram, is listed as one of the world's three largest lighting giants. Its founder is a well-known electric light invention king Edison. Despite its long history, GE Lighting's popularity in the Asian market is clearly less than that of the next two world lighting giants. The industry believes that the development of GE Lighting in China has long been marginalized. GE Lighting is mainly oriented to developed markets in Europe and America. Its products cover industrial lighting, outdoor lighting, commercial lighting, etc. In general, industrial lighting and outdoor lighting are more advantageous. Zibo, deputy secretary general of the National Semiconductor Lighting Engineering R&D and Industry Alliance. Market research institute industry research associate manager Yu Chao told reporters that GE Lighting's promotion in the Chinese market is indeed not as good as other brands such as Philips. One of the important reasons is related to the product layout of the former. GE Lighting's promotion in the Chinese market is dominated by industrial lighting, mainly through tendering, so the promotion methods and other lighting products for home and business applications are also different. GE Lighting's exit from the Asian or Latin American market has little impact on them because of the small scale of revenues in these two markets. For example, the revenue of the Chinese market may only account for about 10% of GE Lighting's total revenue. The popularity of the GE lighting brand is mainly concentrated in the North American market. Chu Yu said. Many insiders believe that if GE Lighting finally withdraws from the Asian market, it is also reasonable. China's lighting market is a low-margin market, and the competition is becoming more and more fierce. GE Lighting wants to pursue a high-profit market and abandon the relatively low-margin market, which is a normal business operation. Zibo said. It is worth mentioning that Chen Hao, general manager of GE Lighting China, said in an interview with the media that lighting accounts for a small proportion of GE's business, accounting for only 2% of the company's sales. In the eyes of many market participants, it is a general trend for traditional lighting giants to divest the lighting business. Before GE Lighting was released to exit the Asian market, both Philips and Osram Lighting had a sell-out. In addition, as early as 2014, Samsung has decided to suspend its business in LED lighting sales in overseas markets. There are also views that the withdrawal of international lighting giants or the abandonment of certain parts of the business does not mean that the development of the lighting industry has failed, and the future may be revived in smart lighting.