GE lighting announced its withdrawal from Asian and Latin American markets.

According to media reports, Bill Lighting, executive director of GE GE, said in an internal memorandum sent to the company that the company will withdraw from Asia and Latin America in November 30, 2016. GE lighting signalled that it would withdraw from Asia and Latin America at the end of 2016, focusing on profitable European and American markets, as well as intelligent LED lighting products and platforms. (photo source: GE Lighting) LEDinside knows the exact message and confirms that GE lighting executives do send such messages to employees. Lacey said in a statement that GE lighting will focus on consolidating its market position in North America, Europe and the Middle East. The US market has always been the primary source of revenue for GE lighting. According to the data collected by LEDinside, GE lighting revenue in North America in 2015 amounted to 2 billion 860 million US dollars (about 19 billion 80 million yuan), accounting for 55% of the total revenue. Europe accounted for about 25% of the total, and the rest accounted for about 12%. GE lighting accounts for less than 18% of revenue in Asia, while the Chinese market accounts for about 8%. Under the distinction of lighting applications, most of Asia's GE revenue comes from access, accounting for 48%, while retail accounts for about 20%, and industrial lighting accounts for 13%. GE lighting abandoning the low profit regional market. According to LEDinside's observation, the products of European and American LED lighting manufacturers are not as competitive as those of Chinese competitors in the Asian market, so that these European and American companies can barely grab a little market share in the price sensitive market. In recent years, the profit of general LED lighting products in Asian market has been diluted by a large number of Chinese competitors entering the market and become a retail price oriented situation. For example, according to the data collected by LEDinside, the price of 40W LED bulbs in China's market in July 2016 dropped by about 2% to 3.4 dollars (about 22.68 yuan), which is much lower than that of the global average bulb price of 9.4 dollars during the same period. In accordance with the agreement of the China ASEAN Free Trade Area, the zero tariff of China's LED lighting products will enable Chinese manufacturers to occupy the price advantage in the Asian market. The focus of GE lighting has shifted to high profit intelligent lighting. Due to the increasingly fierce market competition, the profit of LED lighting products has been declining in recent years. The first tier LED manufacturers, such as PHILPS lighting, OSRAM and GE lighting, will shift their focus to higher profit lighting products and niche markets. In the same letter, Lacey said that GE lighting will create a new R & D center to join the development of LED lighting technology and introduce more household lighting products. Under such a plan, GE lighting hopes to start testing related products and develop new intelligent lighting ecosystems with different partners to build a flexible and intelligent lighting solution. After incandescent lamps, halogen lamps and fluorescent lamps, market demand turns GE lighting to better LED lighting. GE lighting forecasts LED will account for 50% of the US market revenue in 2020 and account for 80% of the company's global revenue. During the conversion center to LED lighting, GE lighting has shut down 6 traditional light bulbs factories in the United States, including the incandescent light bulbs and halogen bulb production bases closed in August 2016. GE lighting senior public relations Alicia Gauer said that at present many factories have less than 50% capacity. In addition, the weak demand in the traditional lighting market also made GE lighting decide to terminate the production of energy-saving lamps in February 2016. According to reports, the LED lighting revenue in 2015 was about $886 million. The signs of GE lighting shifting center of gravity to high profit intelligent lighting and lighting system can be seen from the company's spin off of GE Current. LEDinside predicts that the global smart lighting market will show the fastest growth from 2016 to 2020, and is expected to rise from $23.5 to $13 billion 430 million. GE lighting decided to withdraw from the less profitable regional market. In fact, it was also influenced by the market strategy, that is to say, the strategy of keeping resources in the more lucrative regional markets, products and intelligent lighting products coincides.