GE quit, why did OSRAM sell the international giants?

Recently, following OSRAM's "sale" of its light source business, GE announced that it will terminate all direct business activities in Asia and Latin America and has been implemented since November 30th. In fact, in recent two years, these international lighting giants have been more or less aware of these thoughts. Some "actions" have been completed, such as GE, OSRAM, Samsung and so on. Some of the "action" aborted, such as PHILPS wants to sell its lighting business, was called "stop", and announced that IPO was stripped of its lighting business. So, do you really understand the minds of these international brands? GE will terminate all direct business activities in Asia and Latin America starting from November 30th. Recently, CEO, a global lighting giant GE Lighting, sent an email to its internal staff, saying that since November 30th, GE lighting will terminate all direct business activities in Asia and Latin America. Following the exposure of GE lighting will exit the Asian and Latin American market, foreign media also announced that GE lighting announced this month that it will close its Bridge light bulb factory. It is reported that the traditional lighting factory was built in 1948. At present, the traditional lighting products manufactured by the factory are out of date, and we are expected to produce new products in this factory in the future. The rapid change of lighting industry is making the traditional lighting giant GE make helpless choices. GE spokesman AliciaGauer. revealed that if the trade union agrees, the company will formally close the plant in August 2017. Over the past few years, the income of GE lighting has mainly come from traditional incandescent and fluorescent lamps, but the revenues of these products are declining year by year. Because the government is constantly pushing consumers to choose more energy-efficient products, such as LED lighting. Data show that GE lighting revenue fell by 23% from traditional lighting last month. Prior to that, GE has sold home appliance business to Haier group. Revenue figures from the GE industry sector show that revenue dropped 25% to $1 billion 700 million in the quarter and net profit fell 42% to $96 million. In 2014, Samsung announced the withdrawal of LED lighting business in all markets except Korea. In 2014 and October 28th, Samsung Electronics announced that it would withdraw from all LED lighting business except Korea. In response, Samsung Electronics issued a statement saying: "we have decided to stop all LED lights business except Korea, so that we can concentrate more resources on our core business areas, keep the LED component business active in the LED industry, and continue to provide high quality products to our customers. Products and services. Samsung also said that the LED business in the future will focus on chip packaging and mass production of backlight and components for digital cameras. In July of this year, OSRAM sold its light business. In July 26, 2016, the Chinese consortium, led by IDG capital of strategic investors, and Yiwu's state capital operation center, won the Lund Vance (LEDVANCE, OSRAM light) price of more than 400 million euros (US $439 million). Bidding for source business. Chinese consortium composed of limited partners such as Mu Lin Sen stock won OSRAM LEDVANCE. So far, the OSRAM LEDVANCE acquisition case, which lasted more than a year, has led many domestic LED enterprises to participate in bidding. The OSRAM also successfully sold its light source business. In the future, OSRAM will focus on the three core businesses: special lighting, lighting systems and solutions, and the growth and creation of optoelectronic semiconductors. New. What is the reason behind the action of international giants? From a rational perspective of the choice of these international brands, we will find that these are just unavoidable stages in the market development and industry standard process of LED lighting and lighting industry. Then, what is the deep meaning of the international lighting giant or selling part of its business or withdrawing from a regional market? To this end, we integrated lighting industry point of view, the main conjecture: 1, the Asian market is too competitive, "price war" bear the brunt. If Samsung withdrew, there were people in the industry who predicted that because of the fierce competition, especially the persistent price war in overseas markets, the performance of Samsung Electronics LED business continued to be depressed in overseas markets. 2, LED lighting application profit is low, "chicken ribs" decisively abandon. Before GE withdrew from Asia and Latin America, the revenue of lighting business continued to decline. In the face of these "performance" problems, GE chose a more professional field, a more professional market, a more profitable product, or a wise move. 3, adjust the "big and the whole" moderately, and deepen the meticulous work. The reason why OSRAM chooses to "sell" its light source business is that it will focus on the growth and innovation of the three major "core businesses" - special lighting, lighting systems and solutions, and optoelectronic semiconductors, which have their unique advantages and values.