Why does GE exit and OSRAM's international giants have such a move?

Recently, following OSRAM's "selling" its light source business, GE announced that it would terminate all direct business activities in Asia and Latin America and carry out since November 30th. In fact, in the past two years, these international lighting giants have moved more or less, some "action" completed, such as GE, OSRAM, Samsung, etc.; some "actions" died in the midway, such as PHILPS's desire to sell its lighting business to "stop", and to announce that IPO has stripped its lighting business. So, do you really understand the thoughts of these international brands? GE will terminate all direct business activities in Asia and Latin America since November 30th, and GE Lighting's CEO, a global lighting giant, says that since November 30th, GE lighting will terminate all direct business activities in Asia and Latin America. Following the exit of GE lighting in Asia and Latin America, foreign media also disclosed that GE lighting will shut down its light bulb factory in Bridge this month. It is reported that the traditional lighting factory was built in 1948. The traditional lighting products produced by the factory are out of date and are expected to produce new products in the factory in the future. The rapid change in the lighting industry is making the traditional lighting giant GE a choice. GE spokesman AliciaGauer. revealed that if the union agreed, the company would officially shut down the factory in August 2017. In the past few years, the income of GE lighting is mainly from the traditional incandescent and fluorescent lamps, but the income of these products is declining year by year. Because the government is constantly pushing consumers to choose more energy-efficient products, such as LED lighting. The data showed that GE lighting fell 23% from traditional lighting last month. Previously, GE has sold the home appliance business to the Chinese Haier group. Revenue data from the GE Industry Department showed that revenue fell 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 in all markets except South Korea in 2014. In October 28th, Samsung announced that it would withdraw from the light emitting diode (LED) lighting business in all markets except South Korea. "We have decided to stop LED lighting services in all markets outside 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," the Samsung Electronics said. Goods and services. " Samsung Electronics also said that future LED services will focus on chip packaging and mass production for digital camera backlight and components. In July, OSRAM sold its light source business in July 26, 2016, headed by strategic investor IDG capital, and a Chinese consortium of limited partners, such as Yiwu's state-owned capital operation center, and other limited partners, won Lund Vance (LEDVANCE, OSRAM light) for more than 400 million euros (about $439 million). The bidding of the source business. The Chinese consortium of limited partners, such as the joint-stock company, won OSRAM LEDVANCE. At this point, OSRAM LEDVANCE merger, which took over a year for more than one year, led to the participation of many domestic LED companies, has officially ended. OSRAM has also successfully "sold" its light source business. In the future, OSRAM will focus on the three "core business" - special lighting, lighting systems and solutions and the growth and creation of photoelectric semiconductors. New. What is the reason why international brands have guessed the "action" of the international giants? From the rational point of view of the choice of these international brands, we will find that these are only an inevitable stage in the market development of the LED lighting industry and the process of industry standardization. So, what is the deep meaning of the international lighting giant or the sale of some of its business or the exit of a regional market? To this end, we integrated the view of the lighting industry, mainly the following conjectures: 1, the Asian market is too competitive, "price war" the brunt. Such as the original Samsung exit, there are industry people forecast, because of fierce competition, especially the overseas market lasting "price war", leading to the year of Samsung Electronic LED business in the overseas market performance continued to be depressed. 2, LED lighting application profit is low, "chicken ribs" decisively abandoned. Before GE withdrew from Asia and Latin America, lighting business revenue continued to decline. Facing these "performance" problems, GE chose more specialized fields, more specialized markets, more profitable products, or a wise move. 3, moderate adjustment of "big and complete", deep ploughing and meticulous "special and fine". OSRAM's choice of "selling" its light source business is largely due to its focus on three "core business" - special lighting, lighting systems and solutions and the growth and innovation of photoelectric semiconductors, which have their own unique advantages and values.