Zhuangshiduanwan! GE lighting announced its withdrawal from the Asian and Latin American markets

According to media reports, GE Lighting (GE) executive Bill Lacey in an internal memo sent to the company said the company will withdraw from the Asian and Latin American markets in November 30, 2016.

GE lighting issued a message to the company said it would withdraw from the Asian market in the end of 2016 and Latin America, focusing on a better profit in Europe and the United States market as well as intelligent LED lighting products and platforms. (photo: GE Lighting)

LEDinside master the exact message, confirmed that GE lighting executives do send such a message to employees. Lacey said in a statement that GE lighting will focus on consolidating the market position in North America, Europe and the middle east.

The U.S. market has always been the main source of revenue for GE lighting. According to the data collected by LEDinside show that in 2015 GE lighting in North America revenues of up to $2 billion 860 million (about 19 billion 80 million yuan), accounting for the proportion of the overall revenue of $55%. Europe accounted for about 25% of the proportion of other regions accounted for about $12%.

GE lighting in Asia accounted for less than 18% of revenue, while the Chinese market accounted for about 8%. In accordance with the classification of lighting applications, the majority of the Asian GE lighting revenues from the channel, accounting for 48%, while retail accounted for about $20%, the last is the industrial lighting accounted for more than 13%.

GE lighting to abandon the low profitability of the regional market

According to the LEDinside observation, the competitiveness of Europe and the United States LED lighting products in the Asian market is often not as good as Chinese rival products better, let these companies just grab a market share in the price sensitive market.

In recent years, the profits of the general LED lighting products in the Asian market by a large number of Chinese competitors to enter the market dilution, into a retail price oriented situation.

For example, according to LEDinside's data, in July 2016 China market 40W LED bulb price decline 2% to about $3.4 (about 22.68 yuan), compared to the same period the global average bulb price of $9.4, significantly lower.

According to the agreement of China ASEAN Free Trade Area, China's LED lighting products imported zero tariff so that Chinese manufacturers can take advantage of the price advantage in the Asian market.

GE lighting focus to the high profits of smart lighting

Due to the increasingly fierce market competition in recent years, LED lighting products profits continued to decline, the first LED vendors such as PHILPS, OSRAM and GE lighting, lighting and other lighting products manufacturers will focus to higher profit and niche market.

In the same letter, Lacey said GE lighting will create a new R & D center to join the development of LED lighting technology and the introduction of more home lighting products.

Under such a plan, GE lighting hopes to begin testing related products, and with different partners to develop new intelligent lighting ecosystem, the establishment of flexible intelligent lighting solutions.

After incandescent, halogen and fluorescent light, the market demand for GE lighting to better profit LED lighting. GE lighting forecast LED will account for 50% of U.S. market revenue in 2020, and accounted for the company's global revenue of up to 80%.

During the transition to LED lighting, GE lighting in the United States has shut down 6 traditional light bulbs factory, which includes closed in August 2016, the production of incandescent bulbs and halogen bulbs. GE lighting senior public relations Alicia Gauer said that the current capacity of many plants are less than 50%. In addition, the weak demand for traditional lighting market also let GE lighting decided to terminate the production of energy-saving lamps in February 2016.

According to reports, in 2015 LED lighting revenues of approximately $886 million.

GE lighting focus signs of high profits of intelligent lighting and lighting systems can spin off from the company GE Current see. LEDinside is expected to be the world's smart lighting market will be the fastest growing between 2016 and 2020, is expected to rise from $13 billion 430 million to $23.5.

GE lighting decided to withdraw from the profit is not ideal in the market in fact is also affected by the market strategy, that is to say the resources in agree without prior without previous consultation more profitable areas, market products and intelligent lighting products strategy.

(author: LEDinside editor, Linzhi; compile: LEDinside editor, Zhang Yahan)

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