GE Lighting may withdraw from the Asian market and divest its lighting business-ALLTOP-img

GE Lighting may withdraw from the Asian market and divest its lighting business

by:ALLTOP      2020-03-13
International Lighting Giants shrink lighting business front news. Following Philips, Osram, etc. , international lighting giant GE (General Electric)Lighting is also like a retreat. Recently, it was reported to withdraw from the Asian and Latin American markets. People familiar with the matter revealed to reporters that the CEO of GE Lighting did reveal the intention to quit in the internal email. However, it should be said that there is no clear plan for GE Lighting to withdraw, and the news has not yet been announced. The reporter contacted GE Lighting China many times, but as of press time, no reply was received. Many interviewees believe that it is the general trend for traditional lighting giants to divest their lighting business. The main reason is that traditional lighting has turned to the LED lighting era and the profit margin has been greatly reduced. Or withdraw from the Asian market. Recently, Internet rumors said that GE Lighting CEO said in an email to internal employees that since November 30 this year, GE Lighting will terminate all direct commercial activities in Asia and Latin America. The rumor is like a bombshell 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. At the same time, the reporter also contacted GE Lighting Asia's relevant executives to try to understand the situation, and there was no response. As far as I know, the employees of GE Lighting headquarters did receive such an internal email about GE lighting or its withdrawal from the Asian market, but it should be said that the way GE Lighting will withdraw has not been implemented, internal still in wait-and-see state. A person familiar with the matter told reporters. Geng Bo, deputy secretary-general of the National Semiconductor Lighting Engineering Research and Development and Industry Alliance, told reporters that GE Lighting has been withdrawing from the Asian market in recent years. For example, five years ago, I have heard that it wants to withdraw from China, mainly due to poor benefits, and its development in China is declining. Geng Bo 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. Tongshida also helps GE Lighting to produce and sell lighting products in the North American market. According to the data, the above-mentioned tongshida's full name has become Xiamen tongshida Co. , Ltd. , a subsidiary of Xiamen light industry group, 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 all cooperate with GE. The reporter tried to further understand the trend of GE Lighting to withdraw from the Asian market through tongshida, but some internal staff reported that they did not understand the specific situation. GE Lighting, which is marginalized in China, is listed as the world's three major lighting giants together with Philips and Osram. Its founder is Edison, the well-known king of electric lamp inventions. Despite its long history, GE Lighting's popularity in the Asian market is obviously less than that of the latter two world lighting giants. The industry believes that the development of GE Lighting in China has been marginalized for a long time. GE Lighting is mainly aimed at developed markets in Europe and America. Its products cover industrial lighting, outdoor lighting, commercial lighting, etc. Generally speaking, the two product lines of industrial lighting and outdoor lighting have more advantages. Geng Bo, deputy secretary general of National Semiconductor Lighting Engineering Research and Development and Industry Alliance, introduced. Market research organization, Industry Research Association Chu Yuchao 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 former product layout. The promotion of GE Lighting in the Chinese market is mainly based on industrial lighting, mainly through bidding, so the promotion method is different from that of other lighting products for family and commercial applications. GE Lighting's withdrawal from the Asian or Latin American markets has little impact because the two markets have small revenues. For example, the revenue scale of the Chinese market may only account for about 10% of GE Lighting's total revenue. The popularity of GE Lighting brand is mainly concentrated in the North American market. Chu Yuchao said. Many industry insiders believe that if GE Lighting finally withdraws from the Asian market, it is also reasonable. China's lighting market is a low gross profit market, and the competition is becoming more and more fierce. GE Lighting wants to pursue a high-profit market and give up a relatively low-profit market, which is a very normal business operation. Geng Bo said. It is worth mentioning that Chen Han, 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, the traditional lighting giants have stripped the lighting business, which is the general trend. Philips and Osram lighting businesses both sold themselves before GE Lighting was reported to be withdrawing from the Asian market. In addition, as early as 2014, Samsung has decided to completely suspend its LED lighting sales and other related businesses in overseas markets. There is also a view that the withdrawal or abandonment of some part of the business by the international lighting giant does not mean that the development of the lighting industry has failed and may make a comeback in intelligent lighting in the future.
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