In-depth analysis of the EMC model of BYD's LED lighting industry

The news of the closure, integration and reshuffle of small and medium-sized enterprises has continued to come, and 2013 is undoubtedly another cold winter for LED lighting. In the upcoming 2014, what kind of development will LED lighting usher in? Will it last for the winter or welcome the warm spring? How to layout and plan LED lighting companies with their own brands? What role will the fiery EMC model play in the development of the LED industry? With these questions, I interviewed Mr. Chen Gang, the general manager of BYD Lighting.
BYD has been involved in lighting since 2003 and has been in the LED industry for ten years. From the initial focus on packaging product development and production, to the formation of the LED industry chain, and the shaping of its own brand BYD lighting, ten years of experience and technology precipitation, BYD has grown to what extent today? What impact has it brought to the industry? The editor of OFweek Semiconductor Lighting Network will take you on a journey of BYD for ten years and explore the past and future of LED companies.
Lighting is an important layout of BYD's new energy strategy. Looking at the development of LED lighting in recent years, the whole industry is in a state of ups and downs. However, since 2013, the LED lighting industry has ushered in a number of favorable policies and a prosperous environment. In 2014, LED lighting will truly enter a booming era. In an interview with the editor of OFweek Lighting Network, Mr. Chen said that BYD Lighting will serve the LED industry with more exposure and better products from next year, helping LED lighting to develop rapidly.
Mr. Chen Gang, the general manager of BYD Lighting, was interviewed. At the same time, Mr. Chen also said that BYD Group is an important layout of BYD Group's new energy strategy in the three major industries of automobile, IT and new energy involved in BYD Group. In 2014, BYD will have an updated chapter. For the LED lighting group that has been invested for 10 years, it will increase channel construction and help further improve its market system.
Mr. Chen Gang, the general manager of BYD Lighting, has three channels in the conference. The BYD Group has been conducting multiple channels in the lighting since 2010 and 2011. First: the traditional layout of BYD Lighting is the first in China. A company that has entered the traditional supermarkets like Wal-Mart has been focusing on the production of semiconductor lighting since it first entered the lighting industry. It is a pure LED lighting company in China.
Second: the e-commerce channel is the fastest growing in the past two years is the channel of e-commerce, and now the development speed of Jingdong, Amazon or Taobao is beyond the imagination of everyone. BYD Chen always told the editor of OFweek Semiconductor Lighting Network that the current consumer group of e-commerce has a large proportion. In the past two years, BYD is also actively developing e-commerce channels. Next year, BYD will increase investment in e-commerce. Third: Layout of government projects From 2013, the government's support for LEDs is undeniable, subsidies are constantly increasing, and the amount of subsidies is quite alarming. BYD Lighting also benefited. Mr. Chen said: On the government's project, BYD will be able to get one or two major project tenders in one month starting from the second half of this year. The government's promotion of LED lighting is far faster than expected. Due to the government's demand for cost-effective products and LED lighting after-sales system, large brands will gain more favor from the government. By virtue of its competitive advantage in the industry, BYD Lighting will receive more government bidding projects next year. BYD has also exerted several channels at the same time. The construction speed of channel agents in various provinces and cities is also increasing. The sales growth rate next year will be faster than that of previous years. Mr. Chen admits that OFweek Semiconductor Lighting Network will grow next year. Will reach 200 to 300. Vertical integration strategy to deal with market changes Practice three commitments From the beginning of the mobile phone parts to the later investment in the automotive industry and now to develop new energy, BYD Group's vertical integration strategy is well known. In emerging industries such as solar and LED, BYD still adheres to vertical integration. Mr. Chen emphasized that the significance of vertical integration is to understand the core technology, constantly extending upstream and understanding the real core. Today, the mainland LED industry is very chaotic, cheap and low-quality products are flooding the market. Many people question that China's LED technology does not have its own core patents. In this regard, Mr. Chen said that with the understanding of the LED industry in mainland China in the past two years, We will have a better grasp of the core technology of LED. When BYD entered the LED industry, the first five years focused on R&D and research, and it was only put into production in 2009. When BYD started to enter the LEDs with high-profile, it bought a lot of MOCVD equipment. From the LED lighting industry chain, BYD actually did a series of extensions, chips, packaging, applications, corporate government lighting solutions. . In the future, BYD will still adhere to the vertical integration strategy. In the aspects of capital investment, equipment investment, and R&D investment, it will continue to operate LED lighting with vertical integration strategies. If it is to enter thousands of households, only partial products will not work. Consumers and customers are less selective. For example, government projects include commercial projects, hotel projects, and if the company produces only one light bulb or only one light bulb, it cannot support the lighting plan of the entire building or the entire hotel. In a large engineering project, the green energy-saving and environmentally-friendly products to be applied must have an overall replacement plan or an overall construction plan. In order to cope with these points, BYD is diversified as much as possible on the product line. At the same time, BYD Lighting has to be refined to produce products with high life expectancy and high luminous efficiency in line with the BYD brand image.
Price has always been an important factor hindering the development of LED lighting. While ensuring quality, it is not easy to control the price to the limit of consumer recognition. And how does BYD balance the relationship? Mr. Chen edited his commitment to consumers on the OFweek semiconductor lighting network. First, BYD Lighting will create new energy products by creating the quality of automobiles. This is our core concept of ensuring product quality; : Cost control relies on vertical integration. The refinement of the division of industry chain will make enterprises more focused, but it will also bring about an increase in costs. Currently, these companies must pursue their own profits, so when they go to consumers, the chain tends to be too long, and finally consumers get it. The product cost advantage is less obvious. Therefore, BYD has gone to the idea of ​​vertical integration. At present, many of BYD's terminal products are manufactured by themselves. Try to compress the profit space in the middle of the industry chain and finally dedicate the products to consumers. Third: BYD Lighting is a new company in the LED industry. However, it has the strength of the BYD Group to back up, the scale effect of the group will make BYD Lighting more cost-effective in materials and manufacturing. Full support for EMC mode: EMC is a good solution for advancing LEDs The Guangdong Provincial Government is pushing the EMC model for all streetlight projects. The same is true for other provinces. The EMC model has become the mainstream trend and will drive the LED industry to move forward rapidly. However, the EMC model is stressful for the manufacturers. The large capital chain is invested and the payment is not timely. The risk is self-evident. What does BYD Lighting think about this? Talking about this issue, Mr. Chen said that the driving force of the EMC model for the development of the entire LED industry is very obvious. As a socially responsible company, BYD is willing to push the entire industry to move forward. The EMC model is indeed risky in terms of collection, but BYD is fully supportive and supportive in the EMC model. On the one hand, we agree that the EMC model will become a very important driving force in the LED industry in the next 5-10 years. On the other hand, we believe that EMC is a good model for consumers and users of the terminal to have confidence. Reliability and longevity are the most important for the manufacturing industry, and the EMC model requires that no quality problems can occur during the entire life cycle of the product. BYD supports contract energy management with strong quality assurance and long-term after-sales service. At the same time, with the full support of the group, BYD will also participate in solving the problem of EMC fund reserve.
Adopting the EMC model to promote the application of LED lighting products can guarantee product quality, standardize the lighting market, greatly promote the development of the entire LED industry, and achieve a win-win situation for all parties involved, but the EMC model also has high project maintenance costs and long return period. The recovery of energy-saving benefits is difficult, and the risks of investors are high. When many small enterprises with shortage of funds talk about EMC, they often stay away from it. This requires a large enterprise with a good financing platform and strong financial support to shoulder the heavy responsibility of promoting the EMC model, leading the healthy and orderly development of the LED industry and driving 2014. The take-off of the LED lighting industry.

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