In the first half of June, the complete list of “2017 China's Top 100 LED Lighting and Lighting Industry” was announced, which caused people in the industry to pay attention.

In the first half of June, the complete list of “2017 China LED Lighting and Lighting Industry Top 100” was announced, which caused people in the industry to pay attention.

As is known to all, the domestic LED industry has already passed the spring of vigorous development. The problems of serious product homogeneity, fierce price war, market downturn, low profit, and rising labor and raw material prices are highlighted. In the context of the industry's turbulence, backward productivity and management capabilities are facing the established outcome of being eliminated.

So, how did the top 100 LED companies maintain sustained revenue growth and stand out from the crowd?

The Best Management Consulting Group, which has served LED companies such as Liard Optoelectronics, Feideng Electric, Igor Electric, Alto Electronics, etc., has a comprehensive and profound understanding of this. The reporter interviewed the founder of Baisite, Zhang Zhenghua, who said: "In the midst of all kinds of things, only those who can change can survive. These companies that have entered the top 100 are the forerunners of the LED industry. They stimulate profit growth through cross-border innovation, mergers and acquisitions, development of blue oceans, and upgrades to internal management. Vitality. Who can find the right direction to transform and upgrade, who can have the initiative in the future market."

The giants have crossed the border and opened up new territory in the industry.

Representative enterprises: Lianjian Optoelectronics, Liard, Lehman shares

At present, the competition pattern of the LED industry has taken shape. Under the influence of macroeconomics and weak growth of the LED industry, companies should consider improving their profitability and need to explore new profit growth points. Especially for the LED industry giants, cross-border upgrades, opening up new territories is imperative. The strategy of implementing a dual main business or a multi-main business is the best way for companies to gain new profit growth points.

There are many examples of this among the top 100 companies in the industry. In the field of digital media, Lianjian Optoelectronics has established a linkage culture and acquired companies such as Timeshare Media, Youtuo Public Relations, Precision Focus, and Easystar, in an effort to build a huge digital media group; Lehman shares since 2015 Promote the development strategy of “LED+Sports” dual main business and participate in the establishment of Lehman Kaixing Sports Culture Fund. Obviously, Lehman shares will go further and further in the sports industry; Liard will go deep into the cultural media business and acquire Jinda Lighting. Companies such as Internet Yida, Lifeng Culture, Jinlixiang and Pineng Optoelectronics have achieved remarkable results in business integration and created a new type of “urban culture, tourism, performing arts” business model...

The above examples show that whether it is cross-border to sports, digital media advertising, cultural media, financial electronics, the strategic upgrade of industry giants is based on the original core resources of the enterprise. At the same time, the main business brand is still strong.

For LED companies, cross-border transformation is indeed tempting, but the risks involved in another area are also obvious. The degree of grasp of the new field market, risk resistance, and corporate management level are all facing challenges. Therefore, most of the cross-border transformation occurs in more mature LED companies.

Mergers and acquisitions are integrated frequently, and synergies are highlighted

Representative enterprises: Mulinsen, Zhouming Technology

In 2017, the tide of mergers and acquisitions in the LED industry has been on the rise, and industry reshuffle has intensified. Some leading enterprises have entered the fast track through mergers and acquisitions to achieve expansion and upgrading.

As the LED packaging faucet, Mulinsen has an overall view of the acquisition action. In addition to the main business of over-charging LED packaging, the LED industry chain is laid out. By acquiring the ultra-era light source, adding investment in the development of crystal lighting, and participating in the investment in Huai'an Aoyang Shunchang Optoelectronics, the company's core business chain has been extended. In addition, through the acquisition of LEDVANCE officially entered the international market, and rapidly increase the market share of overseas markets. As the advantages of enterprise packaging business continue to strengthen, Mulinsen's products will continue to be high-end, brand and international development.

In 2017, the acquisition of Chaon Ming Technology was amazing, and it bought five companies in succession. Through the acquisition of Hangzhou Bai Nian and Tsinghua Conley, high-profile access to landscape lighting; acquisition of Aiga Lighting to expand the market share of high-end lighting; acquisition of Xihe Optoelectronics, the use of its existing plant as a base in East China, deep cultivation of the East China market ... overall It is said that the frequent mergers and acquisitions of Zhouming Technology are horizontally expanding around the main business, and achieved remarkable results in 2017. The total operating income increased by 73.33% compared with 2016, and the operating profit increased by 90.54% compared with 2016. .

With the scale advantage and synergy of each link, the gross profit margin and net interest rate of the company expanding through mergers and acquisitions continue to increase, and the income volume has reached a new level, which continues to open the gap with other LED companies.

Deepen the market segment and break the dilemma of the Red Sea

Representative company: Alto Electronics, Sanxiong Aurora

In 2018, the market competition for general lighting has become increasingly fierce, and traditional LED products have entered the competition “Red Sea”. In order to maintain the continuous growth of corporate revenue and net profit, LED companies have opened another direction, namely to explore new market segments and highlight the advantages of differentiation.

In the past Guangya Exhibition, landscape lighting, home lighting, plant lighting, UV LED and other sub-sectors have attracted much attention. Among them, after the government proposed the night tour economic construction, the market demand broke out. Alto Electronics is making efforts in the blue ocean of landscape lighting. Since the acquisition of Qianbaihui, a lighting engineering company at the end of 2016, the landscape lighting business has grown rapidly, providing guarantee for the company's annual performance.

With the continuous warming of concepts such as smart homes and smart cities, home lighting has also been fired in full swing, and many companies have increased their investment in this field early. Previously, Sanxiong Aurora has always had strong brand and market advantages in professional fields such as commercial lighting and tooling lighting. In the first half of 2017, Sanxiong Aurora officially knocked on the clock, and on the basis of stabilizing the commercial lighting and tooling lighting market, it actively explored the home lighting market and launched the construction of LED intelligent lighting production base.

Manage upgrades and benefit from refinement

Representative enterprise: Jufei Optoelectronics

Under the current economic situation, LED companies want to achieve transformation and win the market, and adopting a lean growth approach is another way. Many companies pay more attention to the direction of capital and energy investment, how to control costs, and how to use the benefits to reinvest.

Among the top 100, Jufei Optoelectronics is a prominent representative of internal management upgrades. Continuously promoting lean management is one of the core competitiveness of Jufei Optoelectronics. The company adheres to the PDCA as the enterprise management language, and further optimizes and improves the IT system functions through the successful launch of efficient production systems, agile supply chain systems and marketing management systems. In the aspect of human resources management, the management principles of focusing on goals, focusing on contributions, and focusing on results have become the guiding ideology and methods for employee work, while creating a positive, collaborative, and efficient organizational atmosphere. The “first responsible person system” has strengthened employee responsibility awareness. Promoted teamwork.

It is understood that last year, Jufei Optoelectronics introduced Best Management Consulting Co., Ltd. to start the procurement process optimization project. Introduce Huawei's process system, develop and optimize procurement processes and rules, and improve the business capabilities of procurement personnel.

Under the background of internal management upgrade, Jufei Optoelectronics achieved total operating income of 2.055 billion yuan in the whole year of 2017, an increase of 36.18% over the same period of the previous year.

On the whole, in the LED industry, which has entered the mature stage, the market competition is fierce, and there has been a situation of blooming. Leading enterprises maintain strong advantages, struggle to encircle and cross-border upgrades; some enterprises integrate industrial resources through capital means to expand business; some enterprises grasp the wisdom wind, the timing of economic outbreaks in night travel, and deepen in the subdivision It’s full of pots. Under the new economic normal, how will the LED market structure be in the future, please wait and see.