In 2016, a lot of things happened in the LED industry: from March to March next year, four rounds of price hikes, raw materials, chips, packaging and downstream lighting, all of which were affected; Osram's lighting business was acquired from Mulinsen, and Lumileds was sold to Apollo. Its funds, etc., horizontally and vertically cross-border overseas, LED industry various large and small acquisitions one after another; from Guoxing Optoelectronics Tang Qionglan resigned as deputy general manager, Foshan Lighting Deputy General Manager Mr. Jie Qing resigned, Lei Lining resigned from Hongli Optoelectronics General Manager In October, the chairman and vice chairman of the company will resign, the independent directors and supervisors of Lianjian Optoelectronics will leave, and Shao Jiaping will transfer to Osram from the general manager and technical director of Cree China. Change one after another...

    The annual summary is similar to the annual. However, we are still willing to talk about it, not blindly pursuing hotspots, not sorrowful and full of sorrows, not telling the old feelings about the past, just want to track the trajectory of this arrow and shuttle, look for the clues and context of LED development, think about the future of lighting Direction of development.

    The deep integration of the value chain is still the main theme

    Forgive Xiaobian's old tune, no new ideas and integration. However, it is undeniable that integration has already become the new normal of LED enterprise development in the past two years. Integration is supreme, big integration is big win, small integration is small win, unconformity must be lost. At present, it is the era of comprehensive resource integration. Who is the first step, who is the winner... At the same time, these LEDs have already been in action (see the table below).

    

From the above table, we can easily see that in 2016, LED industry mergers and acquisitions showed several characteristics: 1. Acquisitions changed into luxury purchases; 2. Overseas acquisitions increased, and many were blocked; 3. Cross-border mergers and acquisitions increased, the main areas were sports and education. , VR, drones, medical and health fields, etc.

    "Now the enterprise is basically the end of the staking, from the expansion of scale to the pursuit of efficiency, the core is the arrival of the era of integration, from the horizontal, vertical, domestic, foreign, industrial diversification, and the process of integration is the process of mergers and acquisitions, The process of mergers and acquisitions is the process of financial leverage, so the financial era is coming, which is also the reason for the frequent phenomenon of placards. In fact, behind a profound economic law.” Chen Dongsheng, chairman and CEO of Taikang Insurance Group, said this.

    Integration is the process of restructuring the industry market. Generally speaking, enterprises can bring economies of scale through horizontal mergers and acquisitions, increase their market share, suppress competitors, and improve barriers to entry and differentiation of enterprises. For example, Chau Ming acquired Redio and Lanpu Technology. Through vertical mergers and acquisitions, we can make the largest and strongest LED industry chain, realize the deep integration and optimization of resources in all links of the industry chain, and improve the overall competitiveness of enterprises, such as Mulinsen holding shares to develop crystals; cross-border operations can enable enterprises to achieve lower cost Diversified development, diversifying the company's main risks and realizing business transformation, such as Alto Electronics' acquisition of Qianbaihui, cross-border lighting, Qinshang Optoelectronics' acquisition of Longwen cross-border education; cross-border M&A can expand the market and profit space for enterprises , such as Liard acquired the United States Pingda Electronics and PLANAR.

    I have to admit that 2017 is still a time of integration. Otherwise, the Guangzhou Guangya Messe Frankfurt exhibition, which has always led the industry's vane, will set the theme of next year's exhibition as integration. “The development trend of lighting will integrate different technologies, sectors and equipments. The transformation of the industry has stimulated the birth of more new products, new design concepts, and more interactions between objects and objects. The 2017 Guangzhou International Lighting Exhibition will promote Industry integration is the theme that promotes cooperation between lighting companies and traditional and other companies to create more cross-border business opportunities.” Mr. Hu Zhongshun, General Manager of Guangzhou Guangya Messe Frankfurt Co., Ltd. once said.

    The trend of segmentation is more obvious, and the niche market is becoming mainstream

    Large enterprises, large-scale integration of resources, cross-border development; SMEs, focus on their own market segments, improve product quality and professionalism. The obvious style of the 2016 Guangya Exhibition is like this, and the subdivision of the brand is very obvious.

    For example, the three-camera zoom that has been understated for 7 years in Chinese museum lighting, with its precise control of light quality, shows its perfect interpretation in the museum field. In addition, the black horse Huapu Yongming in the field of LED street lamps, the street light module released at the exhibition this year, its system light efficiency is as high as 176.5LM / W, causing strong response in the industry.

    

"This year's Guangya exhibition on the packaging company's product line can be seen, the subdivision has become more and more differentiated, plant lighting, control systems, UV light sources, etc., companies have begun to delve into a certain area of special technology; In addition, intelligent lighting, not only It is only limited to the control light and color of the lamp itself, but the light is added to the scene of the object to participate in the linkage of a certain role.” Hu Xibing, lighting product manager of Nanjing IOT Sensor Technology Co., Ltd., once talked about Guangzhou this year. The perception of the international lighting exhibition is indicated.

     From this year's Guangzhou International Lighting Exhibition, major companies have launched LED market segments to lay the foundation for future development. It can be foreseen that the competition in the LED market is still fierce, and the trend of deep market segmentation will become more and more obvious. Manufacturers will accelerate the transfer to niche markets such as small-pitch displays, infrared and ultraviolet LEDs for profit. In which field will LED companies “take the mountain as the king”? let us wait and see.