How to break through the current predicament and achieve stable development? Representatives from 11 leading companies share their insights

On April 12, at the "China Association of Lighting Industry (CALI) 2022 Chairman's Work (Expanded) Meeting and Industry Leading Enterprises High-Level Forum," 11 representatives from leading enterprises, including Ni Qiang, Wang Micheng, Lei Zihe, Qi Xiaoming, Lu Wei, Yao Mengming, Xu Bin, and Wu Chengzong, delivered speeches. Centering on the conference theme of "Striving in the 14th Five-Year Plan • Collaborating in the Dual Circulation" and the content of the "Opinions of the CPC Central Committee and the State Council on Accelerating the Construction of a Unified National Market," they shared their views on the current difficulties facing industry development and specific corporate measures, based on their respective company situations. They also analyzed the landscape, positioning, and development trends of the lighting industry in 2022. The participants remained optimistic about the industry's prospects and stated that, in the context of building a unified national market and constructing a new dual-circulation development pattern, they would strengthen internal capabilities, focus on core businesses, leverage core advantages, and advance together to play a leading role in maintaining and continuously enhancing the international competitive advantage and dominant position of China's lighting industry.

The speaker's key points are summarized and published below for industry peers to reference.

Short-term bearish, medium-term bullish, long-term optimistic

Vice Chairman of the China Association of Lighting Industry (CALI)

Chairman of Hengdian Group Tospo Lighting Co., Ltd.

Ni Qiang

Tospo remains optimistic about the industry outlook for two reasons: First, China's lighting industry boasts strong international competitiveness, a vast domestic market, and a relatively rational industry structure. Second, the global market is gradually recovering, economic vitality is strengthening, and demand in emerging markets continues to arise. Currently, the industry is in a mature stage, with certain niche segments being particularly active. Companies that succeed in these niche segments do so based on their own internal logic, which cannot be simply replicated.

Tospo's operational strategy is to adhere to its core competencies and extend related capabilities. Currently, the focus is on executing deterministic tasks effectively. First, prioritize internal decision-making to make sound choices; second, focus internally to optimize organizational structure and resource allocation based on those choices.

In 2022, the entire industry supply chain is undergoing self-repair and may return to its pre-pandemic state. In particular, international sea freight, ports, and economic order are gradually improving. We hope that 2022 will become a key turning point for the recovery of foreign trade in China's lighting industry.

Viewing the Development of the Lighting Industry with Internet Thinking

Vice Chairman of the China Association of Lighting Industry (CALI)

President of Hangzhou Hongyan Electric Appliance Co., Ltd.

Wang Micheng

鸿雁2021年发生重大的重组变化，鸿雁的新使命是成为中国照明电工行业转型升级的典范、央企重组的标杆、智能互联网领域领军者。从智能照明的行业趋势来看，各方面技术日趋成熟，智能照明的生态已逐步的建立，智能照明的应用正在加快到来，并成为智能家居一个重要组成部分。针对智能照明当前发展存在的一些问题，提出几点建议。

First, strengthen exchange, training, and guidance in IoT smart lighting technology and markets to help enterprises find their positioning. Second, accelerate the establishment of an ecosystem for the lighting industry. Third, enhance industry technological innovation, standardization, and intellectual property protection.

Increase innovation and R&D efforts, cultivate industry advantages, and enhance the technological competitiveness of products

Vice Chairman of the China Association of Lighting Industry (CALI)

General Manager of Foshan Electrical and Lighting Co., Ltd.

Lei Zihe

Currently, facing uncertainties in raw material supply, significant price increases, rising labor costs, and severe product homogenization, lighting companies are seeking new paths. Based on the characteristics of Foshan Lighting, three suggestions are proposed for survival and growth:

First, strengthen product R&D innovation and cultivate technological advantages. Seek new breakthroughs in products, maintain technological competitiveness, and continuously launch differentiated, personalized, and distinctive high-value-added products. Second, optimize industry layout and cultivate industry advantages. Actively expand into niche markets such as educational lighting, healthy lighting, and automotive lighting, promote enterprise transformation, and facilitate industry upgrading. Third, promote digital transformation and cultivate new operational management advantages. Increase investment to drive automation upgrades and informatization construction, achieving digital transformation.

We believe that the current challenges can unlock the potential of Chinese lighting enterprises, making China's lighting Industry more competitive and securing a more prominent position in the international market.

Though the path is arduous, breakthrough is the only way

Vice Chairman of the China Association of Lighting Industry

Deputy Secretary of the Party Committee and Mayor of Zouqu Town, Zhonglou District, Changzhou City

Lu Wei

In the post-pandemic era, amid the downturn and oversupply in the existing industry, Zouqu Town is actively helping enterprises seek market space and guiding the healthy development of the Zouqu luminaire industry.

First, prioritize planning by viewing the present from a future perspective and mapping out the overall layout. Research and formulate the overall development design plan for the "China Luminaire City" and the industrial development guidelines for the "New Light Source" Industry, comprehensively promoting reform, innovation, and upgrading of the luminaire industry.

Second, promote industry upgrading: integrate resources to build alliances and cultivate brands through professional specialization. Align with investment promotion resources and strengthen targeted attraction of leading enterprises. Explore the establishment of a lighting industry alliance and increase support for the cultivation of local luminaire manufacturing enterprises.

Third, standardize the market, rebuild quality with craftsmanship, and stay true to the original aspiration in business competition. Implement refined management, plan differentiated operations, build brand advantages, and strengthen information interconnection and work coordination with chambers of commerce and associations.

Fourth, improve supporting facilities by integrating accommodation, dining, tourism, and shopping to thoughtfully illuminate the city. We will fully build the "Starlight Town," launch a special campaign to rectify hazardous, polluting, chaotic, scattered, and low-end workshops in luminaire manufacturing, and severely crack down on irregular market practices such as counterfeit and shoddy goods, ensuring a healthy and orderly competitive environment.

Independent brands and proprietary products are both making strong strides,

Strengthen Internal Capabilities and Embrace Dual-Circulation Development

Vice Chairman Unit of the China Association of Lighting Industry (CALI)

Zhejiang Yangguang Lighting Electrical Group Co., Ltd.

Acting General Manager

Qi Xiaoming

The recurring pandemic and tense international situation have gradually increased the operational pressure on the industry. Faced with challenges such as a sluggish market and rising raw material costs, enterprises should prioritize risk forecasting in their planning and make sufficient preparations to withstand shocks. In an uncontrollable external environment, companies must strengthen their internal management capabilities, solidify their foundations, and enhance their product innovation, cost control, and customer service capabilities.

Recently, the "Opinions of the CPC Central Committee and the State Council on Accelerating the Construction of a Unified National Market" were officially released. Under the guidance of the Opinions, there is still room for industry development in the process of achieving the dual carbon goals, and we remain optimistic about future growth. Our development strategy focuses on taking practical actions, addressing weaknesses, and strengthening our foundation: we will increase investment in independent brands for the domestic market and emphasize independent products for the export market.

Industry competition should be orderly within a certain level of concentration. Currently, the lighting industry has low concentration and significant room for growth. This requires collective efforts to accelerate the increase in industry concentration, achieving high-level competition and high-quality development.

The lighting industry can make greater contributions towards the dual carbon goals

Vice Chairman of the China Association of Lighting Industry

General Manager, Lighting Design and Application Department, Signify

Yao Mengming

Signify has made carbon neutrality a key corporate objective. By utilizing renewable energy and implementing carbon offset projects, the company reduced its carbon emissions from 660,000 tons to 260,000 tons. In 2020, Signify achieved fully sustainable operations globally, setting a strong example for the lighting industry.

Signify analyzed the carbon emissions across the full lifecycle of lighting products and found that emissions generated during production and distribution account for less than 5% of the total lifecycle carbon footprint; approximately 95% of emissions occur during the product use phase. From a carbon reduction perspective, there are many new directions for the development of lighting products and the industry. Empowerment can be achieved through three technological layers: "green production technology," "smart lighting technology," and "lighting product recycling and circular technology." Additionally, there are five industry development directions: "urban architectural lighting renewal," "off-grid lighting普及," "road lighting retrofitting," "agricultural supplemental lighting," and "lighting services."

While promoting low-carbon lighting technologies, the industry should continuously enhance the health and comfort attributes of lighting products and ensure product quality and safety.

以数字化、智能化转型为方向强化产品创新

Vice Chairman of the China Association of Lighting Industry

General Manager, Road Lighting Division, OPPLE Lighting Co., Ltd.

Xu Bin

In recent years, OPPLE Lighting has made extensive explorations in its ToB business, mainly focusing on industrial, commercial chain, office, and medical sectors, continuously iterating and becoming increasingly mature.

The lighting industry is gradually transitioning from rapid growth to high-quality development, which places higher demands on enterprises. Companies need to strengthen their internal capabilities and enhance product innovation.

With the construction of green smart cities and against the backdrop of implementing the dual carbon goals, enterprises need to strengthen themselves in two aspects. First, accelerate digital and intelligent transformation, increasing investment in capital and technology; second, continuously iterate technologies based on scenario-based solutions. It is recommended to enhance cooperation between industry enterprises and upstream and downstream partners, making tangible contributions to industry development and the effective implementation of the dual circulation policy.

Expand and strengthen in the international market, break through in domestic niche segments

Vice Chairman of the China Association of Lighting Industry (CALI)

Deputy General Manager of Xiamen Tongshi Lighting Co., Ltd.

Zhuang Xiaokun

In 2022, we will focus on three key areas. First, prioritize export business to strengthen and expand existing international operations, while achieving breakthroughs in specialized segments of the domestic market. Second, integrate resources across the supply chain by evaluating upstream and downstream partners and selecting appropriate collaboration models to achieve win-win outcomes. Third, strengthen internal capabilities by increasing investment in smart manufacturing, high efficiency, and innovation.

Position ourselves well, integrate core strengths, and provide better service to customers

Vice Chairman of the China Association of Lighting Industry (CALI)

General Manager, Lighting Business Division, Xiamen Leedarson Lighting Co., Ltd.

Wu Chengzong

The external environment of the lighting industry continues to change, with situations such as rising material costs and chip shortages having a significant impact on enterprises. Based on Leedarson's development in recent years, views were expressed from three aspects:

First, be customer-centric, with brand and resource integration as the core strategic platform. Enterprises need to identify their positioning, extend towards intelligence and ecosystem directions, and increase investment in products and technology.

Second, integrate industry / supply chain information channels and consolidate core advantages to better serve customers. By vertically and horizontally aligning the industry / supply chain, we gain clear visibility into order details, dynamically adjust inventory, and avoid unexpected disruptions.

Third, strengthen internal capabilities and intensify the promotion of digitalization and automation. Improve internal efficiency, reduce operating costs, enhance product cost-performance ratio, and better serve customers.

Enhance business operational efficiency through the integration of light and display

Vice Chairman Unit of the China Association of Lighting Industry (CALI)

General Manager of Lighting Product Line, Shenzhen Unilumin Technology Co., Ltd.

Ai Zhihua

Affected by the pandemic, the company responded proactively and focused on strengthening its internal capabilities. First, it determined how to improve product quality, enhance management capabilities, and raise manufacturing standards. Second, it continuously studied user needs to further optimize its products.

The company has continuously increased its investment in the lighting business, with growth exceeding 30% in 2021. Both the lighting and display segments focus on LED technology. The optical display industry integrates software-defined LED products, where light-display fusion technology enhances user scenario experience and improves operational efficiency. The synergistic development of lighting and displays is a trend, with outstanding enterprises in every field such as horticultural lighting, healthy lighting, and educational lighting. We hope that industry associations will mobilize resources from all parties to present optical display products synergistically, including display + lighting, intelligent control, and other products.

Rising Against the Tide: New Growth, New Layout, New Changes

Vice Chairman Unit of the China Association of Lighting Industry (CALI)

Assistant to the Chairman of MLS Co., Ltd.

Zhu Yunbo

Zhu Yunbo, Assistant to the Chairman of MLS Co., Ltd., shared insights on MLS's current operations, including the company's response strategies amid the pandemic, using four key keywords.

First, "enhancement": continuously deepen engagement in the LED and pan-LED Industry, constantly improve the supply chain, and enhance corporate competitiveness. Second, "focus": concentrate on the LED field and avoid arbitrary cross-industry investments. Third, "change": be adept at self-transformation to adapt to the new competitive environment and gain room for growth. Fourth, "optimism": proactively face and maintain a positive outlook on the Industry. Lighting companies should work together under the leadership of the China Lighting Association to carry out pioneering work and drive Industry development.