“2016 is an important year for Philips Lighting. It is a year of foundation and a key year for future growth.†This is the president of Philips Lighting Greater China, who is taking office in 2015. The crowning touch of the annual Philips Dealer and Partner Conference.
The adjustment of executives of multinational companies reflects the strategic adjustment of the company from another perspective.
Before joining Philips, Wang Wei’s resume also confirmed the major strategic shift of Philips Lighting. East China University of Science and Technology, Bachelor of Computer Software, has served as senior executive in Shanghai Baoli Computer Integration Co., Ltd., Nortel Networks, Cisco, Avaya, management experience of multinational companies and previous experience in China, indicating Philips Lighting to China The market is highly valued.
More importantly, more than 20 years of IT industry experience is in line with Philips lighting's layout from traditional lighting to smart connected lighting strategy.
Strategic adjustment is not a whim
In the first half of this year, Philips Lighting's domestic manufacturing plant, Philips Lighting Manufacturing (Shenzhen) Co., Ltd., ceased production and disbanded, causing various speculations.
Subsequently, Philips officially responded: the move is in response to the needs of the home lighting market to the development of smart Internet and enhance the competitiveness of the industry. Business structure adjustment, shut down the traditional lighting business, the future LED lighting business may also gradually shift to OEM production.
In fact, as early as 2012, Philips Lighting unveiled the 2012 China marketing theme with the theme of “Light, Create Unseen†for the first time in China, revealing that it will launch a full range of LED lighting integration for major market segments such as landscape, road, office and shopping malls. solution.
At that time, Liang Hanfeng, the president of Philips Lighting Division Greater China, said that in the future, Philips Lighting will closely meet the specific needs of local customers in the Chinese market, providing them with the most meaningful lighting solutions, creating a space environment that has never been seen before. Come to an unprecedented experience.
To this end, Philips Lighting has also made strategic adjustments to the layout of the Chinese market.
In December 2013, Philips LED Professional Lighting (Chengdu) Demonstration Park was officially completed in Chengdu High-tech Zone (Western District). This world-class demonstration park includes an LED professional lighting production base and Philips' most advanced lighting application center.
The demonstration park covers an area of ​​about 40,000 square meters and includes an ultra-large lighting application center and an LED professional lighting production base with a total investment of 25 million euros.
The Chengdu Chengdu Lighting Application Center covers an area of ​​7,000 square meters, demonstrating Philips' outdoor and indoor, world-leading and latest lighting innovation applications; from light sources to luminaires, from intelligent lighting control to total lighting solutions.
With the theme of “miniature intelligent cityâ€, the whole center presents the magical effect of lighting through real-life display and intelligent control, and creates the daily life scene of urban residents through advanced LED lighting system. Through advanced lighting control system, Intelligent control and management of the lighting equipment in the center to realize the theme of “miniature intelligent cityâ€.
Philips Chengdu LED Lighting Production Base is a fully integrated LED professional lighting production base. It mainly produces Philips brand outdoor and indoor LED professional lamps. It introduces the world's top LED production, design and customization capabilities to achieve production, Optimal allocation of various resources such as warehousing and logistics.
Lighting splitting is a key step
In order to match the future strategic layout of the Philips lighting business, the spin-off from the original Philips Group has also officially raised the agenda.
This will benefit the business autonomy of Philips Lighting and the independence of future capital operations.
The Philips lighting business is divided into four segments: light sources, luminaires, sensors and software systems, and value-added services throughout the lifecycle.
According to the goal of Philips Lighting, by 2020, the company hopes to replace the traditional light bulb with 2 billion LED bulbs, which is expected to grow rapidly with systems and services.
On May 27 this year, Philips split the lighting business and listed 694 million -84.40 million euros (about 785 million - 950 million US dollars) on the Amsterdam Stock Exchange. At that time, Philips Lighting's market value reached 3 billion euros (about 21 billion yuan), becoming the world's largest independent lighting manufacturer.
In 2015, Philips Lighting's sales revenue last year was 7.47 billion euros, with a profit of 547 million euros.
In the first quarter after the listing, the Philips lighting business achieved a sixth consecutive quarter of year-on-year growth, with LED sales revenue increasing by 27% year-on-year and accounting for 50% of the total lighting business revenue.
And the future investment plan for the Chinese market seems to be in full swing.
In July 2016, Li Wei, deputy mayor of Xi'an, met with Wang Hao and his party in the meeting hall of the municipal government. Vice Mayor Li Wei expressed the hope to strengthen cooperation in energy conservation and emission reduction, renovation of old cities and construction of smart cities, and welcomed Philips' investment in Xi'an.
In this regard, Wang Wei said that Philips has always attached great importance to the development of the Chinese market, defining China as another "local market" of Philips and the second largest market in the world.
At present, Philips has established large production bases in Chengdu, Guangdong, Shanghai and Jiangsu, which makes Philips a leader in the Chinese lighting market in terms of market share and brand value.
Wang Wei said that Xi'an is an important city for expanding the western market. The economic development in recent years is remarkable, and cooperation with the Xi'an municipal government will be strengthened in the future.
Obviously, the layout of Chengdu is only the first step in Philips Lighting's strategy in the Midwest of China.
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