Chinese LED lighting industry: to defend or to fight? (1)

Clayton Christensen mentioned in “the innovator’s dilemma” that there are two different innovations for companies: sustaining innovation and disruptive innovation. In his point of view: with the continuous development of a certain industry, companies and enterprises need to pay attention on “changes in value system”. What is the value system? The value of an object contains two interrelated aspects: 1. the meaning and function brought by the existence of this object; 2. people’s understanding and evaluation of this object. However, all of these things are not static. The earth travelled around the sun, its residents work every day. Everything in this world is continued to change all the time: abstract and non-abstract, including the concept mentioned above. LED China manufacturers must notice this point: customers view of products standards will be changed all the time. If they ignore the game rule, they will be failed at last. However, what is the game rule for Chinese LED lighting industry? The answer is innovation. Facing the pressures from the new born LED manufacturers and their vibrant new LED technique, how traditional LED manufacturers respond? Counterattack or defend?

Clayton Christensen mentioned in “the innovator's dilemma" that there are two different innovations for companies: sustaining innovation and disruptive innovation.

Over the long history, LED street light is just a new lighting technique and will be replaced rapidly in future. “The innovation brought by fluorescent lamps and metal halide lamps will not be repeated as a result of the rapid development of this world. Nowadays the society is one era of information and technology explosion, you could not expect a new born technology to sustain for a long time.” Said Xuhui Lin, a LED Lights designer from Guangzhou. But, there are some people hold different ideas. In their opinion, is the largest and deepest revolution in lighting history and also a chance for Chinese LED lighting industry. For traditional lighting enterprises, it is a continuous revolution in the long term and a breakthrough innovation and change in short term. This innovation far exceeds their ability, struggling to deal with this “attack”. Fact proves that each part of them is terribly defeated: their research and development departments, their marketing centers, their testing teams their purchasing teams. Even their fully-built powerful selling channels are unable to save them. The LED hurricane will cause the restructuring of lighting industry.