GE lighting CEO Bill Lacey said in an e-mail to employees, since November 30, GE Lighting will terminate in Asia, Latin America, all direct commercial activities, the future will be more focused, consolidate North America, Europe and the Middle East Regional markets in order to continue to expand the scale and enhance profitability.
As one of the three international giants in the lighting industry, Genera lElectric Company (GE) was founded in 1892, more than 100 years ago, has been growing in the diversified development, is the world’s largest To provide technology and services business of multinational companies. Over the past few years, GE lighting revenues mainly from traditional incandescent and fluorescent products, but because governments continue to advocate the concept of energy-saving emission reduction, and actively promote energy-efficient LED lighting products, the traditional business income is declining year by year.
According to the first half of the financial data released by GE, GE from the second quarter of this year, lighting revenue fell 11%, of which traditional lighting revenue fell 23%, LED revenue growth of 4%, accounting for 42% of total lighting revenue. In fact, in recent years, GE lighting business performance is not satisfactory, this is not satisfactory, the lighting giant from the United States, and the famous Philips and Osram and other competitors, its action in the Asian lighting market is slow and conservative influence gradually weakened.
It is understood, GE lighting in China’s total revenue accounted for less than 10% of the company’s overall lighting revenue, other Asia is also very low, and GE Lighting in North America is still a strong brand. As a result, GE Lighting chose to exit the Asian and Latin American markets, to go back to stick to the original North America. In particular, the lighting industry into the semiconductor lighting era, the lighting industry’s technology development track has been completely different from the traditional lighting industry, coupled with the GE lighting LED transformation of the road is not successful, before the outgoing GE Lighting has wanted to sell the lighting Business news.
Despite the higher profit margins of traditional lighting products, but the wave of LED lighting, GE lighting was forced to have to go to the poor gross margin LED lighting. GE Lighting in recent years, continued through a number of special lighting to enhance the company’s profitability. Such as street lamps, and special industrial lighting applications. The GE Lighting decided to close out the business in Asia and Latin America, will focus resources in North America, and actively develop plant lighting, intelligent lighting and other special applications, highlighting its strategy to ensure that the profit to change.
The industry said that the GE lighting adjustment in the global market distribution, is part of GE stripping business restructuring strategy, GE hopes to improve their valuation, consistent with competitors.