Chinese LED lighting industry: to defend or to fight? (2)

Chinese traditional lighting industry needs breakthrough. But not every lighting manufacturer must set up its own specialized research and development team for LED Lights. “Chinese LED lighting industry needs more technicians. Real LED technicians. Nowadays, many business men blindly entered this area without any market research or even lack of a basic technical research and development team. It may cause catastrophic damages to them. Meeting with such fierce competiveness, no technique no survive.” Said Dr. Bowen Chen, a senior engineer from OSRAM. Indeed, due to the lack of technique, Chinese LED lighting market has gradually occupied by overseas competitors. Not to mention the traditional lighting industry, even Chinese LED lighting industry requires innovations.

Chinese traditional lighting industry needs breakthrough. But not every lighting manufacturer must set up its own specialized research and development team for LED.

Will the penetration of LED technique into lighting market cause the final reconstruction? Experts gave out deductions as follow: as for the entire traditional lighting industry, LED is an extension update caused by the innovation of lighting sources. LED technique has been used in lighting area for nearly ten years. More and more new born LED China manufacturers entered into this market. Some of them survived at last, but most of them died and disappeared forever. It seems that many traditional lighting enterprises still have no intentions to join into this battle. But this is not to say that traditional lighting manufacturers do not obtain such capability. “We have our own research and development department for LED lighting industry and did master LED techniques. However, we have no willingness to enter this emerging market so quickly. Now is not the time. We still have many works need to be finished firstly, like marketing analysis, product research, customer estimation and so on. We need to choose a right time to enter this market.” Said Xu Hui, the general manager of a traditional lighting enterprise in Guangzhou.

 

According to Wei Chen, an expert in LED lighting area, Chinese lighting market will be reconstructed in near future due to the emergence of LED Street Light. “LED is not just a lighting source. Its advantages in technology are obvious. It is not easy for traditional manufacturers to take part in. LED chip technique, power supplier, cooling section, combination of shape design and light optimization, it is new technique that completely different from traditional lighting products. The one who can make products does not mean that he can make good products.”

 

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.