Op Lighting’s revenue structure in 2017: home lighting revenue accounted for about 40%; commercial lighting products accounted for more than 20%; electrical products accounted for more than 20%, light source products accounted for less than 20%; 1Q18 company initiatively reduce the standard products ( Such as standard ceiling lamps, commercial tube spotlights, etc.) prices, resulting in lower gross profit margins. The main purpose is to increase market share and fight cross-border competitors. The company has a stronger production capacity, and the cost side will be reduced in the future.
Decorative lights are personalized products, the price war does not work. At present, modern minimalist, new Asian fashion, Western-style retro, crystal lamp series have been introduced, and the Nordic Minimalist series will be launched this year.
Op Lighting has a number of channel outlets and channel management efficiency advantages. The company will continue to strengthen the channel construction, including pushing the 1,000-pyeong shop; the information system will be covered from dealers to high quality outlets.
The commercial lighting strategy is to gradually break through different market segments. At present, the company has entered the brand chain stores, office lighting market, subway, outdoor lighting market. Overseas markets have also developed rapidly.
Electrical products include switches, kitchen and bathroom products, and integrated ceilings. Ops currently ranks third in electrical products. This market and home lighting have channel synergy, and entering this market can also combat bulls and other cross-border entrants. In the future, we must strengthen design and service capabilities.
In 2018, the lighting industry faced pressure from cost pressures and falling demand in the first and second tier markets. When the market demand is not good, it is time for a competitive company like Op.com to stand out. Ops has the advantages of R&D, production, channels, and brand in the general lighting market. In 2018, it took the initiative to suppress its competitors in the standard goods market, and actively developed its products in decorative lighting, commercial lighting, and electrical products.