[PConline News] Nowadays, the news that certain giants have fallen and the giant giant's factory has been shut down has long been beyond my surprise and habit. However, recently, Philips shut down a factory, but let a lot of people start not calm. On June 3, Philips Lighting stated in an official statement to the media that in order to respond to the demand from the home lighting market to smart internet development and enhance the competitiveness of the industry, Philips Lighting decided to close Philips Home Lighting Manufacturing (Shenzhen) Co., Ltd. in Shenzhen.
In fact, as early as May 31, 2016, Philips had announced the official closure of Philips Lighting Manufacturing (Shenzhen) Co., Ltd. So far, this is the fifth factory that Philips Lighting has shut down globally. Many people began to marvel: a generation of lighting giants fell on it! Don't pull it? This does not mean that Philips gave up the lighting business. It can only be said that Philips gave up a non-profitable sub-factory.
As the world's largest lighting equipment manufacturer, Philips had revenue of 7.5 billion euros in 2015 and operating profit of 331 million euros, accounting for more than half of the global LED lighting market. On May 27, Philips' spin-off Philips Lighting was listed on the Amsterdam stock exchange in the Netherlands. Philips started in lighting and is still the leader in the global LED lighting industry.
Why did you close the factory in Shenzhen? Don't make money!
In recent years, various domestic industries have been developing rapidly, including electronic equipment, home appliances and LED industries, etc. The technology has gradually narrowed the distance with international manufacturers, and the increasingly price war has resulted in more cost-effective products. Many consumers choose the object. After losing its absolute advantage in technology, this factory in Shenzhen has even less advantages in price. The decline in profits and market space are gradually being compressed, and it is already too late for business to play. Closing is a matter of time. According to statistics from the National Bureau of Statistics, in the first half of 2015, LED companies were in a state of loss of 579, with a loss ratio of 22% and a total loss of 1.2 billion yuan.
The next thing Philips needs to do is to look for an OEM factory. The Chinese market is the second largest market for Philips lighting business. Philips cannot easily give up, and OEM is a good way to reduce Philips' many burdens, and with Philips's With brand influence and technical strength, there is no market. Philips is not the first time it has done so. The person in charge of the Philips Marketing Department stated that Philips has invested a considerable number of factories in the country and Shenzhen is just one of them.
Nowadays, with the rapid development of the smart home industry, smart lighting business is bound to be the main direction for future development. Philips Lighting at this time to focus on home smart interconnection is the most sensible choice, as a global large-scale enterprise, Philips's position in the medical field is almost no one can be against, the core technology is the first vitality, the divestment of Philips Lighting is clearly understand this truth of.
Editor's comment: Philips is a giant company based on technology for survival. It is not so easy to fall. Moreover, Philips lighting is still alive and well. It is still far away from the fall. It just closed a small factory and it did not evacuate. There is no need to make a fuss about the lighting business in the Chinese market. Perhaps you will see the development of Philips' LED business getting better and better.
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