Benefiting from the popularity of LED lighting, the LED medium and small power supply for indoor functional lighting has achieved great development in the early stage. A number of well-known companies such as Igor, Kegu Power, Leifford, Saibi, and Ochs have emerged in China. Power company. However, with the increasing number of companies entering the market, the competition in the small and medium power supply market is unprecedentedly fierce.
In the face of fierce market competition, power supply manufacturers are constantly adjusting prices, and the price of finished power products has bottomed out. More unfavorable, raw material prices and labor costs continue to rise, and a small number of small-scale power companies are unable to support and fail.
In this regard, Ke Gu power marketing director Li Chengyu said: "LED lighting development to the current stage, the price must be sensitive, the current finished lighting factory is killing. Because the downstream lighting factory is not rational enough, the power plant is easy to be brought into The whirlpool of low-cost competition. But focusing on price competition is extremely unhealthy. There are many companies that do indoor small and medium power supplies, but it takes a lot of work to get the business done."
Li Chengyu said that Kegu Power has been insisting on the field of indoor power supply for ten years. The company completely makes products according to standards and requirements, and never makes sacrifices of low-quality products in order to meet the market price competition.
GGII passed the long-term tracking of domestic LED driver power companies, comprehensive technology, market share, product quality and other factors, selected in the 2016 China LED small and medium power drive power competitiveness among the top five enterprises, Kegu power ranks in the first Four. Of course, as a leading company in indoor power supply, this honor is hard-won.
In the case that the price reduction space for small and medium power supplies is almost zero, the price advantage of some enterprises will inevitably be “exploitedâ€. At a time when the rising tide of raw material prices has surged, the living space of small and medium-sized power companies has been squeezed extremely narrowly. Under this situation, how does Kegu Power supply achieve steady growth in the face of adversity?
"Do something, do something", the scale is right
First of all, when most companies are focusing on low-cost competition, Kegu Power has made a difference in price. Li Chenghao told Gaogong LED that if the customer only cares about the price, then we may choose to give up. Only when we talk about the price on the basis of technical requirements and performance, it is possible to cooperate.
Secondly, there is something wrong with the choice of the customer. Kegu Power currently has two strategies on the client side: First, the big customer strategy, including the domestic four major home giants (Foshan Lighting, Op Lighting, NVC Lighting, Sanxiong Aurora), and international brands include LEDVANCE, PHILPS, ADEO Second, excellent customers in the lighting segment, such as: commercial lighting, freezer lighting, shelf lighting, cruise lighting and high-speed rail lighting, and then grow with them in line with their needs.
Li Chengyu said that the pressure on first-line customers will be relatively large. We need to set up a dedicated team to quickly respond to and respond to the needs of front-line customers. However, one type of customer will promote the steady growth of the company's overall performance, and at the same time, the brand and its own system will also There is a boost.
In addition, there is something wrong with automated production. At this stage, upstream IC, PCB, copper foil, plastic casing and other materials are rising in price, causing great cost pressure on the power plant, and automated production is the main way to reduce production costs.
At present, Kegu Power has introduced automated production in the plug-in segment, and its automation is about 60%, still not reaching 100%. Since the plug-in process is more manual and costly, the goal is to achieve full automation in this link. However, Li Chenghao told Gaogong LED that there are many non-standard components in the power supply. The versatility of these devices must be taken into account. Only when the scale is produced can automation be achieved, and the scale will not increase the operating cost of the enterprise.
Strive to overseas markets and create a "world brand"
The establishment of domestic power product standard system is not perfect, the market is chaotic, coupled with the large number of participants, resulting in fierce competition in the domestic small and medium power supply market. Many LED power companies have set their sights in order to highlight price competition and seek more market share and profits. Locked in the overseas power market.
Li Chengwei believes: "If the power supply company is completely only in the domestic market, the growth of sales performance is limited; secondly, the gross profit margin of products in overseas markets is better than the domestic market, and the increase in gross profit margin in the domestic market is more difficult; If you want to build a brand, you can't just focus on the domestic market, but you should go out and become a world brand, and then use the brand to reverse the deepening of the domestic market."
As we all know, Kegu power brand has a high reputation in China. As a high-tech enterprise of LED drive power, which integrates R&D, production, sales and service, it is not satisfied with this. From the second half of last year, Kegu began to exert its strength. overseas market. “In the past ten years, Kegu mainly developed the domestic market, but at this stage, Kegu’s focus (including R&D resources, marketing promotion, and channel construction) is mainly concentrated overseas.†Li Chengyu said.
It is understood that in the current overseas market layout, Kegu has established a subsidiary in Germany and has agents in the United States, India, Russia and other countries. In order to better cope with the development of overseas markets, Kegu has launched corresponding products for different markets.
At this year's Hong Kong Autumn Lighting Fair, Kegu Power exhibited a variety of products for overseas markets. Among them, including the integrated power supply for track lights, BIS certification in the Indian market and UL certification in the United States.
When talking about the Indian market, Li Chenghao said that the Indian government's policy has given birth to the huge prospects of the LED lighting market, and it has also brought unprecedented opportunities to the driving companies. India is relatively weak in LED supply chain support and R&D production capacity, so many aspects still rely on imports. However, India has set strong trade barriers in import and export tariffs: mainly due to lower import tariffs on parts and components and higher import tariffs on finished products.
"The main purpose of this is to protect the local manufacturing industry and promote the local employment rate in India. However, this may not be a bad thing for Kegu, because the power supply is mainly imported as spare parts. For the laws and regulations of the Indian market, Kegu has also launched. BIS certified indoor power products."
Kegu track light integrated power supply
Kegu BIS certified power supply
For the US market, Kegu is looking for a partner to do research, and is still doing market research in the early stage. "The US market is different from the European market. The US market has one characteristic: the market is mainly concentrated in several major suppliers. There may be thousands of lighting companies in Europe, but there may be more than a dozen in the United States, but they are large in size and need to open the Americas. In the market, it is necessary to understand the relevant laws and regulations of the local market. At present, Kegu has also tentatively launched a series of products."
Kegu UL certified power supply
Turn to high-power power supply, focus on intelligence
As a professional supplier of commercial lighting, Kegu Power has a brand influence that is obvious to all. Under the trend of “de-poweringâ€, Kegu power supply is more to go in the direction of intelligence and high power.
In terms of cost, many companies are trying to find ways to power. "De-powering" may be a big trend, but whether it can be done depends on whether upstream technology can solve it. “De-energization has been proposed for a long time, but the technology is still not very mature. At present, there are still many performance indicators (lightning strikes, surges, EMC, high-voltage shocks) that are not up to standard, in commercial photos and some customers with high quality requirements. Inside, it is impossible for customers to meet these performance requirements. Therefore, de-powering is aimed at the low-power home field, which is not easy to achieve in the commercial lighting field." Li Chenghao said frankly.
However, in order to maintain sustainable competitiveness, Kegu Power is also striving for transformation, and intelligence and high power have become its future direction.
Intelligent control is the development direction of small and medium power power in the future. Kegu power supply is mainly based on thyristor and 0-10V dimming. DALI dimming power supply will be introduced for dimming system early next year. Kegu has been involved in the field of intelligence earlier. In 2013, Kegu has launched intelligent power supply, including WIFI control, mobile phone control, intelligent power supply based on ZigBee and Bluetooth. In addition, Kegu Power has also developed a control app. In the future, Kegu Power will be integrated into the smart home system to do some higher-end products.
In terms of high-power power supply, Kegu is currently mainly for indoor engineering and outdoor display (advertising light boxes, etc.). Li Chengyu said that small and medium power sources are mainly used indoors, and high power is mainly used for landscape lighting and municipal engineering. Small and medium-sized power supply companies have to overcome two major problems in the field of high-power power supply: technology and market.
Written in the end: With the rising cost of raw materials and labor, the trend of market integration and the strengthening of the market, in the future small and medium power supply market will still have some enterprises lost the opportunity to survive. Under the severe competition situation, Kegu Power has always adhered to its own quality bottom line, actively developing in a new direction, and exerting its efforts in overseas markets. In the first half of this year, Kegu Power achieved operating income of RMB 47.847 million, an increase of 16.22% over the same period of the previous year; net profit attributable to listed company shareholders was RMB 3,321,700, an increase of 58.14% over the same period of the previous year.
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