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Reporter: When did you officially join Foshan Lighting?
Pan Jie: I officially joined Foshan Lighting at the end of May 2013.
Reporter: In the unstoppable tide of LED lighting, you are the chairman of the old lighting company. The responsibility is significant and far-reaching. Can you introduce yourself and Foshan Lighting?
Pan Jie: Foshan Lighting should be well understood by everyone. The earliest lighting listed company in China is also one of the largest lighting companies in China and the world. I am also a professional in lighting. Most of the time before coming to the Buddha's photo, he worked in different departments such as lighting, communication electronics, and water treatment equipment of General Electric Company. It is my pleasure to have the opportunity to return to the lighting industry and to be able to join a company with a deep industry accumulation and reputation like Buddha Photo. I also feel the responsibility and hope.
Reporter: As a lighting veteran with a global vision, how do you think about the changes that LED lighting brings to the industry?
Pan Jie: The impact of LED on the lighting industry is disruptive. Now practitioners in the lighting industry should be aware of this huge change and impact. Revolutionary changes are taking place in manufacturing, supply chain management, product development, sales models and customer channel relationships. This kind of change is happening all over the world, but since China is already the manufacturing center of the world's lighting, China's changes and impacts are faster and more intense, depending on the speed of change and the impact on the industry. Whether it is a traditional lighting company or a newcomer to the new industry, everyone has stood on the same new starting line. In the next 3-5 years, the competition pattern of the traditional lighting industry in China and the world will change greatly.
What is your view of the roadmap for LED lighting products penetration?
Pan Jie: Many industry experts have a good point of view on this issue. There is a fact that the technological development of the entire LED is still far from being stereotyped, and technological progress and innovation are accelerating as the scale of the industry expands rapidly. Upstream chip technology and downstream new applications are emerging. The existing product form will change at any time, and the product life cycle becomes short and very fragile, often changing in 2-3 months. Of course, no matter how it changes, the price/performance ratio of products is constantly approaching traditional lighting applications and will soon be better than traditional applications. If this day comes in the near future, LEDs will become popular.
From the launch of the domestic market this year and the experience of foreign developed countries, many LED applications in 2014 will surpass traditional lighting in absolute price and cost performance, plus the long-term use habits of ordinary consumers, in the 3-5 years period, The replacement market should be more optimistic, and it will be more realistic during this period to usher in the rapid growth period of LED lighting.
Reporter: Today's lighting market can be described as a hegemony, there are old lighting companies, LED companies, consumer electronics companies, and some companies that are not related but have funds? What kind of companies do you think can stand out in the new lighting era and maintain profitable sustainable development?
Pan Jie: The current lighting industry is a time of the Warring States period. Due to the market optimism and the relatively low industry threshold, many companies have entered this market. In the short term, overcapacity and prices have fallen. From the development of the LED industry, I believe that in the end, it will meet the laws of most consumer electronics/semiconductor industries. Under the premise of full market competition, enterprises that can always stand in the forefront in technology and application, if there are channels, capital strength, enterprise scale The advantage is that the remaining will be king.
Of course, the problems faced by different companies may vary. For the old traditional lighting companies, how to balance the scale of the traditional lighting industry chain and how to adapt to the fast and volatile LED industry is a big challenge. The new LED companies may not have much burden, but they must be patient in brand and channel development. How to form scale effect in the manufacturing process is also a long-term process. This is a sprint long-distance running.
Reporter: As a veteran lighting listed company, what do you think is the core competitiveness of the company? Last year, many domestic and foreign LED companies flooded into the channel. They thought that speed determines everything. As a Buddha photo, what do you think? What is the response strategy? Foshan's brand accumulation is very deep, the nation's channel construction has been very complete, as a traditional lighting company, and other companies from the LED, consumer electronics and other companies how PK?
Pan Jie: For more than half a century, Buddha Photo has accumulated a deep understanding of lighting applications and industry rules. Many people will say that the advantages of Buddha Photo are brand accumulation, perfect channels, strong financial strength, and focus on manufacturing and cost. These are objective facts, but the most crucial thing is not here, but the Buddhas have never lacked the genes and abilities to subvert the tradition. In the era of the traditional lighting industry, Buddha Zhao became one of the largest enterprises in China and even the world with the momentum of not being afraid of pulling down the emperor. In the era of LED lighting transformation, the Buddha photo also has such determination and resolute execution. Instead of being subverted, it is better to subvert itself. This is the core competitiveness of the Buddha.
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Reporter: In the future, LED lighting companies will definitely have many M&A events. What kind of mergers do you think are the most reasonable? Are you optimistic about the recent vertical integration?
Pan Jie: Mergers and acquisitions are actually the same as the nature of marriage. There is no most reasonable statement, only the most appropriate combination. Most of the industry mergers and acquisitions in the past period are upstream manufacturers looking for channels to go downstream. In the case of overcapacity in the upstream, it is understandable that manufacturers can increase market voice by merger.
Whether it is taking the route of merger and vertical integration, or sticking to the positioning of its own industry chain, you can try it. If we look at the laws of other electronics industries, no matter what combination, specialization and scale are the key to success. Only by doing the most professional and cutting-edge in your field, the scale effect optimizes the cost structure and is the guarantee of ultimate success. So how to assess the success of mergers and acquisitions is roughly the same.
Reporter: Nowadays, there is a sense of waterlessness in the LED lighting market. How do you think that LED lighting products can truly achieve full water?
Pan Jie: I have already mentioned this question before. This year, the LED industry is very lively, and the channel war is booming, but many products are still hoarded in the warehouse of the channel. The heat of the terminal is not enough. The root cause is that the price/performance of the product has not yet triggered the craze for terminal replacement. However, from the recent situation, the moment of smooth flow of water in the channel should not be too far. Foshan Lighting from the traditional lighting era to the LED lighting era of change, one thing is not to change, is to do a truly cost-effective product so that the majority of ordinary people can afford, use. I believe this kind of purpose will also promote the popularization of this industry and LED to make the flow of water clear and smooth. Thank you!
Pan Jie: For more than half a century, Buddha Photo has accumulated a deep understanding of lighting applications and industry rules. Many people will say that the advantages of Buddha Photo are brand accumulation, perfect channels, strong financial strength, and focus on manufacturing and cost. These are objective facts, but the most crucial thing is not here, but the Buddhas have never lacked the genes and abilities to subvert the tradition. In the era of the traditional lighting industry, Buddha Zhao became one of the largest enterprises in China and even the world with the momentum of not being afraid of pulling down the emperor. In the era of LED lighting transformation, the Buddha photo also has such determination and resolute execution. Instead of being subverted, it is better to subvert itself. This is the core competitiveness of the Buddha.
Reporter: In the future, LED lighting companies will definitely have many M&A events. What kind of mergers do you think are the most reasonable? Are you optimistic about the recent vertical integration?
Pan Jie: Mergers and acquisitions are actually the same as the nature of marriage. There is no most reasonable statement, only the most appropriate combination. Most of the industry mergers and acquisitions in the past period are upstream manufacturers looking for channels to go downstream. In the case of overcapacity in the upstream, it is understandable that manufacturers can increase market voice by merger.
Whether it is taking the route of merger and vertical integration, or sticking to the positioning of its own industry chain, you can try it. If we look at the laws of other electronics industries, no matter what combination, specialization and scale are the key to success. Only by doing the most professional and cutting-edge in your field, the scale effect optimizes the cost structure and is the guarantee of ultimate success. So how to assess the success of mergers and acquisitions is roughly the same.
Reporter: Nowadays, there is a sense of waterlessness in the LED lighting market. How do you think that LED lighting products can truly achieve full water?
Pan Jie: I have already mentioned this question before. This year, the LED industry is very lively, and the channel war is booming, but many products are still hoarded in the warehouse of the channel. The heat of the terminal is not enough. The root cause is that the price/performance of the product has not yet triggered the craze for terminal replacement. However, from the recent situation, the moment of smooth flow of water in the channel should not be too far. Foshan Lighting from the traditional lighting era to the LED lighting era of change, one thing is not to change, is to do a truly cost-effective product so that the majority of ordinary people can afford, use. I believe this kind of purpose will also promote the popularization of this industry and LED to make the flow of water clear and smooth. Thank you!