In recent years, cooperation between LED lighting companies and the Internet and intelligent control giants has emerged one after another. This year, Huawei is the first to establish an intelligent lighting eco-chain with LED lighting companies such as Op, Rieter, Philips Lighting and China Micro-Optical Electronics.
This time, Philips Lighting broke the past cooperation model and chose a joint venture approach with the intention of increasing market promotion.
On November 2nd, Philips Lighting and China's Internet leading company Xiaomi signed an agreement in Beijing to form a new joint venture to jointly promote the development of smart connected home lighting in China.
The newly formed joint venture company will design and develop intelligent and interconnected LED lighting products for Xiaomi's smart home ecosystem, enabling intelligent control of lighting for applications (Apps) in Android and Apple smartphones.
Mr. Hong Keli, CEO of Liverpool Lighting Global and Mr. Lei Jun, Chairman and CEO of Xiaomi Company
Continuing the successful cooperation between the two parties in a variety of smart connected LED lighting products, the products developed by the new joint venture company will still be sold through the Xiaomi retail channel. The new joint venture company was established by Philips Lighting and Xiaomi at a 70% and 30% stake.
The joint venture will further expand the territory of both smart connected lighting and smart home ecosystems in China.
“It’s a win-win situation to combine Xiaomi’s highly acclaimed smart home ecosystem and online marketing strategy with Philips Lighting’s superior smart connected lighting technology,†said Wang Wei, president of Philips Lighting Greater China. “In the future In the coming months, we will gradually provide more users with leading-edge, high-performance smart connected LED lighting products to users of Xiaomi Smart Home Ecosystem."
“Philips Lighting is a global leader in lighting and has a history of more than 100 years. Xiaomi has the largest intelligent family ecosystem in China with the most extensive product categories and the largest number of users,†Xiaomi Co-founder and Vice President, Xiaomi Liu De, head of the eco-chain, said, “Through this cooperation, Xiaomi will work with Philips Lighting to leverage the advantages of both parties in their respective fields to provide users with the most intelligent lighting product experience.â€
Behind Philips Lighting's joint venture Xiaomi, Philips Lighting hopes to break the market squeeze of the domestic LED lighting companies that are constrained by the traditional LED lighting business in the Chinese market.
Earlier, Yin Li, deputy secretary of the Sichuan Provincial Party Committee and governor, met with Hong Guangli, CEO of Philips Lighting, and his party in Chengdu.
Hong Anli said that Philips Lighting attaches great importance to Sichuan's vast market space and superior development conditions, and will further increase investment in Sichuan and accelerate the construction of a production base with larger scale, more advanced technology and wider service area.
In December 2013, Philips LED Professional Lighting (Chengdu) Demonstration Park was officially completed in Chengdu High-tech Zone (Western District). This world-class demonstration park includes an LED professional lighting production base and Philips' most advanced lighting application center.
The demonstration park covers an area of ​​about 40,000 square meters and includes an ultra-large lighting application center and an LED professional lighting production base with a total investment of 25 million euros.
The Chengdu Chengdu Lighting Application Center covers an area of ​​7,000 square meters, demonstrating Philips' outdoor and indoor, world-leading and latest lighting innovation applications; from light sources to luminaires, from intelligent lighting control to total lighting solutions.
With the advent of the LED era and the rise of China's lighting industry, the fate of Philips Lighting seems to be ups and downs, first split by the Philips Group and then listed, and recently dissolved a number of mainland subsidiaries.
Previously, Philips global CEO Wan Dunhao revealed that Philips is actively discussing the sale of Lumileds general lighting and automotive lighting. At the same time, Philips plans to sell the remaining 71% of Philips Lighting shares currently held in the next few years.
Marriott said that the company will not rush to sell Philips Lighting shares, and will be more cautious to choose buyers. At present, Philips Lighting is making efforts to complete its transformation, such as turning to smart lighting, automotive lighting, and plant lighting.
Philips Lighting announced its quarterly results as of the end of September. The quarterly net profit was 51 million euros (approximately 434 million Hong Kong dollars), down 30.1% year-on-year. During the period, sales fell 5.4% to 1.745 billion euros (approximately 14.952 billion Hong Kong dollars), while comparable sales fell 3.3% year-on-year. Sales of LED related products increased by 16% year-on-year. During the period, the company recorded a restructuring and M&A expenses of 55 million euros (approximately 468 million Hong Kong dollars), more than the company's earlier estimate.
“Philips Lighting has never relaxed its influence on the Chinese lighting market, and has not withdrawn from the Chinese lighting market. At present, Philips Lighting’s profit in China accounts for more than 30%.†Hong’an has emphasized that China is the world’s second largest market for Philips Lighting, the Chinese market. It is very important for Philips lighting and it will always be the case in the future.
“2016 is an important year for Philips Lighting. It is a year of foundation and a key year for future growth.†This is the president of Philips Lighting Greater China, who is taking office in 2015. The crowning touch of the annual Philips Dealer and Partner Conference.
Before joining Philips, Wang Wei’s resume also confirmed the major strategic shift of Philips Lighting. East China University of Science and Technology, Bachelor of Computer Software, has served as senior executive in Shanghai Baoli Computer Integration Co., Ltd., Nortel Networks, Cisco, Avaya, management experience of multinational companies and previous experience in China, indicating Philips Lighting to China The market is highly valued.
More importantly, more than 20 years of IT industry experience is in line with Philips lighting's layout from traditional lighting to smart connected lighting strategy.
"In the era of the Internet of Things, smart lighting will become a trend. Whether in the energy-saving wave of LED lighting or the digitalization of lighting, Philips Lighting hopes to be the leader." This is the first time that Wang Hao accepted this during the Tianjin Davos Forum this year. The interview of financial reporters clearly defined the future goals of Philips Lighting.
Obviously, Philips Lighting is constantly highlighting the importance of the Chinese market in its future strategic layout, which will undoubtedly add a premium to the future equity transfer of the Philips Group.
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