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The 1st CEO Conference of the 3rd G20-LED Summit
2013.5.26
Chengdu Gazette
Optimize supply chain sharing market opportunities 
The list of members of the 3rd G20-LED Summit (before and after the ranking):
Philips Lumileds
1. The first CEO meeting of the 3rd G20-LED Summit was successfully held in Chengdu, Sichuan on May 26, 2013. We discussed the theme of “Optimizing the supply chain and sharing market opportunitiesâ€.
2. This CEO conference is a memorable meeting, especially in the LED industry development this year has reached a very critical turning point. At the same time, I would like to thank the member companies, Xinliyuan, for their thoughtful work and support in this whole process.
3. The members of the CEO conference extended the definition of the platform of the G20-LED Summit. The participating member companies agreed that the membership of the summit members includes upstream, midstream and downstream, and everyone can optimize and upgrade the industrial chain through this platform. And gradually improve its own supply chain system.
For the mid-upstream member companies, this platform enables more downstream customers of the industry to understand us and promote quality products to enter the supply chain of more LED lighting manufacturers.
For downstream lighting application members, they can promote their products in the channel and carry out brand beautification and upgrade based on G20-LED lighting product specifications.
4. In order to better publicize the G20-LED lighting product specifications, the participating member companies unanimously agreed that the follow-up will be through the high-tech LED's print media, online media, and roving seminars covering the national channel resources for market cultivation and product promotion.
5. The participating member companies discussed the current overcapacity of upstream chips, short-term supply and demand tensions and price trends. The participating member companies agreed that the unit lumen cost of the chip will continue to decline rapidly in the future, and as the technical indicators increase, the chip size will become smaller and smaller.
In addition, chip companies are expanding into the market in both standard-scale manufacturing and custom-tailored R&D. By working with mid-stream packaging vendors, they are tailored to the needs of downstream application vendors.
6. The participating member companies discussed the current mid-stream orders, the short-term supply and demand tension, and the duration of market demand. The participating member companies agreed that the rapid growth of the demand for the entire lighting market since the beginning of this year, especially the demand growth rate exceeded the expectations of most companies.
At present, packaging companies are facing both the downstream demand continues to heat up, the order queuing phenomenon appears; and the upstream chip capacity supply short-term memory shortage is not enough.
For the expansion of production, packaging companies need to clarify the nature of their downstream customers' orders. If the project order is the main one, it needs to be relatively cautious; if it is based on distribution wholesale or retail channels, it can be relatively optimistic expansion preparation.
At the same time, in terms of price, taking into account the accelerated growth of market demand for some sub-products will cause a short-term increase in prices due to the shortage of certain parts of the device. However, based on the overall market market judgment, in the long run, the price of the device is still in the downward channel, but the price cut is gradually narrowing.
In addition, in the application market, in addition to the gradual release of the lighting application market demand, considering the lower-than-expected development of OLED display technology and the demand for 4K high-definition LCD TVs and oversized LCD TVs of 60 inches or more, the product life cycle of LED backlight devices will be extended. . Including the mobile terminal flashlights such as mobile phones, and the penetration rate of LED lighting for automobiles, the scale of LED packaging market demand will continue to expand.
7. The participating member companies agreed that, unlike the government's encouragement of upstream investment in 2010, the industry's virtual fire was different. This year's market retreat was based on the sharp loosening of the price of LED lighting application products, which has gradually approached the price level of traditional energy-saving lamps. Therefore, the release of LED lighting market demand has clearly entered the rising channel.
At the same time, due to the tight supply and demand of the medium power LED device market, the demand for indoor lighting market is gradually heating up.
8. At the same time, the number of more than 15,000 lighting companies will be forced to embark on the path of mergers and acquisitions due to overcapacity and the lack of more orders. The participating member companies agreed that the LED industry chain integration is surging, and some companies that are looking to become bigger and stronger are looking for investment and acquisition targets, and through rapid integration to improve production capacity, quality and cost control.
9. The participating member companies agreed that the scale effect of the industry is gradually emerging. The next stage is more important is the transformation of technology and products. The technology turnover has entered a relatively stable stage. Process changes or benefit changes will reflect the differentiation of enterprises. .
10. The member companies participating in the meeting unanimously passed and will continue to strengthen strategic cooperation in various ways. Each member company has its own unique advantages in technology, products and market. How to make up for each other, promote the growth of G20 enterprises, and lead the healthy growth of the entire LED lighting industry. This is the ultimate goal of the G20-LED Summit.
At the same time, the participating member companies agreed that the LED lighting industry will gradually polarize. The G20-LED Summit members are the best companies in the industry and have high market share in their respective market segments. Although some companies in the industry can achieve a certain effect by using low-priced sales strategies to seize market share in a short period of time, in the long run, the market will eventually eliminate these enterprises. Only truly good value-for-money products and services can ultimately occupy the market, and companies can also get the best health development.
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