A giant's choice: from time to time, "rebound" can continue to "explore"

According to a person familiar with the matter, GE Lighting CEO did reveal the intention to withdraw from the internal mail, but there is still no clear plan for GE Lighting to withdraw. To this end, the industry generally believes that the traditional lighting giant stripping lighting business is the general trend, the most important reason is that the traditional lighting turned to the LED lighting era, because its profit margin has been great, GE lighting and Philips, Osram began to be listed as The world's three major lighting giants. However, Shiyi is now the only industry giant that is interested in seeking to sell lighting business. Previously, both Philips Lighting and OSRAM have had similar actions. To sell, or not to sell - that is the question On the 6th of this month, there were rumors that foreign media reported that the global lighting industry pioneer General Electric (GE) is considering selling its consumer lighting business. Of course, you can think of this as an old-fashioned re-enactment, and it’s a shocking news. According to people familiar with the matter, GE is considering the sale of the business, including North American residential LED lighting and home networking technology, and plans to retain a commercial LED lighting business called Current. Founded in 2015, Current is an innovative energy company that combines LED, solar, energy storage and electric vehicle businesses. Currently, GE has hired an investment bank to assist it in assessing the possibility of selling consumer lighting business at a price of about $500 million, but it is still uncertain whether it will be successful. According to the Wall Street Journal (WSJ) report, GE's re-transmission to consider the sale of its symbolic consumer lighting business is the latest sign of the company's active transformation. We can see that in GE's current territory, the lighting business is already one of the few consumer businesses. According to reports, GE's consumer lighting business unit's revenue last year was about 2.2 billion US dollars, less than 2% of GE's total revenue, and the market position in this field is gradually weakening. The sale of this department may be seen as the latest action taken by GE to exit the personal consumer business market and focus on the industrial business. GE CEO Jeff Immelt has publicly stated that our task now is to dig deeper into our business rather than broaden our business. It is true that the news that GE plans to sell the lighting business has been circulating for a long time, but it has not been able to sit down. Back in time, as early as October 7, 2015, when GE announced the establishment of the new company Current, some insiders predicted that GE would sell the lighting business, but it was repeatedly denied by the company's top management. However, since then, GE has also begun to divest the group's operating sector and continue to sell non-core businesses, which is expected to return GE to a basic industrial company. In fact, GE is currently focusing on business areas such as power generation, aerospace, medical, and industrial Internet, and the consumer goods sector, including lighting, is increasingly marginalized. As early as September 2014, GE sold its appliance division to Electrolux for $3.3 billion, and the lighting division will be GE's only reserved consumer goods division. Today, this has become the shrinking burial of GE's lighting business. Under the pen. By 2016, GE sold its home appliance business to China Haier Group for US$5.4 billion. This divestiture has intensified the situation. In August of the same year, GE announced that it will close two traditional lighting production plants in Lexington, Kentucky, USA in August 2017. The two plants are the Lexington Light Factory and the Somerset Glass Factory. The Lexington Light Factory produces traditional lamps, while Somerset produces halogen lamps that turn 20% of their capacity into LED lighting. By the end of August, GE Lighting had resolutely announced a heavy news. At the time, GE Lighting CEO rumored in an email to internal employees that GE Lighting will terminate all direct commercial activities in Asia and Latin America starting November 30 this year. In response to this decision, GE explained in the relevant statement: In the past ten years, the market demand for traditional lighting products has continued to decline, and the development of technology has increasingly shifted from traditional incandescent lamps, halogen lamps, etc. to new products such as LED lighting. In the face of changes in market demand, GE Lighting will focus on corporate resources, focusing on the development of LED technology and business in North America, Europe and the Middle East. Having said that, the GE lighting contraction business has suddenly pulled out, but it has caused business disputes with Chinese distributors, including 28 GE China market distributors issued a joint statement to protest GE Shanghai company single The party issued a termination of the dealer agreement and requested compensation. According to a person familiar with the matter, GE Lighting CEO did reveal the intention to withdraw from the internal mail, but there is still no clear plan for GE Lighting to withdraw. To this end, the industry generally believes that the traditional lighting giant stripping lighting business is the general trend, the most important reason is that the traditional lighting turned to the LED lighting era, because its profit margin has been greatly reduced. Looking back over the entire 2016, GE's turmoil in China is a wave of unrest. On November 23, an informed source broke the news that GE Lighting China is undergoing large-scale layoffs, and some employees were required to obtain compensation and dismissal duties at the minimum standards of the Labor Law. The incident, just after the company announced the termination of its Asian operations, nearly 30 dealers jointly protested that GE Lighting had suddenly terminated the agreement for just two months. In recent years, the industry has always had the voice of GE Lighting to withdraw from China, mainly due to its poor performance, and its development in China has been declining. Some experts pointed out that the development of GE Lighting in China has been marginalized for a long time, mainly for developed markets in Europe and America. Its products cover industrial lighting, outdoor lighting, commercial lighting, etc. In general, industrial lighting and outdoor lighting are two products. The line is more advantageous. At the same time, we can see that during this period, GE Lighting has already withdrawn from the Asian market. According to people familiar with the matter, GE Lighting only has channels in China and does not have physical factories. Its products are mainly commissioned by Xiamen Tongshida Co., Ltd. Tongshida is a subsidiary of Xiamen Light Industry Group. It is mainly engaged in the research, development, production and operation of energy-saving electric light source products, lighting appliances and plastic products. Among its subsidiaries, Tongshida Lighting and Tongshida New Technology have cooperated with GE. Some analysts pointed out that GE Lighting's promotion in the Chinese market is mainly based on industrial lighting, mainly through tendering, so the promotion methods and other lighting products for home and business applications are also different. Since the two markets in Asia or Latin America have a small scale of revenue, even if they withdraw, they have little impact. In fact, GE is currently focusing on business areas such as power generation, aerospace, medical, and industrial Internet, and the consumer goods sector, including lighting, is increasingly marginalized. On the other hand, GE is gradually withdrawing its home appliance and lighting business. On the other hand, GE is also stepping up its core business. According to reports, GE's organic growth rate in FY2016 is expected to be 2% to 4%. In the first half of the year, revenue has dropped by 1% year-on-year. GE management hopes to grow by 5% in the second half of the year and increase by 2% in the 2016 fiscal year. GE Energy expects to ship 65% of its heavy-duty gas turbines in the next three to four months, and by acquiring Alstom's power assets, GE Energy has become the largest business unit in GE's industry, accounting for 20% to 25% of total revenue. %. GE Airlines is the second largest subsidiary of GE Group, accounting for 18%-20% of total revenue, followed by GE Healthcare, which accounts for 16%. In addition, GE has been actively seeking to establish an industrial Internet. Through the industrial software platform Predix, GE's digital revenue is expected to grow by 25%-30% by 2020, reaching $15 billion. To meet the needs of industrial customers, GE has invested $1 billion in the Predix platform to date. The company estimates that the potential of the industrial Internet market by 2020 could reach $225 billion. Since April 2016, GE has acquired Melbourne construction automation startup Daintree Networks for more than A$100 million. After GE's acquisition, more than 60 engineers from Daintree will be integrated into GE's new innovative business unit, Current Industries. Predix, an Internet software development platform, enables Current to expand its building automation platform to enhance the ability to deliver energy as a service to small and medium-sized buildings around the world. In addition, Current has partnered with companies such as ATT and ShotSpotter to develop smart cities. On November 16th of the same year, GE acquired two high-tech startups, Bit Stew Systems and Wise.io, to build artificial intelligence, in an attempt to compete with IBM's artificial intelligence product Watson. Anyway, to sell, or not to Sell ​​- that is the question Xiaobian: Since the official is still silent, that is, the dust has not yet settled, then we can only wait and see, continue to pay attention and wait and see.

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