By BizLED Bureau
Mar 10, 2016: The research and development wing in Philips Lighting Holding BV will invest funds to compete against the established rivals in Chinese LED market. The company is planning to initiate the program for a 5-year period.
The Dutch company’s intent is to improve innovation technology and has planned to invest more than 30 percent of its research and development resources in China. Other global players like Opple Lighting Co Ltd, NVC Lighting and GE’s light-bulb division are going full-throttle with their latest smart lighting products into the world’s biggest LED market in terms of revenue.
Competition in Chinese market is extremely competitive and quick and constant innovation is the only way to succeed in this market, said Chief Innovation Officer of Philips Lighting
Philips Lighting plans to release more than 1,000 lighting products in China each year, with a certain section of products specifically designed for the local market. This has triggered the research and development on affordable LED products for homes.
Currently, Chinese manufacturers accounted for 20 percent of global LED production although China is a big market for Philips Lighting. Statistics from Ministry of Industry and Information and Technology reveal that Chinese firms produced 177.45 billion LED lamps in the first half of 2015, up 37.33 percent year-on-year.
Consumers and manufacturers in China are also getting the benefit from fast-growing 4G network in the country. Local companies like Xiaomi Corp and Alibaba Group Holding Ltd are collaborating to create products with more technical functions and cross-industry elements to further diversify Philips market presence in China. The company partnered with Xiaomi to launch a connected desk lamp few months ago. The lamp adjusts the light automatically as per users’ need.
Philips Lighting will introduce connected lighting systems and smart lighting products as large-scale lighting equipment for the hospitality, sports and industrial sectors. With latest developments, Chinese companies are no longer seen as assembly shops for their foreign counterparts and are capable of producing most of the components on their own. The related research and development levels have scaled with time as well.
Philips Lighting’s has more than 1,000 researchers, 6 R&D centres and 13 plants in China as this is their second-largest overseas market after the US.
China is already committed for clean-energy and energy-efficient products thereby making big-ticket investments in this sector. The country is making serious efforts to create smart energy products, which use less power but also illuminate China’s green development, and become a key differentiating factor in determining a country’s competitiveness.