Debang Lighting: The Road to Transformation of Traditional Lighting Enterprises

[Text / "High-tech LED - Research and Review" August issue Tang Guirong]

It is known as China's Magnetic Capital, Oriental Hollywood and other top honors, and has three listed companies in Hengdian Group, a household name. As a subsidiary of its green energy-saving lighting industry, Hengdian Group Debang Lighting Co., Ltd. (hereinafter referred to as “Debon Lighting”), although the annual sales have been close to 2 billion yuan, in the market, Debon Lighting is very low-key. .

Debang Lighting was established in 1997. In the field of traditional lighting, Debang Lighting maintained a relatively steady growth. “In 2011, the production of energy-saving lamps was 250 million, accounting for 8% of the country's total exports.” Li Qiang, deputy general manager of Debon Lighting, said that according to market sales, Debon can at least enter the top three.

In recent years, the rapid development of LED lighting has brought new changes to the Debon lighting business, including challenges and opportunities. “As an advantage of traditional lighting, the use of LED technology in the field of lighting is a rare opportunity for us. As long as we embrace this challenge, Debon Lighting will be able to achieve its second take-off.”

For this opportunity and challenge, Li Qiang believes that the key to the transformation of traditional lighting lies in the change of concept. The business idea of ​​LED lighting is completely different from traditional lighting. Therefore, only by respecting the characteristics of LED lighting can we use a new concept to create a platform suitable for LED lighting development.

With the opportunity of Dongyang

In Li Qiang's view, although Debang Lighting is more cautious in the LED lighting business, the company has already had a clear understanding of the LED industry layout.

At this time, the government's promotion policy for the LED industry just happened to be a breakthrough for Debon Lighting's involvement in the domestic market.

From the "Twelfth Five-Year Plan" to the LED lighting demonstration project, the governments of all levels have successively launched a series of favorable policies for LED lighting in the past two years. Based on the consideration of the government's active promotion, in the domestic market, Debon Lighting first positioned LED lighting in public lighting, which is mainly based on government municipal engineering projects and commercial engineering projects.

“The most unique industrial advantage of Debang Lighting is that our headquarters is located in Dongyang City.” Li Qiang believes that as the largest market for LED lighting applications, the construction industry has always been a place for companies to compete for. Dongyang City, which is known as the hometown of architecture, has naturally become an important breakthrough for Debang Lighting's transformation of LED lighting.

In 2010, the total output value of Dongyang Construction Industry broke through the 100 billion mark for the first time, and it was also the first county in the country with a construction value of 100 billion yuan. Dongyang City has a network of construction sites throughout the country and has hundreds of construction companies throughout the country. At present, the output value of Dongyang City completed outside the province reached 75.5 billion yuan, accounting for nearly three-quarters of the total output value.

The construction engineering market involved in Dongyang City has brought huge market opportunities to Debon Lighting. Li Qiang revealed that the current engineering market has contributed 20% of LED business revenue from Debon Lighting. With the extension of the product line, the follow-up will become a new growth point for the company's transformation of LED lighting.

In fact, as the parent company, Hengdian Group itself is the “LED test field” of Debon Lighting. Hengdian Group has a global network of outlets and is involved in many industries. The Hengdian Cinema, Hengdian Studios, golf courses, water parks, five-star hotels, theme shows and other places under Hengdian Group are themselves LED lighting applications. “With the construction of Hengdian Small Town Pilot, Debon Lighting will use this as an opportunity to make Hengdian the largest LED application demonstration area in Asia.” Li Qiang said.

Ni Qiang, chairman of Debang Lighting, summed up the strategy of the company's domestic market: Taking Hengdian Group as an opportunity to serve Dongyang's extended construction market, positioning domestic public lighting, and achieving a perfect breakthrough in the domestic LED lighting market.

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