LEDinside: LED Perspective from Mr. Roland Chiang, Director of Delta Electronics' Solid-state Lighting BU

Delta Group, with 40 years of history in the manufacture, started its business from power management products. Over the years, it has expanded its business into relevant products such as power supplies and fans while having adopted the diversification growth strategy to provide total solutions. In recent years, Delta has actively invested in the green energy field and achieved good performance in respect to the solar power, electric vehicle and LED areas. LEDinside had the honor to interview Roland Chiang, Delta’s Director of Solid State Lighting Business Unit, and talk about its LED lighting market strategy and plan.

Diversified Business Model: Economic Scale 

Delta started from power management products. With 40 years of industry experiences, it has expanded its business into relevant products such as power supplies and fans while it has adopted the diversified business strategy to provide total solutions. During the duplication of the business model to LED lighting business, with discipline formed all the way from design to production, Delta widens the gap with peers by its superior product quality.   

In terms of optical, mechanical, electrical and thermal solutions, first of all, Delta has laid a 40-year solid foundation in power management business; second, the total mechanical design can be improved in Delta since it has fairly good mechanical design processes such as injection molding in its Dongguan plant and has established friendly relationship with complementary suppliers; finally, Delta has also conducted researches on the design of optical lens. Therefore, with decades of years spent on the R&D of optical, mechanical, electrical and thermal technologies, Delta believes that its technology depth decidedly distinguishes itself from its industry peers, which puts it in an advantageous position in LED development. 

Market Strategy: ODM Model with Product Line Diversification to Provide One-stop Shopping for Global Giants Together with Taiwan Market Brand Management 

Nowadays, Taiwan manufacturers have so mastered LED technologies that the quality of upstream chips such as offered by Epistar, Huga is no less than that of international manufacturers. In light of product technologies in the mid- and downstream, customers are surprised to see Delta’s foundation in the integration of optical, mechanical, thermal and electrical technologies. However, the lighting product definition in the mid- and down stream is still under exploration even for international lighting giants, which can be seen from different product specifications and standards. Yet international lighting manufacturers with market influences can gradually standardize technologies according to market responses; in contrast, as Taiwan manufacturers do not perform in brand management as well as the former, it will become a disadvantage in LED product development for Taiwan.

In this context, when Delta cooperates with major international manufacturers, in most cases, ODM model is adopted and services of design and production are provided to customers. Since Delta can offer diversified products so that Delta customers are able to do one-stop shopping, its product acceptability is much improved. Meanwhile, Delta also pays attention to IP issues and believes that cooperation cannot go smoothly unless both parties attach great importance to IP concerns. If the customer has problems with product patents, taking cost and IP concern into account, Delta will put the latter on priority solution list for the customer.

In Taiwan market, Delta is dedicated to brand management, which consists of two major parts, channel establishment and management in bidding market. On one hand, local LED channels are mainly 3C chain distributors like Sunfar, Tsannkuen and professional lighting, plumbing & electric services across Taiwan. Delta’s focus is to search for people and lighting experts who commend Delta’s products, designs and business concepts. On the other hand, regarding the management in bidding market, there are two bidding sources, one from the platform of common supply contracts through BOT and the other from design bidding. Nowadays Delta is more and more experienced with these two bidding markets with rising bid amount and scale.

LED Lighting Popularization Factors: Cost Reduction, Acceptance from Professionals, Public Recognition and Trust in LED lighting and Communication within the Industry

First, cost reduction is just one of the factors. Second, the support and acceptance of professionals such as designers are equally important. Today designers have widely adopted LED lighting products, considering the easy control, fitting and life time. Once accepted by professionals, various products of LED lighting applications can find their way into the family. Third, public recognition of LED lighting needs to be increased. Roland Chiang pointed out that it is inevitable to see negative opinions in China’s Ten Thousand LED Lights in Ten Cities program at current stage during the development of LED industry. The program as a whole actually has speeded up LED popularization and succeeded in enhancing public recognition of LED lighting. Fourth, advancements in technical maturity can raise consumers’ trust in LED products. Finally, communication between LED manufacturers and conventional light fixture suppliers are especially important. 

Jingxin Opto: Chip Supply and Technical Supports 

Through indirect investment in a third place, Epistar and Delta has founded Jingxin Opto in Guangzhou driven by the subsidy policy of Chinese government. The factory not only supplies Delta with chips but also offers technical supports to Delta. However, Delta doesn’t involve into its business management.

Delta’s LED Lighting Aim: Healthy, Pleasant new lighting

Looking into the future of LED lighting specifications, Delta’s aim is New Lighting for a Healthy and Pleasant Life. With continuous LED technology evolution and innovation of design, power control and luminous efficacy, it is better to meet human needs of being healthy and comfortable, which means the immediate effects such as no tiredness of eyes and the potential ones such as no environmental pollution to maintain sustainable eco-environment. In future, Delta will base on the lighting power business and rely on professional managers in all business units through experience sharing to further develop the whole lighting industry. An enterprise must keep sustainable operation so Delta emphasizes more on teamwork instead of individual heroism. On this note, there is more to look forward to in the promising future of Delta Electronics.

By Lowy Chang