NVC Lighting: Harsh Winter Ahead for Chinese LED SMEs

The UK is paying more attention to the impact from China’s easing economy upon the global economy. China’s economic slowdown has spurred Chinese enterprises to increased overseas engagement after a long learning period, Chinese enterprises will have significant impact on the global market within five years, a BBC report cited Donglei Wang, President of NVC Lighting  and ETI saying.

Wang indicated easing economic growth has greatly impacted manufacturing business, which means SMEs are going through a very difficult time. A conservative estimation is that at least one third of Chinese LED manufacturers will exit the market this winter. NVC Lighting, a leading Chinese lighting brand, has sensed the huge impact from the decelerated economic growth. In 2015, the company’s residential lighting revenue grew, while commercial lighting declined.

Chinese government has become more attentive to sustainability issues and tried to solve emerging environmental issues. The government support of the LED lighting industry is one of the solutions. In 2014, the overall Chinese lighting semiconductor worth grew 36% from RMB 257.6 billion (US $39.8 billion) to RMB 350.7 billion (US $54.2 billion). So far, the lighting semiconductor industry development remains fragmented.

LED industry is not the only one that is suffering. Experts suggested China’s real economy development will involve SMEs growth will be dependent on large enterprises, and large enterprises will rely on banks.

Western media started to turn their attention to Chinese enterprises’ oversea status. Wang is convinced that the declining economy drove large enterprises and leading brands overseas, which is the case of NVC Lighting.

According to Henry Sun, chairman of the UK-based NVC Lighting Ltd, the company has entered UK mainstream market for a few years. The UK-based company is thoroughly localized with integration of different ideas and cultures. Most of the managing groups are local lighting professionals. Depreciation of Renminbi (RMB) is beneficial for overseas business development.

Declining Chinese economy stimulates new growth potentials for Chinese manufacturers too. NVC Lighting aims to become one of the top five global leaders in the industry, “We hope to become a leading global business, while focusing on European and American markets. Our goal is to become one of the top three lighting companies worldwide. This is our chance and challenge at the same time,” said Wang.

 

(Translator: Emma Chang, Editor, LEDinside)

Disclaimers of Warranties
1. The website does not warrant the following:
1.1 The services from the website meets your requirement;
1.2 The accuracy, completeness, or timeliness of the service;
1.3 The accuracy, reliability of conclusions drawn from using the service;
1.4 The accuracy, completeness, or timeliness, or security of any information that you download from the website
2. The services provided by the website is intended for your reference only. The website shall be not be responsible for investment decisions, damages, or other losses resulting from use of the website or the information contained therein<
Proprietary Rights
You may not reproduce, modify, create derivative works from, display, perform, publish, distribute, disseminate, broadcast or circulate to any third party, any materials contained on the services without the express prior written consent of the website or its legal owner.
Display devices have been used for many years as a means of HMI (Human Machine Interface) to connect humans and machines interactively, and their usage are still expanding. Automotive interiors are no exception to this trend, with an increasing ... READ MORE
About LiDAR Automotive industry trends In recent years, many vehicles have been launched with ADAS (Advanced Driver Assistance Systems) as standard equipment. As the future evolves towards more automated driving, sensing around the vehicle i... READ MORE