'Amateur' ventures into the LED arena, life and death become a mystery

Recently, Sina Weibo blogger @LEDClub founder Gao Yaning revealed on Weibo: Jiaduobao, the leading beverage brand, will enter LED lighting. According to informed sources in the industry, there are already manufacturers looking for Jiaduobao to cooperate to jointly create the LED application market this summer.

As soon as this news came out, it immediately grabbed headlines inside and outside the industry. Many people in the industry continued to verify the authenticity of the news through various channels. On the contrary, Jiaduobao, the protagonist of the headlines, had a somewhat "wait and see" attitude, remaining silent, neither confirming nor denying.

Is Herbal Tea Jiaduobao’s entry into LED a myth or a reality?

Previously, the announcement of the nano-LED bulbs invested by Li Ka-shing, the richest man in China, in Victoria Harbor immediately triggered a Midas touch effect in the Hong Kong stock market. The share prices of many LED lighting concept stocks rose, and even the share price of TOM Group was driven up by more than 10%.

In fact, it is nothing new for laymen to venture into LED. It has become commonplace in recent years. With the recent news of many laymen entering LED, it shows that LED is no longer limited to the lighting industry or ordinary merchants, and has gradually attracted the attention of people from all walks of life. This move has also increased the "exposure rate" of LED and the growth value of the stock market, and has also contributed to the universal popularization of LED.

As soon as the blockbuster news of Jiaduobao’s entry into LED was released, people from all walks of life speculated. Someone left a message on the Internet saying that the competition in the herbal tea market is becoming increasingly fierce. It is unknown whether Jiaduobao's move is because its "first can" title is not tough and it is seeking new growth points for the company. Industry-related media also immediately expressed their opinions on Weibo. Most of them were "watching a show" about this incident and were also skeptical - which one is true or false? Jiaduobao will also cross-border into LED lighting? Some industry insiders said that this matter is extremely explosive. If Jiaduobao enters, it will undoubtedly accelerate the popularization of LED knowledge, which will have many benefits for powerful manufacturers.

Here, there is an extra chapter about Jiaduobao’s entry into LED. A reporter revealed that in fact, as early as the end of 2013, at a Jiaduobao factory in Wanzhou, Chongqing, someone who had heard of Jiaduobao said that it wanted to enter the LED industry. At that time, it had been contacted by NVC, and it was said that it wanted to develop into LED commercial photography. Since then, there has been no follow-up news about Jiaduobao’s entry into LED, and it is still unclear whether Jiaduobao is really cooperating with NVC.

Is Jiaduobao unwilling to be lonely or has it been planned for a long time to enter LED? Why did Jiaduobao make no movement at all after the news was released, as if it was just a fun event for others and had nothing to do with the authorities. If it is true, why not come forward to confirm the facts in person? If it is false, why not clarify it? What is hidden in it, and what big moves will Jiaduobao make next? Today is an era of developed Internet, and it can be said that "there is no airtight network." Especially for a big brand like Jiaduobao, even a small move will attract attention, but there is no official answer to the LED incident.

"Layers" mostly get involved in LED through acquisitions

As technology development becomes increasingly mature and green energy is promoted, governments around the world vigorously promote plans to phase out incandescent lamps and support generous financial subsidy policies to support LED lighting, making LED lighting a promising and high-profit market. Many laymen, who "know the current affairs, are heroes", have rushed into the hot LED market.

In recent years, the LED fire has spread to companies that were originally out of reach. Home appliances, automobiles, and even steel groups have joined in this fierce market battle. Cross-border crossover is no longer unusual for LED. In 2001, Furi Electronics and the automobile company BYD began to get involved in the LED industry in 2003. Today, Hebei Iron and Steel Group and China's richest man Li Ka-shing have invested. In recent years, there are many laymen who have entered LED lighting through acquisitions, alliances and other means.

You know the beginning but you can’t guess the ending

As the saying goes, "Every line is like a mountain". For a layman, if you venture into LED, some companies will bring you joy and others will bring you sorrow. Some of the "rookies" in the cross-border LED industry have successfully crossed over, while some have dropped out of the LED market halfway. Judging from the list of "laymen bravely entering LED", current industry leaders such as Dehao Runda, Silan Micro, and Guangri Co., Ltd., which have survived and become stronger in the wave of LED environmental trends, all reported revenue of 100 million yuan in their annual reports. They have developed from laymen to become mainstay model companies in the industry, but not every layman can achieve such results.

Taiwanese variety show king Wu Zongxian also entered the LED arena in 2006, but he knew the beginning but could not guess the ending. Wu Zongxian began investing in the LED factory Alpha Photon in 2006, but ended up falling into a quagmire of huge losses, to the point of selling real estate to fill the hole. It is reported that due to repeated losses in the LED energy-saving industry, Wu Zongxian colluded with Xu Fengyang, the director of OTC company Lianming Action Technology, and jointly emptied Lianming's assets of NT$32.5 million through fake transactions. In the end, Wu Zongxian was sentenced to 1 year and 10 months in prison, suspended for 3 years, and fined NT$3 million (equivalent to about 600,000 yuan in RMB).
Qixi, who is outside the entertainment industry, is also one of the examples of "defeat" in the LED arena. On August 9, 2013, 7Xi Holdings invested 5.1 million yuan of its own funds to establish Guangzhou 7Xi Optoelectronics Co., Ltd. to enter the LED industry. When the outside world thought that 7Xi would do a big business in the LED industry, the situation suddenly took a turn for the worse. In November of the same year, 7Xi Holdings transferred all its shares in 7Xi Optoelectronics to 7Xi Information and announced its withdrawal from the LED market. This move made people marvel at its speed.

On the contrary, BYD, which was originally famous for its main automobile business, has been based in the LED industry for ten years and is proud of the LED industry. BYD has been involved in LED since 2003. From the initial focus on the R&D and production of packaging products, it has now formed a full LED industry chain and shaped its own brand BYD Lighting. At present, BYD Lighting Division has invested 650 million, established a team of more than 400 R&D personnel, and obtained nearly 300 LED-related industry patents. In 2010, BYD claimed to invest 1.2 billion yuan in Huizhou to lay out the entire LED industry chain, which caused a sensation in the industry at the time.

Recently, some people have speculated that Xiaomi President Lei Jun will lead Xiaomi to enter LED lighting, because only by laying out lighting can Xiaomi's smart home strategy be more complete and Lei Jun's smart home dream be more perfect. First of all, regardless of whether this is true or false, one thing is certain that people from all walks of life are aware of the broad market prospects of LED. Although some people say that LED is now in a period of war between princes, it is also an era of war between heroes. The development of LED is a general trend, but laymen who want to enter LED still need to clearly understand the current situation and sort out and understand the new industry. Cross-industry brings opportunities and challenges, and the characteristics of each industry are different. So doing LED for laymen is certainly not an old-fashioned method of just changing the soup without changing the medicine.

Hot discussion area:

The LED “money” scene tempts laymen and cross-border newcomers

After it was reported on the Internet that China's leading herbal tea brand has entered LED, people in the LED industry have expressed their views on cross-border matters. From interviews with reporters, we learned that the fire of Jiaduobao's entry seems not strong enough. There are still some people in the industry who do not understand this matter, and most of them only have a "love to hear and see" mentality. Whether Jiaduobao enters or not, LED is there.

Chen Bo, FAE Engineer of Sigma Technology Co., Ltd.: Has Jiaduobao entered the market? Is there any news? It is only reported online now, but if it is true, it would be interesting. After all, it is the leading herbal tea brand in China.

Zou Hao, Chairman of Laiyunda: Cross-border alliances will win the future. In the LED era, the traditional development model of the electrician and lighting industries is no longer appropriate. The future of LED lighting must be a cross-border integration of smart lighting concepts. Driven by information technology and the Internet, this "cross-border" is not just limited to diversification, but also a kind of "integration." We insist on putting people first and culture as the soul in the cross-border process. Platform integration, win-win cooperation! Only in this way can we adopt a team-building approach to remain invincible in such a fierce market competition environment.

Conclusion:

In the final analysis, "Jiaduobao's entry into LED" is true or a mystery. There is still no clear answer. Regardless of whether Herbal Tea Jiaduobao enters the LED industry and starts the summer application boom, cross-border development still has to return to itself. Many laymen jumped into this emerging industry with enthusiasm. Some of them successfully extended their diversified operations, while others suffered a bloody blow.

All in all, outsiders need not only courage to venture into the LED industry, but also careful consideration before proceeding. Don’t think that “there is beauty in the distance” across borders and you will “fly into the flame”. With the experience of success or failure of previous generations, in fact, this is also a clear guide for laymen in the cross-border LED industry. Learn from experience and lessons and make clear plans.