[Source: "High-tech LED-lighting market" July issue / Zhang Wei]
The topic of overseas financing for domestic companies has been heatedly debated. LED lighting as a new generation of products to replace traditional lighting, more and more venture capital institutions also put the focus on the LED industry chain, and constantly explore potential LED companies. At present, China's LED market has become a gathering point for global multinational companies, and in the future Chinese LED companies will certainly create several companies that have an impact on the world, and VCs are also paying attention to such enterprises.
It is understood that the annual output value of LED in Guangdong Province will reach 500 billion in the next three years. With the opening of China's LED market in the future, the large-scale consumer market has attracted many companies.
At present, the domestic LED market is extremely competitive. In the second half of the year, more and more enterprises will face the problem of shortage of funds. The absorption of venture capital has become a “life-saving straw†for many domestic enterprises to continue to develop. And a strong venture capital can not only provide financial support for enterprises, but also optimize the development of enterprises.
In May, Shangyu Lighting received a second round of financing of 30 million US dollars, and its general manager Sun Jianning became a hot topic in the industry financing topic. The reporter interviewed Sun Jianning, general manager of Shangyu Lighting. He expressed his views on overseas financing to reporters and made some suggestions for LED companies preparing for financing in China.
Gaogong LED Reporter: Why does VC invest in Shangyu Lighting, and what advantages does your company have?
Sun Jianning: The US oak investment fund mainly focuses on classified investment. For example, energy conservation and environmental protection are the key projects of its investment. Our VC (risk agency) comes from Silicon Valley in the United States, and there are thousands of business plans available each year, so the competition for VC money is fierce. The members of the VC team are all from the world's top business schools. They also have a wealth of business experience and have helped many companies to successfully go public. It is impossible to fool them.
The US VC has a very high valuation of our company. We have a very good DNA. This is a summary. You have to say what our advantages are. There are many details in it, but they care. There is a solid thing in the enterprise. For example, in the operation of the team, in the handling of everything, they can feel that you are very practical.
Gaogong LED reporter: How is the research and development ability of Shangyu, is this the advantage of VC?
Sun Jianning: LED lighting has an absolute advantage in terms of energy saving and efficiency. The only constraint that hinders its development is the high price. Therefore, the breakthrough cost constraint is a problem we must solve in the process of popularizing LED lighting. We use our self-developed technology and the vertically integrated system design capabilities of the upper, middle and lower reaches to maximize the efficiency of each luminaire component and improve overall efficiency, thus maintaining a good balance of quality and price.
VC asked how long our technology can lead in the market. My answer is: we will continue to improve in product technology, and continue to innovate. At this stage, there is a certain technology leading, and it is impossible to expect it to continue to lead in the market. Technology R&D is a competitive platform. It is very difficult to do every step of the way. It is not easy to do vertical integration. Various companies in the world are constantly making breakthroughs in product technology, and some top talents are constantly trying various research and development.
Our definition of LED lighting research and development is to make one thing affordable to the average consumer, while ensuring product quality, which is the core of research and development. I often swear by our staff, not difficult product technology, we do not study. Because this technology is broken even if you break through, many companies in the industry will follow up immediately. Our goal is to be a world-class LED company, which requires the usual accumulation, pay attention to the details of all aspects of work, and solve the details of these accumulations together, the company has a good foundation for development. The growth of a company depends on the accumulation of it every day.
In fact, every company has its own strengths and advantages, and I never despise my opponent. But I hope that we will do more comprehensive, balance all aspects, and try our best to do the best.
Since the end of last year, we have developed a lot of products, which is better than VC expected. VC is looking at our team's execution in R&D.
Gaogong LED reporter: How does Shangyu understand the domestic LED consumer market?
Sun Jianning: As multinational giants target China, the competition in the domestic market will become more intense in the future. Therefore, we are also stepping up the construction of domestic engineering channels and dealer channels. This will be gradually improved in July and August this year. The online shopping platform is also in preparation.
The domestic market is a development trend, even for high-end products, the domestic customer base is large enough. We have contacted some high-end customers before. They used LED lighting products 2 years ago, but found that LEDs are not as good as they thought during use, so I don’t think they don’t consume, but the products don’t reach them. expected.
If the product is not what the customer wants, even if it is cheaper, the customer will not want it. As long as the customer is satisfied with the product, even if it is expensive, some people will want it. Therefore, I will do it from two aspects. On the one hand, it emphasizes the quality of the lamp. The product with higher positioning will be better in color temperature, color rendering and light index. On the other hand, from the perspective of popularization, calculate LED lighting. The purchase cost of products and traditional lighting products, in the case of low electricity costs, many consumers will still buy traditional lamps.
However, in terms of product life cycle, LED lighting products use much less electricity than traditional lighting products, and the service life is longer. Therefore, many factories, shopping malls and office buildings in China will choose LED lighting products.
In addition, since last year, domestic LED companies have made significant progress in technology, and production costs have also declined. Therefore, from the perspective of market opportunities, the market size will be large.
The size of the market depends on the price of LED lighting products in the end market. The price will drop and the market will expand. I think the terminal market is completely open depending on the technology maturity and product price. At present, we have launched a special 7W LED bulb, three for only one hundred yuan people, while ensuring technology leadership, it is more attractive from the price.
Gaogong LED reporter: In the next two years, there will be financing fever in China. What suggestions do you have for domestic financing companies?
Sun Jianning: At present, the domestic LED market is becoming more and more fierce. VC will also look at the enterprise market segment. Whether it is a company with a long technology or a very comprehensive enterprise, it has a competitive advantage. Enterprises must do a good job from a certain segment, and then obtain financing from leading areas to explore other related fields.
In addition, companies should not be lucky enough to fool VC, foreigners value integrity, what we do and things that are not done will be open to VC. Finally, VC consistently evaluated us: strong execution. For example, VC saw the products we developed in the past year, and saw the status of the entire production line of the factory, including every detail of our packaging. In short, everything you have to do is said to be done. I think this is what VC wants to see.
The topic of overseas financing for domestic companies has been heatedly debated. LED lighting as a new generation of products to replace traditional lighting, more and more venture capital institutions also put the focus on the LED industry chain, and constantly explore potential LED companies. At present, China's LED market has become a gathering point for global multinational companies, and in the future Chinese LED companies will certainly create several companies that have an impact on the world, and VCs are also paying attention to such enterprises.
It is understood that the annual output value of LED in Guangdong Province will reach 500 billion in the next three years. With the opening of China's LED market in the future, the large-scale consumer market has attracted many companies.
At present, the domestic LED market is extremely competitive. In the second half of the year, more and more enterprises will face the problem of shortage of funds. The absorption of venture capital has become a “life-saving straw†for many domestic enterprises to continue to develop. And a strong venture capital can not only provide financial support for enterprises, but also optimize the development of enterprises.
In May, Shangyu Lighting received a second round of financing of 30 million US dollars, and its general manager Sun Jianning became a hot topic in the industry financing topic. The reporter interviewed Sun Jianning, general manager of Shangyu Lighting. He expressed his views on overseas financing to reporters and made some suggestions for LED companies preparing for financing in China.
Gaogong LED Reporter: Why does VC invest in Shangyu Lighting, and what advantages does your company have?
Sun Jianning: The US oak investment fund mainly focuses on classified investment. For example, energy conservation and environmental protection are the key projects of its investment. Our VC (risk agency) comes from Silicon Valley in the United States, and there are thousands of business plans available each year, so the competition for VC money is fierce. The members of the VC team are all from the world's top business schools. They also have a wealth of business experience and have helped many companies to successfully go public. It is impossible to fool them.
The US VC has a very high valuation of our company. We have a very good DNA. This is a summary. You have to say what our advantages are. There are many details in it, but they care. There is a solid thing in the enterprise. For example, in the operation of the team, in the handling of everything, they can feel that you are very practical.
Gaogong LED reporter: How is the research and development ability of Shangyu, is this the advantage of VC?
Sun Jianning: LED lighting has an absolute advantage in terms of energy saving and efficiency. The only constraint that hinders its development is the high price. Therefore, the breakthrough cost constraint is a problem we must solve in the process of popularizing LED lighting. We use our self-developed technology and the vertically integrated system design capabilities of the upper, middle and lower reaches to maximize the efficiency of each luminaire component and improve overall efficiency, thus maintaining a good balance of quality and price.
VC asked how long our technology can lead in the market. My answer is: we will continue to improve in product technology, and continue to innovate. At this stage, there is a certain technology leading, and it is impossible to expect it to continue to lead in the market. Technology R&D is a competitive platform. It is very difficult to do every step of the way. It is not easy to do vertical integration. Various companies in the world are constantly making breakthroughs in product technology, and some top talents are constantly trying various research and development.
Our definition of LED lighting research and development is to make one thing affordable to the average consumer, while ensuring product quality, which is the core of research and development. I often swear by our staff, not difficult product technology, we do not study. Because this technology is broken even if you break through, many companies in the industry will follow up immediately. Our goal is to be a world-class LED company, which requires the usual accumulation, pay attention to the details of all aspects of work, and solve the details of these accumulations together, the company has a good foundation for development. The growth of a company depends on the accumulation of it every day.
In fact, every company has its own strengths and advantages, and I never despise my opponent. But I hope that we will do more comprehensive, balance all aspects, and try our best to do the best.
Since the end of last year, we have developed a lot of products, which is better than VC expected. VC is looking at our team's execution in R&D.
Gaogong LED reporter: How does Shangyu understand the domestic LED consumer market?
Sun Jianning: As multinational giants target China, the competition in the domestic market will become more intense in the future. Therefore, we are also stepping up the construction of domestic engineering channels and dealer channels. This will be gradually improved in July and August this year. The online shopping platform is also in preparation.
The domestic market is a development trend, even for high-end products, the domestic customer base is large enough. We have contacted some high-end customers before. They used LED lighting products 2 years ago, but found that LEDs are not as good as they thought during use, so I don’t think they don’t consume, but the products don’t reach them. expected.
If the product is not what the customer wants, even if it is cheaper, the customer will not want it. As long as the customer is satisfied with the product, even if it is expensive, some people will want it. Therefore, I will do it from two aspects. On the one hand, it emphasizes the quality of the lamp. The product with higher positioning will be better in color temperature, color rendering and light index. On the other hand, from the perspective of popularization, calculate LED lighting. The purchase cost of products and traditional lighting products, in the case of low electricity costs, many consumers will still buy traditional lamps.
However, in terms of product life cycle, LED lighting products use much less electricity than traditional lighting products, and the service life is longer. Therefore, many factories, shopping malls and office buildings in China will choose LED lighting products.
In addition, since last year, domestic LED companies have made significant progress in technology, and production costs have also declined. Therefore, from the perspective of market opportunities, the market size will be large.
The size of the market depends on the price of LED lighting products in the end market. The price will drop and the market will expand. I think the terminal market is completely open depending on the technology maturity and product price. At present, we have launched a special 7W LED bulb, three for only one hundred yuan people, while ensuring technology leadership, it is more attractive from the price.
Gaogong LED reporter: In the next two years, there will be financing fever in China. What suggestions do you have for domestic financing companies?
Sun Jianning: At present, the domestic LED market is becoming more and more fierce. VC will also look at the enterprise market segment. Whether it is a company with a long technology or a very comprehensive enterprise, it has a competitive advantage. Enterprises must do a good job from a certain segment, and then obtain financing from leading areas to explore other related fields.
In addition, companies should not be lucky enough to fool VC, foreigners value integrity, what we do and things that are not done will be open to VC. Finally, VC consistently evaluated us: strong execution. For example, VC saw the products we developed in the past year, and saw the status of the entire production line of the factory, including every detail of our packaging. In short, everything you have to do is said to be done. I think this is what VC wants to see.
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