Philips Lighting, which will soon be renamed Signify, is another step on the road from traditional lighting to LED.
According to foreign media Herald News, Philips Lighting announced on April 20 that it will close its factory at 631 Airport Road, Fall River, southeastern Massachusetts, in the third quarter of this year, when 160 employees will lose their jobs. Production will be transferred to Philips Lighting's Monterey plant in Mexico, while R&D will be transferred to Boisbriand, Canada, and all transfers will be completed by the end of the first quarter of 2019.
Melissa Kanter, head of Philips Lighting Communications, said that the Fall River plant will remain in place and will temporarily retain non-production personnel such as sales and marketing. It is not clear how many Philips lighting employees will be retained.
“The lighting industry is accelerating its transformation,†Kanter said. “In the context of increased market competition, we are the first to shift from traditional lighting to LEDs, and now we are turning to smart lighting systems and services for cities, offices, retail and homes. The decision, though difficult, is part of our drive to operational excellence program, which helps companies optimize production and supply to remain competitive and provide customers with the services and quality they expect."
In fact, whether it is Philips, or the separation of the independent listing of Philips Lighting in the transformation process, have made many similar "difficult" decisions. For Philips, every decision means taking a step on the road to transformation.
In May 2014, according to Canadian media reports, due to changes in market demand, Philips plans to officially close a lighting and manufacturing plant, Philips Canlyte, in Cornwall, Ontario, Canada, in March 2015. It is estimated that there will be 190 employees affected by the withdrawal of the factory. The company is currently informing employees about the compensation agreement.
On September 23, 2014, Philips announced that it plans to split its business into two. The 123-year-old lighting business has established Philips Lighting alone, and the consumer goods and pharmaceuticals have merged into a Philips home that is valued at 15 billion euros. Technology companies, which attracted industry speculation about the listing of their independent lighting companies.
Philips said on March 19, 2015 that it plans to split its lighting division and make its initial public offering (IPO) in 2016. Philips said its lighting operations, including all business activities, assets and liabilities, will be converted into an independent holding company structure. However, the lighting operations to be split will not include automotive lighting and Lumileds (LED components) operations.
In July 2015, Philips revealed to North Carolina that it would close its factory in Vance County and lay off 50 employees. The plant was acquired by Philips in 2011 through the acquisition of Optimum Lighting, which produces energy-efficient fluorescent lighting fixtures.
On December 14, 2015, according to the foreign media "Triangle Business Magazine" report, Philips announced that it plans to close the lighting factory in Pagar, Pender County, North Carolina, USA. The plant will be officially closed in September 2016 and it is expected that 58 employees will be affected.
At the beginning of May 2016, Philips, the managing director of Philips Electronics of Thailand, revealed that the company will close the fluorescent tube factory in the Pupu Industrial Zone in Samut Prakan in the third quarter due to the use of LED tubes in the past three years. Continued to increase, it is expected that the proportion of LED lamps will increase from 34% to 50% in the next 1-2 years, so it is decided to close the above factories.
On May 31, 2016, Philips Lighting Shenzhen Factory--Philips Home Lighting Manufacturing (Shenzhen) Co., Ltd. issued a notice on the decision to dissolve the company in advance, causing the industry to be in turmoil.
On May 27, 2016, Philips Lighting, which was spun off from Philips, was listed on the Amsterdam Stock Exchange in the Netherlands, and it is said that the market value has reached 3 billion euros.
On June 2, 2016, Philips Lighting promised to sell more than 2 billion LED bulbs by 2020 at the 7th World Clean Energy Ministerial Conference. At the same time, Philips Lighting will reaffirm its commitment to achieve global carbon neutrality by 2020.
On March 16, 2018, Philips Lighting released an important announcement announcing plans to change the company name (Philips Lighting) to Signify, an important step in the Philips lighting transformation journey.
In a highly competitive market environment, whether Philips is going to market the split lighting or shutting down the factory, Philips Lighting is shifting from the concept of “selling products†to “selling servicesâ€. Philips Lighting is actively adapting to the market environment, adjusting its development strategy and transforming it into a service provider that provides high added value.
The segmentation of LED lighting application market has become a trend. In the face of the decline in the price of LED lighting products, LED companies are looking for a segment of the field to force, key enterprises to the high end of the value chain. Strengthen innovative research and development in industrial lighting, automotive lighting, plant lighting, intelligent lighting and other sub-sectors, providing alternative lighting solutions for different application environments. And Philips Lighting has taken smart internet as the direction of future development.
In order to better implement the transformation strategy, Philips Lighting not only focuses on the application of smart internet in the Internet of Things, but also thinks about innovation beyond the traditional product category: incorporating the concept of sustainable development in the innovation process, adopting “EcoDesign†"Principle; under the guidance of the circular economy model, explore and practice the "Light as A Service" business model, etc.; and carry out cross-industry cooperation with partners in various fields to continue to promote smart connected lighting systems and Service innovation.
In the process of transforming to smart connected lighting, Philips Lighting's achievements are obvious to all. Its intelligent interconnected LED lighting products, systems and services cover the home, office, commercial, urban and other fields.
It must be said that Philips Lighting is transforming LEDs and focusing on smart connected lighting. The power and charm shown by it is worth learning by Chinese companies. At present, the LED lighting market tends to be subdivided. How should Chinese lighting companies choose when Philips Lighting is occupying the smart interconnected highland? Worth pondering!
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