Home appliance veteran Konka recovery: marching into the LED no opponent
Konka Group Co., Ltd., a veteran home appliance company that is deeply involved in the competition, has been attacking for new profit growth points. Today, the hot LED industry has become its new main business.
Compared with other color TV giants, Konka chose an alternative: other peers have chosen to break into the field of white goods, and strive to become a new force in this industry.
At least from the current situation, such a choice has not gone wrong. According to data provided by insiders, in the first half of this year, this business contributed less than 40% of the company's total revenue by less than 3% of the company's total revenue.
Konka’s performance report for the first half of this year released on August 23 stated that its total revenue in the first half of this year was about 5.6 billion yuan and its net profit was about 80 million yuan.
New gold mine
At present, there are more than 200 manufacturers in the LED industry, 80% of which are occupied by 20% of the manufacturers. Konka New Video Assistant General Manager Lei Wei said that there are almost no real domestic brands. Therefore, in the domestic LED big project bidding, Konka will be invited to bid, and the winning rate is extremely high.
Thunder said that at the end of November last year, the engineering contractor of the Pangu Morgan Building in the Beijing Olympic Village only issued bids to three manufacturers, while the Chinese company had only Konka. The requirements for tendering at that time were the annual production scale and R&D capabilities of the manufacturer as well as the stability of the product and the overall technical solution. After confirming that we won the bid in December, the developer asked us to work in April 2008. The entire project was only over 100 days from installation to commissioning. Thunder said.
An LED agent in Beijing said that one of the reasons why only one Chinese company won the bid is that in addition to the accumulation of the Konka brand, there is such a large LED project that needs to be funded, which requires high capital for the manufacturer. At present, such a large project of hundreds of millions of dollars, only the funds of large companies like Konka can run.
Obviously, waiting for Konka is a new gold rush, the favorable opportunity is that the real competitor has not yet grown up. Lei Wei revealed that at the end of 2006, Konka formed a large-scale production of LEDs, and finally entered the harvest period in the first half of this year. In the first half of this year, Konka's LED business sales revenue increased by 215.77% year-on-year to 140 million yuan.
Now Konka is the largest supplier of LED projects in the Beijing Olympic Village. The LED area of ​​more than 5,000 meters is more than 200 million yuan. Before the Olympic Village project, the largest list of LEDs came from the OCT project in Shenzhen, with a total price of 40 million yuan.
It is estimated that the total sales of the national LED display market in 2007 is about 7.2 billion yuan, and it is expected that the global LED market will reach 300 billion US dollars in the future.
Transformation
Before the large-scale production of LEDs, Konka's three main businesses were color TVs, mobile phones and white goods. The commonality of these three industries is that their average profit has touched the ceiling, and Konka's new main business LED is a sunrise industry. Zhang Kai, general manager of Zhidao Market Consulting Co., said that China's LED industry is in the stage of blowout. In 2010, China's LED market is expected to reach 32 billion yuan. Another opportunity is that domestic big brands have not yet formed. This is Konka. The opportunity for old-fashioned home appliance companies to win.
In 2007, Konka, which has been fiercely competing in black power and mobile phones, wants to open up new profit growth points and enter the white power field. In the face of the interception of the original strong brand of white electricity, it is still difficult for the black power enterprises to enter the first camp. At that time, Konka Group executives said that Konka will further accelerate the layout of white power production capacity through self-construction, joint ventures, and mergers and acquisitions.
Xiaoqing, the secretary of Konka Dongfang, said that the global economy suffered a cold current in 2008. For the Chinese color TV industry, the difficulties of overseas markets, the appreciation of the renminbi, the rise in raw material prices, the increase in labor costs, the reduction of export tax rebates, and inflation have all put pressure on enterprises. These have made Konka committed to strategic transformation.
Facts have proved that it is not easy for Konka to want to kill a bloody road in the white power station. The primary path for the transformation of color TV giants is to enter the white power, but this industry has fast upgrades and high market demand. Konka, Changhong and Hisense are all new forces that penetrate into white electricity. At present, these companies have expanded the overall size of the company, but have not become a profit support. In addition, there is no revolutionary technology in white power, which puts a lot of pressure on the emerging black power companies. Zhang Kai, general manager of Guangzhou Zhidao Market Consulting Co., said that under this circumstance, the same new business of Konka, LED's profit prospects will be better, and the advantages of its big brands will be more obvious. However, the problem is that the LED industry has a low threshold and is currently a hot spot for investment, so the competition will become more intense in the future.
In the new video business, outdoor advertising operators and entertainment companies are our current major customers. A related person from Konka New Video Company told reporters that the LED business will be further extended in the future, including lighting, lighting, backlights, etc., which will also become part of Konka's new main business.
Xiaoqing Xiaoqing told reporters that Konka's new strategy includes deepening the third- and fourth-tier markets in the color TV business, completing the flat-panel transformation of 1200 second- and third-tier market channel terminal stores; transforming the high-end market in terms of white goods; Operator cooperation began to turn a profit. In addition, he stressed that the new video business has gradually become a new profit growth point for Konka. In addition to winning the Olympics, Konka is currently one of the largest hotel TV providers in China. Hou Songrong, chairman and president of Konka Group, said that at present, Konka is implementing a value management strategy and putting profits first.
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