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Signify: Continued investment in the Chinese market to capture green growth opportunities

author:The Economic Observer
Signify: Continued investment in the Chinese market to capture green growth opportunities

With the acceleration of global urbanization, the wave of technologies such as the Internet of Things and intelligent interconnection is promoting the transformation and upgrading of the lighting industry, becoming an important part of building a green, efficient, safe and sustainable modern energy system. In China, the "dual carbon" goal has also prompted low-carbon lighting to play an important role in the construction of smart cities and shaping a sustainable future.

As a global leader in lighting, Signify is accelerating the deployment of a smart and connected lighting ecosystem. As one of Signify's most important markets in the world, China's urbanization has created huge demand for smart connected lighting and development opportunities.

Yun Wang, Senior Vice President and President of Northeast Asia at Signify, said, "China is beginning to lead the global industry development trend in both the professional and consumer lighting markets. We will continue to promote the innovation of intelligent and connected lighting systems and services, build a lighting enterprise in the era of the Internet of Things, and strive to promote the development of China's lighting industry in a more efficient, environmentally friendly and sustainable direction, so as to realize more value of 'light'." ”

Lay out an intelligent and connected lighting ecosystem

At present, China is one of the fastest growing markets in the world's LED lighting industry and the most important production base in the world. With the promulgation of a number of supportive policies for the smart lighting industry in China, the intelligent control of lighting has become the general trend, which brings huge development space to the entire industry.

According to the data, the global carbon emissions in the construction sector account for 40%, and the development of energy-saving and low-carbon buildings and the improvement of building energy efficiency are important parts of achieving the "double carbon" goal. With the high-quality transformation of cities, smart innovation and low-carbon ecology have brought new challenges to urban lighting planning and design. Upgrading the lighting system is the fastest and least impactful way to renew a building.

To help protect the environment and reduce costs, Signify has developed a range of energy-efficient Philips products (including bulbs, downlights and tubes) that use cutting-edge technologies to reduce carbon emissions, reduce material waste and reduce energy use. With a power of just 4 watts and a lifespan of 50,000 hours, Philips' latest energy-efficient LED bulb can completely replace the current 10-watt LED bulb and consume less than a third of the energy. Data shows that LEDs can directly save 50% of energy consumption by replacing traditional light sources, and can save up to 30% of electricity consumption when combined with intelligent connected lighting. During this year's CIIE, Signify will also showcase Philips' latest energy-efficient technologies, and launch a number of new energy-efficient LED products in the Chinese market, covering a number of different types of light sources and luminaires, to significantly reduce energy consumption while providing consumers and professional users with a high-quality lighting environment to fully meet the needs of different use scenarios.

In August this year, Signify inaugurated the world's largest LED lighting production base in Jiangxi Province, China. The new 200,000-square-meter site will supply Signify LED lighting products, including the Philips brand, to the Chinese and global markets. By the end of 2023, the site plans to start operating 192 production lines for LED light sources and luminaires for the consumer and professional lighting markets. Currently, Signify has nine factories in China and the second largest R&D center in the world.

This is Signify's commitment to continue to invest in the Chinese market, and it is also an important measure for Signify to accelerate the layout of the intelligent and connected lighting ecosystem and contribute to the construction of smart cities. In recent years, Signify has successively acquired Chinese LED lighting manufacturers Lei Ming and Kaiyao, of which the proportion of overseas orders has increased from zero to 30% within three years after the acquisition of Lei Ming. Signify has also formed joint ventures with Xiaomi, China's leading internet company, and Baozun, an e-commerce company, to provide better smart lighting products and experiences for Chinese consumers.

Innovate for sustainable development

Under the challenge of climate and energy issues, green lighting that improves energy efficiency and guarantees sustainable development is attracting more and more attention.

In 2020, Signify launched its "Shine Life, Better World 2025" sustainability plan, which aims to double the circular economy and "Shine Living"-related revenue to 32%. For the sixth year in a row, Signify has been recognized as an industry leader by the Dow Jones Sustainability Indices and the highest "Climate Change A-Rating" by the Center for Global Environmental Information Research (CDP).

In 2022, Signify released a white paper titled "Promoting China's "Dual Carbon" Development - Practices and Visions of the Lighting Industry" and launched the "Low-Carbon Lighting Transformation" plan. Through the transformation of lighting technology in the five areas of urban and rural construction, clean energy, low-carbon transportation, circular economy and green agriculture, we will drive innovation and contribute to the realization of China's dual carbon goals.

Previously, Signify completed landscape lighting renovation projects in the Bund and other locations in Shanghai, using LED lighting technology innovation to help buildings reduce energy consumption and operating costs. By helping cities around the world to create beautiful night scenes, enhance the cultural and tourism value of the region, and build a "beautiful China".

In April this year, Signify successfully supported the energy-saving renovation project of pipeline street lamps in Fengxian District, Shanghai, providing its high-quality Philips LED street lamps to replace traditional high-pressure sodium lamps, helping to greatly improve the quality of road lighting with higher light efficiency and more reasonable and diverse light distribution design, and jointly build a smarter, more livable and more sustainable city.

Signify's smart road solutions can transform LED street lights from lighting assets to smart city infrastructure networks. With the Interact Connected Lighting Platform, lighting and other application information can be centralised on a single lever. Smart city applications can build more energy-efficient and safer cities through the big data analysis they provide, while improving the comprehensive operation efficiency of cities and significantly reducing urban energy costs, which is a new model of future urban life. For example, Signify provided an integrated road lighting solution for Huanggang City, Hubei Province, to help reduce energy consumption and operating costs, while laying the foundation for the digital transformation of the city's infrastructure.

In addition, Signify's unique lighting technology provides lighting products and control systems that can be tailored to the needs of different crops, promoting yield and quality in a sustainable way. This not only helps to reduce greenhouse gas emissions, but also strengthens the carbon sequestration of ecosystems by enhancing the conservation of intensive land use. In the case of tomato farming, for example, Signify offers a "light formula" that reduces irrigation water use by 90% while increasing yields. In China, the "light formula" solution has been applied to smart agriculture and high-end flower industry.

Signify participated in the first and second CIIE in 2018 and 2019 respectively. During the 6th CIIE this year, Signify will showcase its latest green lighting solutions and smart lighting applications, including green agricultural lighting solutions to revitalize the rural economy and promote urban agriculture; sustainable lighting production solutions from linear to circular; High-efficiency and energy-saving lighting products to help achieve the "3060" dual carbon goal; Personalized lighting systems that enhance the home atmosphere and interactive entertainment experience, smart connected lighting solutions that improve the experience in commercial lighting areas such as office, industrial, retail and hospitality, etc.

Among them, including the "world premiere" of Philips high-efficiency, energy-saving light and intelligent solar lamps to meet the needs of green home lighting; Philips high-efficiency and energy-saving series of LED products to solve the needs of energy-saving and low-carbon office lighting; Philips Luoxia light intelligent LED products, the practice of circular production mode, and the "China's first" Philips Hue Perifo intelligent magnetic track lighting system.

Signify: Continued investment in the Chinese market to capture green growth opportunities

The debut exhibit of Signify at the 6th CIIE - Philips energy-efficient and intelligent solar lamps

Signify: Continued investment in the Chinese market to capture green growth opportunities

The debut exhibit of Signify at the 6th CIIE - Philips Luoxia Lantern

Signify: Continued investment in the Chinese market to capture green growth opportunities

Signify debuted at the 6th CIIE - Philips Hue Perifo magnetic track system

"Even in the complex and volatile economic environment in China and the international market, Signify continues to see China's continuous efforts in trade liberalization and accelerated opening-up, and continues to unleash huge market potential and good development prospects," said Wang. Signify will continue to use the CIIE as a starting point to unleash its potential in the Chinese market and explore more development prospects in China. He said, "In the context of increasing technological innovation and trade competition, Signify has always been optimistic about the Chinese market and firmly believes that China's economy has the opportunity to take off again." ”

Continued investment proves that openness and inclusiveness are the foundation of prosperity, and foreign companies, including Signify, have always had confidence in the Chinese market. Relying on the spillover effect of the CIIE, they will continue to contribute to the achievement of China's "dual carbon" goals and the transformation of smart cities by continuously cultivating the Chinese market.

Shen Jianyuan/text

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