GE Lighting CEO Bill Lacey sent an internal memo to employees that said, from November 30, GE Lighting will terminate all direct business in Asia and Latin America, according to The China Association of Lighting Industry. In the memo, Bill said that ending its business in Asia and Latin American will enable the company to focus its market in North America, Europe, and the Middle East and continue to expand the scale and improve the company’s profitability. The company has faced stiff price competition in China for LED bulbs. GE Lighting gets less than 18 percent of its total revenue from China and Latin America combined, according to Trendforce.
￼Bill Lacey was appointed earlier this year serve as GE Lighting’s new president and CEO. Bill said GE Lighting should not just be satisfied with the service market, but must also lead the market, and that requires concentrating on innovation. For this reason, the company has made several important strategic decisions that Bill says will strengthen GE Lighting in LED and related technologies in the field of business and lay the foundation for the future of the company.
Among these strategic decisions is the future closing of two U.S. factories that produce CFL bulbs in Lexington Kentucky in 2017. The company intends to phase out of CFL production and sales to switch to LED lighting production. Bill indicated that LEDs are transforming the lighting industry and announced the establishment of a new incubator laboratory, to accelerate innovation and develop leading products with LEDs.
Bill said in a statement that the laboratory would focus on developing and testing connected home technologies, such as creating GE Lighting intelligent node functions. The company intends to start a pilot project in the second half of 2016 related to intelligent nodes. The lab will also bring new ecosystem partners to develop intelligent lighting solutions that are both creative and flexible. The laboratory will jointly support resources around the world, including the GE Lighting Chinese technical team. However, GE Lighting plans to cease direct business operations in China.
The company’s spokesman said in a statement that in the future, GE Lighting would entirely focus on innovation and LED technology. By 2020, LED lights will occupy half of the global lighting market, and 80% of the global lighting market revenue will come from the US.
Connected lighting and the Internet of things are to become central to the company’s future. In recent years, GE Lighting has integrated its systems with a wireless gateway so the lighting can be remotely controlled. Also, The company has been developing its Industrial Internet of Things platform called Predix, which collects data through sensors, controllers, wireless transmitters, and microprocessors, and other components for analysis.