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Lighting commercial demand expands GE to abandon home appliance lighting
A fridge, washing machine and dishwasher are included. White goods from General Electric (GE) in the United States can be said to have become a corporate business card in daily life for many American consumers. Among them, there are many products that are first introduced to the market by generics, and some products have a history of more than 100 years. However, GE decided to sell such a well-known home appliance business to the Swedish home appliance company Electrolux for about $3.3 billion. In Japan, Hitachi and Toshiba gave up white goods. As the emerging home appliance companies in China and South Korea have become more and more influential in the US market, the sales competition of American home appliance stores is becoming more and more fierce. Therefore, in line with our strategy to become the world's largest infrastructure and technology company, we decided to sell the home appliance business (GE CEO Jeff Immelt). GE is accelerating its strategy to focus on growth-related and profitable infrastructure-related businesses. In June of this year, GE announced that it had reached an agreement with Alstom of France to acquire its thermal power generation business for approximately US$16.9 billion. It also announced that it will focus on commercial business and reduce consumer business. However, there is a business that belongs to the same department as the home appliance, but it still remains. That is the lighting business. Why does GE retain its lighting business? The reason is that although we feel that lighting is mainly used in the home, the demand in the commercial sector is expected to expand. In July, GE announced that it has developed a fully artificial light plant factory using LED (Light Emitting Diode) lighting in cooperation with a company specializing in vegetable cultivation in the city of Taga, Miyagi Prefecture. Regardless of the weather, 10,000 stable lettuces are harvested every day. Compared with fluorescent lamps, LED lighting for plant cultivation can reduce power consumption by 40%. By irradiating light suitable for vegetable growth, the yield can be increased by 50%. In addition, by adjusting the light, the day and night cycle can be artificially accelerated. The plant growth rate is 2.5 times or more in outdoor field cultivation. GE also intends to extend LED lighting to other areas. GE is also working with a software company in Boston, USA, to develop an LED lighting system that sends information to smartphones and tablets for consumers who shop in retail stores. The system uses visible light communication technology that emits light that is invisible to the naked eye but that can be recognized by cameras such as smartphones. Information on coupons and special offers, coupons, etc. can be sent to customers standing near LED lighting. GE's long-established business will also be carefully screened according to the principle of development or not, in order to remove obstacles to development and further accelerate the transformation of business structure.