As the LED market is picking up, competition in the LED industry also becomes more intense. As "another local market", the Chinese market occupies increasing important position in the global strategy of Philips. It is reported that China has become the world's largest market of Philips's home lighting, as of the end of last year; its home lighting business has increased by 60% year-on-year, including the growth in its LED sales. The results in Q1 of 2013 of Philips shows that sales of LED lighting products and solutions rose by 38% year-on-year, accounting for 23% of the total sales of lighting division.

To speed up the promotion of LED, Philips Lighting expands its sales network from second-tier cities to four-tier cities, and actively explores new channels for improving the efficiency of retail management. At present, Philips Lighting has set up 500 Fashion Museum in China, more than 2,000 Shop-in-Shops, as well as more than 20,000 retail points.

In fact, Philips is constantly increasing investment and support in the Chinese market. In December of 2011, Philips announced to set up professional LED lighting projects in Chengdu Hi-tech Zone and plan to invest 25 million Euros to improve its LED chain value in China. On the other hand, it strengthens the R & D of local and differentiated products.

In future, under the support of national policy, with continuous improvement in luminous efficiency of LED and reduction in cost, LED lighting penetration is expected to accelerate. In order to achieve the target that LED business accounts for 50% of the overall volume of business in 2015, no hard to see that Philips Lighting is stepping up its market layout.