Core Viewpoint - The lighting industry in China is facing significant transformation pressures due to weak domestic demand and shrinking external demand, with key indicators showing a decline in activity and profitability [1][2]. Industry Overview - The China Light Industry Federation reports that in early 2025, several core indicators for the lighting industry have entered a "warning zone," with the lighting prosperity index and revenue prosperity index falling into a "cooling zone," indicating insufficient overall industry activity [1]. - The profit prosperity index has dropped significantly, with a year-on-year decline of 36 percentage points in February alone [1]. - The export value of lighting products in the first quarter of this year is approximately $11.8 billion, reflecting a year-on-year decrease of about 8% [1]. Market Opportunities - The aging population in China presents a new growth engine for the economy, with over 300 million people aged 60 and above by 2024, accounting for 22% of the total population [2]. - The State Council has issued its first policy document on the "silver economy," recognizing the consumption capacity and demand of the elderly population, which is projected to be a trillion-dollar market [2]. Product Development - Signify has launched the Philips LumCare Anrui series solutions, focusing on the lighting needs of the elderly in China, marking the beginning of increased investment in aging-friendly lighting products [3]. - The company is also applying for subsidies for aging-friendly products in Shanghai [3]. Technological Advancements - The lighting industry is experiencing a shift towards smart lighting, with traditional products evolving into comprehensive solutions [4][5]. - The integration of AI and Time-of-Flight (ToF) sensors is seen as a key technological advancement, enabling machines to understand 3D spaces and enhancing interaction across various sectors [5][6]. Strategic Collaborations - Signify aims to build a smart ecosystem by collaborating with local companies, recognizing the need for partnerships in the Internet of Things (IoT) sector [7]. - The joint venture with Xiaomi, Feihui Smart Lighting, has shown rapid growth, outperforming the overall lighting market [7]. - The company emphasizes that collaboration strategies will depend on the compatibility and needs of potential partners [7].