2016 is the year of opportunity. The market share of Chinese companies is constantly squeezing Japan, South Korea and Europe, and the general lighting industry is in the process of increasing market concentration. At the same time, multiple market segments, including small pitch and smart lighting, are welcoming the outbreak.
2016 is also the year of challenge. Reshuffle, integration, and capital will remain the main theme of the industry in the next three years. Focus, subdivision, and cross-border are the choices for LED companies and challenges.
As we all know, the North American market has always been the gold mining land of Chinese LED companies. The US market is the largest overseas market for Chinese companies, comparable to the whole of Europe.
According to the US Department of Energy's report, the overall size of the US lighting market will reach US$25.1 billion in 2016, while China's imports of LED products account for 70.50%.
In fact, all major domestic LED giants are targeting overseas markets, which is in line with the law of industrial development, that is, extending from the Chinese domestic market to the global market. At present, the domestic LED industry has basically formed, and the overseas market is an important profit growth point for Chinese LED companies in the future.
Of course, for LED companies, such a huge market space is an opportunity for LED companies to go global, but there are also some traps.
As far as the upstream chip is concerned, international chip manufacturers are not good at entering China, and they are not good at entering China. They can’t afford to fight for price wars. The opportunity lies in entering the international market, and technology patents are unconcerned. High management and personnel costs, poor control, and rapid increase in costs. In the face of low-cost competition among domestic peers, profits cannot be guaranteed.
In the field of midstream packaging, the international packaging factory and the upstream chip are basically the same. The current market will mainly provide high-end device opportunities. For export or high-end users, it is a good strategy to acquire international packaging factories, such as packaging materials (such as LED phosphors, High-end silicone) has high added value and is worthy of acquisition. The trap is that the performance of domestic equipment is more cost-effective, and the acquisition of international manufacturers is only a loss.
As far as downstream lighting and its channel are concerned, the opportunity lies in large lighting companies with retail or engineering channels that will bring the acquirer into the international market. The US market is a battleground for the military. The acquisition of American lighting companies has the greatest return, and the trap lies in Small European companies, such as design companies, do not do much unless they have large-scale channels in Europe. In addition, if they do not match their own business, it will not be useful.
So, how should LED companies deal with globalization?
On January 5-6, 2017, the 2016 Gaogong LED Annual Meeting and Golden Globe Awards Ceremony with the theme of “Looking for the Future of LEDs†will be held in Shenzhen.
As the annual year-end event of the LED industry chain, the 2016 Gaogong LED Annual Meeting will once again bring together domestic and foreign business leaders to analyze global industry opportunities and risks, and comprehensively look forward to trends in technology, market, capital, and structure. To jointly solve the "decision" of China and the global LED lighting industry in 2016-2018.
According to the Organizing Committee of the Senior Workers' Meeting, it is confirmed that there will be 500 industry guests present. At the closing ceremony of Mulinsen's exclusive title, Dr. Zhang Xiaofei, Chairman of Gaogong LED will visit the site to serve as the host.
At that time, Vice President of Huacan Optoelectronics, Bian Difei, Chairman of Hongli Zhihui, Li Guoping, General Manager of Sunshine Lighting, Guan Yong, Executive Director of Mulin Lin, Lin Jiliang, General Manager of Philips Lighting OEM Channel, Yang Lan, and President of Incentive Testing, Nie Pengxiang, will A round-table dialogue was held around the two topics of "Market: China's Globalization and Globalization of China" and "Capital: How to Correctly Look at the New Round of Industry Integration Trends".
It is worth mentioning that 2016 is the 10th anniversary of the establishment of the high-yield production and research institute. The exclusive Golden Globe Awards ceremony of Mulinsen will also be held on January 6, 2017 at 11:00-13:30. Less mysterious big coffee will come to the scene, welcome the industry to actively participate in the registration!
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