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At the Beijing Lighting Exhibition, there were some companies that turned to domestic sales companies to find domestic business opportunities. Hangzhou Yinxing Lighting Appliance Co., Ltd. is one. Affected by the situation in Ukraine, Hangzhou Yinxing Electric has lost a total of 200,000 US dollars in revenue per year in Ukraine. It is also affected by this, the boss Lu Weixing began to turn his mind to the country, hoping to gain something at the Beijing Lighting Exhibition.
I didn't do it before in the Chinese market. I specialize in exporting, like Poland, Ukraine, Russia, etc.
More than Yinxing Lighting, Taiwanese manufacturers BrightYolk and Buckingham also hope to open up the mainland market and make a fortune in the rising LED market in mainland China.
But the Chinese characteristics of the mainland LED market also make them face challenges.
Wang Hengsheng, manager of the foreign business department of Baiyou Technology, told reporters that the channel structure of the overseas market is very different from that of the domestic market. Domestically, it is necessary to go through layers of engineering, channel, and even another wholesaler to get the products to the mall or consumers. . Overseas manufacturers of indoor lighting products can be directly placed in shopping malls, supermarkets, or directly transferred to engineering projects, which is very different from the domestic market.
Domestic business ideas are different from overseas. For example, local companies compete in North America, and the most important thing is to do things well. The price does not have to be competitive with others.
In some high-end markets, such as North America, for products with higher light efficiency, longevity and reliability, the price will be more expensive than similar products, and the market acceptance is not necessarily low. The so-called one-point price. This also shows that the North American market products are important for comprehensive costs, not wattage.
For products that have passed UL certification, the cost of products that are not certified by safety regulations will be much higher, and the price will be higher by about 50, which is reasonable.
In China, you also need to withstand the price war, arrears, pull relations, and spend huge sums of money to build the channel. The export business ideas and environment are different. One employee who made the light source and the lighting outlets said: In contrast, the export business is better.
The Chinese market certification is relatively simple, and there are even many manufacturers who do not have product certification, which makes the price war too easy. Some insiders expressed their straightforwardness: in China, it is OK to stick a 3C certification, which is better than the certifications of Eastern Europe, Poland and other countries. Compared with the German brain is too rigid, it must be strictly in accordance with a certain standard or testing method. Color differences and color temperature differences are not good. China's certification and testing is too easy.
Wang Hengsheng believes that some manufacturers have made the price messy, and it is difficult to ensure that its application design is in place.
Bai Liheng company, a surnamed Chen employee, to expand the mainland market, Bai Liheng first faced the price war in the inland market.
According to reports, the products of the domestic market of Bai Liheng are the same as those of the Taiwan market and overseas products. The same factories and the same raw materials are used in the high-end market. Products from the paint, workmanship, chip selection, etc., are strictly controlled. In the situation of domestic price wars, our prices are relatively high.
Lu Weixing expressed concern about his products in the domestic market: the Chinese market is too chaotic, the price is too low, and there is no way to guarantee the quality and safety.
In his booth, an 18W LED tube lamp, PC tube, and aluminum substrate are shown. The cost is 30 yuan RMB. Provides 30,000 hours of life guarantee. Lu Weixing said that there is a 20 yuan in the south, and he is very worried about quality.
The habits of some bad businesses are also worrying. A domestic LED display product company exports a large amount to the European and North American markets every year. The company's senior staff revealed that in order to ensure quality, they are now producing and cutting their own. Because some domestic partners in order to pull the list, the samples you see or the first batch of goods are good, but in the back, there will be shoddy and other phenomena, the trouble continues.
Under the challenge, many domestic manufacturers choose to flee and sell their good products overseas.
However, the huge space in the Chinese market still attracts more active operations of international and domestic companies. For example, Yiguang faces the challenge of fierce competition from mainland lighting factories. It has both NVC lighting, Opp's ban, and burning money, but it still believes that this is a market that Yiguang must put into operation.
The reason is still the charm of commercial wealth. Yiguang clearly stated that the goal is to start to profit in the mainland market within three years.
First of all, China is a major producer, seller and exporter of global lighting products, and its products are exported to 218 countries and regions around the world. Among them, energy-saving lamps account for about 80, Christmas lights account for about 80, incandescent lamps account for about 1/3, and other types of lamps account for about 1/3. With the introduction of alternative policies for incandescent lamps, LED lamp exports are also growing year by year.
According to industry data, in 2013, China exported more than 7,000 LED lamps and lanterns, and the largest exporting country was the United States, and its export volume showed year-on-year growth. For the North American market, China exported more than 200 million US dollars of LED products in 2011, more than 400 million in 2012, and more than 900 million in 2013. In the European market, exports were even larger, with more than 1.6 billion in 2013.
Entering the Chinese market is equivalent to entering a low-cost manufacturing system. Now, China is becoming a major consumer of LED products, and the LED market is growing rapidly. According to CSAResearch's report, the demand for LED lighting in China is rapidly increasing due to the expansion of manufacturers' capacity, the decline in LED prices, environmental considerations and government subsidies. The penetration rate of spotlights, LED lamps, street lamps, LED bulbs and fluorescent tubes will increase from only 5 in 2012 to 26. The continued growth of commercial lighting, the implementation of government subsidies, and consumer demand for energy-saving products are LED penetration rates. The main reason.
The introduction of China's National New Urbanization Plan (2014-2020) indicates that more urban complexes will emerge and commercial lighting will have more opportunities.
At this time, to seize the market share of the highlands, open the brand channel, is tantamount to get the Aladdin magic lamp, the future is unlimited. Therefore, despite the grievances, manufacturers are actively looking for various strategies to adapt to the Chinese mainland market.
First of all, the most fundamental thing is that a company can first be on the platform, which is the product. This is the foundation. Continue to do the right thing and keep investing.
The second is to strengthen channels, strengthen the construction of online, offline and off-line platforms, and increase advertising. For example, Yiguang, a lot of money, started more than 1,000 channels a year. Chen Yuefeng, president of Jufu Group, believes that the construction of the team is the foundation of channel development. It is necessary to control the team, technology and capital.
The third is to play the brand. Li Chunan, general manager of TCL Lighting, said that the soul of the brand lies in the product. In a market where product standards are missing, overcapacity, and products are heavily homogenized, brands with differentiated products and high reputations are often the first choice for consumers.
Bai Liheng also chose to adhere to its own principles, not to lower the product quality requirements due to domestic competition prices. The employee named Chen said that it is too much trouble to use different materials and production lines in the same factory in order to fight the price war. We believe that this will reduce production efficiency.
Wang Hengsheng said that Bai You is constantly adjusting his strategy to open up the situation, such as finding a suitable trader and pushing his good products to the domestic market. But it takes time.
Dr. Wu Mingming, Director of Research at CSAResearch, said that it is patience to open up the Chinese market. The standardization work of China's semiconductor lighting industry is gradually and steadily advanced. For example, the LED-ELI certification jointly launched by CSA and Fangyuan Certification aims to promote assured products and rebuild the confidence of the people. With the improvement and maturity of China's semiconductor lighting industry standards, the future domestic market will tend to be orderly and rational, and manufacturers will be able to develop better in their own suitable fields. 