In the past two years, everyone has a clear feeling that the pace of globalization of domestic enterprises is accelerating. The 2016 International Lighting Fair in Frankfurt is the best proof that “China's strong lighting power†is becoming a new voice in the global market.
China's development strength is very strong, all walks of life are in the global market, and domestic companies are entering the "new normal".
I believe everyone has noticed that in the past two years, the major LED giants in China have been targeting overseas markets, extending the LED industry from the Chinese domestic market to the global market. With the domestic LED industry pattern basically formed, the overseas market is an important profit growth point for Chinese LED companies in the future.
While domestic companies are focusing on overseas markets, more and more international LED giants are focusing more on China. It has formed a situation of further confrontation between the Chinese and international companies.
Chinese LED companies go out and "rob" the market
In fact, although China is in the world's leading position in the packaging market, it still faces an indisputable fact that domestic packaging companies are large but not strong. At present, the operating conditions of many domestic packaging companies vary widely, and the development prospects of most SMEs are worrying. In the past two years, there have been many companies that have been “falling downâ€.
For domestic enterprises, in order to open up overseas markets, patents, technologies, and channels are at the threshold of Chinese companies, and leveraging capital is one of the best means.
As a domestic LED packaging giant, Mulinsen has unique competitive advantages in three core areas of technology, production scale and industrial chain layout. In March of this year, the successful acquisition of Landvewans, promoted the outbreak of overseas business, and became the global LED packaging + lighting leader.
In March 2017, Huacan Optoelectronics intends to purchase 100% equity of the standard company Harmony Corelight (Yiwu) Optoelectronics Technology Co., Ltd. by issuing shares to purchase assets. The previous transaction of this transaction was Harmony Corelight (Yiwu) Optoelectronic Technology Co., Ltd. The company's subsidiaries acquire 100% of MEMSIC, Inc. in cash.
In May 2017, Stereo Optoelectronics acquired the Nitto fluorescent film project in Japan. After the completion of the acquisition, Stereo Optoelectronics will become the most complete CSP manufacturing enterprise in the domestic industrial chain. Not only will it master the core technology, but it will also significantly reduce the material cost of CSP, which will inevitably promote the rapid development of CSP.
In June 2017, Feile Audio completed the acquisition of Xiwannian for two years. This acquisition is also regarded as an important step in the internationalization strategy of Feile Audio. "China's enterprises and brands want to take the road of internationalization very difficult. They want to open the situation in Europe and the Americas, and they have to pay a huge price and a long time." Fei Lesheng Zhuang Shenan said that Fei Le Audio acquired the merger and acquisition of Xiwannian through capital means. A hundred years of well-known brands to achieve sales in most countries around the world, in this channel cooperation, gradually establish their own overseas factories and research and development bases, thus achieving a global layout.
It is not difficult to see through the above overseas acquisitions that domestic LED listed companies have acquired overseas companies, obtained advanced technology and broke the patent threshold. Through mergers and acquisitions, mastering the global advanced patent technology can effectively reduce the risks and costs of enterprise development, make full use of the experience curve effect, and gain product competitive advantage.
In addition, overseas mergers and acquisitions are an effective means for Chinese companies to quickly enter the international arena and expand overseas markets. With the help of mature foreign brands and existing market channels in foreign countries, the market development cycle can be greatly shortened.
It is worth noting that with the speed of integration, the domestic and international environment faced by domestic enterprises is more complicated. Whether it is market development or capital operation, there are certain risks that need to be avoided and dealt with.
International LED companies enter China to "grab" the market
Chinese LED companies have made overseas mergers and acquisitions, and strive to better "go out". And international LED companies have also aimed at the Chinese market, and strive to better "walk in."
According to the research of the High-tech Research Institute LED Research Institute (GGII), since last year, the global LED lighting industry is accelerating its transfer to China. Domestic lighting companies are accelerating their expansion overseas, and foreign lighting companies are shrinking their fronts.
For the global lighting leader Philips Lighting, in recent years, spare no effort in product research and development, and specifically tailored for the Chinese market, cost-effective, high value-added lighting solutions and new products. In the process, Philips Lighting also tried to launch a “low price strategy†in the Chinese market.
It is undeniable that in the Chinese market, Philips has grasped the rhythm of product promotion, channel control, brand promotion, etc. In the face of today's changing LED lighting market in China, Philips Lighting is faced with a positive attitude, facing challenges through its own continuous innovation and faster innovation. It also shows that Philips Lighting attaches great importance to the Chinese market.
Looking at the international giant Osram, we are actively investing in the world. As far as the Chinese market is concerned, as early as 2014, OSRAM established its factory in Wuxi and has officially put into operation. It can be said that the plant is the first LED back-end factory invested by Osram in China and the second largest Osram project in the world. LED backend factory. With the booming demand for OSRAM LED products in the global market, in August this year, OSRAM launched the second phase expansion project of Wuxi Plant. The expansion project will increase the existing production capacity by more than twice and add more than 2,000 jobs.
According to Lim Khoon Teck, General Manager of OSRAM Opto Semiconductors, the second phase of the Wuxi plant is expected to be put into production in early 2019. The construction of the second phase of the project will further strengthen Osram's leading position in the Chinese LED market and promote the local economic development of Wuxi.
Undoubtedly, the international giants will increase the layout of the Chinese market, and will gradually improve the talent, technology and operation environment of China's LED industry. Local companies based in China will also benefit. LED international giants have always been around the global market, but Chinese local companies are largely confined to the Chinese market, and the vision of globalization is not broad. Therefore, if we want to achieve "global leadership," this is also the thinking that Chinese companies urgently need to change.
The 2017 High-tech LED Annual Conference will be held on December 21-22 in Shenzhen Baoan Dunxi International Hotel. At that time, a number of industry giants gathered together to conduct in-depth exchanges on topics such as “How to strategically position companies in the deep integration period†and “What is the focus of competition between international companies and local companies? Who will win the final victory?†Everyone is welcome to sign up and participate in more industry "dry goods" waiting for you!
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