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Chinese,business card is clear, Chinese enterprises and international enterprise market strategy is different?
- Dec 22, 2017 -

Over the past two years, there has been a clear feeling that the pace of globalisation of domestic companies is accelerating. The 2016 Frankfurt International Lighting Show is the best proof that the "strong rise of China's lighting power" is becoming a new voice in global markets.

China's strong development, all walks of life in the layout of the global market, domestic enterprises to internationalization is also entering the "new normal."

I believe we all noticed that in the past two years the major domestic led giants are targeting overseas markets, the LED industry from China's domestic market to the global market extension. With the domestic led industry pattern has been basically formed, overseas market is China's led enterprises in the future important profit growth.

While domestic companies will look at overseas markets, more and more international led giants will focus more attention on China. The formation of the Chinese enterprises and international business fronts further stretched the confrontation.

China led enterprises go out to "Rob" the market

In fact, although China in the packaging market in the world's leading position, but still face an indisputable fact, that is, the size of domestic packaging enterprises, but not strong. At present, many domestic packaging enterprises operating conditions vary widely, most of the development prospects of small and medium-sized enterprises worry, in the past two years, the packaging enterprises have been "down".

For domestic enterprises, to open overseas markets, patents, technology, channels are facing the threshold of Chinese enterprises, and the use of capital is one of the best means of leverage.

Mulinsen as a domestic led packaging giant, in the technical process, production scale and industrial chain layout, such as the three core areas have a unique competitive advantage. This March, the successful acquisition of Hollande Vance, the promotion of overseas business ushered in the outbreak, playing a global LED packaging + lighting faucet.

March 2017, Huazan photoelectric to purchase assets by issuing shares to purchase the company's harmonious core light (YIWU) Photoelectric Technology Co., Ltd. 100% Equity, the transaction of the previous transaction is harmonious core light (YIWU) Photoelectric Technology Co., Ltd. of the subsidiary in cash acquisition Memsic,inc. 100% of the equity.

May 2017, the three-dimensional photoelectric wholly acquired the Japanese Nitto fluorescent membrane project. The completion of this acquisition, three-dimensional photoelectric will become the most complete domestic industrial chain CSP manufacturing enterprises, not only mastered the core technology, will also significantly reduce the cost of CSP material, it is bound to promote the rapid development of CSP technology.

June 2017, flying music audio lasted two years to complete the acquisition, this acquisition is also considered as a flying music sound internationalization strategy of an important step. "Chinese enterprises and brands want to take the road to internationalization is very difficult, want to open up the situation in Europe, the Americas, to pay a huge price and a long time." "Flying music audio Zhangshengan said that the flying music audio through the acquisition of capital means Sylvania 100 years of well-known brands, to achieve in most countries in the world sales, in this channel cooperation, and gradually set up their own overseas factories and research and development base, so as to achieve global layout."

Through the above several overseas acquisition case is not difficult to see, the domestic led listed enterprises to acquire overseas enterprises, access to advanced technology, breakthrough patent threshold is the main purpose. Through mergers and acquisitions, mastering the global Advanced patent technology can effectively reduce the risk and cost of enterprise development, make full use of the experience curve effect, and obtain the product competitive advantage.

In addition, overseas mergers and acquisitions is an effective means for Chinese enterprises to quickly embark on the international stage and expand overseas markets. With the help of foreign mature brands and the existing market channel advantages abroad, the market development cycle can be shortened greatly.

It is noteworthy that with the speed of integration, domestic enterprises are facing more complex environment at home and abroad, whether it is market development or capital operation, there are certain risks need to avoid and respond.

International LED Enterprises enter China "Rob" market

LED enterprises in China have carried out overseas mergers and acquisitions, and strive to better "go out". And international led companies have targeted the Chinese market, and strive to better "come in."

According to the research of LED Research Institute of Senior Engineers (GGII), since last year, the global LED lighting industry is accelerating to China, domestic lighting enterprises to accelerate overseas expansion, foreign lighting enterprise contraction front.

As for the global lighting leader Philips Lighting, in recent years in the product development and spare no effort, and specifically for the Chinese market "tailor-made" cost-effective, high value-added lighting solutions and new products. In the process, Philips Lighting has also tried to launch a "low-cost strategy" in the Chinese market.

Undeniably, in the Chinese market Philips for the product of the new push, for the channel, for the promotion of the brand, and so on, the rhythm is very well in place. In the face of the changing unpredictable of China LED lighting market, Philips Lighting is to face the positive posture, through their own continuous innovation, faster innovation to face the challenge, which also see Philips lighting on the Chinese market attention.

Then look at the international giant Osram, is currently actively engaged in global investment. In the Chinese market, as early as in 2014 Osram in Wuxi plant and has been officially put into operation, it can be said that the plant is osram in China to build the first led back-end plant, Osram in the global cast of the second led back-end factory. With the global market for Osram LED product demand for vigorous growth, this August, Osram launched the Wuxi plant two expansion project. The expansion will boost existing capacity by more than twice times and add more than 2000 jobs.

According to Osram Photoelectric Semiconductor general manager Lim Khoon Teck introduced, Wuxi plant two phase project is expected to be put into production in early 2019. The construction of phase two project will further strengthen Osram's leading position in China led market and promote the development of local economy in Wuxi.

Undoubtedly, the international giant to lay the Chinese market, will gradually improve the Chinese led industry talent, technology, operating environment, based on China's domestic enterprises will also benefit. Led international giants have always been around the global market layout, but China's local companies are largely limited to the Chinese market, the vision of globalization is not open. Therefore, if the "global leadership" is to be achieved, this is the urgent need for Chinese enterprises to change the thinking.

2017 senior engineer LED annual meeting will be held in December 21--22 Day in Shenzhen Baoan Dunhill International Grand Hotel. At that time, a number of industry big café together, together around the "deep integration period of the enterprise how strategic positioning", "International enterprises and local enterprises competition focus?" Who will win the final victory? "and other issues to deepen the exchange. Welcome everybody to participate actively, more industry "dry goods" waits for you to come!