International Marketing Status Of LED Lighting In China

- Sep 21, 2018-

From a product perspective, China LED lighting lamps and lanterns has reached more than 10000 production enterprises, of which about 90% or more of the enterprises are mainly distributed in guangdong, jiangsu, zhejiang and Shanghai in these regions economy more developed, linhai, and geographic location for export of lamps and lanterns, among them, the guangdong province, the main areas in zhejiang province is China's export of lamps and lanterns, its exports account for more than 60% of the country.

China LED lighting lamps and lanterns is sold to many countries and regions in the world, the exporter is mainly the United States, Japan, Germany, these countries export certification standards in recent years more and more strict, due to China's production advantages of LED lighting lamps and lanterns is mainly in terms of encapsulation, and core technology research and development level chip manufacturing level lags behind that of developed countries, in particular, many of China's LED lighting lamps and lanterns products can not meet the increasingly strict export certification standards, to export certification standard low places such as Russia, Thailand, Africa.


In terms of price, the price of LED lamps in China is 70% or even half of the price of similar foreign products, which is mainly attributed to China's cheaper labor force and production raw materials. However, with the rise in price, this advantage also faces a test.

However, up to now, Chinese LED lighting products still have a price advantage over similar products in other countries and are favored by foreign customers.

With the development and expansion of China's LED lighting industry, the number of related enterprises has increased, and the competition in export has gradually intensified. Many enterprises have cut profit space repeatedly or even reduced product quality to achieve the purpose of reducing export quotation and grabbing foreign customers.


In terms of channels, only a few large brand enterprises, such as reith lighting and opp lighting, have relatively complete sales channels. Large and medium-sized LED lighting enterprises with economic strength will participate in several international lighting exhibitions every year to display their LED lighting lamps at the exhibition and collect information of potential customers to develop target customers.

Small enterprises with weak economic strength and general product quality mostly adopt the "sales by seat" mode, which can save marketing cost, but also passively, and easily compete with similar enterprises for customers.


In terms of promotion, large and medium-sized LED lighting enterprises have various methods, such as releasing product information on well-known domestic and foreign portals, promoting products through microblog marketing, email marketing and other promotional methods, maintaining communication with customers and offering discounts and full price reductions.

And the promotion way of small business is relatively unitary, give certain preferential benefit when signing sales contract with client more.


SWOT analysis of international marketing of Chinese LED lighting


This part mainly USES strategic analysis to analyze the international marketing of domestic enterprises.


1. Strengths


China's LED lighting in the international market enterprises have certain advantages and competitive basis, which is mainly reflected in the following three aspects.


1. LED street lighting is the industry leader


Chinese enterprises have created a number of industry firsts, for example, applying large amounts of high-power to road lighting. China is the first in the world, so it has the longest history of LED street lighting application.

China is the first country to invent and produce large-scale LED street lamp products with proprietary intellectual property rights. These LED street lamps are of high level.

In the high-power white light lighting industry at home and abroad, Chinese enterprises are well known and recognized by international consumers, with the role of "bellwether".



2. Complete industrial chain, low cost and advantages


China's LED lighting has a complete industrial chain, which greatly facilitates the integration of resources, is conducive to industrial agglomeration, generates scale effect, and then realizes cost reduction, and has a strong competitive advantage.

Although most of the tens of thousands of LED lighting enterprises in China are mainly in the middle and lower reaches of the global industry chain, they mainly produce lighting products by importing and purchasing raw materials of chips.

However, on the whole, China has a complete LED industrial chain, which can ensure the connection of all links to the lowest cost;

As technology mature, some excellent LED lighting lamps and lanterns is related to enterprises in China gradually has the international first-class high-power chip production capacity, so as to ensure the LED lighting lamps and lanterns in China, medium and long-term stability reliability of the downstream industry chain, to make Chinese enterprises in international competition in the market of the future maintain competitive advantage.


3. Low-cost labor market


Because China's large population, a large number of surplus labor, the national consumption level and low level of wages, the enterprise production cost is lower than many countries and regions, this ensures that China's LED enterprises in the production of lamps and lanterns has strong labor cost advantage, and to have an advantage in terms of product pricing, can grasp the initiative in the international market competition.


(ii) weaknesses


While seeing the advantages of Chinese LED lighting enterprises, we should also clearly see our own shortcomings and deficiencies.

The disadvantages of international marketing of Chinese LED lighting are as follows:


1. Lack of clear marketing plans and strategies


It is the marketing scheme used by most enterprises in China to develop the market first and then choose products suitable for them to copy and develop.

This marketing plan is rather immature, that is to say, the current marketing system of Chinese LED lighting enterprises is still in the development and construction stage, and there is no complete and complete marketing plan and strategy system yet.


2. The sales agent network is not sound


Most Chinese LED lighting enterprises do not have an international sales network.

In order to achieve sustainable development, an enterprise must break up the geographical division in the international market and establish a sound and effective international marketing network based on the integration and utilization of limited resources.

Only in this way can the company take a broad path in the long run, instead of being limited to a certain area.


3. Low professional quality of employees


The science and technology content of illume is higher, the enterprise belongs to high-tech enterprise.

Accordingly, the sales staff and after-sales service staff of the enterprise must have basic professional knowledge and be able to grasp the information that the customer wants to know and answer all the technical problems of the customer in a timely manner.

However, the reality is that the sales staff of China's LED lighting enterprises focus too much on sales and ignore technical services, that is, they are always eager to promote.

The customers of the enterprise are often experts in this field, while the sales personnel may even make some low-level mistakes when promoting the product. The wrong product model and performance cannot solve the problems of the customers, and the lack of professionalism will lead to the dissatisfaction of the customers.


4. Low capital operation ability


The low capital operation ability of enterprises is mainly reflected in the inability of enterprises to make full use of the financial market to solve their capital problems, which greatly limits the development and expansion of enterprises.

Enterprises belong to the high-tech industry, whose technology is updated rapidly and requires continuous capital investment, and if sufficient funds cannot be raised in the rapid growth stage of enterprises, the impact on enterprises will be fatal.

Therefore, if enterprises want to take the initiative in the market, they must learn to use the power of capital market.

If the traditional mode of industrial development is not changed, the enterprise will not be able to raise sufficient funds and is not timely enough.

It also turns out that a large number of business failures are due to the breakdown of funds or lack of funds.


5. Insufficient brand influence


Chinese LED lamp brand influence is insufficient.

At present, China's LED lighting market chaotic law, large and small companies on thousands of.

If a company wants to overcome the competition in the international market, it must make every effort to build its own brand and continuously promote it to the international market.

Enterprises must completely change the traditional concept of brand, establish the awareness of brand cultivation, and do a good planning.


In short, China's LED lighting enterprises must consider the crisis in their own security, assess the situation, eliminate their own shortcomings, and strengthen their advantages.

In the complex international market environment, we should seek advantages and avoid disadvantages, seize opportunities and accelerate development.


(iii) opportunity


With the increasing severity of environmental protection problems, energy conservation and emission reduction become a major requirement of current economic development.

LED lighting as a green energy concept has developed rapidly in recent years.

As a new industry, LED lighting has many development opportunities given by this era.


1. Energy conservation and environmental protection are widely advocated worldwide


With the deterioration of the earth's environment, the only home of human beings, and the frequent occurrence of extreme disasters around the world, the living conditions of human beings are getting worse and worse. Therefore, both the government and the public are paying more and more attention to environmental protection.

Human society begins to reflect on the development mode and survival mode of the past decades or even your century, realizing that it is necessary to change the existing predatory development and consumption model, set up the concept of sustainable development, and save energy and resources, so as to realize the infinite development of generations.

There is attention, there is opportunity, there is demand.

Because of its green energy saving and environmental protection effect, LED lighting complies with the current global trend of environmental protection, and will make great contributions to energy saving and environmental protection, so that the corresponding enterprises will face great development opportunities.


2. Policy support of the government


In order to achieve sound and rapid economic development, namely economic growth under energy conservation and environmental protection, and sustainable development, Chinese governments at all levels have issued a series of policies to support the energy conservation, green and environmental protection industries.

The LED industry is certainly one of them.

In the early years, the ministry of science and technology launched the "ten cities ten thousand buildings" semiconductor application lighting demonstration city program, announced in a batch of demonstration city application lighting ".

The number document of the national development and reform commission also published the list of annual energy saving service companies (referred to as EMC). LED lighting lighting enterprises occupied a considerable proportion of the list, which has become a new mainstream included in EMC, laying a foundation for the development of enterprises and enhancing the strength and confidence of enterprise product export.


3. The surging demand of people around the world for green and environment-friendly products


With the development of global economy, people will pay attention to the improvement of life quality after meeting the basic living needs.

The research and development and promotion of energy-saving and environmental protection products not only meet the public's demand for green products and quality of life, but also improve the recognition of LED lighting in the international market and win the praise of consumers at home and abroad.


4. Broad space for technological development


The broad space of technological development provides a bright prospect for the lighting industry.

Leds for lighting industry began to start soon, although has obtained the good result, but the technology remains to be further improved, the maturity of technology achievements of ascension is still much space, at the same time, at present, there are a lot of new technology application fields need to let hair, LED the market foreground is wide, the development of the industry has great potential.


(iv) Threat


Opportunity is dangerous.

China's industry is faced with huge development opportunities and threats from all sides.


The global economy has yet to recover


After the global economic and financial crisis in 2008, the world economy was generally in a weak situation.

Due to the uncertainty of the economic situation, enterprises have doubts about the future market, so many LED projects in developed countries in Europe and the United States have been taken offline one after another. On the other hand, the number of foreign trade orders of Chinese enterprises has plunged because of the weak foreign market and the impact of RMB appreciation channel.

Therefore, the uncertainty of macro environment has cast a shadow on the future market demand of EDL lighting, and the industrial development has not achieved the expected speed.


2. Trade wall row has an impact on export business


In recent years, developed countries such as the United States, the European Union and Japan have successively issued instructions and bills on the technology and quality of LED lighting.

The existence of non-tariff trade barriers affects LED lighting enterprises to a certain extent to control production costs and limit the development of foreign trade business.


3. As the price of raw materials rises, the price advantage of products will gradually decrease


The price of LED lighting products in China has been rising for many years. Affected by the fluctuation of the price of raw materials of LED lighting lamps, the production cost of enterprises is also increasing year by year. The price advantage of lamps and lanterns products will gradually reduce, and the profit space of the industry is facing challenges.


4. It is difficult to maintain technical advantages due to the rapid update of technology in the industry


With the gradual maturity of LED lighting technology, the chip quality is getting higher and higher, and the packaging technology is getting better and better, the price of LED lighting is on the downward trend, and the decline of price will inevitably lead to more chaos in the competition of the still immature LED lighting market.

Enterprises related to LED lighting must increase investment in research and development, actively apply new technologies, strive to improve product quality and increase product added value, so that enterprises can occupy a place in the international market.


5. Excessive government support leads to disorderly competition


In order to develop the green industry of lighting, governments at all levels have introduced too many supportive policies.

These policies attract more and more companies to enter the industry and seek a slice of the pie.

But demand is limited.

Economics shows that when the market enters the buyer's market, the competition in the market will become increasingly fierce and even disorderly.

The government's over-aggressive investment promotion and policy support, together with the entry of investment funds in capital market, make LED market attract too many enterprises. For example, in the past three years, there is no less than a photovoltaic industrial park, which claims that it is the "largest" in China and even in the world.

This has led to more jobs and a sharp decline in corporate profits.

The reason for this phenomenon is that the government does not encourage two-way encouragement, that is, it only encourages the supply side, but does not encourage the demand side, that is, it does not encourage the society to use lighting, and it does not cause the expansion of market demand, but instead creates excess capacity.


The government's support to the industry cannot be sustained, only in the early stage of industrial development, when the industry enters the mature period, the government's policy will withdraw.

There are too many such cases, such as wind power generation, home appliances going to the countryside and so on.

When the government's policy support is cancelled or the capital market venture capital is withdrawn, enterprises will face great pressure, some even can not survive, leading to a large number of enterprises bankruptcy.

Therefore, the disorderly competition caused by excessive government support will eventually lead to a large amount of resources and energy waste. Even those enterprises that survive in the fierce competition will eventually lose in the international market competition due to excessive competition consumption, which cannot improve the development quality.