Advantages and Disadvantages and Opportunities of Chinese LED Enterprises in Overseas Markets

In recent years, under the trend of energy conservation and emission reduction in various countries in the world, the LED lighting industry has flourished. According to overseas research institutions, the overall size of the global general lighting market is expected to reach 104.6 billion US dollars by 2019, and the compound annual growth rate is expected to reach 5.3% from 2014 to 2019. Among them, traditional lighting technologies such as incandescent lamps, halogen lamps and fluorescent lamps still dominate the global general lighting market, which is mainly used in developing countries around the world, but with the decline in the price of LED products and the increasing awareness of consumers' environmental protection, LED lighting accounts for a rapid proportion. Rising, it has become the main technology in the general lighting market. From the current point of view, the future development trend of the global general lighting market is mainly reflected in the following five aspects: 1. The market share of LED products is increased; 2. The technology is updated and accelerated; 3. The average selling price of LED products is declining; 4. Market supply The number of merchants has increased; 5. The popularity of LED package lighting products in the general lighting market has increased. Through the analysis of the world's leading lighting companies, we also found some commonalities: these companies often have strong innovation capabilities, high-quality product production or research and development capabilities, strong and international sales network, and strong funds. strength. Taking the development of general lighting technology as an example, the momentum of replacing traditional lighting technology with LED is more prominent in China than in the global market. It is expected that the annual compound growth rate of domestic LED lighting technology will reach 29.8% from 2014 to 2019. However, although China is the largest production base of the global lighting industry and the country with the largest population, it has the right to speak because of the lack of super brands, national chain sellers, intellectual property rights and industry standards, as well as over-investment and product quality in the industry. The Chinese lighting industry has been in an extremely dispersed state for a long time, and the large-scale lighting enterprises are absent. Here, we use the SWOT model to analyze the advantages and disadvantages and opportunities of the domestic LED industry in the global development. In terms of advantages, the domestic LED industry has a good research foundation in technology, and the gap with foreign countries is gradually narrowing; the initial capital expenditure and labor cost are low; the industrial cluster effect has been formed, and the government gives Great support; the downstream application space is huge and the product development potential is high. In terms of disadvantages, products are heavily constrained in terms of technology, patents, and channels. At present, domestic enterprises rely on non-local manufacturers on the chip, lack of independent intellectual property rights, weak patent awareness, weak manufacturing base of upstream products, and serious product homogeneity. The scale of enterprises is generally small, lacking global famous brands and Sales channels; over-investment in the industry, overcapacity, Yuan, peers, vicious competition, cruelty, these will lead to the domestic LED industry is not strong, lack of global industry and product standards to develop the right to speak. In terms of opportunities, the demand for LED lighting and green lighting is increasing, and the fields of architectural lighting, indoor and outdoor displays, automobiles and special lighting are promising. In terms of challenges, it is reflected in four aspects: 1. Foreign-funded technology market; 2. High-end market is still monopolized by foreign capital; 3. International giants enter the domestic market and lead to increased competition; 4. Patent restrictions. After the above analysis, it is not difficult to find that although China's LED industry is backed by China's huge market, it also coincides with the upgrading of the lighting industry. In the international market, it still faces challenges such as patent rights, its own quality, and competition in foreign markets. At this time, if domestic enterprises can make good use of mergers and acquisitions to seize market opportunities, it will greatly help accelerate development. Heroes are good at using the situation. I hope that more LED Chinese companies can find their own position in the industrial transformation, and rapidly rise and grow.

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