Business opportunities: high end LED devices into export hotspots

In order to avoid the market risk and reduce the cost of sales, and avoid price competition between domestic enterprises, last year the domestic LED enterprises to actively expand overseas markets, and achieved some results.

Local enterprise product 1/3 export

Last year, the domestic LED companies export situation is very good." China Guangxie optoelectronic devices association secretary general Peng Wanhua said. According to preliminary estimates of some investigation, local LED companies last year produced a total of 20 billion to 25 billion LED devices, of which about 1/3 of the devices in China and export, foreign enterprises produce about 20 billion or so, the basic sales to overseas markets.

Peng Wanhua said the secretary general, resulting in a larger amount of LED exports are two reasons: first, the production of foreign companies in China LED, most of their products are aimed at overseas markets. Second, some of the strength of the local LED companies through various initiatives to actively expand the export volume of products.

Expert analysis, domestic LED enterprises to actively export for three reasons: first, by expanding the scope of the market, to reduce market risk; secondly, enterprises export trade, production occupies less capital back faster, so as to enable enterprises to maintain a good financial situation; third, export trade with the cost of sales ratio the domestic low, many enterprises receiving orders through the network, and expand the market, this kind of type A than traditional domestic door-to-door sales, the cost is much lower.

In addition, because the production of low-end LED devices in the domestic market, many companies have to rely on low-cost competition. In comparison, the competition in the overseas market more orderly, but also caused some of the strength of local enterprises are more willing to work hard to overseas markets.

Exports mainly in the high-end devices

LED industry chain is divided into wafer, chip, package and application, because of the domestic packaging and application of early mature technologies and products, and formed a certain scale of the industry, so the export products to packaged LED devices and LED application products. In the past two years, the chip industry due to the rapid development of some enterprises, technical level and production have improved, therefore, there are a small amount of exports.

In the export of the device, in order to high-end products, and the application of products is varied, including display, backlight module, special lights, decorative lights and other LED based display components.

Xiamen Hualian Electronics Co., Ltd. is a strength of the LED packaging enterprises, last year the company's export products reached about 90000000 yuan, of which optoelectronic devices reached $30 million. In these products, a large part of the LED is dedicated to the display and receiving amplifier. LED special display products used in refrigerators and air conditioning temperature, humidity and other information display, because the product has its own characteristics of the technology, the export situation is very good. It is reported that the company's products are mainly exported to the United States, Asia and parts of europe.

Jiangsu Wenrun photoelectric Co Ltd in A new force suddenly rises. domestic LED packaging industry in recent years, almost every year to double the output value of the enterprise. Guo Yuguo, general manager of the company said that their sales last year reached 150 million yuan, the export ratio of 40%, reaching $60 million. From 1999 onwards, Jiangsu steady run began online sales. "We through various initiatives, such as participating in large-scale exhibition, to establish a corporate brand image, to open up overseas market through the brand, thus changing the industry that traveled thousands of households to sell products, do not participate in the price competition." Guo Yuguo, general manager, said, at present, all of our export and domestic orders almost all from the network, and export products are mainly high-end devices." At present, the company's products are mainly exported to Southeast Asia and South Korea and other places.

In the application of products, Ningbo science and Technology Bureau, said Zheng Jian, director of high and new technology, Ningbo has dozens of companies engaged in LED applications, such as LED flashlight, energy-saving lamps, garden lights and miner's lamp production. Because the prices of these products are more acceptable to foreign markets, most of them are exported. Last year, the region's largest export enterprises reached 100 million yuan.

LED companies continue to expand exports

Secretary General Peng Wanhua believes that in the global trend of industrial transfer, in 2005 China's LED industry output is still rising, and the strength of the enterprises will further expand overseas markets, therefore, this year is expected to LED export will grow steadily.

Xiamen Hualian 2005 exports are expected to grow by 10% to about 20% in 2004.

Guo Yuguo, general manager, said the company plans to stabilize this year will increase the proportion of exports to 50%. First, they will expand export areas, such as the second half of last year, they began to develop the African market, and this year they will participate in the European LED exhibition, the development of the European market. Secondly, they continue to enhance their brand image, for example, last year they won the title of Jiangsu famous brand, ready to apply for national brands this year.

Third, they also extend to the upper and lower reaches of the industrial chain this year, will invest in chip production, and increase the intensity of application development. By taking these measures to expand the export of enterprise products.

While actively developing overseas markets LED enterprises, but the Secretary General Peng Wanhua also said that they will continue to expand exports still need to overcome some difficulties, for example, high-end devices because of wafer and chip can achieve self-sufficiency, so exports are subject to certain constraints, and the overall application