LED vendors how to attack the Southeast Asian market?

According to LEDinside statistics, the six major countries in Southeast Asia (Thailand, Singapore, Malaysia, Vietnam, Indonesia, Philippines) to calculate the 2015 Southeast Asian general lighting market size will be close to $4 billion 800 million, of which LED lighting scale of around 1 billion 500 million dollars. LED lighting market in Southeast Asia in 2013, the fastest growth rate, an increase of 63%, to 2014-2015 a slight slowdown, but there are still more than 30% growth rate. In addition, the Southeast Asian market, LED lighting penetration increased year by year, and the rate of increase gradually. 2012-2015, Southeast Asia LED lighting penetration is expected to grow from 12% to 32%. The Southeast Asian market is growing as the most dynamic and potential LED lighting development fertile soil.

The rapid development of LED lighting in Southeast Asia, in addition to benefit from the drive of infrastructure, the development and influence of the association of Southeast Asian countries have also played a significant role in promoting. Association of Southeast Asian Nations is a governmental international organization for the collection of Southeast Asian countries. Since its establishment in 1967, ASEAN is one of the fastest growing economies in the world.

ASEAN is not only active in negotiating a free trade agreement with foreign countries, but also set a goal to set up the ASEAN Economic Community in 2015. The establishment of the ASEAN community will enable ASEAN to become a single market and manufacturing base. The ASEAN economic community, which is scheduled to be implemented by the end of 2015, aims to facilitate the free flow of goods, services and professional labor and capital flows among member states.

After the establishment of the ASEAN economic community, the implementation of unified standards for electronic equipment AHEEERR. Since 2016, electronic equipment products can be certified in a local country through the security certification, in other countries in asean. The implementation of uniform standards will undoubtedly bring significant positive impact on the export of products to the Southeast Asian market. For LED manufacturers, to enter the Southeast Asian market without the need for multiple standard certification, direct savings in the cost and time of export. And increased trading opportunities, once exported to Southeast Asia, the product can be sold throughout the asean. As for the local market and consumers, the implementation of a unified standard makes more healthy competition can be added to help improve product quality and norms, thereby improving market acceptance.

In the rapid growth of the market and favorable policies, the Southeast Asian market is bound to become China's LED manufacturers in the future development of important overseas battlefield. However, manufacturers need to choose their own and the local market channels and models, in order to quickly and effectively develop the market.

From the Chinese imported lighting products as an example, the chain structure of southeast lighting industry can be divided into five types: 1 Chinese device by the manufacturers for the local lighting factory; 2 imported semi-finished products + local assembly; 3 imported light + local assembly; 4 China generation factory directly after ODM shipped to 5 countries; Chinese manufacturers through its own brand engineering or wholesale sales channels.

Overall, due to the lack of local manufacturing capacity, Southeast Asian countries are still PHILPS, exotic, Toshiba and other international manufacturers share the highest, followed by local manufacturers. While the international and local manufacturers usually choose from Chinese generation factory directly after ODM shipped to countries, OEM relationship is more fixed and large orders, so the industry chain structure in Southeast Asia accounted for the highest, the average is more than 50%. Chinese manufacturers from the brand to the local market, but also accounted for about 25% of the share.

In the market positioning strategy, due to the Southeast Asian civil market has not yet opened, the demand for commercial and outdoor air is still the main project, so the local manufacturers generally based on engineering channels, retail and wholesale channels accounted for relatively small. And international companies as a market pioneer, usually retail and wholesale channels and channel engineering are involved, the overall retail and wholesale channels accounted for will be slightly higher than the channel, the price is slightly higher than the local Dachang yuan yuan. In addition, there are some manufacturers mainly through retail and other channels of wholesale sales of products, mostly small and medium manufacturers, relative to the lower the price of the project channel manufacturers, the main low-end market, the share of the smallest.

Positioning strategy 1:B2C channels and engineering channels are involved, in general, the proportion of B2C channels will be slightly higher than the engineering channel.

Positioning strategy 2: Engineering channels, B2C channels accounted for relatively small.

Positioning strategy 3: the product basically through the engineering channel sales.

Positioning strategy 4: mainly through retail and other channels to sell products, mostly small and medium manufacturers.

As can be seen, the current mode of industrial chain in Southeast Asian manufacturers, Chinese manufacturers occupy a very important position. China manufacturers looking for local partners to master OEM orders, the rapid development of the Southeast Asian market is the effective path, in addition, establish a brand image, to master the local channel advantages, and its own brand exports to Southeast Asia, the more scale and brand advantages Chinese manufacturers, but also conducive to occupy a space for one person in the Southeast Asian market, and production own brand products profit rate will be higher.

In general, manufacturers need to do self assessment, according to the brand and channel conditions for appropriate channel selection, and according to the local market demand for product specifications and price. Whether high-end or low-end, engineering or retail, own brand or OEM, positioning strategy is a key element to enter the Southeast Asian market.

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