Another business opportunities LED packaging plant to increase the layout of emerging markets

Light-emitting diode (LED) packaging plants are actively expanding into emerging markets to expand their revenue sources. In order to avoid vertical integration of LED upstream epitaxial crystal, crystal factory and downstream system manufacturers, LED packaging industry has begun to extend its reach to emerging markets, and strengthen cooperation with local distribution channels to open up new opportunities for growth.

Guo Ziling, a senior industry analyst at the Industry and Technology Group of the Photonics Technology Industry Association (PIDA), said that under the pressure of weak demand in 2011, upstream LED epitaxial and grain manufacturers with a certain economic scale have been actively pursuing inventory inventories. Looking for products to the sea, they have skipped the packaging plant and directly negotiated orders with the downstream brands that have the dominance of procurement in order to secure greater revenue.

In addition, both the LED upstream component suppliers and downstream system companies are vertically integrating, and the LED packaging plant in the middle reaches of the industrial chain is also being compressed, and coupled with European and American credit debt storms, many LED packages The factory has been quick to start a new layout.

Guo Ziling pointed out that LED packaging companies have successively extended their operational reach to emerging countries such as Russia, India, Central and South America and Africa, and deployed local distributors, distributors and agents to try to gain more government projects through dense channels. Cooperate with customers and even brand strategy to gain greater profits.

Guo Ziling analyzed that LED packaging factories no longer focused all their resources on only markets in Europe, the United States, and mainland China, but looked more optimistic about the growth potential of other emerging countries, but at the initial stage they still had to rely on the demonstration projects of emerging countries’ governments. The local road network in Burkina Faso will be the key to better master the government project plan.

However, when it comes to aggressively entering emerging markets, the challenges of inventory and materials management will intensify, becoming a topic that LED packaging plants immediately faced. Guo Ziling emphasized that different countries have different needs for LED lighting functions and performance. To meet the requirements of different customers for LED lighting, the corresponding product portfolio must be introduced in response to different markets, which will lead to pressures on inventory and materials management. The importance of cost control has become a difficult problem for LED packaging industry.