Date Published: July 26, 2017 Source: China Lighting Network Share:

In accordance with the latest regulations on mercury-containing batteries and fluorescent lamps, the development of mercury-laden fluorescent lamps has been significantly restricted. As mercury-added fluorescent lamps gradually phase out, LED lighting will experience a larger and more expansive growth opportunity. There are ten distinct pathways for China’s LEDs to advance toward globalization.

Path one: Hidden Brand

A hidden brand refers to a company keeping its brand name discreet while focusing solely on profitability. This approach allows businesses to remain anonymous while maximizing profits. While this strategy can be lucrative, it also carries risks. For instance, a single quality mishap could result in significant losses. Many of China’s top exporters operate under this model, squeezing suppliers to maintain competitive pricing while maintaining their own margins. It’s a balancing act that requires vigilance and strategic planning.

Path 2: Creating a Brand

Building a brand is a challenging yet rewarding endeavor. It means investing heavily in establishing a name that is uniquely yours. Companies like N Corporation ventured into the UK market, focusing on regional strategies over several years. Through consistent efforts, they managed to gain local recognition and even earned accolades in international lighting competitions. While the initial investment can be substantial, the returns can be immense. It’s a tough road, but creating a brand is undoubtedly worth it.

Path three: Dual Brand Strategy

The dual brand strategy involves leveraging existing brands while simultaneously building your own. For example, working alongside established brands like S Company can provide access to new markets and opportunities. It’s not uncommon for smaller firms to piggyback off larger ones to achieve initial success. Take WELLMAX, for instance. By closely aligning themselves with S Company, they were able to secure a strong foothold in Frankfurt and later expand into South America, North America, and Southeast Asia. This strategy can be highly effective if executed correctly.

Path four: Acquiring a Brand

Acquiring a brand is another way to enter global markets. Companies like TCL and Skyworth have attempted this route, though with varying degrees of success. However, Konka’s acquisition of Toshiba Lighting under General Qin’s leadership marked a notable achievement. Overseas, this approach is equally viable, though cultural nuances can pose challenges. Brands like Dongfeng have shown that buying established names can lead to rapid expansion. While it may not always guarantee success, it’s a strategic move worth considering.

Path five: Leveraging Existing Brands

Leveraging existing brands means using someone else’s reputation to boost your own. Companies like E Company have successfully borrowed the prestige of brands like Whirlpool and Electrolux. This is essentially another form of the dual brand strategy. By riding on the coattails of established brands, businesses can achieve significant growth without the upfront costs of building their own. Proper execution can lead to mutually beneficial partnerships.

Path six: Building a Global Brand

Building a global brand requires significant investment and strategic planning. Domestic companies like Beijing’s Shen An have pioneered this approach. While this method works domestically, it also presents unique challenges abroad. Cross-regional differences can be daunting, but with the right strategies, companies can overcome these obstacles. Whether at home or abroad, the key is understanding local cultures and tailoring approaches accordingly.

Path seven: Strategic Partnerships

Strategic partnerships allow companies to leverage each other’s strengths. For instance, the “filament lamp” king in Shaoxing, known as Xinhe, has achieved unparalleled success through collaboration. Their products are directly supplied to major brands worldwide. This partnership highlights the potential of joint ventures in expanding global reach. It’s a testament to how collaboration can drive success in the lighting industry.

Path eight: Specialized Branding

Specialized branding focuses on leveraging patents and innovations to dominate the market. Companies like Huawei and Ri Disheng have demonstrated this effectively. Patents play a crucial role in global expansion, providing companies with a competitive edge. As noted by Ge Dashu, acquiring patents from competitors can be advantageous, but it must be approached cautiously to avoid potential pitfalls.

From the above, it’s clear that patents are a powerful tool in achieving global success. It’s a strategy that has proven its worth time and again.

Path nine: Notable Branding

Notable branding involves registering your brand internationally to establish a presence in foreign markets. Companies in Fujian and Wenzhou excel at this, with numerous brands in the fashion and footwear industries. The popularity of Italian and Spanish brands is a testament to this strategy. Instead of limiting yourself to traditional markets, consider expanding globally. The world is vast, and opportunities abound beyond your borders.

Path ten: Consolidating Brands

Consolidating brands involves merging entities to create a stronger, unified force. Recent acquisitions by Mu Linsen and Landwell exemplify this approach. Currently, Philips Lighting holds the top position in the global lighting market. The synergy between Mu Linsen and Landwell further amplifies their influence, creating a complete value chain. This innovative strategy sets them apart on the global stage, showcasing the potential of strategic mergers.

Tags: How China's LED Industry is Moving Toward Globalization

As the LED industry continues to evolve, these ten pathways highlight the diverse strategies companies are employing to achieve global success. Each path offers unique opportunities and challenges, underscoring the importance of adaptability and innovation in navigating the complexities of international markets.

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