Nowadays, in the process of accelerating global integration, Chinese LED companies are gradually turning their eyes to a longer-term perspective. They are beginning to realize that if a company wants to grow and develop, it is not enough to rely solely on endogenous power. It also needs external force and internal force. The external forces complement each other and can add icing on the cake.
Moreover, as an important manufacturing base for LEDs and the world's largest application market, China has become the key layout market for international LED giants. International companies in developed countries and regions have gradually adopted the midstream and downstream links of labor-intensive industrial chains through mergers and acquisitions and restructuring. Transfer to developing countries and regions such as China and Malaysia to achieve integration of upper, middle and lower reaches under a global unified marketing strategy. For example, the United States Cree, Taiwan Yiguang, Yuhong, Osram and other industry leaders set up factories in the mainland.
Therefore, China's LED display companies urgently need to go out, and many companies have also turned their attention to the export market, thereby enhancing the core competitiveness of enterprises. Then, how do domestic LED companies “pick peaches†and open up overseas markets?
Set up camp
On June 17, Alto Electronics issued an announcement: Alto Electronics (Hong Kong) Co., Ltd., a wholly-owned subsidiary of Shenzhen Alto Electronics Co., Ltd., has recently completed its wholly-owned subsidiary Alto Electronics Japan Co., Ltd. (hereinafter referred to as "Japan Alto") Registration in Japan. Alto Electronics said that the establishment of Japan's Alto will help promote the company's internationalization process, further promote the continued growth of overseas business, and broaden the company's international development path.
In addition to Alto, Abisen, Liard, and Dongshan Precision have also been laid out in the same way as Alto Electronics. In 2014, in order to strengthen the physical operation of Abbison USA and Abisen Germany, Abbison registered and established a wholly-owned subsidiary Hong Kong Ai Bison, Ai Bison Middle East, Ai Bison Japan, Abby Mori Mexico's wholly-owned subsidiary (Sun) company has also been established;
In 2014, Liard established five new holding companies, including overseas subsidiaries Liard (Europe) Ltd., overseas subsidiaries (USA) Ltd., Liard (Brazil) Co., Ltd., Liard (Japan) ) Ltd. and Panpacifi Investent.Inc;
In 2015, Dongshan Precision plans to establish Dongshan Precision (Finland) Co., Ltd., a wholly-owned subsidiary in Finland, and Dongshan Precision (USA) Co., Ltd., a wholly-owned subsidiary in the United States.
Overseas M & A
Of course, in addition to camping abroad, overseas mergers and acquisitions are not uncommon. In 2015, Liard acquired US Pingda Electronics to expand the existing LED display sales range;
In 2016, Dongshan Precision plans to acquire a 100% stake in MFLX for a consideration of approximately RMB 4 billion. As a merged company, MFLX became an indirect wholly-owned subsidiary of Dongshan Precision.
Other "peach picking" methods include: foreign contracting projects, representing the company with Zhou Ming. In 2015, Chau Ming increased its capital, Dingyuan Investment Co., Ltd., and participated in the renovation of the Hungarian public lighting LED project by AVIC Tongtai, which is the company's road lighting EMC business;
Localization of brand channels, Abbyson increased the advertising of overseas professional magazines;
Cross-border sports marketing, such as Lehman signed a cooperation agreement with the Portuguese Football League this year, announced that it will be the exclusive title of the Portuguese second-level football league, the Portuguese professional football league will be renamed Lehman Portuguese League in the next three and a half years.
Obviously, Chinese companies can “go out†through active cross-border mergers and acquisitions, overseas factories, and engineering contracting.
Director of the Guangdong Semiconductor Lighting Industry Joint Innovation Center and Dean of the Guangdong Gaozhi Emerging Industry Development Research Institute, at the 2016 China LED Industry International Competitiveness Development Conference and the 2nd China LED Enterprise International Competitiveness TOP10 Awards Ceremony, said: "China is actively adopting Multinational mergers and acquisitions, overseas factories, project contracting and other ways to 'go global', leveraging the international market channels, the existing brand value of international manufacturers, core patent technology, avoiding the risks of intellectual property disputes and enhancing international competitiveness"
The author believes that in the domestic market competition to enter the "Red Sea" environment, the opportunities in the export market are greater than the domestic opportunities, we expect that in the future development process, Chinese companies can achieve better results in the export field!
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