LED lighting foundry business prospects confused
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In the lighting industry, OEM is widespread, including many large-scale brand companies that use a large number of foundries. The rise of the LED lighting market, many of the well-known companies in the industry have a rich product range, and the production capacity of the orders that come to the market needs to go to the foundry. However, LED lamps frequently appear in quality doors, many of which are foundry products. The general manager of a company told the author that when the company has certain brand influence and production technology, the requirements for the foundry will also follow. Strict, will not easily hand over the products to some small OEMs, so as not to damage the quality of their own reputation. However, with the scale, production technology capabilities, and channel resources growing up, the foundries that began to win by volume began to transform themselves into independent brands, and OEMs will continue to do so, but the amount will gradually decrease. Now, the question is coming. Will the foundry gradually transform its own brand to encounter difficulties, and how can the independent brand continue to move forward? LED lighting foundry business prospects are lost! Foundry is one of the LED industry development models. If you open China's foundry map, it is not difficult to find that many electronic brands take advantage of China's labor costs from electronic products to clothing, from clothing to daily-use small commodities. The products are almost all in China. Production is completed. Notebooks produced by the famous foundry Quanta in notebooks account for 30 of the world's notebooks, and Quanta has no own notebook brands; IT data company iSuppli said that 86 laptops sold worldwide are from China, but mainly It is produced under the name of OEMs such as Dell Dell and Hewlett-Packard. In addition, many foreign luxury brands have been quietly producing in China. The production lines of the world's top fashion luxury brands such as Armani and Louis Vuitton have already settled in China and found authorized manufacturers. In addition, the OEM phenomenon of the LED industry is also common; according to relevant data, the proportion of LED products exported to China has reached 80 or more. At the same time, the current foundry model is still one of the major development models of China's LED industry. Most of the well-known foreign brands such as Osram and Philips also have OEM production in China. OEM and ODM are common in the LED foundry mode. Because of the considerations of manufacturing cost, transportation convenience, and saving development time, well-known brand enterprises are generally willing to find other manufacturers OEM or ODM. Among them, OEM is original equipment manufacturing, commonly known as OEM; OEM is usually brand producer Direct production of products, but the use of their own key core technology responsible for designing and developing new products, control sales channels, specific processing tasks through the contract to order the way to commission other manufacturers of similar products, and then buy the low-priced buyouts And directly affixed to their own brand trademark. The difference between ODM and OEM lies in the R&D and design of the participating products. The characteristics are that the technology is outside, the capital is outside, the market is outside, and only the production. As the demand for LEDs increases, the changes in foundry development lines are affected by energy conservation and emission reduction policies, and the demand for global LED terminal products has risen sharply. International lighting giants, domestic brand LED manufacturers and cross-border enterprises have entered the LED lighting field, constantly expanding production capacity and robbing the market. It has also become one of the main ways for traditional lighting companies to transform LED lighting and most domestic LED companies to participate in global competition. In the LED industry, the initial OEM model is OEM-based. Traditional lighting companies such as NVC Lighting, Foshan Lighting, and Midea have adopted the OEM model to cut into the LED lighting field at the beginning, which provides OEMs with more development opportunities. . Chen Xinhua, general manager of Meidi Zhiguang Technology Lighting Co., Ltd. told the author that before the establishment of the independent lighting brand, the company started from the OEM OEM ballast ballast. Later, as the scale of development continued to grow, it began to help some well-known in the industry. The brand carries out OEM production. The main OEM products like the company are light sources, such as LED downlights, bulbs and ceiling lamps. Chen Xinhua revealed that although the enterprises that usually do OEMs have the strength to build channels, in the initial stage of development, the production is insufficient, and they have to be extended to find manufacturers to produce, that is, the OEM actually requires production. In addition, according to the author's investigation, there are LED product home lighting and LED business photos. As the development strength of the enterprise is increasing, the influence of the brand is gradually expanding. In the process of doing OEM, the requirements will become more and more strict, and the OEM model will start to change. The OEM will turn to ODM. Chen Xinhua told the author that it used to be an OEM. The factory home is to include production equipment and raw materials, but now there is a link between the commissioning party and the OEM. Like a LED lighting business marketing director revealed to the author, the company has three high-end and low-level LED commercial products, and hopes to enter the market with different positioning products; but because the company itself does not have high-end Product technology manufacturing capabilities, so the company will entrust a manufacturer with strong technical capabilities to produce high-end LED commercial products for its OEM, and the company will also participate in the product design process, and develop products with the foundry. Another foundry company revealed to the author that when the company is looking for a foundry, it will consider the foundry's home. On the one hand, the output will be up, and the production capacity of the foundry must also keep up; It is the supervision and control of product quality to ensure quality. After all, the product is advertised as its own brand name, because if the product has problems, all the consequences of affecting the brand are borne by the brand, so the production technology capability of the foundry should meet the requirements. OEM's transformation of independent brand development For brand-owned enterprises with strong financial strength, strong brand influence, advanced technology research and development and rich market operation experience, the integration of product advantages through OEM can be realized in a short time. Maximize production capacity and diversify products. OEMs can help brand manufacturers achieve win-win cooperation, combining brand and technology advantages with cost control and cheap labor advantages. Nowadays, in the era of cost control, labor costs, management costs, and product packaging costs are all factors considered by the company in the manufacturing process, but the cost pressure is not obvious for the foundry. Chen Xinhua said that the pressure of OEM costs is not as big as that of independent brands. Because the orders of the foundries are stable and there will be advantages in purchasing raw materials, the cost of raw materials for the whole production will not be too high; however, for independent brands. Manufacturers, regardless of whether the order is reduced, but the cost of raw materials is still so high. After the foundry company has contracted for other brands, the entrusted brand can sell the products to the brand packaging by virtue of the brand influence, and thus can harvest high-efficiency benefits. The foundry party only gains a small profit from the foundry, which is difficult to support. The long-term development of manufacturers can only be stronger if they are self-reliant and multi-directional development. For example, in the LED industry, there are some OEM manufacturers that are small in scale and low in popularity but are well-known brands in the industry. These factories were produced after receiving production orders from well-known brands. At the same time, these foundries also created their own brands, while branding other brands, while also developing their own brands. Like the world's most influential foundry factory, Foxconn, which is best at large-scale production, labor costs and material cost control, is now beginning to transform, taking the road of independent brands and adopting machined production.