How do international big companies monopolize domestic LEDs?

October 31, 2020

As a well-known enterprise in the domestic LED packaging silicone industry--Beijing Kangmet Technology Co., Ltd. (hereinafter referred to as "Beijing Commet"), in less than 10 years, China's LED lighting industry has entered an unprecedented development period, in line with the times and With the demand of end consumers, the Chinese market has gradually become the object of competition or key layout of various links in the LED lighting chain. At the same time, in recent years, thanks to the high growth of the LED lighting market, many LED lighting upstream enterprises' orders and shipments have risen rapidly. Among them, as an important supporting manufacturer, glue companies have also ushered in great market opportunities.

Moreover, under the stimulation of the rapid development of the LED industry, domestic glue has also formed a related supporting industrial chain. Due to the high cost performance, the pace of replacing imported glue with domestic glue is accelerating. As a well-known enterprise in the domestic LED packaging silicone industry, Beijing Kangmet Technology Co., Ltd. (hereinafter referred to as “Beijing Commet”), in less than 10 years, in the Chinese market, it can be comparable to the international giants. Domestic brands, their experience in innovative research and development, market strategy, customer service, etc. are worth learning.

Focus on R&D and take the high-end market as the entry point Before 2010, more than 75% of the LED packaging silicone market relied on imports. At that time, domestic glue factories mostly cut the entrance to the low-profile silicone market with low technical difficulty, and began to realize the localization of LED packaged silica gel. However, Beijing Commet is based on the strategic positioning of the company's “localization of pilot polymer materials”. In 2008, when it started the research and development of LED packaged silica gel according to customers' needs, it chose the high-end high-refractive silica gel that relies entirely on imports as the entry point, and in 2011. In the second half of the year, the company officially sent samples to customers, and in 2012, it began to advance to the high-end high-refractive market. At that time, more than 75% of the LED high-end high-refractive-package silicone in the Chinese market came from Dow Corning and Shin-Etsu.

Ge Shili, general manager of Beijing Kangmet, said, “We are able to take the high-end market as the entry point, mainly because the company has a R&D team with rich experience in polymer materials such as silicone and epoxy resin. Our core R&D team From the Chinese Academy of Sciences, many of them are the special allowances of the State Council. Since our establishment, we have been focusing on R&D and focusing on R&D investment. Currently, more than 30% of our staff specialize in R&D. Based on the advantages of innovation, we will The products are positioned in the high-end market, and the main competitors are internationally renowned companies."

It is understood that LED package silica gel, although a relatively small proportion of the overall cost of LED devices, is a very critical application material, which plays a decisive role in the overall performance of LED devices. Therefore, packaging companies are very cautious in selecting or replacing glue. They need to undergo rigorous testing to determine whether the parameters can meet the packaging and application requirements. For domestic and international manufacturers, it usually takes 12-18 months. Beijing Commet's products are undergoing such tests and are adopted only after confirming that all performance indicators can reach the level that is comparable or even exceeded with imported products. “We have always made it a top priority to ensure product quality and to continuously improve product performance according to customer needs.” Ge Shili said.

“One point of cultivation and one harvest”, Beijing Commet finally won high recognition from customers and the market. It is understood that most of the listed companies engaged in packaging in China have become customers of Beijing Commet, and a number of internationally renowned companies have also begun to take the initiative to contact with Beijing Commet and reach a cooperation intention. Ge Shili said, "At present, after our products are accepted by the market, the market is growing rapidly. In the past two years, the company's performance has doubled."

Cost-effective, domestic silicone become an inevitable trend <br> <br> precisely because of the rise of Chinese enterprises in the domestic high-end imported glue glue is constantly losing market share. Relevant data show that the size of the domestic glue market will exceed imported glue for the first time in 2014. Experts analyzed that in the low-profile silicone market, domestic glue quickly replaced imported glue by virtue of its huge price advantage. In the field of high-profile silicone, the performance of domestic glue sales has accelerated due to the consistency of performance with imported glue, which will further encroach on the market share of imported glue.

When asked why Beijing Commet can successfully seize the market share of imported glue, Ge Shili said, "The quality of the product is the most important premise. If the quality does not meet the requirements, then the cheap price is difficult for customers to use. Point is even more important for those big packaging companies."

“Furthermore, we are able to provide timely technical support to our customers, and we can provide customized R&D services according to the requirements of our customers.” Ge Shili gave an example to the author, “For example, when we first entered the glue market, we have an internationally renowned customer. They proposed that there is a product that we hope can be customized according to their requirements. Customers may only use a few kilograms a year, but it is very inconvenient for customers to import from abroad. We will definitely lose money when we calculate it. But we think this is also a way for our customers to test our R&D capabilities. It is also an important opportunity for us to gain customer recognition. Therefore, we have not hesitated to take orders and successfully serve our customers. Providing customized products, allowing customers to feel that we have considerable research and development capabilities, while providing better services. As a result, we not only received follow-up orders from this major customer, but also established the service brand of Beijing Commet in the industry. ."

“Under the premise of quality, the preferential price will certainly make the product more competitive.” Ge Shili added, “Compared with other domestic competitors, our products adopt a fully synthetic route, and the main raw and auxiliary materials are all Synthetic acquisition, this aspect controls the quality of the product from the source, on the other hand, it also effectively controls the production cost of the product. In addition, due to local production, saving transportation and labor costs. Therefore, we can provide customers with more favorable prices. Provide high quality products."

When it comes to price, Ge Shili also confided to the author's concerns. "At present, the industry is talking about the 'Red Sea market', ignoring the quality of LEDs and only focusing on low prices, which will inevitably affect product quality and affect consumers' LED products. Understanding is very unfavorable to the development of the industry."

Ge Shili said, "Only the healthy development of the entire LED industry, we can gain greater development opportunities as participants in the industry. We hope that the industry can introduce LED-related product standards as soon as possible to avoid the current price war without bottom line. We welcome competition Because competition can enable consumers to obtain more cost-effective products, but this competition should be within the scope of industry standards, under the premise of ensuring product quality, orderly competition."

In fact, in order to cope with more fierce competition in the future, seize more market share, gain a firm foothold, seize the opportunity of industry development, and develop “Beijing Commet” into a banner in national enterprises. According to Ge Shili, Beijing Commet The layout has been started in various aspects such as research and development, production and sales.


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