Xinlong Optoelectronics: the accessories market cake is still very big

[Source: "High-tech LED-technology and application" April issue Tang Guirong]

“Xinlong photoelectric material PC lamp cover has a market share of more than 30% in the domestic market.” In early April, Li Yang, general manager of Dongguan Xinlong Photoelectric Material Co., Ltd. (hereinafter referred to as “Xinlong Optoelectronics”), When LED said this sentence, there was not much smug expression.
However, this sentence, for Xinlong Optoelectronics and all its employees, means survival and transformation.

Because, from the second half of last year, the price of PC raw materials has increased by 10%, while the price of LED lighting application market has dropped by 30%.

The rise in raw material costs and the decline in product export prices have caused accessory manufacturers to suffer double-sided pinch. “The narrow profit margin forced some companies to use domestic PC raw materials and take the low-end route.” Li Yang said that it is difficult for accessory manufacturers to expand, because there are more than 20 accessories, and each accessory is distributed in the overall cost of LED lighting. less.

Therefore, from a market perspective, the volume has become the only rule for the survival and success of accessory manufacturers. However, in Li Yang's view, the accessories market cake is still very big, both in terms of profit and sales.

Based on this, when talking about the next goal of Xinlong Optoelectronics, Li Yang showed a bit of confidence. “Improve quality and go overseas; change ideas and take an integrated route is the only rule for accessory companies.” After re-planning the industry and adjusting the internal structure, next step, Xinlong Optoelectronics will become “the market leader” "And work hard.

10% net profit

Li Yang’s confidence comes from an order of 3 million from Japan at the beginning of this year. The profit margin of the accessories market is small, but in Li Yang's view, this market cake is very big. The international market seems to be “can't be met” in domestic accessory companies. The strict requirements on materials and processes have made a large number of domestic enterprises look forward to the future, and the annual inspection work is to make enterprises resist.

“There is a new market in the international market.” Li Yang said that if the quality of accessories is effectively managed, this net profit can reach 10%.

It is reported that because the manufacturers of accessories generally believe that this market is difficult to grow, so few companies standardize management. However, Li Yang believes that the outside world must first be inside, and the enterprise must be big, first of all to establish a complete system. Therefore, starting in 2010, the company gradually changed its strategy, first in the company to carry out lean management. And applied for IC9 0 0 0, TOV (Germany) and other domestic and foreign certification.

And a piece of data from China Customs is even more exciting for Li Yang. “In 2012, the total number of LED fluorescent tubes in China's export market will reach 50 million.” This means that the number of PC tubes for fluorescent tubes exported to Japan is 50 million. Li Yang revealed that last year, Xinlong Optoelectronics' fluorescent lamp PC cover accounted for 30% of China's market. Li Yang continued to say that the company's overseas market share will further increase this year, and Xinlong's next target is the Japanese market.

For more information, please refer to the April issue of "High-tech LED-Technology and Applications" magazine.

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