Opening branches in the United States is a new choice for many domestic export enterprises to solve their difficulties. In the LED industry, many companies have “immigrated†to the United States, through the establishment of marketing channels in the North American market, to avoid the middle of the channel to get higher profits; or to build a nest to attract phoenix, through Corporate localization to attract overseas talent. But can this move be a viable way to get rid of the predicament and lack of talent in the current market?
The U.S. market is huge and there are many opportunities. The significance of entering the U.S. market as early as possible is more known. However, the US market is also very mature and the competition is fierce. It is not easy for a foreign company to enter this market.
At the end of December 2011, two LED listed companies Sanan Optoelectronics and Chau Ming Technology announced in succession that they invested US$9 million and US$1 million respectively to set up wholly-owned subsidiaries in the United States. In accordance with their respective plans, the United States branch without exception will be mainly engaged in the development and sales of LED products.
Gao Gong reporter interviewed Lin Zhifeng, chairman of Zhou Ming Technology, and said that the purpose of establishing a wholly-owned subsidiary in the United States is mainly to develop the US LED display and lighting product market. As a platform for exchanges and cooperation between the company and internationally renowned LED channel providers, this move will effectively increase orders in the US market.
At the same time, he also said: "The United States through this 'bridgehead' can radiation to promote the Canadian, Mexican and Latin American markets.In addition, through the localization of services to improve service quality, thereby enhancing the company's product added value, increase the company's exports of U.S. product gross profit levels "However, not all export-oriented LED display companies have the same view on the way overseas markets are developed.
One of the companies listed as a listed company on the display has no plans to set up a subsidiary in the United States. The general manager of the company, Xiang Yong, told reporters that the cultural conflict and immeasurable project budgets that were poorly communicated to the reporter were the main factors for the joint construction of photoelectric to give up this idea.
"In addition, the long management front, the delicate political factors, the technical traps buried under the water, the hard-working and uninformed trade unions, the unfamiliar legal rules, endless labor disputes, immeasurable project budgets, etc. Factors considered, so that the joint construction of photoelectric to give up overseas plans to set up branch offices." Xiang Jian Yong Zhen Jiazhen said many uncertain risks, obviously he once thought about this strategy.
“It is always a generation gap for foreigners who manage blue-eyed high noses at home.†Rui Tuo showed that Chairman Shi Yaozhong also expressed his concerns. “Because Liad, who used to be a LED display company, once set up a branch in the United States, it ended up failing. And, so far, there has been no case where LED companies have set up branches in the United States to succeed.â€
In fact, many Chinese companies have repeatedly failed in the globalization of transnational investment, and their grand dreams have eventually died.
The big companies such as TCL, Lenovo, and Ping An are still struggling and bitterly exploring the dream of Chinese companies going abroad. While in the early stages of development, LED companies with weak self-reliance are lacking in “soft powerâ€. How can they “hold†it? ?
Wang Keyang, former general manager of VEECO China, told reporters: "In a sense, this is a means for listed LED companies to "please" the board of directors, so that investors can see the company's hope to internationalization; followed by the snare Foreign R & D personnel, and in some local small-tech R & D companies looking for patents to pave the way for the future development of the company, but in the short term can not be effective in R & D. "
Regardless of how heavy the pace of participation in the international LED industry is, it is believed that domestic LED companies will continue to advance. The international market is a must-conquer place. Sooner or later, Chinese companies must step out of this step. One of the basic facts is that Chinese entrepreneurs who stand on the basis of their predecessors' experience have attained an unprecedented level of broadness. Their minds have been severely and harshly tempered. They are about to sail for a long time and look forward to their dream of "immigration" becoming a reality.
The U.S. market is huge and there are many opportunities. The significance of entering the U.S. market as early as possible is more known. However, the US market is also very mature and the competition is fierce. It is not easy for a foreign company to enter this market.
At the end of December 2011, two LED listed companies Sanan Optoelectronics and Chau Ming Technology announced in succession that they invested US$9 million and US$1 million respectively to set up wholly-owned subsidiaries in the United States. In accordance with their respective plans, the United States branch without exception will be mainly engaged in the development and sales of LED products.
Gao Gong reporter interviewed Lin Zhifeng, chairman of Zhou Ming Technology, and said that the purpose of establishing a wholly-owned subsidiary in the United States is mainly to develop the US LED display and lighting product market. As a platform for exchanges and cooperation between the company and internationally renowned LED channel providers, this move will effectively increase orders in the US market.
At the same time, he also said: "The United States through this 'bridgehead' can radiation to promote the Canadian, Mexican and Latin American markets.In addition, through the localization of services to improve service quality, thereby enhancing the company's product added value, increase the company's exports of U.S. product gross profit levels "However, not all export-oriented LED display companies have the same view on the way overseas markets are developed.
One of the companies listed as a listed company on the display has no plans to set up a subsidiary in the United States. The general manager of the company, Xiang Yong, told reporters that the cultural conflict and immeasurable project budgets that were poorly communicated to the reporter were the main factors for the joint construction of photoelectric to give up this idea.
"In addition, the long management front, the delicate political factors, the technical traps buried under the water, the hard-working and uninformed trade unions, the unfamiliar legal rules, endless labor disputes, immeasurable project budgets, etc. Factors considered, so that the joint construction of photoelectric to give up overseas plans to set up branch offices." Xiang Jian Yong Zhen Jiazhen said many uncertain risks, obviously he once thought about this strategy.
“It is always a generation gap for foreigners who manage blue-eyed high noses at home.†Rui Tuo showed that Chairman Shi Yaozhong also expressed his concerns. “Because Liad, who used to be a LED display company, once set up a branch in the United States, it ended up failing. And, so far, there has been no case where LED companies have set up branches in the United States to succeed.â€
In fact, many Chinese companies have repeatedly failed in the globalization of transnational investment, and their grand dreams have eventually died.
The big companies such as TCL, Lenovo, and Ping An are still struggling and bitterly exploring the dream of Chinese companies going abroad. While in the early stages of development, LED companies with weak self-reliance are lacking in “soft powerâ€. How can they “hold†it? ?
Wang Keyang, former general manager of VEECO China, told reporters: "In a sense, this is a means for listed LED companies to "please" the board of directors, so that investors can see the company's hope to internationalization; followed by the snare Foreign R & D personnel, and in some local small-tech R & D companies looking for patents to pave the way for the future development of the company, but in the short term can not be effective in R & D. "
Regardless of how heavy the pace of participation in the international LED industry is, it is believed that domestic LED companies will continue to advance. The international market is a must-conquer place. Sooner or later, Chinese companies must step out of this step. One of the basic facts is that Chinese entrepreneurs who stand on the basis of their predecessors' experience have attained an unprecedented level of broadness. Their minds have been severely and harshly tempered. They are about to sail for a long time and look forward to their dream of "immigration" becoming a reality.
ALLIN , https://www.apiodisplays.com