Crystal Table Passes LED Industry Positive Energy

From the end of the year to the end of the year, the city of Shenzhen began to cool down, but could not resist the enthusiasm of every LED industry practitioner. In December 2014, the annual Senior Engineer LED Conference was held in Mission Hills, Shenzhen. Dongguan club held. The event gathered a total of more than 400 leaders of the middle and lower reaches of the industry. Jingtai, as the organizer of the G20 Lighting Summit, was invited to attend the theme conference of “Seeing the New Chapter of LED in the Next Three Years”. At the annual event, Mr. Gong Wen, the general manager of Shenzhen Jingtai Co., Ltd., delivered a speech in his chair, which aroused heated discussions.

At this stage, the LED industry is, to a certain extent, in an adjustment period. After the rush of new entrants and the influx of capital, some enterprises have seen a situation where the increase does not increase profits. Some small and micro enterprises have begun to feel a bit “not to eat”. Now. The voices of the recent industry running and closing are still in the ears, just as the shuffling moment of the industry has arrived. For all these reasons, Mr. Gong Wen, General Manager of Jingtai Co., Ltd., said at the beginning of his speech that he was sighing and emotionally saying: “I have been doing my own LED for 18 years and founded Jingtai Company in 2008. For so many years, every penny I have After investing in Jingtai, every penny is invested in the LED industry. I have devoted my best 18 years of life to the LED industry. I can say that I am the most hoped and the most hopeful for the LED industry to live forever. "Broad." Between the words revealed a love and expectation for the LED industry.

LED industry is not as bad as you think

LED is a sunrise industry and should be viewed rationally for the current problems. In the era of economic globalization, LED industry can not be attributed to the LED itself. The LED industry is a member of the big family of world economy, and it will inevitably be affected by the difficult recovery of the global economy. Just as Mr. Gong Wen, General Manager of Jingtai Co., Ltd. said, “It is not just the LED industry that will encounter such problems. The entire world economy has encountered such problems."

In the development of each industry, there will be a process of integration, elimination, redevelopment, reintegration, and elimination. There is no single industry development that is smooth, this is a common problem, and it is also a must for every industry to be reborn. The process of baptism.

At the 2014 Senior Engineer's Annual Meeting, Mr. Gong Wen, General Manager of Jingtai Co., Ltd. expressed his hope for LED lighting: “One of them is that LED applications are actually very extensive. LED has a lot of Applications, indoor, outdoor, interior, flashlights, table lamps, roads, health lighting, agricultural lighting waiting, there are many market segments to be excavated. Second, LED replacement rate is still very low, globally, less than 10 %, there are 10 times market growth space.The third is the sprout of intelligent lighting, for the LED lighting to create a new blue ocean.Including the future of intelligent lighting and optical communications, each revolution will bring a new replacement boom.If we continue to develop new Blue Ocean, the new business area, then our lighting field is constantly widening, then this market is not 1 trillion, may be 2 trillion, 3 trillion, or even 10 trillion market."

Lack of opportunities is the eye of discovery

The occurrence of such or such problems in the industry is naturally a matter of great concern to the company itself. The key to the predicament of enterprise development lies in the unclear positioning of the company. The annual output value of the LED industry will soar at a rate of no less than 30%. The market increase is very tempting, but few companies know which one of them is their own. In particular, most small and medium-sized enterprises are basically followers of the market. They follow the trend and are “three in four”. China's LED industry is one of the leading companies in the first tier, and 90% of the companies are small and medium-sized enterprises. How small and medium-sized enterprises survive and develop is a major issue facing the LED industry.

“Large companies have its own characteristics. Their decision-making process is long and the response speed is relatively slow. The small and medium-sized enterprises can use the advantages of a small boat to make the most of the market.” Crystal Taiwan as a member of the LED industry Mr. Gong Wen, general manager of Jingtai, used his personal experience to provide advice for SMEs.

He continued: "In the positioning field, there is a theory called "focus theory," and there is also a "chicken theory," which is to find where the core competitiveness is and go all out. "I would like to turn it into a small laser beam." , to defeat the sun's glorious light. "This is what we want to focus on; we have not found the big companies are unwilling to do it, or the big companies do not want to spend all their energy, this is our small business is willing to come to see Wherever we look, small businesses need to identify their own positioning.” This is not an empty theory, but a real and honest experience. The crystal platform has benefited from positioning accuracy, and it has become a field of LED displays. Top manufacturers and providers of packaged devices, this is because of professionalism, but also because of the power of focus. This statement can be described as a good medicine for small and medium-sized enterprises. If the company does not have scale advantages, it can be a wise strategy if it can become a king incomparable in the segmentation field and has its own unique things. In short, there is no lack of opportunities in the LED industry. What is lacking is the sight of opportunities.

Then, Mr. Gong Wen, General Manager of Jingtai Co., Ltd. carried out in-depth discussions on the problems that are common in the three industries:

First, the low-end game is not the best choice

In the LED industry, not only the homogeneity of products is very serious, but also the business model has fallen into a homogenous cycle, lacking innovative products and innovative business models. Since companies compete in the same way, the only weapon is the price war. "We often expand our market, often the killer is the price." Gong Wen, general manager of crystal Taiwan shares a sharp reference to the common problem of China's LED industry. In fact, in order to reduce costs, many manufacturers have already begun to sacrifice the quality of some products in an effort to reduce the cost. In the process of development, companies should really consider where the added value of the product is. What is the position of the company? "It's important to reduce costs, but I don't think they are necessarily what we small companies need to do. This is not the only option." If you use the price war method to develop, it will actually be worth the candle, not only failing to achieve expansion. The purpose of the market has already buried the company's future from the beginning. Such a company will never go too far. Crystal Taiwan has been taking the technology-driven development path, to provide enterprises with high-performance, high value-added products, step by step, so they can be invincible in the LED industry.

Second, cash flow is not necessarily king

More than that, in recent years, companies have fallen into the "triangular debt," and countless companies have caused the capital chain to fail and have collapsed. It goes without saying that cash flow is an important guarantee for ensuring the survival of a company and its importance is evident. So the LED industry began to pursue cash flow as the king's argument, that the LED industry is the capital of the fight, but Mr. Gong Wen, general manager of Crystal Taiwan has put forward another note that deserves great attention: "Some companies have a good cash flow Will run away.Cash flow is an illusory part, sometimes the cash flow good company, may blind the boss's eyes, because there are cash flows, so the entire enterprise will not pay enough attention at the time of loss. Holes will grow bigger and bigger, and when you wake up, the hole is too large to make up for it with cash flow, and then you will lose it.A company with no cash flow will die, only cash flow, the company does not Profitability is absolutely worthless, and such companies should not go on.” Therefore, the value of a company’s existence lies in its continuous profitability; otherwise, it loses its value of existence and no matter how good the cash flow is, it is also a loss.

Third, companies must pay attention to management

In fact, in the LED industry, the company team has scattered and lost the city of Mai also abound. Poorly managed, it will be like a mess, and it will be lost to others without the impact of others. However, if a successful company finds out the reasons, it can be sure that there is a good management team. The management system of the company must be sound, the management must be effective, and the operation must be efficient. This is not only a cohesive issue, it is related to the benefits of the enterprise.

“The current market is very transparent, and customers and all suppliers are seamlessly connected. Is it profitable for the customer? It is difficult. Is it profitable to the supplier? In fact, it is also very difficult. Where is the profit? ?? Mr. Gong Wen, general manager of Crystal Taiwan in the speech thrown out a major concern of the people. “I think it is to manage profits. Yesterday, the first question that National Star’s Wang always met with me was: How much turnover do you have? How many stocks are there? They are so big that one company is very concerned about the turnover rate. The problem of inventory, we as a member of the SMEs, there is no reason not to pay attention to our management?" For example, Inaba's amoeba management model introduced by the crystal platform, to strengthen the company's cost awareness and sense of innovation in each department. Thanks to good cost control and management capabilities, Jingtai has maintained a relatively high profit margin in the industry.

Putting the heart to heart and using eighteen years of experience to make suggestions for the LED industry, Mr. Gong Wen, the general manager of Crystal Optical Co., Ltd., gave a warm and applause to the leaders of the participating companies, and received a warm and appreciative speech. Thumbs up.