[Source: "High-tech LED - Research and Review" April issue / reporter Tang Guirong] A company starting from 30,000 yuan, after the 2008 financial crisis, can still maintain a 100% growth rate. And in 2011 exceeded the 400 million yuan sales mark, which is rare in the industry. Shenzhen Mairui Optoelectronics Technology Co., Ltd. (hereinafter referred to as “Mai Rui Optoelectronicsâ€) is one of them, and is also a typical case of the “startup tide†of Shenzhen's early LED display industry. While the LED display business is booming, Mairui Optoelectronics is stepping up its planning for the next market.
In March 2012, Mairui Optoelectronics signed an agreement with three agents for a total of 50 million yuan of LED lighting products through the original channels. This also marks the official entry of the company into the LED lighting market. Chen Zebo, chairman of Mairui Optoelectronics, said that in the short term, 100 agents will be established around the world to turn the company into a LED lighting marketing center.
In the past two years, the market competition of LED lighting is gradually shifting from relying purely on technology to marketing as its core competitiveness. Mairui Optoelectronics is catering to the market development trend. In the emerging LED lighting field, although there are many companies, there is no brand enterprise. Dr. Zhang Xiaofei, CEO of Gaogong LED, once said that in the future, under the premise of the same quality, whoever has its own products and who has excellent marketing methods can stand out from the crowd.
For the newcomers to LED lighting, Mairui Optoelectronics clearly realized the importance of brand marketing. In order to avoid product homogeneity and diversification and cover up the featured products, the company introduced 11mm ultra-thin LED panel lights. Chen Zebo said that in addition to a variety of functions, the lamp can reduce costs by 30% compared to current products.
Limited display space
After three years of playing in the LED display industry, Chen Zebo set up Mai Rui Optoelectronics in 2006 with his 30,000 yuan. According to the idea of ​​the initial stage of the venture, the company will focus on the OEM model.
It is understood that at that time, LED display manufacturers were very few and the profits were quite high. According to Chen Zebo's words, when there are not many factories in the era, it is not easy for companies to find a foundry, waiting for the goods and paying. In 2006, the first year of sales of Mairui Optoelectronics reached 20 million yuan, and in 2007, sales tripled to 80 million yuan.
"Most of the companies that entered at that time excavated the first pot of gold." Chen Zebo admitted that he had encountered good luck. However, the fierce market competition has made most companies feel the cruelty of the market, which has made this profiteering industry change rapidly. In 2008, the gross profit of LED display dropped rapidly from below 50% to below 30%.
Due to the large amount of customers owed, price competition incentives, Mai Rui Optoelectronics, which is cultivating the domestic market with the OEM model, began to change its original development ideas and switch to overseas markets. Chen Zebo said that the strategic cooperation between the company and the SEG Group at the time supported the expansion of the overseas market of Mairui Optoelectronics. Today, Mairui Optoelectronics has a solid dealer network in the Middle East, North America, Europe and other regions.
"In the past few years, no matter whether it is the domestic market or the overseas market, everyone rarely sees the display screen of the Mairui Optoelectronics brand. In fact, the development speed of Mairui Optoelectronics is very fast." It is understood that the military has moved to overseas markets. Optoelectronics, sales in 2008 exceeded 100 million yuan, and the company has maintained a doubling rate every year for the next three years.
Chen Zebo said that although it is an OEM, Mairui Optoelectronics insists on taking the high-end product line. “At that time, the highest price of domestic display screens was low for overseas brand companies. What you want to attract them is not the price, but the process, service and quality.†However, it is an indisputable fact that LED display profits have fallen to the bottom. . Faced with the trend of industry development, Chen Zebo feels a lot: "The space for material cost reduction is not large, but the labor and water and electricity costs are rising. Therefore, the rising and falling space for LED display prices is already very small. â€
Based on this, some companies began to innovate LED displays, starting with the segmentation field. For the emerging shaped screens on the market, Chen Zebo said: "Specially targeting this high-end product, there is still some market competition and profit margin. But from the perspective of research and development costs, the time and labor cost are not cost-effective. For the Mairui Optoelectronics, which is planning to go public, the mature and stable LED display market is clearly unable to meet the needs of the company's future performance. “The LED display industry still has some room for growth, mainly in replacing the traditional screen market and extending to second- and third-tier cities.†Chen Zebo said that LED lighting will become the next growing market for Mairui Optoelectronics.
Lighting business is steadily
Chen Zebo said that in the field of LED lighting, Mairui Optoelectronics will adopt a market strategy that is completely opposite to the LED display business. First of all, the previous OEM model was changed. All LED lighting products sold by Mairui Optoelectronics all adopt their own brands. "Compared with LED display, LED lighting has a larger market capacity." Song Xuefeng, general manager of Mai Rui Optoelectronics LED Lighting Division, said that with the gradual expansion of LED lighting business, the company will focus on brand management in the future, the goal is to The company has developed into a marketing management center.
In terms of production, Mairui Optoelectronics will focus on the OEM outsourcing model in the future, and select dozens of manufacturers with good quality, technology and technology to pass the cooperation. Regarding how the technology is innovative and how unique the design is, Song Xuefeng said that Mairui Optoelectronics will find a professional design company to cooperate.
This is completely different from the original LED display business of Mairui Optoelectronics. Song Xuefeng said that the company will develop 100 agents worldwide and its sales network covers many countries and cities around the world.
Just in February of this year, a low-cost LED panel light became the "secret weapon" for Mairui Optoelectronics to enter the field of LED lighting.
“The original three LED display agents have just signed an agency agreement with the company,†said Chen Zebo. “The panel lights are just one of our entry points. Next we will select several products to operate in the same way. The company expects this year. The sales of LED panel lights will reach 50 million to 80 million."
Different from the current practice of extending the lighting product line in most enterprises, Mairui Optoelectronics first uses the panel light as the entry point, and then gradually penetrates into the LED lighting products such as fluorescent tubes.
With the original channel, this is obviously a good strategy for Mai Rui to cut into the field of LED lighting. Focusing on a certain product line and making features have also become the foothold of the stable development of Mairui's LED lighting business. Chen Zebo said that the company will focus on stable lighting business in the first year, and adopt a strategy of winning by quantity when LED lighting is popularized.
In March 2012, Mairui Optoelectronics signed an agreement with three agents for a total of 50 million yuan of LED lighting products through the original channels. This also marks the official entry of the company into the LED lighting market. Chen Zebo, chairman of Mairui Optoelectronics, said that in the short term, 100 agents will be established around the world to turn the company into a LED lighting marketing center.
In the past two years, the market competition of LED lighting is gradually shifting from relying purely on technology to marketing as its core competitiveness. Mairui Optoelectronics is catering to the market development trend. In the emerging LED lighting field, although there are many companies, there is no brand enterprise. Dr. Zhang Xiaofei, CEO of Gaogong LED, once said that in the future, under the premise of the same quality, whoever has its own products and who has excellent marketing methods can stand out from the crowd.
For the newcomers to LED lighting, Mairui Optoelectronics clearly realized the importance of brand marketing. In order to avoid product homogeneity and diversification and cover up the featured products, the company introduced 11mm ultra-thin LED panel lights. Chen Zebo said that in addition to a variety of functions, the lamp can reduce costs by 30% compared to current products.
Limited display space
After three years of playing in the LED display industry, Chen Zebo set up Mai Rui Optoelectronics in 2006 with his 30,000 yuan. According to the idea of ​​the initial stage of the venture, the company will focus on the OEM model.
It is understood that at that time, LED display manufacturers were very few and the profits were quite high. According to Chen Zebo's words, when there are not many factories in the era, it is not easy for companies to find a foundry, waiting for the goods and paying. In 2006, the first year of sales of Mairui Optoelectronics reached 20 million yuan, and in 2007, sales tripled to 80 million yuan.
"Most of the companies that entered at that time excavated the first pot of gold." Chen Zebo admitted that he had encountered good luck. However, the fierce market competition has made most companies feel the cruelty of the market, which has made this profiteering industry change rapidly. In 2008, the gross profit of LED display dropped rapidly from below 50% to below 30%.
Due to the large amount of customers owed, price competition incentives, Mai Rui Optoelectronics, which is cultivating the domestic market with the OEM model, began to change its original development ideas and switch to overseas markets. Chen Zebo said that the strategic cooperation between the company and the SEG Group at the time supported the expansion of the overseas market of Mairui Optoelectronics. Today, Mairui Optoelectronics has a solid dealer network in the Middle East, North America, Europe and other regions.
"In the past few years, no matter whether it is the domestic market or the overseas market, everyone rarely sees the display screen of the Mairui Optoelectronics brand. In fact, the development speed of Mairui Optoelectronics is very fast." It is understood that the military has moved to overseas markets. Optoelectronics, sales in 2008 exceeded 100 million yuan, and the company has maintained a doubling rate every year for the next three years.
Chen Zebo said that although it is an OEM, Mairui Optoelectronics insists on taking the high-end product line. “At that time, the highest price of domestic display screens was low for overseas brand companies. What you want to attract them is not the price, but the process, service and quality.†However, it is an indisputable fact that LED display profits have fallen to the bottom. . Faced with the trend of industry development, Chen Zebo feels a lot: "The space for material cost reduction is not large, but the labor and water and electricity costs are rising. Therefore, the rising and falling space for LED display prices is already very small. â€
Based on this, some companies began to innovate LED displays, starting with the segmentation field. For the emerging shaped screens on the market, Chen Zebo said: "Specially targeting this high-end product, there is still some market competition and profit margin. But from the perspective of research and development costs, the time and labor cost are not cost-effective. For the Mairui Optoelectronics, which is planning to go public, the mature and stable LED display market is clearly unable to meet the needs of the company's future performance. “The LED display industry still has some room for growth, mainly in replacing the traditional screen market and extending to second- and third-tier cities.†Chen Zebo said that LED lighting will become the next growing market for Mairui Optoelectronics.
Lighting business is steadily
Chen Zebo said that in the field of LED lighting, Mairui Optoelectronics will adopt a market strategy that is completely opposite to the LED display business. First of all, the previous OEM model was changed. All LED lighting products sold by Mairui Optoelectronics all adopt their own brands. "Compared with LED display, LED lighting has a larger market capacity." Song Xuefeng, general manager of Mai Rui Optoelectronics LED Lighting Division, said that with the gradual expansion of LED lighting business, the company will focus on brand management in the future, the goal is to The company has developed into a marketing management center.
In terms of production, Mairui Optoelectronics will focus on the OEM outsourcing model in the future, and select dozens of manufacturers with good quality, technology and technology to pass the cooperation. Regarding how the technology is innovative and how unique the design is, Song Xuefeng said that Mairui Optoelectronics will find a professional design company to cooperate.
This is completely different from the original LED display business of Mairui Optoelectronics. Song Xuefeng said that the company will develop 100 agents worldwide and its sales network covers many countries and cities around the world.
Just in February of this year, a low-cost LED panel light became the "secret weapon" for Mairui Optoelectronics to enter the field of LED lighting.
“The original three LED display agents have just signed an agency agreement with the company,†said Chen Zebo. “The panel lights are just one of our entry points. Next we will select several products to operate in the same way. The company expects this year. The sales of LED panel lights will reach 50 million to 80 million."
Different from the current practice of extending the lighting product line in most enterprises, Mairui Optoelectronics first uses the panel light as the entry point, and then gradually penetrates into the LED lighting products such as fluorescent tubes.
With the original channel, this is obviously a good strategy for Mai Rui to cut into the field of LED lighting. Focusing on a certain product line and making features have also become the foothold of the stable development of Mairui's LED lighting business. Chen Zebo said that the company will focus on stable lighting business in the first year, and adopt a strategy of winning by quantity when LED lighting is popularized.
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