From the perspective of the global LED market, China's LED lighting and display production are the largest markets in a single country, accounting for a large share of the global market. As the domestic market becomes saturated, Chinese LED companies must go out and expand the global market in order to find new growth poles and profit growth points in the industry. From the perspective of the global LED market, China's LED lighting and display production are the largest markets in a single country, accounting for a large share of the global market. As the domestic market becomes saturated, Chinese LED companies must go out and expand the global market in order to find new growth poles and profit growth points in the industry. From the current overseas market, North America and Europe are still the main export destinations for Chinese LEDs. With the increasing demand in emerging markets and the promotion of the One Belt One Road policy, domestic LED companies are actively strengthening the localization of brands and further realizing the transformation of Chinese manufacturing to China. North America is still the preferred destination for export According to relevant survey data, the amount of LED lighting products in China from January to April 2016 was US$5.764 billion, down 8.54% year-on-year. The top three export destinations were the United States, Germany, and the United Kingdom. It reached 1.397 billion US dollars, 319 million US dollars, and 270 million US dollars, a slight increase over the same period last year. In the first four months of this year, China's LED lighting products accounted for the largest proportion of the Americas, followed by Europe, Asia, Africa and Oceania. Exports to the United States and the European Union continue to grow at a relatively high rate, while markets in emerging countries such as India, ASEAN and Russia have declined to varying degrees. At present, the United States is still the country with the highest number and amount of LED lighting exports in China. On the one hand, because of the continuous improvement in the cost performance of LED lighting products in recent years, the penetration rate of LED lighting in the United States has increased rapidly, and the demand continues to grow at a high speed. On the other hand, the consumption level in the US market is high, and the price sensitivity of LED lighting products is low. The US Department of Energy report predicts that the overall size of the US lighting market in 2016 will reach $25.1 billion. The US market is the largest overseas market for Chinese companies. Compared with the whole of Europe, the United States imports 70.50% of the products imported from the United States. The amount is about 420 million US dollars, and 2/3 of the US public are Home LED lighting products have been purchased. Because the North American market is relatively less sensitive to prices, it has become a lucrative region. The profits are high, and the competition in the North American market is naturally more intense and the threshold is higher. In terms of the safety and reliability of lighting products, the US entry threshold is the highest in the world. The US Department of Energy, the Environmental Protection Agency, the Federal Trade Commission and other agencies are getting higher and higher access regulations and requirements, not only for product samples, but also for improving market supervision. At the same time, to enter the North American market, it also faces technical barriers and intellectual property constraints. The former is the standard and testing constraint that Chinese enterprises must overcome when entering the United States, while the latter is a serious injury to most domestic enterprises. At the same time, newcomers in the North American market also have great disadvantages in the channel. Nie Pengxiang, chairman of the incentive testing company, said that because of its relatively hidden channels, the occupants of the original traditional lighting channels continue to enjoy the dividends brought by traditional lighting channels after the transformation of LEDs. It is difficult for newcomers or small and medium-sized enterprises to compete for some market share from traditional giants. Unlimited potential in emerging markets One side is the high threshold for European and American markets, while the demand for emerging markets, represented by India, Brazil and Russia, continues to rise. Due to the low barriers to entry, many domestic LED companies have shifted their targets from Europe and the United States to emerging markets. There are unlimited business opportunities in emerging markets. Take the Indian market as an example. India's demand for LED products is mainly imported, and 80% of its lighting products are imported from China. According to market data from BCC, the annual growth rate of the LED lighting market in India is expected to reach 41.5%, and the market profit will reach 399.2 million US dollars by 2015. According to statistics, in Thailand, Singapore, Malaysia, Vietnam, Indonesia, the Philippines, six major countries in Southeast Asia, the overall lighting market in Southeast Asia will be close to 4.8 billion US dollars in 2015, of which LED lighting scale is about 1.5 billion US dollars, still maintained More than 30% growth rate. Demand for LEDs in emerging markets continues to increase due to improved infrastructure. At the same time, emerging markets are more sensitive to price and have a greater demand for low-end and mid-range products. At this stage, many domestic LED companies are mainly involved in low-end and mid-end products, often winning with high cost performance, and have a strong competitive advantage in large-scale manufacturing and price. Therefore, domestic LEDs have a competitive advantage in entering emerging markets where the threshold is not high. In particular, the implementation of the Belt and Road strategy, most of which are emerging economies and developing countries, have further accelerated China's LED exports. According to Director Shi Shirong of the Guangdong Semiconductor Lighting Industry Joint Innovation Center, the market for LED lighting exports in China was about 10 billion US dollars in 2015, a year-on-year increase of 43%, accounting for 38% of the country's LED lighting products. Director Shi Shirong expects that with the implementation of the National One Belt and One Road strategy, the export growth rate of the Belt and Road Initiative will be higher than the national LED lighting products export level. The average annual growth rate will be 58% from 2013 to 2020. By 2020, China's LED lighting products. The Export One Belt One Road is about $53 billion, accounting for more than 50% of the country's total. Focus on quality, independent brand dual output As China's LED industry continues to grow and develop, companies are increasingly focusing on quality and brand dual output. Chinese LED companies actively go out through various means such as cross-border mergers and acquisitions, overseas factories, and engineering contracting, leveraging international market channels, existing brand values ​​of international companies, and core patent technologies to avoid intellectual property dispute risks and enhance international competitiveness. This brand output is particularly evident in the LED display industry. Alto, Abisen, Liard, Dongshan Precision, and Zhouming Technology have established overseas branches to continuously strive for localization of the brand. According to industry insiders, if you want to gain more competitive advantage in overseas markets, you should not consider the lowest price. If you consider the lowest price, you can only get a small portion of the benefits. The most important thing is product quality and reliability. For a long time, the lack of independent brands has allowed domestic export processing enterprises to remain at the lowest end of the industrial chain. In the past, most of China's large lighting companies relied on European, American and Japanese companies to make OEMs, and entered the markets of Europe, America, Japan and South Korea. It is difficult to establish their own brands in the international market. Most SMEs are small orders, single orders, and unlicensed or white-branded products. According to the preliminary statistics of CSA Research, the amount of orders for more than 80% of China's exports to the US is less than 30,000 US dollars, while the order value for 90% of the EU is less than 30,000 euros. At the same time, China's export to emerging markets has a high proportion of small brands and white-brand products. CSA Research data analysis shows that in the first six months of 2014, the proportion of exports of unmarked brands and unmarked products to China's exports to Russia reached 93%, and the proportion of these two types of products in Southeast Asia reached 80%. The proportion of unbranded products in Europe, America and Japan is about 40% to 50%. This means that small and medium-sized private enterprises in the field of LED lighting in China occupy the mainstream of this market and become the absolute backbone. Compared with the European and American markets, the immaturity of the local industries in emerging market countries provides opportunities for China's LED companies to deepen their hinterland and establish a firm foothold, which is more conducive to the output of China's LED brands. Domestic brands such as Opt, NVC, and Rishang are widely accepted by emerging markets because of their competitive prices and superior performance. Among them, in the case of bulbs and tube lamps, the average export price of domestic brands is lower than that of Philips, Osram and other OEM products, but higher than the FOB price of local market brands (such as BRILIA). Therefore, it can occupy a more active position in the competition for emerging markets. In the international market, different local markets have different characteristics: there are emphasis on cost performance and high demand. However, in the face of different market demands and characteristics in different regions of the world such as Europe, America, Middle East, Southeast Asia and Russia, enterprises must focus on technical requirements, brand influence, and improve their manufacturing capabilities to gain more. Big market opportunities.
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