2016-04-13
At the beginning, let’s start with the advantages and disadvantages for exporting LED display.
On the one hand, it has following advantages:
a. High cost of raw materials and manpower;
b. High-tech has won the world’s recognition;
c. Big overseas LED display’s market.
On the other hands, it has following disadvantages:
a. Lack of brand;
b. Compared with overseas suppliers, Chinese LED display’s quality control is weaker.
c. Chinese products’ culture values are different from overseas suppliers;
Then let’s focus on the Southeast Asia market. If we talk about the economy in Southeast Asia now, without any doubts, we have to mention the ASEAN Community, which was established on Dec 31, 2015. It will make a big change for the economy in Southeast Asia.
What changes it will bring?
The goods, services, professional labors and even the capital between each members of the ASEAN Community can be moved freely. Meanwhile, there will be a uniform standard for electric goods called “AHEEERR”, it means in 2016, if the electric products has tested by the uniform standard in a country of the ASEAN Community, then it can be sold in other countries too.
Because of the uniform standard, then if we want to export products to the Southeast Asia market, we don’t have to get more certificates, it will save money and time for exporting products, besides it will stimulate more trades happens. For the local market and consumers, it can promote the positive competition and ensure the quality of the products.
So, along with the growing of the market and the strong policy, Southeast Asia will be the most potential and important market for LED displays.
In General, due to lack of the capability of production in the local market, Chinese factories get a big chance, there are four strategies as blow:
1. Cooperate with big end users and big local traders, because big end users will cover more percent, so the Chinese factories can customize manufacture;
2. Cooperate with big end users and big local traders, because big local traders will cover more percent, so the Chinese factories can produce various products;
3. Cooperate with only big end users;
4. Cooperate with only big local traders.
Option 1, it’s a good way to penetrate the Southeast Asia market, find the big end users and be their OEM factories in China. But Chinese factories will lose their brand.
Option 2, it’s also a good way to penetrate the Southeast Asia market, find the big trader, and Chinese brand products, then Chinese factories will have their own brand in the local market, it can share the market and meanwhile get more profits because of the own brand.
In a word, The Chinese factories should have a clear recognition for their products and market direction, choose a proper way of cooperation with the local customers.
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