[Source: Gaogong LED 's " LED Good Products" magazine March issue reporter / Long Zonghui]
“Prices are lower and gross profit is shrinking further. For domestic LED display potting manufacturers, it is definitely an opportunity.†Chen Xi, marketing director of Guangzhou Huitian Fine Chemical Co., Ltd., said that it had previously occupied most of the market. Manufacturers, such as Dow Corning, have shifted their focus to the packaging rubber market.
In 2012, the LED display price war is still fresh in people's memory. In the eyes of many insiders, the LED display industry entering the integration period will maintain a hundred schools of contention in the next few years, but the industry revenue growth rate and profit margin. The trend of going down is inevitable. In the LED display industry's pursuit of cost control, potting and sealing manufacturers are also surprisingly taking advantage of market share.
“Our potting glue is more cost-effective than imported products, although the price is somewhat higher for other domestic potting glues.†Chen Xi said that the LED potting glue market is no longer the only one imported rubber. It is.
According to the reporter's understanding, at present, most domestic display manufacturers generally recognize the quality of domestic brands of potting and sealing products, and will only consider products that have passed relevant certification when exporting.
Guangzhou Huitian Fine Chemical Co., Ltd. is a wholly-owned subsidiary of Hubei Huitian Rubber Industry Co., Ltd. (300041, SZ) (hereinafter referred to as “Huitian Rubber Industryâ€). Its predecessor was the Xiangfan Adhesive Research Institute established in 1977 by the Institute of Chemistry of the Chinese Academy of Sciences, the Beijing Research Institute of Chemical Industry and the Beijing Organic Chemical Plant with the support of the Hubei Provincial Government.
Sound distribution mechanism
At present, Huitianjiao's products used in the LED industry mainly involve two series of sealant and potting glue, of which more than half of the revenue comes from LED display potting glue.
"The domestic LED glue industry is not standardized, especially some manufacturers in order to seize market share, often the price is very low." Chen Xi said that his company's glue raw materials are mainly imported, plus research and development and management costs, The ex-factory price of the product is much higher than that of the domestic low-end products. From the perspective of the gross profit margin of products in different application markets, the portable smart mobile terminal products can reach about 30%, while the LED display screens have a close margin of only 10%, which is almost entirely dependent on the volume.
In order to expand the sales of glue, Huitian Rubber has adopted a “distributor strategyâ€. Chen Xi said that there are currently about 80 agents in the Huitian rubber industry nationwide. “Considering the market capacity, 1-3 agents are generally set up in the first-level provincial cities, and one agent is set up in the prefecture-level cities. From the overall sales situation of the company in 2012, 60% of the revenue comes from distributors, and the remaining 40% From company direct sales."
In the selection of agents, Chen Xi said that the company generally gives priority to three types of agents: the first category is agents who have already engaged in or engaged in imported brand glue or related products; the second category is that the local has a strong network of contacts. Although the staffing has not yet reached the minimum standard configuration of Huitianjiao to the agent, but can be compensated by the agent; the third category is the target customer's consistent agent.
In addition, Chen Xi revealed that the company pays more attention to helping dealers to better sell products in training and management. From the training point of view, the annual basic technical knowledge training and new product announcements are essential. In addition, the company also provides guidance to dealers on the sales strategy level, helping dealers to broaden their horizons and improve management.
Unfinished , please refer to the March issue of Gaogong LED 's " LED Good Products" magazine.
“Prices are lower and gross profit is shrinking further. For domestic LED display potting manufacturers, it is definitely an opportunity.†Chen Xi, marketing director of Guangzhou Huitian Fine Chemical Co., Ltd., said that it had previously occupied most of the market. Manufacturers, such as Dow Corning, have shifted their focus to the packaging rubber market.
In 2012, the LED display price war is still fresh in people's memory. In the eyes of many insiders, the LED display industry entering the integration period will maintain a hundred schools of contention in the next few years, but the industry revenue growth rate and profit margin. The trend of going down is inevitable. In the LED display industry's pursuit of cost control, potting and sealing manufacturers are also surprisingly taking advantage of market share.
“Our potting glue is more cost-effective than imported products, although the price is somewhat higher for other domestic potting glues.†Chen Xi said that the LED potting glue market is no longer the only one imported rubber. It is.
According to the reporter's understanding, at present, most domestic display manufacturers generally recognize the quality of domestic brands of potting and sealing products, and will only consider products that have passed relevant certification when exporting.
Guangzhou Huitian Fine Chemical Co., Ltd. is a wholly-owned subsidiary of Hubei Huitian Rubber Industry Co., Ltd. (300041, SZ) (hereinafter referred to as “Huitian Rubber Industryâ€). Its predecessor was the Xiangfan Adhesive Research Institute established in 1977 by the Institute of Chemistry of the Chinese Academy of Sciences, the Beijing Research Institute of Chemical Industry and the Beijing Organic Chemical Plant with the support of the Hubei Provincial Government.
Sound distribution mechanism
At present, Huitianjiao's products used in the LED industry mainly involve two series of sealant and potting glue, of which more than half of the revenue comes from LED display potting glue.
"The domestic LED glue industry is not standardized, especially some manufacturers in order to seize market share, often the price is very low." Chen Xi said that his company's glue raw materials are mainly imported, plus research and development and management costs, The ex-factory price of the product is much higher than that of the domestic low-end products. From the perspective of the gross profit margin of products in different application markets, the portable smart mobile terminal products can reach about 30%, while the LED display screens have a close margin of only 10%, which is almost entirely dependent on the volume.
In order to expand the sales of glue, Huitian Rubber has adopted a “distributor strategyâ€. Chen Xi said that there are currently about 80 agents in the Huitian rubber industry nationwide. “Considering the market capacity, 1-3 agents are generally set up in the first-level provincial cities, and one agent is set up in the prefecture-level cities. From the overall sales situation of the company in 2012, 60% of the revenue comes from distributors, and the remaining 40% From company direct sales."
In the selection of agents, Chen Xi said that the company generally gives priority to three types of agents: the first category is agents who have already engaged in or engaged in imported brand glue or related products; the second category is that the local has a strong network of contacts. Although the staffing has not yet reached the minimum standard configuration of Huitianjiao to the agent, but can be compensated by the agent; the third category is the target customer's consistent agent.
In addition, Chen Xi revealed that the company pays more attention to helping dealers to better sell products in training and management. From the training point of view, the annual basic technical knowledge training and new product announcements are essential. In addition, the company also provides guidance to dealers on the sales strategy level, helping dealers to broaden their horizons and improve management.
Unfinished , please refer to the March issue of Gaogong LED 's " LED Good Products" magazine.
Guangzhou Ehang Electronic Co., Ltd. , https://www.ehangmobile.com