Foreign companies come to China to seek LED cooperation with state-owned enterprises or welcome new opportunities

The Spanish design company INGLASS has been engaged in lighting design for more than 30 years. Now it has to look for cooperation opportunities because of the European debt crisis. Even Chinese companies that have never cooperated in the past have been included in the key targets.

"The economic crisis is a huge challenge for the company. Not only us, but many design companies want to come to China," said INGLASS head Ramon Graell Pons.

This is seen by Foshan LED companies as an opportunity to connect with international resources. Wu Yulin, general manager of Foshan Kaixiou Lighting Cable Co., believes that Chinese companies need some "thieves" to attract European and American talents and technology when they are in crisis.

Many design companies want to come to China for development
"Before they mainly designed some LED lighting companies in Germany, we want to cooperate with them, they simply ignore." Wu Yulin said.

Last Friday, INGLASS signed a cooperation agreement with Casey, and the two parties will cooperate in the field of LED lighting. In the Foshan LED field, this kind of open cooperation with European and American design companies is rare.

Ramon admits that the European debt crisis is a huge challenge for many companies. “The reduction in industry revenues, design companies are too dependent on European companies, and now everyone needs an international perspective.” He revealed that many Spanish design companies want to come to China to develop and enter the Chinese market through cooperation with local Chinese companies.

Before the crisis, it was difficult for Chinese companies to enter the "eyes of the European design system." At the Frankfurt International Lighting and Building Technology and Equipment Exhibition held in April this year, the most deserted areas in the first few days of the exhibition were often Chinese corporate exhibition areas, but in the last few days, the Chinese exhibition area will suddenly become bustling with European LED companies and design companies. After the order is reached, it will be purchased from Chinese companies.

“Including various brands of merchants, Chinese manufacturers only earn a poor profit of around 5%, and more than 95% of the profits are earned by others.” Wu Yulin said.

What worries companies is that the price advantage of the past has also declined. Many lighting exhibitions show that some orders in Europe have been transferred to countries such as Pakistan and India.

Wu Yulin believes that Foshan LED enterprises need to seize the opportunity for European and American companies to seek global cooperation after the economic crisis. "I think there are two strategies. One is to attract European and American talents, and the other is to attract European and American technology. For example, some European and American companies have never sold some automation equipment to China, and they may buy them now."

This is not a "wailing" thing for companies. German lighting companies are regarded as a model of quality and technology, but their products are often from Italy and Spain, and the latter two countries have the best design talents in Europe.

Although Foshan LED has not yet fully participated in global competition, it is self-evident that the opportunity to absorb the formal cooperation of international resources for the promotion of enterprises and even the industry.

Mining potential needs under the "iceberg"
According to the “Implementation Plan for Promoting the Use of LED Lighting Products in Foshan” officially released by Foshan, Foshan will complete more than 660,000 square meters of indoor LEDs with a lighting area of ​​6.21 million square meters in the government agencies, enterprises and institutions and major public places by the end of 2013. Lighting promotion application engineering. By the end of the "Twelfth Five-Year Plan" period, the annual output value will be more than 80 billion yuan.

This is undoubtedly a strong shot for the LED industry, but the industry itself is not without worry. Just like the “policy dependence disease” of home appliances, LEDs are also very worried about over-reliance on administrative engineering in the case of delays in opening up the commercial market.

The commercial market cannot be opened. On the one hand, the business model such as EMC contract energy management cannot be opened temporarily, and on the other hand, the product itself is not attractive.

“The products are too homogenous, Foshan enterprises are still developing LED products according to the traditional lighting ideas.” An LED industry media source said.

Ramon believes that LEDs can't just meet lighting needs or environmental requirements, and should improve the quality of life of users.

“From the design point of view, a product first considers the connotation of the technology level, and then the experience. In fact, we pay more attention to the user experience and potential needs.” Ramon said that environmental protection and energy saving is only the tip of the iceberg for the LED surface. There are still huge potential needs to develop.

He evaluated Kaisio's mood lighting and thought it was a direction to try. “Product design should focus on the emotional and psychological needs of users. Different emotions can be used for different colors, and different lighting products are applied to lighting.”

Ramon believes that the Chinese lighting market is slowly beginning to accept the elements of internationalization, and the requirements for industrial design are getting higher and higher, so this cooperation with Foshan enterprises will be a good start.

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