Difficulties and points for domestic enterprises to open up the North American LED market

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The North American market is known as the next gold battlefield for LED development, but it has long been one of the hard-to-find hard bone markets that domestic companies consider to be the most difficult and difficult barrier to entry. This article will provide a preliminary analysis and interpretation of the most difficult and important points of entry into the North American market. A comprehensive understanding of the comprehensive layout of CSAResearch data shows that in 2013 China's imports and exports of LED devices still have a deficit, of which the import volume is 75.9 billion, the import value is more than 5.3 billion US dollars, the export volume is 60.5 billion, and the export value is 2.8 billion US dollars. From the data of import and export of devices for three consecutive years, China's LED device imports have been higher than exports, and there is a large deficit. From the perspective of export regions, Europe and the United States have experienced ultra-high-speed growth, and Asia's growth rate is slow. Among them, the EU is the largest export market for LED lamps in China, accounting for 28; North America is China's second largest market, accounting for more than 18%. Compared with nearly 9, in addition, the emerging market represented by the BRICS countries is also an important export destination for LED lamps in China, accounting for about 8 of the total, and Russia has become a fast-growing export region. Overall, North America and Europe remain the main overseas markets for LED lighting products in China. In 2013, the US LED lighting application market was US$4.92 billion, and it is expected to grow to US$7.2 billion in 2014, with an expected growth of 46.3 year-on-year. In 2013, China’s LED lighting application market was around 30.5 billion yuan, and the market value of LEDs in the same period of the United States. The scale is basically the same. From the high growth rate of the United States in 2014, domestic LED companies have strong feasibility and important strategic significance from satisfying domestic demand to exporting to the North American market. North America is the largest single import area of ​​LED lighting in the world, accounting for the proportion of the global lighting market. 21. The future North American market will show rapid growth, with a compound annual growth rate of 20; the scale of LED lighting is expected in 2020. It is 27.3 billion US dollars; in the next two years, outdoor LED lighting, LED commercial lighting and industrial LED lighting are more obvious. Special lighting will also see large-scale growth in the next five years. Affected by the technology improvement in key areas of the LED industry chain and the significant drop in material costs, it will trigger a new round of cross-border application of lighting fixtures, and open large-scale applications in special fields such as aerospace, rail vehicles, and automotive lighting, and even It may bring about a complete change in the form of the lighting fixture. Li Wenyu, Ph.D. in Industrial Economics, Guangdong Province Emerging Industry Strategic Development Research Institute (GES) believes that Chinese LED companies need in-depth analysis and prediction of the North American LED lighting market environment, and adapt to the specificities of the North American market. Specifically, we must carefully study North American policies and regulations, be familiar with the legal norms and market access standards of the North American market; choose the appropriate model for establishing North American market channels according to the conditions of enterprise development; and focus on product development and creative design for North American culture. , to meet the customer's consumption habits and cultural characteristics. Regarding whether LED exports from neighboring countries in North America will have an impact on China's LED exports, Li Wenyu made it clear that this will not happen. He admits that although North America has strict market access thresholds and management mechanisms, once China's LED products successfully enter the local market, the subsequent operating income will be higher than other regions, for companies that pursue accurate product positioning and stable business strategies. It is easier to achieve success; secondly, the short-term economic growth in Europe and the United States cannot directly feedback to the export of LED lighting products in China. Combined with the global energy shortage situation, the technical improvement of LED lighting products, the price of LED lighting, and the rapid development of traditional lighting products such as energy-saving lamps and gas discharge lamps, the export of LED lamps in China will usher in new growth. The basic skills are too hard to cross the technical threshold. The first step in product export is the technical threshold. The first is the product specification for the North American market. In order to regulate the LED market abroad, there are usually two measures for the certification of LED lamps, one is mandatory and the other is subsidy incentive. Enforced, such as UL certification, ANSI (American National Standards Institute) standards and FCC (Federal Communications Commission Commission) standards. UL safety certification is an extremely important one in compulsory certification. Its ultimate goal is to obtain a safe product for the market and contribute to the protection of personal health and property safety. The biggest threshold for Chinese LED companies to enter the US market is the need for UL certification. Commonly used in subsidy certification are Energy Star, DLC, etc. All the above-mentioned certifications are common in terms of time, cost, and strict auditing. This is a difficult problem for Chinese companies to successfully enter the North American market. Generally, the VOC certification of domestic Chinese lamps is not recognized by the US market, which virtually increases the technical threshold and cost of exporting Chinese lighting products to the North American market. For example, UL certification, 500,000 yuan for a certification, each certification number is more than 1,000 US dollars per quarter, and the production of products that meet the safety certification is much higher than the cost of products without safety certification, about 50.