------Interview with Mr. Jiang Yimin, Chairman of Lanke Electronics
In recent years, the outdoor display market has developed rapidly due to the expanding demand of large-scale global events and outdoor advertising media. Together with backlighting and lighting, it has become one of the three troikas that drive the development of the LED industry. As a professional packaging product supplier for outdoor display, Lanke Electronics has occupied 10% of the market share in this segment with a monthly capacity of 200 KK, and has become a leader in this field, and is ready to turn it over again in the new year. Some time. To this end, we visited Mr. Jiang Yimin, Chairman of Lanke Electronics.
Jiang Yimin believes that the LED market will be in danger in 2011. "It will be the most dangerous year for me in the past 17 years." Industry reshuffle is inevitable. He believes that there are still many problems in the LED industry, from product to management, there is a lot of room for improvement.
Windy cranes 2011
High-tech LED: According to high-tech LED statistics, the capacity of upstream chips will expand at least 10 times in 2011. What impact do you think will have on the packaging industry?
Jiang Yumin: The upstream supply is sufficient, which brings opportunities to the lighting market. However, if the response of the lighting market cannot keep up, there will be a situation of oversupply, which will be chaotic: price war, quality war, and upstream and downstream The ambiguity between them is everywhere in the Red Sea, so 2011 will be the most dangerous year in my 17 years of business. Before, a friend talked to me and thought that the upstream price was cut, and the packaging factory was absolutely comfortable. I don’t think so. Because the output expands too fast, once the management can't keep up, the product is prone to embarrassment. It doesn't matter for the low-end products, but for any high-quality products, any flaws may cause a devastating blow.
At present, many manufacturers have started vicious competition and reduced the quality of materials to meet the price demand of the market. This is a dangerous signal and certainly exacerbates the chaos in the industry. The price has changed one day, the chip has not moved, the package has started to move, exactly the same as the indicator light more than ten years ago.
High-tech LED: If everyone starts to do this, the market will become very chaotic. How do you feel about dealing with this situation?
Jiang Yumin: First of all, quality is the most important guarantee. If you don't do it, you can do it best. I develop any product, and anyone who chooses it is based on quality and quality. The second is cooperation. As long as they are able to cooperate, we will meet with an open attitude. As for the profit, I don't think it matters. The most important thing is to make a profit.
High-tech LED: How much do you think the price of packaged products will drop in 2011?
Jiang Yimin: At least 10%-15% lower than last year. When it falls below 10%, many manufacturers may not hold it. This is a very serious form. Chips can drop some prices, but many metal materials are rising in price. In the past year, gold and silver have nearly doubled. From the current form, prices will start to fall after the second half of this year to the year after. The LED price war is a must, and after the game is finished, it will be reshuffled and re-launched. Therefore, it is very troublesome for the manufacturers who have gone online but have not recovered their investment.
High-tech LED: Regarding the issue of industry shuffling, everyone said that the industry will shuffle in 2010. As a result, in 2010, there were more companies than in 2009. Some people now say that they will shuffle in 2011 and say that they will shuffle in 2012. What do you think about this problem?
Jiang Yimin: The shuffle is affirmative, and 2011 will be a real shuffling period. Reshuffing only squeezes some small-capacity enterprises with small scales to the edge, and squeezes into other market segments. Excellent enterprises will surely become bigger and bigger.
Outdoor display market prospects are expected
High-tech LED: More than 70% of your company's packaged products are used in the outdoor display field. How do you view the current display market? Do you think this field is mature?
Jiang Yumin: China's urbanization has just begun. With the progress of urbanization, the domestic display market will become larger and larger. Now everyone just regards it as a product. Without considering it as a project, as a project, it must have higher professional standards and more accurate market positioning. Although the display market has such a large capacity production, I I feel that there is still a long distance from maturity. It is normal to go through a fight before maturity.
High-tech LED: What are the advantages of your company's package products in the display field?
Jiang Yimin: The previous package is a kind of hodgepodge ------ I have a production line, what do you have for me? When we first entered, the manufacturer with the most production was about 30KK. On the 30KK line, a lot of it is still doing white light and doing everything, so no one is professional.
One of the characteristics of Lanke is focus and focus. Our strategy is that no matter how the market changes, Lanke is only rooted in one point, which is the quality of professionalism. In the field of outdoor display, we have been in the market for 20 months from the time we entered the market. We have achieved little success from obscurity and benefited from the implementation of this strategy. Our goal is to develop our employees into experts in this field, and only then can we make the best quality.
High-tech LED: We have visited some outdoor display companies. According to our understanding, they have three products, one is sold to Europe, Japan and other countries, called high-end products; some are mid-end products, sold to some mid-range countries; There is a low-end product, mainly domestic. How do you think about this approach?
Jiang Yumin: Every company has its own business ideas and methods, and I have no right to evaluate. But I think that when a company has too many choices, it will inevitably lead to choices. Managing these troubles requires cost and ability. Why does Lanke have such efficiency, that is, I don't let our team have a choice, Don't let yourself have a choice. The simplest to the extreme, will make the most efficient products.
High-tech LED: Is it useful to develop national standards for displays? Is the display standard easy to develop or is the street lamp standard easy to develop?
Jiang Yumin: The display should have a standard, and no standard is a melee. Every company is talking about price/performance ratio, but what is the evaluation standard of cost performance? There is no scale without standards, and no scale is naturally a chaos. Compared with street lamps, it is still easier to develop display standards. Because this field has been developed for so many years, there are more than 1,000 companies, each with certain standards, certain experience, commonality, and integration. Relatively easy and accurate, it is easy for the market to accept. Only when the standards are formulated, will there be a world-class big-screen factory in China! There are many companies that do street lamps, but there are no scales, and they are still in the market cultivation stage. Users are still waiting to see, which means that the products are still in a groping period. It is still in a verification period, and too early standards will restrict the development of the industry. Standards are a good thing, but they still have to be developed at a relatively mature stage. Premature standards, unless you want to trade protection!
LED enterprise management level needs to be improved
High-tech LED: Lanke's display market has grown to such a scale in 20 months. From the management point of view, what is the difficulty?
Jiang Yumin: There are difficulties, one is architecture and the other is ability. Looking at a company, first look at his organizational structure, the LED industry is in a high-speed growth period, the organizational structure has to adapt to the needs of high-speed growth, otherwise management will be constrained; the second is the ability, that is, the ability of the team, there is no good Organizational ability, the strength of the enterprise can not be focused, the execution will be discounted, in the face of fierce market competition, the business chain of the enterprise will easily get stuck, it will lose opportunities and a vicious circle. In the LED industry, many companies have management problems: that is, enterprises do not have problems when they are small, and they are prone to problems when they are big. Lanke also faces the same problem. Only by solving it well can we really get into the fast lane of LED high-speed growth.
High-tech LED: There are relatively few domestic enterprises. At present, many foreign-invested enterprises, local enterprises, especially some large enterprises, need to seek merger targets to enter the LED market. Do you think that in this year's situation, will this merger be a lot? Some companies can accept shares, but they do not accept holdings. What do you think?
Jiang Yimin: There will be more and more mergers. Our attitude is open. If there is an opportunity, everything can be discussed.
As long as it is a good thing for the company, according to the needs of the enterprise, whether it is a strategic investor, a major shareholder, or a venture capital, it is a boost to the enterprise. In other words, those who do business should put the interests of the company first, and should not take personal interests first. In terms of results, the company is not a person to do it, it is a team to do it.
At what stage of the development of the enterprise, what stage to do, do not look at others. Taking your own path is the only way to success. At the pace of others, there will never be others.
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