"If a packaging factory only solidifies gold wires and does these simple tasks, then the value-added space of this process is very small, and this industry may no longer exist in the future." Gong Wen, general manager of Shenzhen Jingtai Co., Ltd., said in an exclusive interview with a reporter from "LED Screen World" magazine.
In the LED industry, or in the newspapers of major media in the LED industry, the newspapers are often filled with famous leading companies. Because these companies are "big and powerful", they will undoubtedly be loved by the capital market and attract the attention of others. The news is overwhelming every day. However, there are some companies that are not very large in scale and are not often exposed in the spotlight of the media. However, they are very popular among users and have an irreplaceable place in the industry, shining exceptionally brightly.
This is the case with Shenzhen Jingtai Co., Ltd. Jingtai is a high-tech enterprise specializing in R&D and production of SMD LEDs and high-power LEDs. Since its establishment, its products have been positioned in the mid-to-high-end LED application market and it has been deeply involved in the fields of LED packaging technology and manufacturing. Although there are many large companies in the field of LED packaging, many of them manage the market based on scale. If we judge heroes based on scale, Jingtai may not be able to compare with others. However, even so, when talking about the packaging field, Jingtai is often a topic that cannot be missed.
"Many large bidding projects now specify Jingtai's packaging. Jingtai's products have been recognized by users, and even recognized by users." This statement may be enough to see Jingtai's influence in the domestic LED packaging field.
According to the reporter of "LED Screen World", Jingtai is currently implementing a dual-line brand strategy. In the company's business, the display business accounts for 60% and the lighting business accounts for 40%. A two-pronged attack is currently the development strategy of many companies, because it means that they can obtain more market opportunities and obtain more sources of profit. However, it should be pointed out that in the current domestic display packaging industry, the total number of lamp beads per month is about 4,000 KK, and Jingtai alone only owns about 1,000 KK, and its market share in the display industry is about 25%, ranking among the forefront of its peers.
And even with the ups and downs of the industry, taking the LED display industry as an example, the overall profit margin is not very high. Some people even exaggeratedly said that the sales price was "cabbage". The number of products produced by the company doubled, but the profit may not increase by 50%, and there is no previous one-to-one model. However, Jingtai has been able to maintain a relatively high profit margin. In the face of extremely fierce price wars, it seems to have little impact on Jingtai's gross profit margin. The gross profit margin is far ahead in the industry and ranks among the best.
"Jingtai's turnover exceeded 400 million in 2013, and it has already done more than 300 million in the first half of 2014. The full-year target is 600 to 700 million, and it plans to reach 1.5 billion in 2015." This is the development goal of Jingtai described in "LED Screen World" by Mr. Gong Wen, chairman of Jingtai.
In fact, in the LED industry, there are many "picture cake" companies. In order to attract capital and eyeballs, in order to facilitate the fluctuation of the stock market, or for some unknown purposes, they frequently throw out beautiful visions and tell very good stories to the audience, and then there are countless companies that eventually lost Maicheng. But Jingtai has always kept a low profile and its down-to-earth style is obvious to all. There are many "bad boys" in the LED industry, but Jingtai is undoubtedly the most eye-catching dark horse in the field of LED packaging because it always speaks with its strength.
If we say that in the LED packaging industry, Jingtai is definitely outmatched, but Jingtai has its own way of survival and its own long-term plan. Now let the reporter from "LED Screen World" take you into Jingtai's world, and let Jingtai's general manager Gong Wen explain to you Jingtai's market strategy.
"Jingtai does not have much advantage in terms of scale, but Jingtai also has its own strategy: On the one hand, development is quality. We have positioned ourselves in the mid-to-high-end market from the beginning to avoid entering the low-end Red Sea market; for the second new product, relying on technological progress, relying on To make money, companies must rely on differentiated products, so there is no comparability. "
Because of the development of "differentiated products", there is no "comparability", so it is better to avoid homogeneous competition. Moreover, only if a company continuously launches new products can it have bargaining space, will it not drive prices to the bottom, and have no core competitiveness. This is a historical shortcoming of China's LED industry. Although Jingtai is small, it is unconventional. Perhaps Jingtai's value can be glimpsed from the words of Jingtai's general manager Gong Wen. His goal is not only to run Jingtai as a business, but Jingtai may represent a group of leading companies that want to break the barriers of the past and reshape the new look of Chinese LED companies.
"Now we have launched many new products, including 1010 packaging products for small pitches. Previously, only Taiwan's Everlight and Acer were doing this. Now we are doing this with Nationstar to fill the domestic gap; there are also small pitch 0505 packaging products; and about small pitches. A pitch COB product will be launched at the Guangzhou Exhibition next year. There is also the 3535 outdoor display product. Currently, Jingtai's products can only be used for some semi-outdoor displays, and many problems will occur after the display is exposed to the sun and rain. The products made in Jingtai can be used for all-outdoor display screens and can be used as fixed installations for outdoor screens. The waterproof level has reached the first-class standard, and it has higher UV resistance and is very bright. "
Gong Wenru, general manager of Jingtai, said. Jingtai introduced the new products launched by Jingtai one by one to reporters. It can be seen from the words that Jingtai launches new products at very close intervals, and the technical content is also very high. It is one step ahead in the industry and says that Jingtai is the leader in LED packaging technology. The author believes that Jingtai is well-deserved.
"Take the 3535 product as an example. If customers want to buy a product with an LED display that is fully outdoor, then only Nichia, Cree, Jingtai, and Macal can do it. If an LED display is installed on a high-rise building, there are load-bearing requirements. If the display is too heavy, there will be safety hazards. Use the 3535 product The made screen is very thin, very light, and easy to install and carry. "
It is a very ordinary thing, but the implication of the words is not simple. "Easy to install and carry". In fact, this is a question that LED display terminal companies think about, but Jingtai is "unfounded", "does nothing", or can be said to be "meddling". Then this kind of "do a little more", this kind of thinking that can be said to be "worrying about the world first" is actually the characteristic of Jingtai, the magic weapon for Jingtai to win, and the strategy for Jingtai to remain invincible in the ever-changing field of LED packaging.
For example, among the new lighting products launched by Jingtai, there is an IDCoB product, which is like a light engine product. However, objectively speaking, it cannot be purely regarded as a packaging product. It is a combination of packaging and driver. The superiority of its product lies in the fact that terminal application manufacturers can directly install it in the light bulb without any power supply, thus reducing the work of downstream application manufacturers. Perhaps this truly reflects the capabilities of packaging companies, and perhaps this is the value of Jingtai's existence.
In fact, it has always been quite embarrassing to be in the middle reaches of the LED industry in the packaging field. Because many chip companies have begun to move downwards, such as Cree, Silan Mingxin, Sanan, etc., these chip companies have gradually begun to develop vertical integration strategies. Not only that, but also terminal product manufacturers can’t stand it anymore and have begun to develop upwards. They want to do their own packaging to control the profits of the entire industry chain. Moreover, in recent years, people have frequently mentioned the argument of de-encapsulation, believing that packaging companies can be eliminated in the future. To put it simply, competition in the field of LED packaging is not only becoming increasingly fierce, but it has also been at the forefront, making life quite difficult.
"The field of LED packaging exists as an independent industry. What reason do you have to become an independent industry? Why can't the chip factory package it and sell it? Or the terminal factory should make the package by itself. Why should packaging become an independent industry in the LED industry?" "LED Screen World" mentioned this matter, Gong Wen, general manager of Jingtai, asked. This is a question that LED packaging companies ask themselves, and it is also a question that chip companies and terminal application companies ask of LED packaging companies.
Indeed, if you require existence, you must have the value of your own existence. If it is dispensable, existence will lose its meaning. The author believes that LED packaging companies must be unique. We must achieve things that cannot be accomplished by chip makers and cannot be accomplished by end-product factories. And Jingtai is undoubtedly one of these practitioners.
"LED packaging companies really need to have a mentality of being prepared for danger in times of peace. You must have a mentality, you have to do a little more. Go a little more up, a little more down, so that the chip factory can make chips with peace of mind. All solutions, I Let us do it and let the application manufacturers use it simply and don't let it have too many worries. Only then can the packaging companies have a better life and can they truly survive." Gong Wensu, general manager of Jingtai, advises LED packaging companies.
Being prepared for danger in times of peace is used to portray a person's character. This is a sign of a person's maturity. When used in the management of an enterprise, it may become the key to the survival of an enterprise or even a certain field of an industry.
It can be seen that LED is a rapidly developing industry full of opportunities. Many people want to do it, but the key is who can do it well. Facts have proved that not many can really do it well. And Jingtai's "do a little more" and continue to speak for itself with quality, technology, and new products will undoubtedly make Jingtai go further in the LED industry and lead the direction of this industry, because it embodies the value of the existence of LED packaging companies.
ANNA