On January 1 this year, the U.S. government promoted a complete ban on white lighting, setting off a boom in LED lighting in North America. Well-known U.S. lighting manufacturers estimate that the penetration rate of LED lighting in North America will exceed 60% in 2017. However, the North American market is easy to defend and difficult to attack, and there are many Chinese LED companies that have failed.
The North American market has always been a "hard nut to crack" for Chinese manufacturers, but it has always been a strategic location that domestic manufacturers must conquer when entering the world stage and demonstrating their international status.
It is understood that North America has the world's most advanced upstream and midstream technologies, as well as world-class chip and component manufacturers. The continuous improvement of light efficiency and the trend of falling prices are driving the rapid development of LED technology and the rapid growth of application prospects.
According to data from the Statistics Bureau of the United States and Canada, the total population of the two countries reached 352 million in 2013, and the total gross domestic product was approximately 18.55 trillion U.S. dollars. Obviously, the market is huge. The International Monetary Fund (IMF) report also shows that the economic growth rate of the United States and Canada in 2014 is expected to be 2.8% and 2.3%. The main positive factors are the steady improvement of the manufacturing industry, the gradual reduction of the unemployment rate, and the healthy growth of import and export trade.
From the optimistic economic environment, favorable "white ban" policy, relatively complete supporting technical support and huge potential demand, it is obvious that North America has become a new competition ground for global LED lighting companies. It is the right time for Chinese LED lighting companies to attack North America at this time. However, Chinese companies also face three core problems that need to be overcome:
First of all, the North American market is different from the domestic market. North America has strict entry thresholds, a developed trust management mechanism, and procurement behavior is relatively free market. They have set stringent market access conditions for lighting products through high-tech regulations, high safety standards, etc. However, for a long time, my country's core technology has been in a relatively weak state, which has become the biggest obstacle to the export of my country's LED lighting products to North America.
Secondly, most LED lighting companies in my country still lack practical experience in how to open up distribution networks in North America. Further guidance is needed on how to quickly develop the North American market through distribution, engineering, e-commerce and other channels.
Furthermore, Chinese LED lighting companies have little understanding of the Sino-U.S. trade friction situation, the current status of U.S. energy policy subsidies, overseas intellectual property risk prevention and response strategies, and U.S. taxes that need to be considered when investing in the United States. They lack a complete and clear strategic plan, which leads to various short-sighted investment behaviors that are eager for quick success. In addition, most companies lack brand management awareness and brand management capabilities, making companies face multiple risks after "going global" or find it difficult to achieve sustainable development.
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