The localization strategy of LED multinational corporation in China

The localization strategy of multinational companies is one of the main strategies for the markets of other countries, this strategy is particularly important in today's economic globalization, localization is simple to understand When in Rome, do as the Romans do rome. The core of its operation is based on local consumer preferences. The development pattern of global LED industry, international companies not only leads the global market trend and technological change, the development of their future strategic layout of China LED industry also plays an important role, and LED as an important manufacturing base and the largest application market, Chinese more and more optimistic about the international LED giants. What are the current developments of the international giants and how will they be deployed in the future? How will they affect the development of the industry as a whole?

First, the characteristics of the localization strategy

"Localization" is the essence of multinational production, marketing, management, personnel and other full integration into the host economy in the process, through comprehensive investigation, understand the local real economy, culture, custom, and a series of integrated adjustment. For foreign multinational companies produced products on the one hand, can better meet the needs of local consumers, but also save the expatriate foreign enterprises and multinational management of high cost, and the local social and cultural integration, reduce local social crisis on foreign capital mood, is conducive to the economic security of the host country, increase employment opportunities, accelerate the management of change, in line with international standards. Localization should be understood as a process rather than an end. Change one thing in order to adapt to the current environment and do, popular to say that to the romans. The concept of localization is widely used in different industries. Localization is a reflection of modern marketing concept, which is the core of enterprise: all business activities to the consumer as the core, and not in the business of preferences, habits as the criterion, the customer specification must change with the change of enterprise area caused by the change.

1, product localization

Multinational companies with high quality products and strong brand is the sharp weapon in the global market of multinational companies did not attack cities and capture territories, but ignore the characteristics of local residents and the market of consumer preferences. In order to better adapt to the needs of the Chinese market, grasp the potential business opportunities, multinational companies spare no effort to promote the localization of products. Such as PHILPS lighting in the multinational management, pay attention to product manufacturing localization and integration efficiency of market segments, emphasis on technical innovation, service and reputation, consumer groups expanded rapidly, the market and the development of fast fission. PHILPS lighting is the world's leading provider of professional lighting and home lighting solutions, providing a full range of lighting solutions to help people improve the environment, create experience, shaping taste. Provide integrated lighting solutions for customers through the home, landscape, road, commercial, office, industrial and other lighting market segments. Fully understanding and insight into the needs and aspirations of local consumers, the transformation of advanced technology into meaningful innovative solutions to meet the needs of local consumers. This is an important manifestation of product localization.

2, marketing localization

The biggest problem of multinational enterprises is not their own marketing channels. China's commercial system is fragmented, the market is not standardized, many multinational companies to enter the Chinese market at the beginning, ignoring the specificity of China's sales channels, resulting in a great deal of suffering. Therefore, multinational companies increasingly aware that the market competition in China, most likely to attack the sales channels, especially the terminal market, who mastered the sales channels, who can win in the competition.

Such as OSRAM, in the traditional lighting business, after ten years of development, OSRAM has been in China has a very mature sales network agents, OSRAM will fully support the agents to become bigger and stronger, cover the support strength of the distributors to expand the market; in addition to the traditional retail business, OSRAM will increase the support of the agent in a small project. The key to building sales channels in 2013 OSRAM will enter the second city, OSRAM GDP Chinese selected in the top ranked city and distributors to jointly build sales channels, such as OSRAM's franchise stores will layout of each city lighting City, to provide the most professional products and services, to help consumers to deepen the understanding of the light source, lamp. Secondly, the rise of e-commerce platform can not be ignored, at present, OSRAM has built Chinese cable on the flagship store in the Jingdong, Taobao mall, suning.com's flagship store is in preparation, the electricity supplier channels and traditional channels of customer demand has significant differences, the main sales are domestic lighting products, consumers online shopping habits have been formed, the electricity supplier channel sales network is very good.

3, the localization of human resources

The localization is the most fundamental and most profound localization, a "double-edged sword" effect. Multinational companies to gain a foothold in the China, necessarily requires a number of familiar with Chinese politics and economy, culture and law, local customs and practices of talent, the company meets the conditions of Chinese behavior, better "do", in order to ensure the smooth operation of the company. At the same time, compared with the output from the country and the output of talent, China's low cost of talent, more advantages, both for the company to play a regulatory role in the localization of production, but also to seize