The packaging giants have leaped forward and expanded frequently; small and medium-sized packaging companies are slightly stunned, and LED small and medium-sized packaging companies are being opened more and more by giants. Faced with the gradual concentration of the packaging market, small and medium-sized packaging companies are also seeking transformation and upgrading. The prescriptions for most companies are: the field of force segmentation. The person in charge of the packaging company once joked that the expansion of the small and medium-sized packaging factory is to find death, not to expand is to die. The meaning of the words, there is no way out. According to statistics from the High-Tech Research Institute LED Research Institute (GGII), the price of LED packaged devices in China fell by more than 30% in 2015, and some devices fell by more than 50%. According to GGII research, in 2015, the gross profit margin of small and medium-sized packaging companies decreased more obviously. In addition to the decline in gross profit margin caused by the decline in prices, the shortage of orders and the increase in sales expenses and equipment idleness were also the main reasons for the decline in gross profit margin. In the production process of LED packaged devices, the proportion of raw materials in production costs is as high as 75-80%. From the perspective of raw material cost, the decline in the price of raw materials is directly related to the decline in the price of LED devices. The listed companies and other large-scale enterprises are concerned with raw material suppliers. With strong bargaining power, the price of raw materials for centralized procurement is relatively low, and the production process and efficiency of LED packaging are continuously improved. The scaled production efficiency of listed enterprises is constantly reflected. For small and medium-sized packaging companies, the struggle for orders to survive has gradually become a problem for SMEs. Enterprises only rely on constant price cuts to obtain orders. This will inevitably lead to shrinking corporate profit margins, and the final outcome will be the continuous withdrawal of enterprises. . GGII believes that the price reduction of LED packaging industry in 2016 is the process of industry reshuffle, and it is also the process of resource concentration, and it is also the process of rapid withdrawal of large and large enterprises. It is also a helpless move to focus on the market segmentation of small and medium-sized packaging companies. “Large enterprises can win by taking the scale and cost route, while SMEs need to recognize their own positioning and work hard in the market segments,†said Gong Wen, general manager of Jingtai. In fact, SMEs cannot compete with large enterprises in a short period of time on many hardware resources, but SMEs can use technology and market research to seek market segmentation needs. After clearly understanding a certain market segment, they are closer to the target step by step. The market, and ultimately focus on a certain area, is the key to the success and sustainable development of SMEs. Also taking this view is Stanley Sales Director Zhang Luhua. “The scale of the mainstream market is the way to go, and there are opportunities in the segmentation.†At the 2016 High-tech LED Spring Festival held recently, many packaging companies participating in the conference also emphasized their determination to focus on market segmentation. “Liyang Optoelectronics insists on doing a good job in the segmentation field. This year, it mainly develops new production lines based on the flip-chip market.†Qin Shengyu, general manager of Liyang Optoelectronics, revealed. Liu Lin, the deputy general manager of the same party, also said that small and medium-sized packaging companies can take the sub-sectors, match the needs of some special customers, and take the differentiated competition route with the big manufacturers. Some unnamed industry veterans believe that the packaging giants will keep track of technology development in the market segment of new technology products, but will not immediately invest on a large scale. Based on the reasons for controlling risks, they will wait patiently for the technology of this market segment. Mature, market space will be opened after entering, or by large-scale production by digging people to buy equipment, or to acquire the leader of this segment. Whether it is to buy a few barrels of gold before the giant enters or wait for the giant's acquisition, focusing on a certain segment of the market to achieve the ultimate is already the only way for small and medium-sized packaging companies.
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