Shi Yucan: Exploring overseas market OEM or self-built brand?

On August 17-18, 2012, the 9th Gaogong LED Industry Summit held in conjunction with the 2012 Gaogong LED Exhibition was held in the conference room on the third floor of Guangzhou Poly World Trade Center. The CEO Conference is divided into three parts, focusing on the upper, middle and lower reaches of the industry chain. The meeting invited senior executives from well-known listed companies including Taiwan Jingyuan Optoelectronics, New Century Optoelectronics and Tongfang, Guoxing Optoelectronics and Ruifeng Optoelectronics. He delivered keynote speeches and shared unique industry insights, the latest cutting-edge technologies in the industry, and lighting market strategies.

Shi Zhengcan, executive deputy general manager of Huizhou Yuanhui Optoelectronics Co., Ltd., gave a speech on how to develop overseas markets, whether to do OEM or self-built brands. He said that the overseas market is relatively mature and the quality requirements are relatively high. "But one thing is very miserable as a Chinese company: if the product is handed over and there is a problem, the cost of the remedy is very high, and the competition in the whole market is very intense." He believes that it is more difficult to open up overseas markets. On the one hand, cross-cultural, cross-language marketing, on the other hand, how to organize personnel teams is also very difficult.

If the enterprise chooses to do OEM, the capital investment and technology investment are relatively low, and the return is relatively fast. ODM is in the middle, own brand, the capital investment is very large, and the time required is also long. Shi Rucan said that in the internal and external environment, companies should measure their own advantages and where the disadvantages are.


(From left: fourth place is Shi Huican, executive deputy general manager of Yuanhui Optoelectronics)

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