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Foxconn: trying to take advantage of LED industry to get rid of

Public date:[2014-12-01]

From the chip to the package and then applied to the LED lighting from LED display, LED lighting can be described Foxconn layout complete and accurate. Foxconn head Gou has told the media, to Foxconn's LED industry as a transition, the transition from OEM to include their own brands, but also from the traditional electronics industry to new industries.

But from Foxconn LED layout view past few years, with the goal of its original setting is still a long way to go, there is no build up its own brand, while the OEM of the road, but farther and farther ......

OEM orders are becoming scarce

LED industry chain in the layout, while also spoils the Foxconn OEM business. In 2009, Foxconn began to Philips, General Electric and other international lighting giants do OEM. It is understood that only a year, only two companies, Philips and GE's LED OEM orders, its sales to more than 200 million yuan.

However, LED industry hopes to bring transformation Foxconn, whether it even further in the LED industry? To be tested.

With the mainland labor costs rising, more and more LED lighting orders have gone to Southeast Asia, fewer Foxconn LED lighting OEM orders.

In addition, although a few years ago Foxconn generous layout of LED industry, but relative to the past two years, BDO Runda and three optical and other listed companies in the action, can be described as trivial.

Foxconn these "advantages" increasingly obvious, mainland companies are rapidly growing, with automated production lines, as well as the establishment of industry standards, some mainland enterprises and product technology and other costs have been significantly better than Foxconn.

Industry peers said that the current in the LED lighting field Foxconn has formed a crisis, more and more obvious advantages foundry. "In the beginning of the giants in the industry because of the entry and horrified, but from the current situation, many companies have not put Foxconn as a competitor."

More importantly, do OEM Foxconn side, while on the other hand was in line to go its own brand, it also allows those lighting giant cautious.

Take the road of independent brands

In the LED field, Foxconn trying to go its own brand line, to create a complete LED industry chain. But this transformation is not so easy.

LED lighting is an emerging industry, is also a general trend, but now the industry's strong brand has not yet appeared. For Foxconn, which is the transformation of "breakthrough."

I learned that Foxconn products, only LED products printed on the "FOXCONN (Foxconn)" brand label. Foxconn Philips, General Electric and other international lighting giants do OEM, it is also LED display, LED lighting products in the field to go their own brands. Foxconn, which is currently the only independent brands.

"Foxconn expects to achieve by means of the emerging field of LED upgrade, so the first step to break through its own brand." Industry sources said.

However, although others have unparalleled manufacturing cost advantage, but the LED Own Brand of Foxconn is not all the way flat. Foxconn began to transition from three years ago, until now, Foxconn brand and not so loud.

Insiders analysis, as the foundry business, Foxconn production generally have a good foundation, but because no business is too independent brands, the lack of marketing teams and channels, which has become the Achilles heel of Foxconn transformation.

In fact, Gou also know their own short board, and also in the channel under the foot work. Reporters learned that Gou had had a vision to create a play set Foxconn e-commerce, logistics and technology services in one of the new business empire.

I understand that Foxconn LED revenue mainly from the government orders, OEM brand, the Group's own lighting replacement. While Foxconn has invested in the country over the place LED, but marked with Foxconn branded product, it is difficult to see in the market.