Mingge Technology: Distributors should dare to "take" and be good at "take"

[Source: Gaogong LED 's " LED Good Products" magazine April issue (P32) reporter / He Wei]

In 2012, a precision LED package from Taiwan continued to lead the mainland market in terms of sales volume and revenue. The market share exceeded 10%. It is also the only company in mainland China with a market share of more than 10%. In the month, Taiwan’s Yiquan won the high-quality LED product of the year, the best package support award, which can be said to be deserved.

As one of the largest SMD scaffold agents in China, Shenzhen Minge Technology (hereinafter referred to as “Minge Technology”), the market recognition also means that six years ago, the choice of agent and precision bracket is a a wise decision.

Recalling the past

Today's SMD package brackets have taken the lead in the market share of stents. However, time has returned to six years ago, and the market is still in the world. SMD is still little known in the mainland market.

"In 2007, we began to represent a precision bracket. At that time, they did not understand the mainland market and did not know how to sell SMD brackets in the mainland. To some extent, Mingge Technology successfully introduced a sophisticated SMD bracket into the mainland. Market.” Wu Fengjun, general manager of Mingge Technology, still remembers the market changes of the year.

It is understood that Minge Technology started as a distributor of equipment and supplies. The products mainly include all kinds of nozzles, thimble thimbles, dispensing heads and welding wire equipment, magnetic nozzles, steel nozzles, fire rods and pressure plates. And other special spare parts.

“In 2003, it began to represent equipment consumables. After two years, it has already seized more than 70% of the market share in Shenzhen.” Wu Fengjun said that it was the rise of automation equipment that the company’s parts agency business quickly gained stability in the market. The heel. And the year when the local LED packaging companies emerged, this is undoubtedly a solid foundation for Mingge Technology to act as the agent for LED bracket business.

"Minger Technology has grown up with LED packaging companies. Today, the packaging giant Hongli Optoelectronics only has two automation devices in operation that year." Wu Fengjun said that the early years established a good relationship with LED packaging companies. It is one of the biggest advantages of Minge Technology. “Doing business in China is about networking, especially for trading companies.”

This kind of customer resource advantage is also the key factor for Mingge Technology to win Taiwan's largest SMD TOP bracket agency right in the mainland.

In Wu Fengjun's view, this choice is two-way. As an agent, the focus is on the supplier's research and development capabilities and product quality.

“Yiquan Precision has advantages in research and development speed, product quality and long-term focus. It always develops products to the market earlier than other companies in the same industry, so that they can seize the opportunities.” Wu Fengjun said that this fast R&D capabilities can bring more market initiative to agents and terminal application customers.

Wu Fengjun revealed that at present, the company's scaffold agency business accounts for more than 90% of the total turnover. The main customers include Hongli Optoelectronics, Wanrun Technology, and Zhaochi, etc., with at least seven or eight million monthly shipments. the amount.

Sigh now

However, changes in the market are always unpredictable.

According to the report of the High-tech LED Industry Research Institute (GLII), due to the continuous decline in the price of packaged devices, the market size of LED package brackets in China in 2012 increased by 40% year-on-year to 4.7 billion yuan, but the growth rate was slightly lower than expected at the beginning of the year. In terms of market competition, Taiwanese manufacturers still maintain a dominant position, but many mainland companies have entered the stent market.

"Today's market competition is becoming more and more fierce, and profits are becoming more meager." Wu Fengjun said that the current market situation is incremental profit reduction, shipments are 40% higher than in 2010, and the overall turnover is also growing, but The profit margin has fallen sharply, down by about 50% from 2010, and has reached the critical point of profit and loss.

Although Wu Fengjun still remembers the LED explosion period in 2009 and 2010, he has to face the current market reality. “In the fierce competition, the market segmentation has become more and more obvious. According to the application, customers will have different choices.” Wu Fengjun pointed out that distributors have their own market division, Mingge Technology’s main customers are Large and medium-sized enterprises that focus on brand building, and the products they represent are also brands with good reputation in the market.

Unfinished, more information, please refer to the engineering LED's "good products LED" magazine April issue

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