In the first half of this year, the demand for LED downstream applications was strong, driving the rapid development of the LED packaging market. Beginning this year, not only will we follow the trend of domestic LED package manufacturers to use the localization of chips, domestic LED application companies also receive a large number of cost-effective local devices, greatly driving the demand for the packaging market. Shenzhen Youxinguang Technology Co., Ltd. (hereinafter referred to as Youxinguang) has also been driven by the strong packaging. It is understood that from a production line at the time of construction to dozens of production lines today, from small batch orders to monthly output value of tens of millions, the development of Youxinguang is very rapid. Relying on the amount can reduce the cost of Luo Xianli: It is not easy to earn some money now, and earning some money is not enough for others to run. Last year, it was run by more than 3 million people, and a customer who made LED display ran more than 1 million. The risk factor must be well controlled, so since last year, Youxinguang has not touched the display customers. Now LED factories can only reduce costs and reduce average management costs. The original management personnel and production line is a one-to-one ratio, the management cost is very high, the product of 1K, the possible raw material is 10 dollars, but the management cost is not only 10 dollars. After the expansion, the management personnel and the production line are one to five or one to seven, then the cost of a production line is 2 yuan, and the management cost is not reduced, so there is a cost advantage. Reporter: So Youxinguang also has plans to expand production? Luo Xianli: The expansion is certain. At present, the production capacity of Youxinguang is not very high. The monthly production capacity is more than 100 KK. The monthly production capacity target is 200 KK. However, the expansion is temporary, and we also have our own plans and goals. It is the third year, but I feel very tired. Yellow River: The third year of Youxin Guangcai? Then you are feeling tired. Luo Xianli: The pressure in the first two years is not very big. The enterprises are not big. When the number is the largest, there are only 80 employees. The monthly expenses such as rent and salary are less than 30.35 million. However, after the new factory building of 8,000 square meters was moved this year, the number of personnel increased, the packaging equipment increased, and the final expenses increased. Has always been in the high-end Luo Xianli: Youxinguang to do the application of the route or to go in the high-end, low-end products can not do. At present, the domestic and foreign sales market accounts for 50%, the domestic market can not be lost, the international market still has to go, e-commerce also has to do, Alibaba, Jingdong, Taobao, Tmall and other e-commerce platforms have online stores. Youxinguang established an independent e-commerce team, from a few people in the beginning, to dozens of people. At present, only the sales volume of e-commerce has exceeded 20 million yuan in only 8 months last year. At present, Youxinguang mainly takes engineering channels, and the engineering channels require that the product quality is relatively reliable. There are few manufacturers who dare to guarantee 3 years or 50,000 hours. Product quality issues are worthy of attention. Yellow River: Two key to making LED products, one is safety and the other is stable. If these two basic requirements are not met, then simply do not do LEDs. There are many ways to participate in LED competition, and the price is just one of them. Differentiation is a good way, new thinking and new mode is a good way, personalized service is also a good way, why price wars go black. Multi-channel guarantee sales Luo Xianli: Youxinguang is divided into several legs, mainly engineering companies, agents and traders. The agents are provincial, but they will not build image stores. By engineering, relying on trade volume is still not large, or relying on agents to have quantity. Yellow River: As a manufacturer, under normal circumstances, I am doing the manufacturing well, and the whole world is my dealer. The dealer is, I have done the sales, the world is my supply factory. . People can only earn one. Luo Xianli: Yes, I think so too. So I don't want to do any flagship store or image store. Yellow River: At present, the mainstream direction of agency mode is small-area agency, which is based on prefecture-level or county-level cities. More and more people do not like to choose the provincial generation, mainly because they are afraid of poor choice, the market in that province is worse. Luo Xianli: There are many uncontrollable risks in the province. When I first built the factory, I tried to find a provincial party in Hunan. As a result, the other party said that Zhongshan enterprises are cheaper than my family, and they are not represented. Yellow River: In fact, the positioning of this agent is not clear. Provincial generation does have some risks, but it also depends on the situation. If you find a good customer, it is consistent with your philosophy and the channel network is also very good, but such people are hard to find. Another important issue is that he wants to push your product. If he puts your product in a corner or in a warehouse, it is very troublesome. Luo Xianli: (agents put products in the corner or in the warehouse) This is the most painful thing. We will follow the reporter's own route: So, does Youxinguang have plans to develop physical channels in the application field this year? For example, the packaging company Mulinsen held a number of new product ordering meetings in the first half of this year, and achieved good results. Luo Xianli: The model of Mulinsen cannot be copied and can only be used for reference. The model of Mulinsen can't be copied by others, whether it is his background or the system, and he can't follow the instructions. So I once said to some of my peers, don't envy other people to open an order meeting all over the country, even if you want to open a customer meeting, how many customers do you have? If you spend only 100,000 yuan and only 2 customers, then you will lose. Therefore, the industry is still very positive about Mulinsen's model, but Uxin is not the same as Mulinsen's route. Yellow River: Mu Linsen has a market of Mu Linsen. You have your market. Why do you need to learn from him? Sometimes it is to keep your position and choose people who are willing to go with yourself. But I think it would be necessary to spend 100,000 to open it, to find it for your customers or potential customers. Luo Xianli: We have our own ideas, or step by step. Regardless of how the market changes, there will be a market for LED lighting in the last five years. The Yellow River: It should be said that there will always be a market, the key is how to upgrade the technology. Luo Xianli: It is to make the existing market for five years. In the past five years, we have set up our platform and developed the development so that we have a foundation and a better development. At present, the amount of low-end products is definitely large, but no one can guarantee how long it will last. The Yellow River: In this messy era, the top or bottom is the biggest damage to the company. The bigger the company is, the greater the risk. Postscript This year's LED package achieved a good start. Judging from the performance of LED packaging listed companies in the first quarter of 2014, in addition to the decline in the net profit of Ruifeng Optoelectronics, most domestic mainstream LED packaging factories have basically achieved a good start, especially Hongli Optoelectronics, Guoxing Optoelectronics and Jufei Optoelectronics. Waiting for three major packaging companies, the financial report shows that the operating income and profits of the above three major packaging companies have maintained rapid growth. Among the non-listed companies, the shipments and orders of larger-scale packaging plants such as Mulinsen, Xuyu Optoelectronics and Baishi Optoelectronics are also increasing month by month. Among them, Mulinsen has won more than 1.4 billion yuan in the first quarter, this year's revenue target is 6 billion yuan, the lighting business is conservatively estimated to complete 1.6 billion yuan in revenue. In addition, since the beginning of this year, Mulinsen has continuously expanded its production capacity, and has expanded its production capacity by 3000 KK since February. The packaging market is booming. It is no wonder that Luo Xianli, Chairman of Youxinguang, is full of confidence in the packaging and application market.