[reproduced - China Business News: China Manufacturing Network member companies report] Zip Opto: Like the "Transformers" as a general module

On January 24, 2014, Shenzhen Qipu Optoelectronics Co., Ltd. (hereinafter referred to as “Zip Optoelectronics”) officially sounded the buzz of the New Third Board listing in Beijing. In the highly competitive LED color screen industry, Chip Optoelectronics has ushered in a new era, not only entering the capital market, but also investing and transforming production lines in 2014 to expand production capacity.

In recent years, the hot development of the LED display industry has attracted many small and medium-sized enterprises to enter, among which there are many speculative companies that hold the “wonder and go” mentality. According to Wu Xiaogang, chairman of Chip Optoelectronics, this industry seems to have a low threshold, and it is not easy to do it well. In recent years, many companies have been eliminated. The key is to be able to provide continuous innovation and stable products.

On the one hand, Zip Optoelectronics has made breakthroughs in production by providing modular products that can be quickly delivered; on the other hand, distributors are required to make sales and after-sales work to dealers, while companies focus on produce.

Standardize universal modules

The LED display belongs to the downstream of the LED industry and mainly refers to the packaging of LED chips and the production and application of various LED displays, lighting, and backlight products. Chip Optoelectronics is mainly engaged in the R&D, design, production, sales, and service of LED full-color displays.

LED full-color displays are now used very much, and many outdoor advertisements are used more. The most striking is the two large screens in front of Tiananmen Square. In recent years, the industry has developed rapidly. Market competition is based on price as the main competitive measure under traditional product conditions. After the price of traditional products has been adjusted downwards, it has basically reached an equilibrium state. The market competition in the low-end market is fierce, the degree of concentration is low, and the industry concentration in the high-end market is relatively high. It is understood that industry leaders often adopt strategies that focus on specific market segments.

LED display applications have a variety of shapes and applications, but due to different types of products, such as technical difficulty, production and sales patterns, and channel resources, companies often choose one or two products with similar product characteristics. The accumulation of technology and market development will in turn create a certain competitive advantage in this field.

This is also the case with Chip Optoelectronics, which is mainly responsible for outdoor advertising. After a brief period of time, it has also done LED photo products. Now it has withdrawn from this section, focusing on LED full-color displays. In general, LED products use more customized and personalized production, but Zipu has come out of its own way.

LED display screens are installed in different sizes, and the accuracy of the display screen is also not the same, so most manufacturers are the first order to reproduce. However, Zip Optoelectronics has found that it can produce some standard universal modules, such as standard modules of P320, P320 and P20 with different pitches such as P5, P16, and P20 (with display pixel pitches of 5mm, 16mm, and 20mm).

According to Wu Xiaogang, in the same cabinet shape, universal modules with different spacings can be used, and they can be randomly combined like “Transformers”. The benefits of doing so are, for the manufacturers can quickly ship, flexible response. The stock standard universal box can be installed with different spacing modules according to different projects, so that most of the factories are produced according to plan. For dealers, installation and maintenance are simplified. If you are familiar with one kind, you can master all of them and reduce the difficulty and workload of sales, engineering, training, and maintenance.

"Standardized universal modules, even after several years, spare parts can be purchased, or in the original position, on the original structure, on the original box, and replaced with higher-tech, higher-density black diamond modules." Wu Xiaogang said that for manufacturers, The most important thing is to have autonomy. We can organize production according to our own plans in advance, without waiting for orders to organize production again.

Since LED products are more customized and personalized, the company will also do some production based on specific order requirements. Wu Xiaogang stated that, generally speaking, the company adopts an autonomous production model, some of which are produced in accordance with the plan, and the other part is produced according to the order status, which is mainly performed by the production department and the production technology department.

After the Spring Festival in 2014, Zip Optoelectronics fully upgraded the LED display screen production line of the workshop and presented it to customers in a new clean and tidy appearance. The company currently has 10 fully imported automatic plug-in production lines, 5 high-speed automatic patch production lines, 4 automatic welding production lines, 2 automatic gel drying production lines, can achieve professional separation of product lines.

Live Dealer

At present, the general production mode in the optoelectronics industry is the installation of production and processing. However, the installation of the project results in a long cycle of capital repatriation, low efficiency of asset turnover, and high requirements on the size of funds. Zipu Optoelectronics has adopted another marketing strategy to use live dealers.

Wu Xiaogang said that based on the traditional end-user marketing model, the company took the lead in adopting the channel marketing model in the industry. According to him, the core of the model lies in the fact that Chip Optoelectronics is mainly engaged in the research and development, production and application of LED application products, developing and maintaining professional channel customers, and the installation of the business process and the after-sales service are mainly through localization. Professional channel customers to complete.

Zipu Optoelectronics recently organized a core strategic partner summit to further narrow the distance with dealers. The company has established a linkage mechanism with professional channel customers so that all channel clients can provide the company with the latest developments in the local market at the first time, enabling the company to more accurately grasp market trends and promote the timely follow-up of the company's products and technologies.

By establishing a channel system covering multiple key regions across the country and overseas, the company can establish close contact with as many terminal regional markets as possible, thus adapting to the rapidly growing LED application market and rapidly seizing market share. Wu Xiaogang said that at present, the company's main business or overseas business accounted for a slightly higher proportion, and in the next few years, it will insist on such proportions. In his view, the domestic market is slow and difficult to pay back, so it is hoped that the company's domestic and foreign businesses will develop in tandem.

Expert Reviews

Production model optimization model

Production modularization, providing stable products, Zep's approach is not unthinkable, but Zip did it. It also includes many of its practices, such as quality first, commitment to the research and development of new products, new technologies, in-depth cooperation with universities, continuous innovation, many companies have been saying, always thinking, but “You still think, I already It was done, and that's what Zep is the best.

In addition, Zip is commendable by approaching the first-line market through professional channels and establishing a linkage mechanism to be able to grasp the latest developments in the local market in the first place. However, in the era of mobile Internet, after accurately grasping the market dynamics, whether it can promptly follow up and respond quickly to meet customer experience in different regions is a test of market alignment.