Due to the long-term influence of Taiwan-funded enterprises, most of Dongguan enterprises focus on manufacturing and are export-oriented. However, in the market environment where foreign sales are shrinking and domestic sales are not based, in addition to a few enterprises such as Jinda, 100% and Yigao in Dongguan, many enterprises have lost ground in the domestic market. In 2008, Dongguan, which has always been known as a world factory, has become a star city in this summer. Two negative growths bear the brunt of the national concern: for the first time in 30 years, negative growth in utilization of foreign capital has exceeded 13%; industrial profits above designated size have fallen by 4.02% year-on-year, showing the first negative growth since 2001.
At the same time, the words of Dongguan dilemma, the relocation of Dongguan enterprises, the closure of Dongguan enterprises, and the upgrade of Dongguan have also appeared frequently in major media. In the case of the international economic recession, the enterprises that suffered from the cold snap of exports have indeed fallen into a big predicament that has not been seen for 30 years. The Great Depression of Dongguan's manufacturing industry directly affected Dongguan's lighting companies, which accounted for nearly 70% of exports. In particular, the light enterprises that have been extended from the development of Taiwan-funded enterprises, they have broken their bones.
Low-key originates from the dilemma of domestic and foreign markets
The status quo of Dongguan lighting enterprises has already seen this year's Guangzhou Guangya Exhibition. Although many foreign brands have made a high-profile appearance at the Guangya Exhibition site, the number of exhibitors in Dongguan has been greatly reduced. In addition to the two companies of Jindaweishahua and Sanli Lighting's Venezuela brand pavilion, other people can remember the Dongshi lamps, the palace lighting two professional lighting companies and the source Xin lamp holder, the day New wire, Yafei Electric and other three accessories companies, its 54 square meters area, the impact of the momentum is not too big, the exhibition is also popular. The rest of the remaining 10 companies are basically huddled and hard to attract attention. It is understood that in the past Guangya Exhibition, the number of exhibitors in Dongguan has reached more than 50, regardless of strength and charm, corporate image or products are eye-catching.
Some observers believe that the two negative growths in Dongguan have released an important signal: in the face of the contradiction between the decline in global demand and increased market competition, the appreciation of the renminbi, the reduction of export tax rebates, the rise in raw material prices, and the country’s macroeconomic regulation and control, etc. Dongguan, a world factory with manufacturing as its main industry, is facing a new test. This just happened to prove the low-key behavior of Dongguan lighting enterprises.
Liang Jinqiao, general manager of Dongguan Yigao Lighting, said that the global economy is not optimistic this year, the export is limited, affecting all industries, and the lighting industry cannot escape. For the Dongguan lamp enterprises with export as the main body, the global economic downturn may be the root cause of the low interest in this year's Guangya exhibition.
What's more, this year, the pressure of rising raw materials has led to the closure of many small lighting companies in Dongguan, and some medium-sized lighting companies are also working hard to reduce staff, open source and reduce expenditures, and strengthen management measures. According to the investigation of the Dongguan lighting company's raw material cost price changes from 2006 to 2008, steel rose as high as 93%, crystal ball rose 35%, plating and packaging materials also rose 85%, 38%. In terms of logistics costs, Beijing and Shanghai have increased by 20% and 25% respectively, plus gasoline, diesel, electricity, and water, respectively, 60%, 56%, 40%, 25%, respectively, it can be seen that enterprises The burden is increasing year by year.
As we all know, Dongguan lamp enterprises have always dominated exports, and most of them have been profitable in the way they are processed. Under the major blow of export obstruction and rising raw material prices, the profits of most Dongguan lighting companies that lack market foresight have been compressed to a minimum.
The only thing left for Taiwanese companies is the expediency
The dilemma of Dongguan lighting companies is most evident in the performance of Taiwan-owned lighting enterprises. In Dongguan, about 80% of lighting and lighting companies are created by Taiwanese, and about 10% are created by Hong Kong people. The locals have less than 10% share. It can be seen that Taiwan’s power lighting in Dongguan It is not negligible in the enterprise.
In fact, thanks to the influx of foreign capital since the reform and opening up, Dongguan's economy has grown at an average rate of more than 20% per year, ranking third in the mainland's large and medium-sized cities for six consecutive years. Among them, Taiwan-funded enterprises, which account for 80% of Dongguan lighting companies, are a big force. They not only injected strong financial strength into Dongguan lighting enterprises, but also brought advanced production technology and equipment, so that Dongguan lighting companies have always been called manufacturing enterprises, and have a good reputation in domestic and even foreign markets.
However, Taiwanese-owned lighting companies in Dongguan did not break through the general rules of overseas investment. Over time, the long-term export advantage has gradually exposed the drawbacks of enterprises. Most of these Taiwan-funded enterprises have been processed by the way of processing. It is their main way to rely on domestic cheap raw materials and labor costs to make profits. . This has led them to pay attention to the brand image of the company, the cultivation of talents, the development of added value of products, and the development of the market. This has also formed a long-term shortcoming.
In addition, in view of the current unfavorable exports and the prosperous situation in the domestic market, most Taiwan-funded enterprises still hold the concept of business. For the domestic market, they do not have a great grasp. On the one hand, they do not have strong financial strength. On the other hand, they lack the experience and ability to open up the market. Coupled with the failure of some Taiwanese enterprises to transform the domestic market, they hope to continue to maintain. The current operating conditions, save strength, and then slowly develop. Faced with the current difficulties, Dongguan Taiwan-funded lighting enterprises have not had much expedient to do, the market has entered the knockout stage, and if it does not enter, it will die.
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Manufacturing Capability |
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Number of Layers |
1 - 8layers |
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Order Quantity |
5pcs - 100pcs |
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Laminate |
FR-4 Standard |
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Maximum PCB Size(Length x Width) |
600*1000mm |
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Board Dimensions tolerance |
±0.1mm - ±0.3mm |
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1-6OZ |
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