The supplier is planning to launch three to four new LED products annually.
Trading company Zhejiang Ruiher Imp. & Exp. Co. Ltd is zeroing in on the production of solar and LED products at its own facilities. Three to four new models are planned to be launched each year.
In an interview with Global Sources, general manager Hyde Huang talks about the company's efforts to intensify presence in key export markets. Below are excerpts of the discussion.
What is your company's R&D focus in the coming months?
Responding to market demand, we will procure hardware, electronic components, household appliances and LED products with greater cost-performance ratios. This will be offered to our clients at a competitive price.
Although we currently have limited manufacturing experience, we will concentrate on producing transformers, wall switches, solar and LED products. The last will be our priority as we plan to release three to four new models annually, with focus on LED sensor lights and LED lamps.
Which geographic markets will your company be targeting in the next six months?
We will continue to expand our markets in Southeast Asia and South America, which absorb entry-level and midrange hardware and electronic components. We will also actively develop Brazil, Russia, India and China.
Solar and LED products such as solar sensor lights, LED lamps, bulbs, lights and strips will be pushed to the aforementioned destinations.
What sets your company apart from competitors?
First, we are a professional trading company employing 60 foreign trade talents. We are partnered with more than 500 suppliers from the hardware, electronic components, LED and solar and energy-saving industries. Our company is able to get a preferential price on many quality products from these suppliers.
Second, we have long-term partnerships with banks. We also have stable financial support stemming from years of development.
Lastly, we have production facilities that will allow us to eventually manufacture our own brands. In the future, trading will still be our primary business, while manufacturing will come second.
How do you think the yuan revaluation, and the increasing raw material and labor costs will affect the industry as well as your company?
Yes, these are the biggest challenges for us and other companies, which have led to profit loss. To cope with these, we think that makers should develop more high-end products to enhance competitiveness and bring down operational costs.
Meanwhile, our company will keep prices stable for our regular clients overseas. We will also improve negotiations with upstream suppliers and purchase products with greater cost-performance ratios.
Do you think China will lose some of its export business to other production centers such as Mexico, Vietnam, Bangladesh and India in light of rising production costs?
As a professional import- and export-based company, we can feel the impact of rising production costs. The current cost is at least 10 to 20 percent higher than Mexico, Vietnam, Bangladesh and India. However, we think that our upstream suppliers and makers' products are still at an advantage in terms of R&D, product quality and logistics among others. We can purchase products with better cost-performance ratio from them.
China trading companies are also more experienced in negotiating for reasonable prices and stable supply for clients.
In addition, China's supply chains of hardware, electronic components, solar and LED products are mature.
I think that these countries might be a threat to China suppliers in 10 years.
Should China makers focus on OEM products or strive to establish their own brands in overseas markets as well?
At present, most China makers focus on OEM. Although establishing an in-house brand requires time, it is necessary.
In our case, our factories roll out mostly LED products based on OEM contracts.
We hope to generate more orders through extensive market expansion, which can also help boost our competitiveness and reputation.
We see this crucial in propping up our company's reputation and brand. We will actively push it and hope to build our own brand within five years.
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