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“Fudai Tuoba was originally the general manager of the Nichia Chemical China mainland market and the Hong Kong market. Before the Lunar New Year, the Hong Kong and China mainland markets have been separated and managed by different special personnel.†Recently, one day Asian insiders told the "High-tech LED" reporters that Japan and Japan's high-level changes in the Chinese market.
The source said that the original Chinese market was divided into the mainland and Hong Kong, and was managed by Fudai Tuo. Now Fu Tak Tuo is only responsible for the management of the Hong Kong region. The mainland China market has a new general manager, a Taiwanese.
On the surface, the adjustment of management responsibilities is based on the separate management of the mainland and Hong Kong, which can be easily settled. Hong Kong adopts foreign exchange settlement, and the mainland adopts RMB settlement. But behind the high-level adjustment is the "crisis public relations" of Nichia in the Chinese mainland market.
Increased sense of crisis
“Now the management of the mainland China market and the Hong Kong market is separate, and it is a strategic adjustment to deal with the market. The fact that a Taiwanese person is the general manager is interested in strengthening the management of the market in the region. More importantly, it is closer to the market. The reaction is faster," Tang Guoqing, secretary general of the Semiconductor Lighting Technology and Application Committee of the China Illumination Society.
"The development of the mainland China market needs to adopt the idea of ​​localization strategy as much as possible, so the new general manager is not a Japanese, but a Taiwanese. His ideas will be closer to the mainland, and communication will be much more convenient." The adjustment of personnel is actually based on changes in market strategy.
Behind the strategic adjustment is the pressure from local display chip manufacturers in mainland China.
The price-performance advantages of several listed companies, including Huacan Optoelectronics and Silan Mingxin, are obvious. In addition, the level of mainland packaging is much higher than that of three years ago, especially for several listed companies.
In addition to the fast-rising Chinese counterparts, the sense of crisis in Japan and Asia is also from the European and American counterparts.
Philips' fourth-quarter 2012 financial report showed that the company's LED lighting business sales increased by 43% year-on-year, accounting for 25% of the total lighting business. It has to be pointed out that the Lumileds LED chip business revenue has seen double-digit growth. Looking forward to 2013, Philips estimates that the annual revenue growth rate of LED lighting can still be maintained at around 40%.
The performance of another overseas competitor, Cree, is also quite stable. As of December 30, 2012, Cree's revenue for the second quarter of fiscal 2013 was $346.3 million. Compared with the revenue of $304.1 million in the second quarter of fiscal 2012, it increased by 14%; compared with the first quarter of fiscal 2013, it increased by 10%.
More critically, the performance growth of the above two device light source multinational giants is more due to its revenue contribution in the Chinese market.
"The strategic adjustment made by Nichia is also due to changes in the market. If the market is not responding quickly, it will be difficult for you to continue to maintain a leading position." Tang Guoqing pointed out that "Pride will be defeated by the market."
Localization competition
It is clear that Nichia has realized that China will become the world's number one LED sales market. In 2011, Nichia’s sales in the Chinese market reached 27% of Nichia’s global sales.
The relevant person in charge of Nichia Company told the media in 2012 that it is expected that the company's sales from the Chinese market will reach 45% of global sales in 2015. It is not difficult to see that Nichia is ambition to lay out the Chinese LED market for the next 10 years.
On March 15, 2012, Shanghai Nichia Electronic Chemical Co., Ltd. Guangzhou Branch officially opened, becoming another sales base of Nichia in China following Shanghai production base, Hong Kong, Shenzhen and Beijing, and further penetrated the Pearl River Delta market.
However, compared with the localization market development of other multinational companies, Japan’s move seems to be more conservative.
Tang Guoqing once led the US Cree to quickly open up the Chinese market with the localization strategy of “Ke Ruixin, China Loveâ€. The outside world once commented: "If there is no Tang Guoqing, there is no market performance of Cree in China today." Such remarks also show the important role of regional market managers in the development of a multinational company in the local market.
The choice of the "Taiwanese" of the same species in the same mainland as the general manager of the mainland China may be seen as a way to further close to the market and facilitate communication.
"In Japanese-funded enterprises, the power of Chinese managers is not too great. In a sense, the top level of Japanese trust in Chinese personnel is not very high." Even if Taiwanese are hired to be the general manager of the Chinese mainland market, The industry is also not optimistic about the localization strategy of Nichia.
In addition to the localization strategy, Nichia needs to make changes in its “direct sales modelâ€. At present, in the sales model, Phi l ips Lumileds, Samsung LED, Cree and other multinational giants are using the agent sales model, and Nichia has always insisted on the direct sales model. This comes from Nichia's "strict management, direct distribution" business strategy.
“Although the agency model has a wide coverage and the promotion is relatively easy, our top management has been adhering to the direct selling concept, hoping to strictly control the quality and deliver the best products to the customers.†The Japanese high-level officials have publicly stated.
"Now more attention is paid to the display field. The display application manufacturers are still too small for the lighting manufacturers. If the future is to target the large and scattered LED lighting application market, the Japanese direct sales model will There will be severe challenges.†Industry insiders bluntly, managing 500 customers is much more financial and material than managing three agent companies.
It seems that the revolution has not yet succeeded, and Japan needs to work hard. 
The sense of crisis aggravated the transformation of Japan and China
[Source: Gaogong LED's "LED Research Review" magazine February issue Reporter / Liu Qiaomei] low-key, mysterious, introverted, these characteristics have been deeply rooted in Nichia Chemical Co., Ltd. (Nichia, hereinafter referred to as "Japan") in China The image of the market. Compared with the relatively high-profile, open and outgoing European and American counterparts, Nichia is interpreted as close to “zero localization†in the Chinese market.