From the instruction of Mr. Fang, we can deeply feel that LED lights has developed into its final stage both in technology and in strategy. LED industry is a hot issue. Companies large and small intend to share this attractive cake and flooded into this market one after another. However, this sort of chaos did not disrupt the rhythm of giant enterprises. They definitely will enter the LED blue ocean market one day, but not now. They need to firstly measure their economic and technologic strength, choose a right developing direction, focus on LED lighting business and devote themselves to promote their products.

Giant companies must take a lot of actions in studying the market and preparing marketing strategy. Brand image is rather important for them. As we all know, attending Fair is an effective method to promote products. But these Fairs have various qualities. Some of them are really bad-performed, lacking of professional guidance, disordered management, even low-quality of customers. Giant enterprises will select Fairs to attend. The purpose of the enterprises to participate in such activities can be divided into multiple levels, including information transmission, brand promoting, new product introduction, and of course trading. Some effect can be achieved during these events, while others need a long-term accumulation. Sales played a rather important role in these activities. “They should have some professional knowledge if they from technological area. Some companies would ask their sales to learn something about their products (technologically). But we never did that. We only select sales from people whose major is related to our products and technique. Toshiba is a brand not an enterprise, its meaning is far more important than the enterprise. As a LED lighting company, we need to maintain a trusted and reliable brand image” Said Mr. Fang.

At present, government effort to LED lighting applications is reinforced continuously. Director of the Commission of China’s Environmental and Resources said the government will arrange about 8 billion yuan to purchase 4 million high-quality LED Street Lights during the “12^th Five-Year”. In this regard, experts indicated that although this purchase plan is not “big”, but the government expressed their supportive attitude to LED industry. Currently, no one will deny the fact that China will be a LED blue ocean market in near future.

“Blue Ocean Strategy is a business strategy book first published in 2005 and written by W. Chan Kim and Renée Mauborgne. What the authors believe is the high growth and profits an organization can generate by creating new demand in an uncontested market space, or a “Blue Ocean”, rather than by competing head-to-head with other led lights suppliers for known customers in an existing industry.” (Copied from Wikipedia)

According to the relevant industry statistics, semi-conduction lighting will be one of the most promising industries in 21 century. The development of LED technology created the third revolution in lighting history, behind which is the huge profit potential. Over the past decade, the average annual growth rate is over 20% in global LED street lights market. High-brightness LED lighting market was growing fast. The average growth rate is around 46% from 1995 to 2005. It may probably be able to keep 40%-60% market share in next 5 years. The huge market demand spurred the development of the production. Even enterprise for other industry has diverted their attention and resources into this area, including some world’s 500 giant enterprises. They name it as LED blue ocean market.

In the interviewe, Mr. Xiao Fang, Vice Minister of Toshiba Lighting Planning sector, revealed that Toshiba have involved in both traditional fluorescent lighting market and LED lighting market presently. However, LED high bay lights will no doubt the top priority and primary objective in their agendas in consideration of sustainable long-term development. As a veteran in the electronic information industry, Toshiba intend to be a leader in the rapid development change rather than a participant. Toshiba products cover a broad range of area: radar, transistor televisions, microwave ovens, computers and other e-business products. Toshiba had a lot of confidence in entering the LED blue ocean market by virtue of their mature semiconductor technology, advanced driver design and valuable marketing experience gained from the traditional lighting business. Mr. Fang also said that brand effect brought both merits and demerits to Toshiba. No doubt, the tremendous force of the brand influence will give them an easy way to exploit the market. However, they will also be restricted in market positioning and promoting.