Big factory consolidation + market transfer information industry

The wave of global information industry reform is advancing by wave, and after the peak brought by smart phones, it is waiting for another big wave. Photo / Associated Press, Xinhua News Agency, this photo
"I don't understand, this world is changing fast" is a lyric that highlights the great changes after China's reform and opening up, and also points to rapid changes since the information revolution. In fact, the wave of reforms in the information revolution has been carried out in a wave of stages. In recent years, after the global industry and market have embraced the peak of a wave of smart phones, they are waiting for another wave to hit the industry and the market. New changes are constantly emerging.
Emerging market, business opportunities, bidding


From the beginning of the information age, we have experienced a wave of information waves such as personal computers, networked computers, wireless local area networks and smart phones, allowing the communication technology to penetrate our high-tech life. However, as technology advances the functional specifications, it meets the requirements. Most of people's needs are also when products move from upgrading to market penetration.
For example, in the global smart phone market, the proportion of emerging markets other than China has grown from less than 40% in 2012 to about 280 million, and reached 670 million in 2016, accounting for 46.5%. It is expected to account for 2017. 50.7%, reaching 850 million. The proportion of shipments from the global tablet market to emerging regions also increased from 37.6% in 2012 to 54.5% in 2015, but it was limited by the sluggish shipment of flat panels, which caused shipments to reach 120 million units in 2015. As for the emerging market for desktop PCs that are slowing down or even facing recession, the proportion of emerging markets in notebook PCs is about 70%, while the proportion of notebook PCs squeezed by tablet PCs has declined slightly from 40%.
In fact, from the above market changes, it can be seen that the focus of mainstream telecom products shipments has been transferred to emerging markets, driving Chinese brands such as Huawei, Xiaomi or Lenovo to gradually move out of the local market and frequently flag the overseas emerging countries; It is obvious that emerging markets are mainly low-cost smart phones or tablets, replacing the original information needs of the personal computer. Even this low-cost wave of emerging countries will eventually blow back into mature markets to meet price-sensitive users who are less concerned about high-end features.
Mergers and acquisitions in the upstream and downstream industries, most enterprises management and management theory point out that when the product market enters a high degree of maturity, in addition to slowing down growth, it will also stimulate competition to allow manufacturers who compete for high gross profit to automatically withdraw, large manufacturers to integrate Expanding economies of scale and squeezing small and medium-sized businesses that are not large enough to exit the market, allowing the industry to concentrate after a sharp consolidation.
As a result, Dell, the traditional US personal computer giant, announced in the fourth quarter of 2015 that it will purchase and sell storage giant EMC for $67 billion. WD also announced the acquisition of Sandisk for US$19 billion. Previously in the second quarter of 2015, Singapore's Avago, ranked 4th in global IC design, announced that it has acquired the world's second largest Broadcom for $37 billion, the largest semiconductor manufacturer's mergers and acquisitions, and conducted in small and large ways.
Since MediaTek's acquisition of Morningstar in 2012, in 2015, it has successively acquired Lijun, Lili, Changyi and Kunpeng, and the action has attracted global attention. The global IC packaging and testing leader, Sun Moonlight, has taken a big stake and attracted Honghong. Joining the competition in the sea is also an important industry dynamic. In addition, China Ziguang Group has successively deployed overseas semiconductor or large-scale communications companies through mergers and acquisitions or shareholdings, and it has also stimulated the competition of upstream and downstream industries in global capital communications.
However, it is harder for large enterprises to grasp niche markets such as non-mainstream, localized or special-purpose ones. Therefore, if MSI benefits from e-sports PCs, Xiaomi benefits from online pre-sales supply. The chain model, as well as India's local smart phone, Micromax, benefited from the fast-rising Indian mobile phone demand, so it can get rid of the competition of large players to cultivate a niche market.
Looking forward to the future, as the technology of high-tech products becomes more mature and the penetration rate is higher, in addition to the mainstream product market that is dominated by large-scale operators, there are also many new opportunities for Taiwanese companies to work hard. However, at the time of this industry transformation, there are still three major problems in the Taiwan industry that need to be resolved: First, the brand awareness is not high, so that emerging market channels or system operators can not attract consumers.
Second, the supply chain needs to be reorganized. Especially in the past, Taiwan's high-tech industrial chain is highly dependent on China. How to abandon the burden of on-site layout will be a development problem.
Third, the low awareness of Taiwanese industry in overseas markets is also a development problem that needs to be solved urgently. Only by truly deepening local localization strategies and wooing local local forces can we get rid of the competitive threat of large international players.
Therefore, when planning and deploying emerging markets, Taiwanese industries have to carefully consider the following development directions:
1. Market joint venture: The way of market joint venture is not only whether Taiwan system brand players can cooperate closely with local distribution channels, but also whether Taiwanese OEMs, key chip suppliers or peripheral component manufacturers can jointly operate markets with local brand players. . Especially in Taiwan, where there is still a lack of brand recognition in the local area, it is possible to open up larger business opportunities through market joint ventures.
2. Industry complementarity: China's key to the global market is not only the manufacturing plants in the global market, but also the main kinetic energy that drives the growth of the global market. Therefore, when Taiwanese companies are deploying emerging markets, they should not only consider the problems at the sales level, but also consider the industrial growth model of self-selling and expanding the scale of the local market, and even use this to combine local industrial supply chains to attract local government support. Competitive advantages such as policy subsidies in the manufacturing of the land, and bring about a common growth opportunity.
3. Co-creation of business opportunities: If Taiwanese companies achieve high trust and close cooperation through market operation and industrial division of labor, in addition to being able to supplement the niche market where powerful multinationals are more difficult to enter, they can also rely on localization and customization. Deeper integration with differentiation, etc., to launch products or services that meet the needs and create new business opportunities for local characteristics, people's feelings and restrictions.
At a time when the global high-tech market is slowing down, it is not only possible to see the consolidation of the industry in the high-altitude period of the products. On the other hand, it is also possible to find the post-employees who rely on mature technology to create localized and newly-created market opportunities. The mainstream wave is a possible opportunity for the future of Taiwan's industry to get rid of the traditional structure and then grow up. (The author of this article is MIC Senior Industry Analyst)