Kangdong Tech meets 4 local buyer for meetings in Jakarta

Outstanding quality acknowledged···potentials for penetrating the Indonesian market examined with the expected SMI adoption


Daejeon injection mold company confidently threw down the gauntlet amidst low-cost Chinese products and highly priced global company products. A visit was made at the meeting venue between 4 Indonesian companies and Kangdong Tech (CEO Hong Chun Gang) that was held under the support of RIS for DIE & Mold Industry in Daejeon City (President Cho Jae Heung). 

The meetings that were held over the 13th and 14th last month confirmed the excellence of Kangdong Tech's LED products and the possibility of penetrating the Indonesian market. The local companies acknowledged the outstanding quality and proposed a collaborative relationship by making adjustments to the specification, price and others.


Kangdong Tech (CEO Hong Chun Gang), which began as a conventional mold company that developed and produced plastic products since 1997, is a small hidden champion equipped with technology competitiveness in the field of LED indoor lighting as a result of engaging in bold investments in research and development in the LED lighting industry since 2007.

중국에서 제조한 제품(좌)와 LED 램프 시장을 선점하고 있는 필립스 매장(우).<사진=강민구 기자>


The population of 250 million reside in Indonesia and ranking 15th place in area and GDP, it is one of the countries with great potentials for economic growth. According to a local official, regions excluding Jakarta is suffering from electric power shortage. Due to frequent black-outs, regulation on the total amount of electrical products has been implemented and following such, electricity consumption is a sensitive issue. This phenomenon has become an opportunity factor for quick expansion of LED dissemination as it is able to save electricity while shifting away from incandescent light, fluorescent light and compact fluorescent light. 


◆ Market dominated by foreign household LEDs such as Philips···Search for technology partnership such as SMPS


The first company visited locally, Sistmatik, is a company with annual turnover of KRW1.2 billion with 15 years of experience in distribution industry and 2 years of experience in LED industry. Usually, LED parts are being imported from China for distribution and the company is highly interested in large-size LED advertisement boards. It was one of the passionate companies by personally searching for Kangdong Tech before the buyer's meeting to request for an arrangement. Not satisfied with the quality of Chinese products when the company was highly interested in large-size LED advertisement boards, it turned to Korean products that had outstanding quality although slightly expensive.


"I am well aware of the excellence of Korean products. However, because branded companies such as Philips and Osram have positioned themselves in the Indonesian market, we are targeting the specialized lighting field such as large-size advertisement boards. Many have been disappointed with the Chinese products so I think it would be good to bring in products from Korea."


A demonstration of Kangdong Tech's LED products took place. CEO Hong Chun Gang personally demonstrated the LED lamp and explained the outstanding aspects of the products. In particular, he proposed to search for cooperative measures for production support in a long-term perspective centered on SMPS.


The key characteristic of the product developed by Kangdong Tech is the application of Switching Mode Power Supply (SMPS) that has been developed with in-house technology. It is able to freely change the voltage check output up to 90~242V (Full Free Voltage) so customers would be able to utilize it at a desired voltage within the range.


CEO Alwi Saronmihardja emphasized that there was a possibility if sales channels were identified in outskirts besides Jakarta which is already saturated with competition among companies. Suppose an office is set up for marketing activities in Surabaya, also referred to as the second capital of Indonesia and that itself would be a new opportunity.


CEO Alwi stated that "Currently, Chinese products are used for LED lamp parts but American products are used for the chip to assemble. I am willing to replace them with Korean products depending on the price" and that "I will send the required specification in detail through e-mail so that we can search for cooperative measures."


Next, a meeting with Dazz, established by technicians who used to work at Philips, took place. They show great interest in the LED lamp that was able to reduce the unit price by using radiating plastic special material jointly developed by LG Chemical's research team. The biggest attraction was that it was able to reduce the price by half when compared to Philips products. Various questions on the product lifespan, A/S warranty period, possibility of watt change, price adjustment and others were answered. The officials from Dazz seemed satisfied as they punched the calculator.


Mr. Budi Santo highlighted that "As it is difficult to place large quantity order in the initial stage due to issues such as price, I hope that the company would consider measures to expand by starting on small quantity orders in the initial stage" and that "As the conditions that customers look for vary such as high quality and low price, if both parties could collaborate on segmentalizing them, I think there is sufficient potential."

강동테크는 인도네시아 자카르타에서 진행된 바이어들과의 미팅을 통해 향후 협력 가능성을 확인했다.<사진=강민구 기자>


On the following day, Kangdong Tech made a visit to 3Light company in the morning. Questions and answers on product lifespan, durability, internal composition and others continued in order to verify the product. The local person in charge of design demonstrated the LED module which was being manufactured through a Chinese company. Indirect lighting such as down light and until now, there isn't a big problem. If the quality is outstanding at similar price, it intends to look into it actively.


With SSL, the last company of the meeting, discussion on bulb, tube, highway and lighting parts took place. In particular, the relevant officials were very keen in the system lighting device integrated with IoT.


Recently, the number of people looking for device to adjust LED brightness is increasing but they have yet to secure products. In such a situation, the products of Kangdong Tech enables group control for over 100 devices and the advantage is that it emits less heat.


The relevant company official stated that "We are interested in the specifications related to straight type of fluorescent lamp and we hope to discuss further."


After the meetings with 4 Indonesian companies, Hong Chun Gang, CEO of Kangdong Tech stated that "Due to the characteristics of LED market in Indonesia, a lot of Chinese companies have penetrated the market so rather than targeting the low price market with price competitiveness, I was able to confirm the possibility in special products such as street lamps and external lamps" and that "Although we need to wait and see further because some companies were small, I think as for Dazz, it is likely that business would succeed through products that could replace global companies like Philips."


CEO Hong added that "As it is difficult to secure an upper hand in terms of price when compared to other products, I think there is potential if we could provide the technology according to the customer's requirements then assemble the products locally" and that "Unlike the market in Vietnam that has intense competition, I believe the Indonesian market is attractive as it is." 

Posted by 대전금형RIS사업단