PHOTONICS

Photonics

For most SME’s in Photonics industry, China is an interesting but challenging market. It is interesting because of the size of the market as well as innovation demands. China is surpassing USA to be the largest single market in the world, which doesn’t only mean big demands in quantity but also more innovation requirements for coping with the rapidly evolving society and economy. The latter is more interesting and more innovation demand. For example, factory labor cost becomes double in last ten years, in the meantime quality requirement becomes higher and tighter, the combination has triggered a good market for photonics enabled automation, like laser machining, imaging inspection etc.   

 

Photonics is an enabling technology, which mostly works in a multi-disciplinary approach. The nature of this business is often high mix and small volume (except for a number of consumer market segments with tight cost control), and is therefore not easy for market development everywhere in the world. It is more challenging to develop business in China given the extra difficulties in business culture (language is an easy one), requirement definition, contract implementation and IP protection. Take requirement definition as example. The rapid industrialization in China over last 4 decades made extraordinary pollution in every aspect of environment: air, water, soil, hazardous solid waste, and so on with unprecedented magnitude and complexity. Many photonic technology like UV, Photocatalyst, sensors can be very critical on measurement and treatment of these environmental issues. But people in Chinese environmental sector don’t understand photonics, and also they cannot even describe their challenges to an environmental research institute.

 

V&A Photonics is focusing on international photonics business development associated with China since 2010 with offices in both Eindhoven in the Netherlands and Wuxi (Shanghai region) in China. We cooperate with technical companies like LioniX international, research institute like TNO to serve Chinese markets ranging from system integrator like Huawei to special material supplier like Chendu Special Glass. We are specialized in telecom/data, aerial space, optics materials, and we also have close local partners specialized in healthy care, environmental sensing, internet of things, industrial automation etc. Our people are experts on these fields and have the capabilities of going the field and developing requirement definition from scratch, this is a very necessary and key competence, without it we build a tower on sand. Furthermore, we have our own 6000m2 facilities for demo, testing and pilot production equipped with cleanroom .

 

Over years, we have a developed a systematic way of working for photonics business incubation in China for international technical partners. We have two approaches, one is market demand driven in China, the other one is technology pull. For the former, we start with evaluating the demands, and we look into challenging issues, which often can not be found by off the shelf solutions. If the market is solid and the technical requirement definition is feasible, we then try to find suitable technical partners ad develop this lead step by step, some times even start from concept development phase, towards a product supply to China at the end. We co-manage the development projects, and sometimes we are project owner being responsible for the overall process towards volume production. In this approach, our business model is commission or leading contractor, depending on the ownership of the project.

 

For the technology pull approach, we start with evaluating the technology and/or product in terms of innovation and maturity. China has been developed so rapidly that it is difficult to find a large open market to fill in. The candidates must have unique features for a certain niche applications, and should be ready for deployment in a remote market with limited customization and local support. The next step is promotion in China with our networks and selective conferences and exhibitions, we also have our facility for 3 month long designated exhibition combined with demo. When first sales are materialized, we then move on to establish dedicated team, after sales service, local sourcing, local production etc to facilitate the further growth of the business. In this approach, our business model is commission, sales representative or joint venture.

 

We also work with a group of investors, quite some of them are experienced entrepreneurs in photonics and they understand the business very well. They would like to enter into the cooperation at later stage of the above two approaches. We also have systematic management of IP protection in terms of personnel, information control, contracting, sourcing and legal affairs.

 

Photonics is an enabling technology for almost every aspect of society, and China has huge demand, and many of them are China special. To be successful in Chinese market, a comprehensive approach is required, from market study, requirement definition, production/technology promotion, customized development, sales and services, production and sourcing (if needed), and financing and IP protection. We believe we can provide a one-stop shop in China for international photonic partners. If you are interested, please contact Dr. Sami Musa at Sami.musa@va-photonics.com.

 
Copyright@ 2012-2013 Vision and Action   苏ICP备12071048号      Technical:Litai
ADD:Wangzhuang Technology Startup Center 202 Building B,Longshan Road 4, Wuxi New District,214028 China