China’s Lighting Industry Strategy Of Direct Investment In Indonesia

China is the global lighting products manufacturing and exporting country, China’s energy-saving lamps, incandescent production output and exports are ranked first in the world. The manufacturers of lighting products in china are mainly small and medium-sized private enterprises. Since 2011, the international economic recovery is not yet stable, the decrease in foreign demand, export orders have fallen sharply, these factors have affected the exports of lighting products. At the same time, the traditional lighting industry by raw materials prices, labor prices improve, the appreciation of the RMB and other factors result in costs have risen, profits dropped significantly. In addition, the rapid development of LED lighting, is gradually driving the change of the pattern of the entire lighting industry, the traditional lighting industry is facing crises. Through the research of the foreign direct investment strategy of the lighting industry, will find a clear road for the small and medium-sized private enterprises to cope with the current crisis.Firstly, according to the description and evaluation of the theory of foreign investment of domestic and foreign research, verified the feasibility of the foreign direct investment. Then, the thesis analyzes the need for foreign direct investment of Chinese lighting industry with the choice of location, identified Indonesia as the best investment area. After researching, the result is that Indonesia lighting industry is in the start stage, with large marketing demand, rapid growth, limited national productivity, broad marketing prospect, high profit invest opportunities in Indonesia, accessibility marketing entry, are for Indonesian lighting market prospects and investment opportunities judgment. With using macro environment analysis model (PEST model), industry competitive analysis model (Poter five forces model), SWOT analysis models and other tools to analyze the feasibility of investment projects in energy-saving lamp assembly plant in Indonesia. And analyzes the risks that maybe encountered in the investment process and find proposed Risk Control Measures. According to the above analysis, based on the establishment of a production base, integrating, and improving their own sales channels, I company takes a vertical integration strategy. According to consumption habits in Indonesia, takes a differentiation strategy, building brands, strengthening R & D capability, to develop varieties of products. Focus on the development strategy to concentrate superior resources to penetrate the target area in a small range, solid sales channels and after all spread to the surrounding area. Then establish the financial forecasting model for financial evaluation, project investment estimates, the cost and revenue estimates, cash flow estimates, breakeven analysis, and the other financial indicators analysis, then evaluate the social impact of the project. Finally, the conclusion is that I company direct investment to Indonesia energy-saving lighting assembly plant project is feasible. The project will fully comply with the policy. The project will play a significant role in promoting the domestic lighting industrial structure adjustment. The project will be a strong boost domestic lighting industrial growth, promote lighting industrial radiation, which is the basis of stable growth in market demand, and the scale of construction is realistic. It has strong economic competitiveness, economic and social benefits significantly and will actively contribute to the achievement of sustainable economic and social development.