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Zhejiang Meka Electric Co., Ltd. established its position in the lighting industry for its extremely aggressive pricing strategy. The company offers LED bulbs, LED filament bulbs, LED reflector bulbs, and LED tubes at very attractive price points that helped them achieve an impressive market penetration in the European market, particularly through the supermarket distribution channels in Germany, Greece, Brazil, Romania, Netherlands, and Poland. The strategy of offering low prices, combined with company's strong capabilities to consistently deliver entry-level products through a responsive time-to-market development process, enables Meka Electric to increase its global footprint and span its business to the United States, Australia, Iran as well as China, which is domestic to the previously export-oriented business.
Meka Electric's core competitive advantage lies in its expertise in product cost management (PCM) in large-scale implementations. Their PCM capabilities consist of designing lighting systems with lowest cost components and simplest structure possible and the strong negotiation capability with subcontractors and suppliers. Most notably, the exceptional subcontractor management substantially improved the company's production capacities while greatly reducing the cash flow pressure to invest in inhouse manufacturing facilities and pay for the labor-intensive works. This asset-lite strategy through massive production outsourcing is typical to low-end LED product suppliers but presents a great challenge in technology development and quality management. Meka Electric is increasing its inhouse capacities in both manufacturing and engineering sectors to maximize control over product availability and quality consistency, and improve inhouse design, engineering and manufacturing efficiency.
In addition to upgrading the production lines with more automated equipment in its manufacturing facilities located in Shangyu, Zhejing, Meka Electric launched a new plant in Jiangxi province. The new manufacturing facility covers an area of 60,000 square meters and significantly increased the company's inhouse production capacity. In 2016 the company made a sales of 14.78 billion in RMB and was ranked in the top-ten exporters of lighting products in China.
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