TITLE:
The Market Potential and U.S. Entry Strategy for Youwei Group’s LED-Curing Coating Technology
AUTHORS:
Leon Zhou, Zixiao Bian
KEYWORDS:
LED-Curing Coatings, Market Entry Strategy, Sustainable Coatings, Licensing Model, U.S. Coatings Industry
JOURNAL NAME:
Open Journal of Business and Management,
Vol.13 No.6,
October
28,
2025
ABSTRACT: The coatings market is rapidly changing, with cost reduction, sustainability, and regulatory pressure emerging as the paramount concerns of manufacturers. LED-curing coatings are a potential alternative for conventional solvent- and heat-evaporative systems from this perspective. These technologies offer faster drying rates, lower emissions, and improved workplace safety, all of which align with the evolving demands of the industry in high-volume applications, such as furniture manufacturing. As environmental regulations tighten and energy efficiency becomes a competitive differentiator, companies like Youwei Group are developing specialized coatings that cater to these needs. Initially tested in the Chinese market, Youwei’s LED-curing coating now has the potential to address similar demands in the United States, the world’s largest coatings market. However, entering a new market also raises strategic questions regarding distribution, branding, and the adoption of technology. This paper examines the business case for Youwei’s U.S. expansion. It proposes a licensing-based market entry strategy, highlighting opportunities for growth through complementary partnerships and positioning in the sustainable manufacturing space. Youwei should pursue a non-exclusive licensing model when entering the American market, as it allows the company to leverage existing networks and infrastructure while maintaining flexibility for future expansion.