70% of LED companies are facing elimination of fate

Yesterday, the 18th Guangzhou International Lighting Exhibition came to an end. Beijing Business Daily reporter learned from the show, compared with last year, the LED lighting industry situation has improved this year, but the problem of excess capacity still exists. Industry experts expect that the next eight years will be a period of rapid development of LED lighting industry, and it is expected that 70% of small and medium-sized manufacturing enterprises will be eliminated.

Low-end product excess capacity

The reporter learned from the 18th Guangzhou International Lighting Exhibition that the scale of the entire lighting industry in China was close to 300 billion yuan last year and will grow to 300-400 billion yuan this year, and it is expected to grow to 500 billion yuan by 2015. LED output and market demand will be higher.

The growth of the market has also made LED usher in a recovery this year after experiencing a short winter last year. Beijing Commercial Daily reporter learned from the exhibition site, most of the LED companies in the first two quarters of this year, revenue is good, the development of a growing trend, many companies are optimistic about the LED market prospects, and formulated plans for expansion. The person in charge of the Hubei Noah Group told the Beijing Business Daily that the company plans to build an industrial park covering an area of ​​600 acres in Hubei, and engage in services ranging from services to packaging.

Overcapacity constrains industry development 70% of LED companies are facing elimination of fate Although the market conditions are good, the problem of excess capacity still exists. According to Pan Wenbo, founder of Guangzhou International Lighting Exhibition, the current low threshold of the LED lighting industry, coupled with the government's high subsidies and preferential tax policies, makes a large number of companies to enter, resulting in serious overcapacity of low-end products.

Over 7,000 domestic LED companies

An industry source told the Beijing Business Daily that LED excess capacity is mainly due to too many companies. There are as many as 7,000 LED companies registered in China, plus some small workshops that are not registered and some 3-5 small work groups hiding behind the registered companies. There are numerous companies engaged in the LED lighting industry.

The existence of numerous small and medium-sized enterprises and small workshops has caused serious overcapacity in low-end products, leading to vicious price competition. It is understood that LED lighting products in a short period of two years, the product prices have experienced a roller coaster, the market price has been reduced from the original 180 yuan to 20-30 yuan. At the same time, there are still a lot of low-priced, low-quality products with prices ranging from 10-15 yuan.

Pan Yurong, vice president of Wanrun Technology, believes that LED prices are getting lower and lower, and quality is getting worse. He believes that only companies and consumers recognize the value of LED, naturally accept the price, can not rely on low prices to win the market.

The future market will be refined

“The future market must belong to a company that has brands, scale, channels, product innovation, and sales innovation.” According to Pan Wenbo, LED is a revolution of light source technology. In the next eight years, China's industrial lighting products will have 80 % was replaced by LED products and the replacement period of lighting products has arrived. At the same time, 30%-70% of LED SMEs will be eliminated by the market.

According to Pan Wenbo, Guangzhou International Lighting Exhibition is to guide the industry to a healthy and sustainable development. Compared with last year's show, this year saw an increase of 5%-8% in the scale of the exhibition, but exhibitors actually reduced by 10%-12%. With the healthy development of this market, the number of production companies in the future will become smaller and smaller, the scale will increase, and profits will increase.

The reporters found that the organizers of this exhibition also launched the Aladdin Prize for the purpose of setting up this Oscar award for the lighting industry to encourage peers to launch more “energy saving, environmental protection, low carbon, new energy, and new technologies. "Products to further promote the development of China's lighting industry.