Although the LED industry as a whole has been recovering since last year, many LED upstream and downstream enterprises have revealed to reporters that “incremental increase does not increase revenueâ€, the root cause lies in the increase in price and the vicious competition in the industry is very serious.
Industry "increment does not increase income"
"We are very cautious in sending materials, because if we don't pay attention, we may go to the financial market." At the recent high-tech LED forum, a large LED material company in Shenzhen told reporters that the LED industry has been popular with a traditional approach. That is, the first delivery, post-payment, and the payment time supplier is almost difficult to determine, and some small enterprises are forced to close down and run the road under the pressure of downstream vicious competition, resulting in the company's material payment is gone, and some large Enterprises, including listed companies, deliberately delay the time, although they are not running, "the market makes us very helpless."
It is understood that in recent days, the news that LED companies have closed down and the boss owed money has been heard, from the Pearl River Delta, where the LED industry is concentrated, to the central and western regions such as Sichuan and Anhui. Typical cases such as Juliang Optoelectronics, the company’s boss owes Two hundred million loans were missing with the family.
"I also met a company that runs on the road this year. The 800,000 materials are so gone." The above materials dealer told reporters that the vicious competition in the LED industry has become a common dilemma in the industry.
Forecast data from a number of institutions show that the LED industry's shipments in 2014 will double the year-on-year, but sales have increased by only 30% year-on-year. In other words, the average price of LED products in 2014 dropped by about 35%. The phenomenon of “incremental increase without gain†in the industry is very serious.
The problem of vicious competition is serious. "From the current low-end disordered competition in the LED industry, price wars, product homogenization, and falling gross profit margins, all of them affect the profitability of LED companies, which is not conducive to the health and sustainable development of the industry." Zhang Xiaofei, chairman of Gong LED, pointed out.
It is understood that a listed LED company in Shenzhen will put LED street lights on the market at a price of less than 5 yuan / watt in June this year. At that time, the price of street lighting products of mainstream LED companies in the industry was about 9 yuan to 12 yuan / watt. In this regard, the company also clearly stated that its purpose is to compete for enterprises with more than half of the LEDs that are “suddenly dead†at a low price.
In this forum, a number of LED entrepreneurs also pointed out that some LED drive power companies in order to quickly seize the market, cater to the market demand and hit the price war, resulting in a sharp drop in power prices, it is understood that this year's domestic market high power supply price The average drop is 10%-20%, and the medium and small power is 20%-30%.
Some analysts pointed out that this round of price cuts is not a technological breakthrough brought by new breakthroughs in industry technology. To a large extent, this is a means for some big brands to accelerate industry reshuffle. Large brands rely on the advantages of scale or technology to achieve certain cost advantages. In the context of market outbreaks, they are more eager to further expand their scale to occupy the market and clean up the market through price wars to establish their own market advantages.
Change in Denver intelligent lighting <br> <br> however, Linsen Lighting Division General Manager Lin Jiliang view, "LED actually has a very broad application space and opportunity." He believes that the rapid decline in LED prices, rapid performance The upgrade made the LED enter an outbreak. From the simplest architectural landscape of the outdoors to the interior, LEDs have many possibilities, including visible light, including invisible light, including functional applications, including non-functional applications.
Lin Jiliang mentioned such a set of data, the global lighting market has reached 160 billion US dollars, and at the same time, it can be seen that the scale of LED lighting is growing step by step. With the global installation of lighting products, the penetration rate of LEDs is gradually increasing year by year. Even more than the increase in volume, and even the increase in revenue is constantly improving. LEDs can be used across many other industries, which gives LEDs unlimited possibilities in the future.
Zhong Genguang, deputy general manager of photoelectric industry, said that the current LED production market is in an increasingly competitive situation, the traditional manual production mode is out of date, LED lighting automation production line can effectively solve the problem of enterprise product quality, but also further reduce production costs. Improve product competitiveness, will enter the high-speed demand period.
"The LED industry is already in a period of change. In the future, especially next year, it will be the cornerstone of the company's comprehensive strength." Zhang Xiaofei also pointed out that the next 3-5 years is the stage of rapid growth of LED lighting, in order to be able to share in this huge market. In the middle of the share, LED companies are gearing up and began to seek breakthroughs in many aspects.
So when the LED industry is about to enter the golden development period, which areas will be the next gold mine? "The future of intelligent lighting must be a huge market. Grasping this market will seize business opportunities." Wu Jianwei, chairman of Rungelai, said that the future of LED power supply must be in a highly intelligent direction. Rungelai will also plan to get involved in smart lighting. Driving field.
Industry "increment does not increase income"
"We are very cautious in sending materials, because if we don't pay attention, we may go to the financial market." At the recent high-tech LED forum, a large LED material company in Shenzhen told reporters that the LED industry has been popular with a traditional approach. That is, the first delivery, post-payment, and the payment time supplier is almost difficult to determine, and some small enterprises are forced to close down and run the road under the pressure of downstream vicious competition, resulting in the company's material payment is gone, and some large Enterprises, including listed companies, deliberately delay the time, although they are not running, "the market makes us very helpless."
It is understood that in recent days, the news that LED companies have closed down and the boss owed money has been heard, from the Pearl River Delta, where the LED industry is concentrated, to the central and western regions such as Sichuan and Anhui. Typical cases such as Juliang Optoelectronics, the company’s boss owes Two hundred million loans were missing with the family.
"I also met a company that runs on the road this year. The 800,000 materials are so gone." The above materials dealer told reporters that the vicious competition in the LED industry has become a common dilemma in the industry.
Forecast data from a number of institutions show that the LED industry's shipments in 2014 will double the year-on-year, but sales have increased by only 30% year-on-year. In other words, the average price of LED products in 2014 dropped by about 35%. The phenomenon of “incremental increase without gain†in the industry is very serious.
The problem of vicious competition is serious. "From the current low-end disordered competition in the LED industry, price wars, product homogenization, and falling gross profit margins, all of them affect the profitability of LED companies, which is not conducive to the health and sustainable development of the industry." Zhang Xiaofei, chairman of Gong LED, pointed out.
It is understood that a listed LED company in Shenzhen will put LED street lights on the market at a price of less than 5 yuan / watt in June this year. At that time, the price of street lighting products of mainstream LED companies in the industry was about 9 yuan to 12 yuan / watt. In this regard, the company also clearly stated that its purpose is to compete for enterprises with more than half of the LEDs that are “suddenly dead†at a low price.
In this forum, a number of LED entrepreneurs also pointed out that some LED drive power companies in order to quickly seize the market, cater to the market demand and hit the price war, resulting in a sharp drop in power prices, it is understood that this year's domestic market high power supply price The average drop is 10%-20%, and the medium and small power is 20%-30%.
Some analysts pointed out that this round of price cuts is not a technological breakthrough brought by new breakthroughs in industry technology. To a large extent, this is a means for some big brands to accelerate industry reshuffle. Large brands rely on the advantages of scale or technology to achieve certain cost advantages. In the context of market outbreaks, they are more eager to further expand their scale to occupy the market and clean up the market through price wars to establish their own market advantages.
Change in Denver intelligent lighting <br> <br> however, Linsen Lighting Division General Manager Lin Jiliang view, "LED actually has a very broad application space and opportunity." He believes that the rapid decline in LED prices, rapid performance The upgrade made the LED enter an outbreak. From the simplest architectural landscape of the outdoors to the interior, LEDs have many possibilities, including visible light, including invisible light, including functional applications, including non-functional applications.
Lin Jiliang mentioned such a set of data, the global lighting market has reached 160 billion US dollars, and at the same time, it can be seen that the scale of LED lighting is growing step by step. With the global installation of lighting products, the penetration rate of LEDs is gradually increasing year by year. Even more than the increase in volume, and even the increase in revenue is constantly improving. LEDs can be used across many other industries, which gives LEDs unlimited possibilities in the future.
Zhong Genguang, deputy general manager of photoelectric industry, said that the current LED production market is in an increasingly competitive situation, the traditional manual production mode is out of date, LED lighting automation production line can effectively solve the problem of enterprise product quality, but also further reduce production costs. Improve product competitiveness, will enter the high-speed demand period.
"The LED industry is already in a period of change. In the future, especially next year, it will be the cornerstone of the company's comprehensive strength." Zhang Xiaofei also pointed out that the next 3-5 years is the stage of rapid growth of LED lighting, in order to be able to share in this huge market. In the middle of the share, LED companies are gearing up and began to seek breakthroughs in many aspects.
So when the LED industry is about to enter the golden development period, which areas will be the next gold mine? "The future of intelligent lighting must be a huge market. Grasping this market will seize business opportunities." Wu Jianwei, chairman of Rungelai, said that the future of LED power supply must be in a highly intelligent direction. Rungelai will also plan to get involved in smart lighting. Driving field.
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