After experiencing the predicament of last year, the LED industry has seen a marked recovery this year. In the "10th High-tech LED Summit Forum", many business leaders said that the LED backlight and lighting market demand is strong this year, and it is expected to grow by more than 15% for the whole year. From 2014 to 2015, the market is expected to usher in 40. Explosive growth of %-50%.
However, industry insiders are still worried about overcapacity. They believe that the current excess problem is still serious, leading to fierce competition in terminal prices. Manufacturers will pay for goods, and products with low quality and low price will affect the reputation of LED in the market. Some insiders even expect that more than 50% of SMEs will be eliminated in the fierce competition in the next few years.
The market demand picks up this year, the industry expects to break out next year
In 2012, although LED applications in the lighting sector maintained a 30%-40% growth, many LED companies have seen a significant decline in both revenue and net profit. At the same time, there are data showing that in 2012, there were more than 80 LED lighting companies in Shenzhen, and nearly 10% of lighting companies in Foshan closed down; and LED lighting companies in Dongguan and Zhongshan also fell into a cold wave.
However, at the "10th High-tech LED Summit Forum" held recently, the heads of many LED companies expect that the lighting industry will grow by more than 15% this year, and in 2014-2015, the market is expected to usher in 40%. -50% explosive growth.
Zhang Xiaofei, CEO of Gaogong LED, also said that if the market demand is better in the third quarter, there may be more than 20% growth in the market by the end of the year, and about 40% in 2014, and 55%-60% in 2015. .
Last year, due to the sharp decline in LED prices, the profit decline of the whole industry was very obvious. Taking the well-known LED chip company Dehao Runda as an example, its net profit in 2012 was 168 million yuan, down 57% year-on-year. In this context, many companies can only rely on government subsidies to barely maintain their operations.
Wang Lianghai, vice president of Tsinghua Tongfang Group, said that the company's chip business has been in a state of loss, but it has now improved. He said that after two years of construction, it has reached the level of overseas from the technical indicators of the chip, and the cost has dropped by more than 50%. "Our goal is to implement meager profit in the third quarter. This means not including Government subsidies."
Overcapacity problem has not changed 50% of SMEs or eliminated
However, even if the demand for the lighting market starts to pick up this year, the profitability of some enterprises is expected to improve. However, the problem of overcapacity still raises concerns in the industry, and the continuous price war has led to the decline of product quality, which has seriously affected the reputation of LED in the market.
At the beginning of the new year in 2013, the Guangdong Provincial Quality Supervision Bureau inspected 23 batches of self-ballasted LEDs, and failed 17 batches of inspections. The failure rate was as high as 73.9%. In mid-May, Chengdu Quality and Technical Supervision Bureau randomly checked 13 LED-related products produced by 13 companies, including 11 batches of LED lighting products, with a physical quality pass rate of 81.8%; LED display products with 2 batches, physical quality pass rate Only 50%.
Why are LED product quality issues frequently exposed? The industry said that the industry has low thresholds, the government has high subsidies and preferential tax policies, the low-end overcapacity is serious, and the vicious price war is fierce. "The things produced in this way must be the price of the goods, and the result is a consumer. Satisfied products lead to a vicious circle."
According to statistics, there are currently thousands of LED companies in Guangzhou, and the number in Shenzhen is also thousands. However, among these enterprises, there are few large-scale enterprises with a production value of over 100 million yuan. .
According to a person in charge of LED companies, some small factories hired dozens of people and purchased various low-end components to assemble LED products. The price was very low, and the price of traditional lighting was equivalent. The quality of these products could not be guaranteed.
Zhang Xiaofei also said that although the market demand in the first half of the year has picked up, the overall overcapacity of the entire industry has not been fundamentally corrected. From the extension, chip, packaging, and downstream, there is a surplus of production capacity. "Now it is only based on the original production capacity. Make good use of capacity utilization."
The industry believes that in the future boom period, the problem of overcapacity will always accompany the development of the LED industry, and the market share will increasingly concentrate on brands, channels and innovative enterprises. “There will be 30%-70% of SMEs in the end. Was eliminated in the process."
A person in charge of LED companies also told reporters that the LED industry is now mixed, and the market will still face shuffling in the next few years. More than 50% of SMEs may withdraw from the competition.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
However, industry insiders are still worried about overcapacity. They believe that the current excess problem is still serious, leading to fierce competition in terminal prices. Manufacturers will pay for goods, and products with low quality and low price will affect the reputation of LED in the market. Some insiders even expect that more than 50% of SMEs will be eliminated in the fierce competition in the next few years.
The market demand picks up this year, the industry expects to break out next year
In 2012, although LED applications in the lighting sector maintained a 30%-40% growth, many LED companies have seen a significant decline in both revenue and net profit. At the same time, there are data showing that in 2012, there were more than 80 LED lighting companies in Shenzhen, and nearly 10% of lighting companies in Foshan closed down; and LED lighting companies in Dongguan and Zhongshan also fell into a cold wave.
However, at the "10th High-tech LED Summit Forum" held recently, the heads of many LED companies expect that the lighting industry will grow by more than 15% this year, and in 2014-2015, the market is expected to usher in 40%. -50% explosive growth.
Zhang Xiaofei, CEO of Gaogong LED, also said that if the market demand is better in the third quarter, there may be more than 20% growth in the market by the end of the year, and about 40% in 2014, and 55%-60% in 2015. .
Last year, due to the sharp decline in LED prices, the profit decline of the whole industry was very obvious. Taking the well-known LED chip company Dehao Runda as an example, its net profit in 2012 was 168 million yuan, down 57% year-on-year. In this context, many companies can only rely on government subsidies to barely maintain their operations.
Wang Lianghai, vice president of Tsinghua Tongfang Group, said that the company's chip business has been in a state of loss, but it has now improved. He said that after two years of construction, it has reached the level of overseas from the technical indicators of the chip, and the cost has dropped by more than 50%. "Our goal is to implement meager profit in the third quarter. This means not including Government subsidies."
Overcapacity problem has not changed 50% of SMEs or eliminated
However, even if the demand for the lighting market starts to pick up this year, the profitability of some enterprises is expected to improve. However, the problem of overcapacity still raises concerns in the industry, and the continuous price war has led to the decline of product quality, which has seriously affected the reputation of LED in the market.
At the beginning of the new year in 2013, the Guangdong Provincial Quality Supervision Bureau inspected 23 batches of self-ballasted LEDs, and failed 17 batches of inspections. The failure rate was as high as 73.9%. In mid-May, Chengdu Quality and Technical Supervision Bureau randomly checked 13 LED-related products produced by 13 companies, including 11 batches of LED lighting products, with a physical quality pass rate of 81.8%; LED display products with 2 batches, physical quality pass rate Only 50%.
Why are LED product quality issues frequently exposed? The industry said that the industry has low thresholds, the government has high subsidies and preferential tax policies, the low-end overcapacity is serious, and the vicious price war is fierce. "The things produced in this way must be the price of the goods, and the result is a consumer. Satisfied products lead to a vicious circle."
According to statistics, there are currently thousands of LED companies in Guangzhou, and the number in Shenzhen is also thousands. However, among these enterprises, there are few large-scale enterprises with a production value of over 100 million yuan. .
According to a person in charge of LED companies, some small factories hired dozens of people and purchased various low-end components to assemble LED products. The price was very low, and the price of traditional lighting was equivalent. The quality of these products could not be guaranteed.
Zhang Xiaofei also said that although the market demand in the first half of the year has picked up, the overall overcapacity of the entire industry has not been fundamentally corrected. From the extension, chip, packaging, and downstream, there is a surplus of production capacity. "Now it is only based on the original production capacity. Make good use of capacity utilization."
The industry believes that in the future boom period, the problem of overcapacity will always accompany the development of the LED industry, and the market share will increasingly concentrate on brands, channels and innovative enterprises. “There will be 30%-70% of SMEs in the end. Was eliminated in the process."
A person in charge of LED companies also told reporters that the LED industry is now mixed, and the market will still face shuffling in the next few years. More than 50% of SMEs may withdraw from the competition.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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