Deep LED companies face cruel "shuffle"

Affected by the debt crisis in Europe, LED lamps and lanterns are in cold weather, but the domestic market has not yet fully opened. Therefore, the LED industry has entered the winter since the end of last year, and there has been a "surge of closure." In June of this year, Shenzhen Vision Electronics Co., Ltd., with a scale of 100 million yuan, closed down in an instant, leaving the industry even more shocked.

Where is the development of LED industry? How should Shenzhen enterprises deal with this "winter period"? On Friday, the Summit LED Lighting Conference was held in Shenzhen. The event invited nearly 250 senior managers from the electronics industry in the Pearl River Delta, as well as many top industry experts and business leaders, to attend these events. Discuss in-depth.

Deep LED output accounts for nearly half of the country

This reporter learned that after more than 10 years of development, the LED industry in Shenzhen has developed rapidly. There are currently about 1,500 LED companies in Shenzhen. Statistics show that the current total output value of Shenzhen LED industry reached 70 billion yuan, accounting for nearly half of the country's total, currently the total number of LED listed companies in the country about 20, Shenzhen accounted for almost half.

Moreover, Shenzhen is the world's largest production and supply base for solar LED lighting, the world's major production and supply base for LED backlights, and the country’s largest production and supply base for LED displays, LED packaging, and major domestic production areas for special industrial lighting. At the same time, the Shenzhen Municipal Government has launched the LED "Strengthen and Strengthen" program. It is hoped that during the "12th Five-Year Plan" period, LED leading enterprises with assets exceeding RMB 5 billion will emerge, and the scale of the LED industry will exceed 200 billion yuan.

According to industry insiders, “Although the LED lighting market has huge business opportunities and development potential, the current development of the LED lighting industry in China, including Shenzhen, still faces some challenges, including weak LED middle and upper reaches; LED chips and devices. Most of the products are concentrated in low-power, middle- and low-end products; currently China's semiconductor industry is not big enough."

Deep LED companies are now "closing tide"

However, LED companies that have developed like bamboo shoots are hiding another "crisis." Affected by the European debt crisis and the downturn in the US economy, export orders for LED companies have fallen sharply since the second half of last year. An industry insider who asked not to be named told reporters that “as of the end of last year, there were nearly 100 LED companies that closed down in Shenzhen, and this year’s trend of bankruptcy is still spreading. At present, this number should be even greater. ”

The most shocking thing for the industry is that in June of this year, Vision Electronics Co., Ltd., a well-known LED display company in Shenzhen with assets of over 100 million yuan, declared bankruptcy because of a broken capital chain.

"Once there is an industry that makes money, a lot of money will flow into this industry. The end result is a surplus in the entire industry, followed by the industry "reshuffle." Zhou Honglin, managing director of Shenzhen Leford Optoelectronics Co., Ltd. The reporter said, "Shenzhen LED industry has entered a "shuffle" process, but "shuffle" itself is a process of survival of the fittest, but also to make the impetuous Shenzhen LED industry must return to the rational path. For emphasis on quality and innovation For companies, the living space will be very large. On the contrary, there will only be a dead end, so we look forward to shuffling.”

Opportunities and Challenges Price Wars Diffuse Industry

"Now the LED industry is too competitive. With more and more companies coming in, the industry's profit margins have fallen sharply." Zhou Honglin said, "Price wars are very common in the industry. Many products are offered once a month, for example, one. The price of an ordinary LED fluorescent lamp was 200 yuan two years ago. Now it is less than 100 yuan, so it can be said that the price of the LED fluorescent lamp is very fast."

Another Song LED manager in Longgang District, Song Manager revealed to reporters, three or four years ago is the golden age of entering the LED display industry, then the gross margin was above 40%, and now the LED display industry has bottomed out, The industry's profit margin is less than 8%. "Originally, the industry's profit margin is low, coupled with the debt crisis, the phenomenon of arrears is widespread, so for some companies, the more orders, the more you may lose."

Incandescent lamp delisting or free up huge market space

Even though the LED industry in Shenzhen has encountered a "winter season," but the president of Global Sources Corporate Affairs Keke Ke thinks this is only "temporary." "In the context of global energy shortages, energy conservation is an important issue for us in the future. As a new type of green light source product, LED is the trend of future development."

Zhai Ke said that from October 1 this year, China began to prohibit the sale of incandescent lamps over 100W, and the delisting of incandescent lamps will create a huge market space. “According to the research of a certain organization, the use of incandescent lamps in China is 1.3 billion. It is foreseeable that LED bulbs are worth looking forward to in the Chinese market if incandescent lamps are completely withdrawn from the market.”

In addition, local governments have introduced policies and subsidies to promote LED lighting reforms, which will also accelerate the rapid development of the LED lighting industry.