In the context of the economic growth downturn, the lighting and LED industries have entered the traditional off-season as scheduled. Recently, both manufacturers and distributors have complained to reporters that it is difficult to do business.
In the face of the industry's predicament, the dominant enterprises have stepped up their acquisitions to warm up, and the industry has ushered in a wave of mergers and acquisitions. In addition, local enterprises in Guangdong have taken a different approach and are ready to move to the out-of-province market and pull the battle line to the northwest. The industry believes that with the advantages of the original industry and the advantages of the northern location, it will help local lighting companies to open up the market to tide over the difficulties.
Price war led to confusion in the market <br> <br> Recently, many lighting companies or dealers to reporters reflect that this year business is tepid, I had a hard time. A local dealer revealed that the business was still barely in April and May this year, and it was bleak in June, not even 10,000 yuan. The dealer said that there will be two months from the peak season of Jin Jiu Yin Shi, and the next seven or eight months will be the most difficult day.
Some insiders told reporters that many companies enjoyed the "opening of the year" in the past year, and many companies have been disadvantaged since the beginning of this year. Sales have been blocked for several months, resulting in an increase in inventories. Many companies have complained. The source said that the situation in the second half of this year is expected to be even more severe.
According to the above-mentioned insiders, overcapacity in the industry has triggered vicious price competition among enterprises, which has caused the prices of downstream enterprises to continue to fall, and profit margins have been severely compressed. According to the source, the current gross profit margin of the LED industry is only around 20%, while the net profit is less than 5%.
It is understood that the direct consequence of the vicious price competition of enterprises is that the prices of products on the market are low and the quality is not guaranteed. The reporter recently visited the market and found that 3W LED bulbs, cheaper than 3 yuan can buy one in the wholesale market, while similar products produced by brand companies are sold for tens of dollars, the price is very different. Some manufacturers have emphasized low prices, resulting in uneven product quality and chaotic prices.
LED industry: mergers and acquisitions hold together for warmth <br> <br> With the development of LED industry, many other companies have begun to enter the field of LED industry. Relevant industry insiders pointed out that excessive investment makes the industry oversupply. In the future, a small number of enterprises with R&D and production strength will grow and develop, while those in the middle and lower reaches with lower technical barriers will face the fate of being eliminated.
At present, there have been many cases of mergers and acquisitions within the industry. In 2013, Furi Electronics acquired a 92.08% stake in Mairui Optoelectronics. Since then, Wei Wei has announced that it will acquire 100% of the shares of Shinshang Lighting for $123 million. Changfang Lighting also announced that it will acquire a 60% stake in Kang Mingsheng for RMB 528 million.
In addition, Zhongjing Electronics has officially entered the LED lighting field with a purchase of 286 million yuan from Founder's 100% stake. After Konka exited the LED display field, OCT Group spent 248 million yuan to acquire a 100% stake in Konka's Konka video.
It is understood that Zhongjing Electronics' net profit declined continuously in 2011, 2012 and 2013, and Fangzhengda's net profit in 2012 and 2013 was not only higher than that of Zhongjing Electronics, but also showed an upward trend. The net profit in 2013 was even more than that in 2012. Fan. The industry believes that the acquisition of Zhongjing Electronics is to save the company's performance dilemma. After the successful acquisition, at least Zhongjing Electronics' performance in the next few years will not have to go downhill.
According to industry insiders, the scope of industrial integration will be expanded in 2014, and mergers and acquisitions in the industry will become a major trend in the future.
Guangdong local businesses: "going out" to open up the Northwest market <br> <br> It is understood, Guzhen Town, Zhongshan City, Guangdong Province, has always been China's largest lighting production base, its greatest advantage is its complete industrial chain, each Classes of accessories, power supplies, all kinds of assembly one-stop service in place, the fierce competition between the industry is reflected in this, so it is called "the battlefield concentration" of the lighting enterprises in the industry.
Some insiders pointed out that Zhongshan lighting enterprises generally have problems such as unclear product positioning and serious product homogeneity. Under the weight of a series of problems, “Mr. Save and Re-development†has become an important factor for many companies to actively seek breakthroughs. Question.
A lighting person in charge of Zhongshan recently revealed to reporters that the sales situation of the company has been bad since the end of last year. In order to improve the current situation, the company is preparing to open up a new market in Inner Mongolia through the integration of advantageous enterprises in Inner Mongolia and take advantage of local location advantages. Expand the market to the west or northwest.
According to the above-mentioned person in charge, 26 local enterprises have signed contracts with the national state-owned lighting city to prepare to enter the northwest market. In this regard, the industry pointed out that local enterprises seeking the northern market, from the side reflects that the current lighting companies and the entire industry are facing severe sales pressure and market test.
In the face of the industry's predicament, the dominant enterprises have stepped up their acquisitions to warm up, and the industry has ushered in a wave of mergers and acquisitions. In addition, local enterprises in Guangdong have taken a different approach and are ready to move to the out-of-province market and pull the battle line to the northwest. The industry believes that with the advantages of the original industry and the advantages of the northern location, it will help local lighting companies to open up the market to tide over the difficulties.
Price war led to confusion in the market <br> <br> Recently, many lighting companies or dealers to reporters reflect that this year business is tepid, I had a hard time. A local dealer revealed that the business was still barely in April and May this year, and it was bleak in June, not even 10,000 yuan. The dealer said that there will be two months from the peak season of Jin Jiu Yin Shi, and the next seven or eight months will be the most difficult day.
Some insiders told reporters that many companies enjoyed the "opening of the year" in the past year, and many companies have been disadvantaged since the beginning of this year. Sales have been blocked for several months, resulting in an increase in inventories. Many companies have complained. The source said that the situation in the second half of this year is expected to be even more severe.
According to the above-mentioned insiders, overcapacity in the industry has triggered vicious price competition among enterprises, which has caused the prices of downstream enterprises to continue to fall, and profit margins have been severely compressed. According to the source, the current gross profit margin of the LED industry is only around 20%, while the net profit is less than 5%.
It is understood that the direct consequence of the vicious price competition of enterprises is that the prices of products on the market are low and the quality is not guaranteed. The reporter recently visited the market and found that 3W LED bulbs, cheaper than 3 yuan can buy one in the wholesale market, while similar products produced by brand companies are sold for tens of dollars, the price is very different. Some manufacturers have emphasized low prices, resulting in uneven product quality and chaotic prices.
LED industry: mergers and acquisitions hold together for warmth <br> <br> With the development of LED industry, many other companies have begun to enter the field of LED industry. Relevant industry insiders pointed out that excessive investment makes the industry oversupply. In the future, a small number of enterprises with R&D and production strength will grow and develop, while those in the middle and lower reaches with lower technical barriers will face the fate of being eliminated.
At present, there have been many cases of mergers and acquisitions within the industry. In 2013, Furi Electronics acquired a 92.08% stake in Mairui Optoelectronics. Since then, Wei Wei has announced that it will acquire 100% of the shares of Shinshang Lighting for $123 million. Changfang Lighting also announced that it will acquire a 60% stake in Kang Mingsheng for RMB 528 million.
In addition, Zhongjing Electronics has officially entered the LED lighting field with a purchase of 286 million yuan from Founder's 100% stake. After Konka exited the LED display field, OCT Group spent 248 million yuan to acquire a 100% stake in Konka's Konka video.
It is understood that Zhongjing Electronics' net profit declined continuously in 2011, 2012 and 2013, and Fangzhengda's net profit in 2012 and 2013 was not only higher than that of Zhongjing Electronics, but also showed an upward trend. The net profit in 2013 was even more than that in 2012. Fan. The industry believes that the acquisition of Zhongjing Electronics is to save the company's performance dilemma. After the successful acquisition, at least Zhongjing Electronics' performance in the next few years will not have to go downhill.
According to industry insiders, the scope of industrial integration will be expanded in 2014, and mergers and acquisitions in the industry will become a major trend in the future.
Guangdong local businesses: "going out" to open up the Northwest market <br> <br> It is understood, Guzhen Town, Zhongshan City, Guangdong Province, has always been China's largest lighting production base, its greatest advantage is its complete industrial chain, each Classes of accessories, power supplies, all kinds of assembly one-stop service in place, the fierce competition between the industry is reflected in this, so it is called "the battlefield concentration" of the lighting enterprises in the industry.
Some insiders pointed out that Zhongshan lighting enterprises generally have problems such as unclear product positioning and serious product homogeneity. Under the weight of a series of problems, “Mr. Save and Re-development†has become an important factor for many companies to actively seek breakthroughs. Question.
A lighting person in charge of Zhongshan recently revealed to reporters that the sales situation of the company has been bad since the end of last year. In order to improve the current situation, the company is preparing to open up a new market in Inner Mongolia through the integration of advantageous enterprises in Inner Mongolia and take advantage of local location advantages. Expand the market to the west or northwest.
According to the above-mentioned person in charge, 26 local enterprises have signed contracts with the national state-owned lighting city to prepare to enter the northwest market. In this regard, the industry pointed out that local enterprises seeking the northern market, from the side reflects that the current lighting companies and the entire industry are facing severe sales pressure and market test.
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