LED is not "Gao Shuai Fu" in lighting industry
The market conditions of China's LED industry are not tragic. The miserable position is due to too many companies entering the industry and the market is diluted. According to statistics, there are nearly 8,000 enterprises in the Chinese mainland participating in the LED industry, 20 professional LED listed companies, and more than 100 LED companies preparing to be listed.
Such huge production capacity is driven by the huge market capacity of LED, especially the LED lighting market capacity. The premise that market competition is so fierce is that the current penetration rate of China's LED lighting market is only about 5%. However, as long as the market penetration of LED lighting accounts for 30%, the current so-called excess capacity is simply not there, which is why China's LED industry is obsessed with this industry.
The LED market in 2012 was particularly sluggish. Even with the government's vigorous macro-control support, it did not change this depressed market atmosphere. With the economic and environmental impacts of internal and external affairs, LED is like a stormy leaf, and it is aggression. It is just like a traditional lighting company in such a depressed environment. We seem to hear little complaints, even at the Guangzhou Lighting Fair. The collective lighting of traditional lighting companies is obscure, but this is not important. The important thing is that they can still firmly lock the market.
Why do companies like to stare at one-hit trade Recently, Jiangmen held LED lighting product promotion meeting and asked the city to complete the transformation of the use of LED lighting products in the public lighting industry by the end of 2014. After the news broke out, it caught the attention of the industry, some hoped for a share, the other voice said that although the policy is good, but SMEs are not afraid, and as competition intensifies, more and more lack of core Technological small businesses will be eliminated. As a result, many companies joined forces to fight for the project and began to quietly grow in the LED industry.
Recently, it was reported that Guangzhou Metro Line 2 spent 29 million yuan to replace 18,000 sets of light bulbs with LED lamps. According to the bid price plan, the price of each set of lamps is about RMB 1600. A large-scale LED lamp company executive said that LED street lamps should generally be replaced once every two to three years. The price of lamps used in subway stations is generally around RMB 300. About 18% of the total price of lamps. This calculation has triggered a lot of speculation in the industry.
Why do many companies target their government subsidies and the government's hard-to-find LED public lighting project? Of course, it is because you are fortunate enough to receive such a project. But companies should have this longer-term vision and cannot always think of doing such a one-shot deal. In fact, the truth that "people have no long-term concerns and must have near-term concerns" is evident in the LED industry.
The invisible hand of the market will take off the will of the weak. Insiders say that at this stage is still far from talking about the overcapacity of the LED lighting industry. In the early stages of the development of any emerging industry, there will be a lot of investment. However, sooner or later, the market will screen companies. There were 250 to 300 companies in mainland China that started to produce televisions. Now there are only six.
Obviously, in the end, the entire LED industry will definitely not be able to accommodate 8,000 LED companies. At the same time, it means that, along with the listing of many LED companies and a number of large companies in the LED industry, the production capacity of the entire industry will become more concentrated. There will be more standardized things, and SMEs without technical advantages and capital advantages will disappear one by one in the market. It is worth reminding that this "disappearance" is inevitable, and the key is how many people have the mentality of facing this phenomenon.
The market conditions of China's LED industry are not tragic. The miserable position is due to too many companies entering the industry and the market is diluted. According to statistics, there are nearly 8,000 enterprises in the Chinese mainland participating in the LED industry, 20 professional LED listed companies, and more than 100 LED companies preparing to be listed.
Such huge production capacity is driven by the huge market capacity of LED, especially the LED lighting market capacity. The premise that market competition is so fierce is that the current penetration rate of China's LED lighting market is only about 5%. However, as long as the market penetration of LED lighting accounts for 30%, the current so-called excess capacity is simply not there, which is why China's LED industry is obsessed with this industry.
The LED market in 2012 was particularly sluggish. Even with the government's vigorous macro-control support, it did not change this depressed market atmosphere. With the economic and environmental impacts of internal and external affairs, LED is like a stormy leaf, and it is aggression. It is just like a traditional lighting company in such a depressed environment. We seem to hear little complaints, even at the Guangzhou Lighting Fair. The collective lighting of traditional lighting companies is obscure, but this is not important. The important thing is that they can still firmly lock the market.
Why do companies like to stare at one-hit trade Recently, Jiangmen held LED lighting product promotion meeting and asked the city to complete the transformation of the use of LED lighting products in the public lighting industry by the end of 2014. After the news broke out, it caught the attention of the industry, some hoped for a share, the other voice said that although the policy is good, but SMEs are not afraid, and as competition intensifies, more and more lack of core Technological small businesses will be eliminated. As a result, many companies joined forces to fight for the project and began to quietly grow in the LED industry.
Recently, it was reported that Guangzhou Metro Line 2 spent 29 million yuan to replace 18,000 sets of light bulbs with LED lamps. According to the bid price plan, the price of each set of lamps is about RMB 1600. A large-scale LED lamp company executive said that LED street lamps should generally be replaced once every two to three years. The price of lamps used in subway stations is generally around RMB 300. About 18% of the total price of lamps. This calculation has triggered a lot of speculation in the industry.
Why do many companies target their government subsidies and the government's hard-to-find LED public lighting project? Of course, it is because you are fortunate enough to receive such a project. But companies should have this longer-term vision and cannot always think of doing such a one-shot deal. In fact, the truth that "people have no long-term concerns and must have near-term concerns" is evident in the LED industry.
The invisible hand of the market will take off the will of the weak. Insiders say that at this stage is still far from talking about the overcapacity of the LED lighting industry. In the early stages of the development of any emerging industry, there will be a lot of investment. However, sooner or later, the market will screen companies. There were 250 to 300 companies in mainland China that started to produce televisions. Now there are only six.
Obviously, in the end, the entire LED industry will definitely not be able to accommodate 8,000 LED companies. At the same time, it means that, along with the listing of many LED companies and a number of large companies in the LED industry, the production capacity of the entire industry will become more concentrated. There will be more standardized things, and SMEs without technical advantages and capital advantages will disappear one by one in the market. It is worth reminding that this "disappearance" is inevitable, and the key is how many people have the mentality of facing this phenomenon.
Nantong Boxin Electronic Technology Co., Ltd. , https://www.bosencontrols.com