As the world's leading LED production site, China's LED industry is booming. However, the reality is that although there are many companies, large leading companies are limited. The development of the industry, which is mainly supported by private enterprises, is subject to many restrictions. At present, China's LED development presents a large pattern of “Southern Production, Northern Agentsâ€, and the competition is fierce. In order to compete for market share, production and sellers have started a "price war". Whoever has a low bid will be able to survive.
LED market prospects
2010 LED sales value is expected to break through
150 billion yuan, this figure is twice as much as in 2008, and continues to grow at a rate of 30% every year. In the next 15 years, China's LED industry market and China's export market are expected to be about 5 trillion yuan.
LED market pattern
Domestic LED manufacturers are mainly concentrated in the Pearl River Delta region, and Shenzhen has cultivated and gathered more than 900 LED companies, accounting for 70% of the national total. The competition between the LED industry, especially in the north, is the price war.
LED market worry
At present, there are 3,000 to 4,000 LED lighting companies in China, covering a wide range of fields such as home, business, and electric. However, Liu Shengping, secretary general of the China Lighting Association, said publicly that at present, almost no lighting company in China has a market share of more than 2%.
Good industry
LED industry is booming
"LED has just started the 'sunshine' day." At the just-concluded Dalian 12th International Lighting and LED Exhibition, Fan Jiye, the chairman of Dalian Yuhuan Zhiye Technology Development Co., Ltd., said with great enthusiasm, only two and a half days At the time, he accepted the consultation of 466 companies, including 132 with the intention of cooperation and 12 on-site. At the exhibition site, the LED production and dealers interviewed said that at present, it is the LED industry booming. "Only for China's civil lighting, there is a market of about 40 billion yuan." Previously, Philips Lighting (China) CEO Bi Baijun said in an interview with the media.
Fan Jiye is also a special researcher at the National Science and Technology Development Strategy Research Center. He revealed to reporters that China is currently the world's largest LED display processing plant, and about 80% of its products are processed in the Chinese market. “Foreign companies mainly focus on the low prices of domestic products.†Fan Jiye said, “This time a Japanese customer signed an order of 1.1 million yuan to buy industrial and mining lights and point light source groups. For example, an LED light, he from us The unit price for picking up here is 286 yuan, and when it is sold in Japan, the price has almost doubled, and the price is around 560 yuan."
Current drawbacks
"Price war" competition is cruel
Due to its huge development prospects, LED has become a must-attend industry for many businesses. "The LED industry has been gradually invested in the past five years and has now formed a scale." Fan Jiye said that the current domestic LED lighting industry layout is relatively complete. However, although there are many LED lighting companies in China, the number of leading companies is extremely limited.
"High-end, high-quality chips are mainly imported from abroad." Fan Jiye said frankly that although China's LEDs have certain advantages in terms of quantity, they are still subject to high-end technology. "LED is currently mainly concentrated in the industry. For the ordinary people, although LED lights have many advantages, but the price of hundreds of dollars, still let many people switch to incandescent lights for a few dollars. This certainly limits the LED The large-scale promotion." Li Yan said, sales manager of Shenyang Kemei Digital.
Based on the above factors, the LED industry, which is currently supported by private enterprises, will naturally face many difficulties. Vicious competition has become one of the biggest headaches for LED manufacturers.
Li Yan said that at present, the domestic LED market has formed the basic pattern of “Southern Production, Northern Agentâ€. “Because of the limitations of technology and capital, there are relatively few LED manufacturers in the north, mainly based on agency sales.†Tao Xiaoling, head of the sales department of a LED manufacturing company in Dongguan, said.
Cruelty is Li Yan's description of the current domestic LED market. "To put it bluntly, the competition between the LED industry, especially in the northern region, is the price dispute." Tao Xiaoling, for example, the most common LED strip on the market last year. The sales price is 60 yuan per meter, and this year has plummeted to 20 to 30 yuan, a decline of more than 50%. "There is no way, if you want to live, you must adapt to this regulation." A LED dealer from Gu, who is from Zhejiang, reluctantly said that the continuous compression of profit margins also makes the company face a stretch in developing new technologies and new processes. Awkward situation.
market
Export companies have fought in China
At the same time, affected by the 2008 international financial crisis, many LED companies that have been export-oriented in the past have turned their attention to the domestic market and tried to find new markets from the domestic market. "We have been exporting before, mainly in Europe, but this year's business is not good." Tao Xiaoling revealed that his company has developed a domestic market development plan, and Dalian is their first stop to open up the Northeast market. The turn of these export companies has also intensified the competition among domestic LED companies.
On August 10th, the opening ceremony of Dalian Dehao Optoelectronics Technology Co., Ltd., Dalian Base of Guangdong Dehao Runda Electric Co., Ltd. was held. This is also the largest LED enterprise in the country. This will not only greatly improve the scale and technical level of the city's optoelectronic industry, but will also lead the rapid development of the green industry in the Northeast and even the whole country. “Small and medium-sized enterprises without independent intellectual property rights and advanced technologies will face the crisis of being eliminated by the industry.†Fan Jiye said that enterprises only have their own “good productsâ€, and continue to expand high-end applications and enhance the overall domestic LED industry. Levels, free from dependence on foreign imports, can continue to develop efficiently.
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