The LED industry is showing signs of recovery this year, but there are obvious two days between big companies and small and medium-sized companies. At the same time, a number of leading companies reported a net profit growth of more than 30%. Since July, a number of Guangdong small and medium-sized LED companies have gone bankrupt.
LED industry people believe that the top 100 companies in the LED industry may add up to 30% of the market share, so the industry concentration has become a trend, companies without technology, capital, brand can only be forced or acquired.
LED industry ushers in the watershed
The decline in the price of LED products and the steady improvement in quality have led to a gradual recovery in demand, whereby the industry's upstream, downstream and downstream companies collectively benefit. Wang Lianghai, vice president of Tongfang, was very pleased to report to Nandu in June that the machines were running at full capacity due to abundant orders. At that time, a number of LED listed company CEOs also revealed that such phenomena are not uncommon.
With the release of the semi-annual report of several LED industry chain companies in August, the performance in the second quarter was further confirmed. From the three leading companies that reported their recent performance, Sanan Optoelectronics achieved a good growth in its main business performance; Ruifeng Optoelectronics and Jufei Optoelectronics benefited from backlight and lighting growth, achieving a net profit growth of more than 30% in the first half of the year.
However, since July, small and medium-sized LED companies such as Zhongshan Xiongji Lighting Factory, Zhongshan Shihao Epitaxial Factory, Shenzhen Yiguang Technology, Shenzhen Shifang Optoelectronics have been discontinued.
For this phenomenon, Peng Chengxue, vice president of Shenzhen Jincheng Electronics, said that any industry has its life cycle, and after the market matures, it will enter the stage of oligopoly competition and there will be a watershed.
Industry concentration has become a trend
In the eyes of the industry, for small and medium-sized LED companies, the government can not get big orders, there is no advantage in quality and price under fierce competition, and the increase in channel construction has led to a lack of competitiveness and a severe situation that has to be withdrawn.
Taking government orders as an example, the government will set a rough request. Small businesses naturally look at the tears with the government's big orders. In the fierce competition in the industry, some SMEs rely on inferior quality and cheap to win, and once a batch has problems, it will be badly affected. "Zhongshan Xiongji used to sell only three pieces when he sold 10 yuan. One lamp had a meager profit, and then pressed some suppliers' money." An LED industry official said.
In terms of channel sales, due to the rapid growth of e-commerce channels, many traditional methods of relying on agents and distributors to distribute goods to the next level are no longer effective. E-commerce has certain requirements for warehousing, logistics, and Internet operations, and it is difficult for small and medium-sized companies to keep up.
According to the above-mentioned insiders, there are many LED manufacturers and channels are disordered. Many dealers are afraid to rush. In addition, the technology update is fast, almost every quarter, the upstream chip light efficiency will increase, the price is also falling, dealers are even afraid to press and distribute goods. Especially in the case of large-scale, the labor costs of large companies are very low, and those small and medium-sized enterprises that have no core competitive advantage are naturally unable to resist.
"The top 100 companies in the LED industry may add up to 30% of the market share. Therefore, the industry concentration has become a trend, and there is no technological advantage. Unbranded companies can only go bankrupt or be acquired." Liu Jun said.
However, Peng Chengxue believes that the collapse is a survival of the fittest. After the vicious price competition in the market, the phenomenon that is now emerging is the return of the normal rational market. This industry still needs the threshold of funds, technology and resources.
( 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. )
LED industry people believe that the top 100 companies in the LED industry may add up to 30% of the market share, so the industry concentration has become a trend, companies without technology, capital, brand can only be forced or acquired.
LED industry ushers in the watershed
The decline in the price of LED products and the steady improvement in quality have led to a gradual recovery in demand, whereby the industry's upstream, downstream and downstream companies collectively benefit. Wang Lianghai, vice president of Tongfang, was very pleased to report to Nandu in June that the machines were running at full capacity due to abundant orders. At that time, a number of LED listed company CEOs also revealed that such phenomena are not uncommon.
With the release of the semi-annual report of several LED industry chain companies in August, the performance in the second quarter was further confirmed. From the three leading companies that reported their recent performance, Sanan Optoelectronics achieved a good growth in its main business performance; Ruifeng Optoelectronics and Jufei Optoelectronics benefited from backlight and lighting growth, achieving a net profit growth of more than 30% in the first half of the year.
However, since July, small and medium-sized LED companies such as Zhongshan Xiongji Lighting Factory, Zhongshan Shihao Epitaxial Factory, Shenzhen Yiguang Technology, Shenzhen Shifang Optoelectronics have been discontinued.
For this phenomenon, Peng Chengxue, vice president of Shenzhen Jincheng Electronics, said that any industry has its life cycle, and after the market matures, it will enter the stage of oligopoly competition and there will be a watershed.
Industry concentration has become a trend
In the eyes of the industry, for small and medium-sized LED companies, the government can not get big orders, there is no advantage in quality and price under fierce competition, and the increase in channel construction has led to a lack of competitiveness and a severe situation that has to be withdrawn.
Taking government orders as an example, the government will set a rough request. Small businesses naturally look at the tears with the government's big orders. In the fierce competition in the industry, some SMEs rely on inferior quality and cheap to win, and once a batch has problems, it will be badly affected. "Zhongshan Xiongji used to sell only three pieces when he sold 10 yuan. One lamp had a meager profit, and then pressed some suppliers' money." An LED industry official said.
In terms of channel sales, due to the rapid growth of e-commerce channels, many traditional methods of relying on agents and distributors to distribute goods to the next level are no longer effective. E-commerce has certain requirements for warehousing, logistics, and Internet operations, and it is difficult for small and medium-sized companies to keep up.
According to the above-mentioned insiders, there are many LED manufacturers and channels are disordered. Many dealers are afraid to rush. In addition, the technology update is fast, almost every quarter, the upstream chip light efficiency will increase, the price is also falling, dealers are even afraid to press and distribute goods. Especially in the case of large-scale, the labor costs of large companies are very low, and those small and medium-sized enterprises that have no core competitive advantage are naturally unable to resist.
"The top 100 companies in the LED industry may add up to 30% of the market share. Therefore, the industry concentration has become a trend, and there is no technological advantage. Unbranded companies can only go bankrupt or be acquired." Liu Jun said.
However, Peng Chengxue believes that the collapse is a survival of the fittest. After the vicious price competition in the market, the phenomenon that is now emerging is the return of the normal rational market. This industry still needs the threshold of funds, technology and resources.
( 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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