At the end of 2012, the Guangdong Provincial Bureau of Quality and Technical Supervision conducted a random inspection of LED lighting products, and checked the self-ballasted LED lamp products produced by 21 enterprises in 7 cities including Guangzhou, Shenzhen and Zhongshan. The sampling results showed that the pass rate was less than 30. %. In ancient towns, quality issues have also become the soft underbelly of the sustainable development of the LED industry.
Some LED companies are mired in price wars
Xia Zhenghao, executive vice president of Guangsheng Semiconductor Technology Co., Ltd. believes that the development of the lighting industry in Guzhen is characterized by comprehensive information and fast action. In 2010, when Guangsheng Technology Company was founded in the ancient town, the big companies in other cities basically did not do LEDs. Only the ancient town was doing it. Many people made the first barrel of gold by LED. Although the ancient town seized the opportunity of LED development, in fact, many LED companies in the ancient town specialize in low-end products. These companies think that "the price is cheap to sell", so they deliberately lower the price in order to pursue sales, completely regardless of the quality and brand of the product.
In Xia Zhenghao's customer circle, there is a popular saying that LEDs must not be low-end. why? "Because you are doing low-end products, you may earn money in the first year, but you will lose money in the second and third years. If you lose money, you can only run, and you can't do it without running."
The vicious competition of price-reduction has led many LED companies to encounter bottlenecks in development, and even serious bankruptcy. For example, the ancient town of Xiongji Lighting, which closed down in July this year, was caused by the “garbage goods†product causing its own capital chain to break.
Xiongji is one of the few companies in the ancient town with a scale of over 100 million yuan. It is also a typical case for low-end products. Xiong Kee reduced the price of LED lighting products to the extreme, and the minimum of LED bulbs before the closure has dropped below 1 yuan / watt. It is understood that Xiongji originally hoped to expand the company's scale through low-end products, and then promote high-end products through its own sales network, but customers simply do not recognize, the product return rate is very high.
The closure of LED companies does not only occur in ancient towns. According to incomplete statistics, since July this year, only five LED companies have closed down in Zhongshan and Shenzhen. Shenzhen Yiguang Technology Co., Ltd. has been exposed to news that the boss has been detained due to debts.
LED faces shuffling, quality and brand are king
Some insiders said that the failure of many LED companies to shut down is the performance of the domestic LED industry entering the accelerated reshuffle stage. In Xia Zhenghao's view, the collapse of Xiongji is not accidental, but inevitable. With some large companies with high self-demanding involvement in the LED field, poor companies will eventually be eliminated. This elimination is benign and will make the LED industry in Guzhen more and more standardized in the future.
Huang Zhitong, the director of the Guzhen Economic and Trade Bureau, described the collapse of Xiongji as “big waves and sandsâ€. He said that in the past few years, a relatively qualified LED bulb cost hundreds of dollars. Now, qualified LED bulbs cost only 20 or 30 yuan. This shows that the cost of LEDs is reduced, but it does not mean that companies can make LED bulbs for a few dollars.
"In the economic competition of the LED market, enterprises must have a long-term vision, and must simultaneously be bigger and stronger, relying on quality and brand to build long-term customer trust." Huang Zhitong told reporters that Guzhen's goal in LED products is to improve products. Grade and quality, able to participate in advanced technology levels in Western countries. “A lamp, why can people sell it so expensive? The difference is not in the design style, but in the manufacturing process and the life and reliability of the entire LED lamp. We can’t just make rough products now, we have to do more precision. To the extreme, like a Swiss watch."
LED overcapacity, how to deal with ancient towns
At present, there are thousands of enterprises in the ancient town engaged in LED lighting directly or indirectly. So many enterprises engaged in LEDs have also formed a relatively complete LED industry chain.
However, the enterprises in the ancient town are still concentrated in the middle and lower reaches of the LED industry chain. There are hundreds of packaging enterprises in the ancient town, and the package belongs to the middle chain of the industrial chain. The price of the killing between them has already been stunned. When it comes to the downstream, competition is even more cruel. Because the technical content of the downstream industrial chain is relatively low, the entry threshold for enterprises is very low. A screwdriver and a few screwdrivers can be combined and produced, so the competition is extremely fierce. However, due to the high technical requirements of the chips in the upstream field, the number of enterprises is relatively small, and the competition is not so intense.
Xia Zhenghao's Guangsheng Technology Co., Ltd. specializes in the research and development of medium and high-end products in the field of semiconductor lighting. In July and August of this year, the company encountered a problem that the chip was difficult to purchase. "The supply of chips in the upstream industry chain is insufficient. Our company has always had a lot of orders, but it is because of the lack of chips, and it is impossible to work overtime."
For the packaging companies in the middle, Xia Zhenghao believes that product development and cost performance are important. Packaging companies need a good after-sales service. "Don't always think about making money yourself, but also consider making products produced by customers competitive in the market."
Which side of the LED industry chain is well done is a question that the town government has been thinking for for many years. Huang Zhitong is quite optimistic about the application prospects of LED lights. He said that in the future, the development direction of Guzhen LED is still in the field of packaging and lighting applications, and at the same time guide enterprises to develop into the upstream industry chain.
"The direction we have established is in line with our actual situation." Huang Zhitong said. In view of the fact that the entire LED industry faces most of the upstream core technology patents, which are controlled by foreign manufacturers, the technology is subject to people, and the ancient town is still lacking in personnel support, so the ancient town still insists on the application of packaging and lighting. "We have to sort out our own development ideas and not let people lead us."
Professional LED store gap is filling
It is reported that in the ancient town of Dengdu, there are dozens of large and small stores, but the scale, grade and management are uneven. Although there are many LED companies in the ancient town, and the supporting industrial chain is also very perfect, but the entire ancient town has not really called the professional store of LED products.
Times Light Plaza, Yansheng Lighting Plaza, Yinquan Lighting Plaza, etc. are all traditional lighting lighting and few LED stores, and the so-called LED stores in the ancient town have one or two, and the scale is not large, not grade.
For example, in 2010, it was claimed that the largest ancient town LED trading center in China had already been operated, and some sellers specializing in LED products were recruited for sale. But in the eyes of Huang Zhitong, this center is a self-proclaimed LED trading center. In fact, it is strictly calculated and does not meet the standards of LED professional stores.
As the highest-end star of the ancient town brand, the Star Alliance Lighting Plaza is even more true. Its positioning is "the world's top lighting brand center & international LED lighting light effect experience museum". It is reported that the "Star Alliance" has a total construction area of ​​nearly 360,000 square meters. It has three major exhibition halls: the international top lighting brand pavilion, the international LED light effect experience hall and the China high-end lighting brand pavilion.
In addition, the company has also established an LED procurement center in the ancient town, hoping to provide a development idea for the ancient town store format, which can promote the development of the ancient town lighting industry.
Undoubtedly, the ancient town must do its own LED industry channel expansion. "To combine LED technology and sales, to attract some domestic and foreign brands to hatch in the ancient town business district, we support large enterprises to come in. NVC and Osram come to the ancient town, they have strength, we welcome them to do." Huang Zhitong further said.
(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.)
Some LED companies are mired in price wars
Xia Zhenghao, executive vice president of Guangsheng Semiconductor Technology Co., Ltd. believes that the development of the lighting industry in Guzhen is characterized by comprehensive information and fast action. In 2010, when Guangsheng Technology Company was founded in the ancient town, the big companies in other cities basically did not do LEDs. Only the ancient town was doing it. Many people made the first barrel of gold by LED. Although the ancient town seized the opportunity of LED development, in fact, many LED companies in the ancient town specialize in low-end products. These companies think that "the price is cheap to sell", so they deliberately lower the price in order to pursue sales, completely regardless of the quality and brand of the product.
In Xia Zhenghao's customer circle, there is a popular saying that LEDs must not be low-end. why? "Because you are doing low-end products, you may earn money in the first year, but you will lose money in the second and third years. If you lose money, you can only run, and you can't do it without running."
The vicious competition of price-reduction has led many LED companies to encounter bottlenecks in development, and even serious bankruptcy. For example, the ancient town of Xiongji Lighting, which closed down in July this year, was caused by the “garbage goods†product causing its own capital chain to break.
Xiongji is one of the few companies in the ancient town with a scale of over 100 million yuan. It is also a typical case for low-end products. Xiong Kee reduced the price of LED lighting products to the extreme, and the minimum of LED bulbs before the closure has dropped below 1 yuan / watt. It is understood that Xiongji originally hoped to expand the company's scale through low-end products, and then promote high-end products through its own sales network, but customers simply do not recognize, the product return rate is very high.
The closure of LED companies does not only occur in ancient towns. According to incomplete statistics, since July this year, only five LED companies have closed down in Zhongshan and Shenzhen. Shenzhen Yiguang Technology Co., Ltd. has been exposed to news that the boss has been detained due to debts.
LED faces shuffling, quality and brand are king
Some insiders said that the failure of many LED companies to shut down is the performance of the domestic LED industry entering the accelerated reshuffle stage. In Xia Zhenghao's view, the collapse of Xiongji is not accidental, but inevitable. With some large companies with high self-demanding involvement in the LED field, poor companies will eventually be eliminated. This elimination is benign and will make the LED industry in Guzhen more and more standardized in the future.
Huang Zhitong, the director of the Guzhen Economic and Trade Bureau, described the collapse of Xiongji as “big waves and sandsâ€. He said that in the past few years, a relatively qualified LED bulb cost hundreds of dollars. Now, qualified LED bulbs cost only 20 or 30 yuan. This shows that the cost of LEDs is reduced, but it does not mean that companies can make LED bulbs for a few dollars.
"In the economic competition of the LED market, enterprises must have a long-term vision, and must simultaneously be bigger and stronger, relying on quality and brand to build long-term customer trust." Huang Zhitong told reporters that Guzhen's goal in LED products is to improve products. Grade and quality, able to participate in advanced technology levels in Western countries. “A lamp, why can people sell it so expensive? The difference is not in the design style, but in the manufacturing process and the life and reliability of the entire LED lamp. We can’t just make rough products now, we have to do more precision. To the extreme, like a Swiss watch."
LED overcapacity, how to deal with ancient towns
At present, there are thousands of enterprises in the ancient town engaged in LED lighting directly or indirectly. So many enterprises engaged in LEDs have also formed a relatively complete LED industry chain.
However, the enterprises in the ancient town are still concentrated in the middle and lower reaches of the LED industry chain. There are hundreds of packaging enterprises in the ancient town, and the package belongs to the middle chain of the industrial chain. The price of the killing between them has already been stunned. When it comes to the downstream, competition is even more cruel. Because the technical content of the downstream industrial chain is relatively low, the entry threshold for enterprises is very low. A screwdriver and a few screwdrivers can be combined and produced, so the competition is extremely fierce. However, due to the high technical requirements of the chips in the upstream field, the number of enterprises is relatively small, and the competition is not so intense.
Xia Zhenghao's Guangsheng Technology Co., Ltd. specializes in the research and development of medium and high-end products in the field of semiconductor lighting. In July and August of this year, the company encountered a problem that the chip was difficult to purchase. "The supply of chips in the upstream industry chain is insufficient. Our company has always had a lot of orders, but it is because of the lack of chips, and it is impossible to work overtime."
For the packaging companies in the middle, Xia Zhenghao believes that product development and cost performance are important. Packaging companies need a good after-sales service. "Don't always think about making money yourself, but also consider making products produced by customers competitive in the market."
Which side of the LED industry chain is well done is a question that the town government has been thinking for for many years. Huang Zhitong is quite optimistic about the application prospects of LED lights. He said that in the future, the development direction of Guzhen LED is still in the field of packaging and lighting applications, and at the same time guide enterprises to develop into the upstream industry chain.
"The direction we have established is in line with our actual situation." Huang Zhitong said. In view of the fact that the entire LED industry faces most of the upstream core technology patents, which are controlled by foreign manufacturers, the technology is subject to people, and the ancient town is still lacking in personnel support, so the ancient town still insists on the application of packaging and lighting. "We have to sort out our own development ideas and not let people lead us."
Professional LED store gap is filling
It is reported that in the ancient town of Dengdu, there are dozens of large and small stores, but the scale, grade and management are uneven. Although there are many LED companies in the ancient town, and the supporting industrial chain is also very perfect, but the entire ancient town has not really called the professional store of LED products.
Times Light Plaza, Yansheng Lighting Plaza, Yinquan Lighting Plaza, etc. are all traditional lighting lighting and few LED stores, and the so-called LED stores in the ancient town have one or two, and the scale is not large, not grade.
For example, in 2010, it was claimed that the largest ancient town LED trading center in China had already been operated, and some sellers specializing in LED products were recruited for sale. But in the eyes of Huang Zhitong, this center is a self-proclaimed LED trading center. In fact, it is strictly calculated and does not meet the standards of LED professional stores.
As the highest-end star of the ancient town brand, the Star Alliance Lighting Plaza is even more true. Its positioning is "the world's top lighting brand center & international LED lighting light effect experience museum". It is reported that the "Star Alliance" has a total construction area of ​​nearly 360,000 square meters. It has three major exhibition halls: the international top lighting brand pavilion, the international LED light effect experience hall and the China high-end lighting brand pavilion.
In addition, the company has also established an LED procurement center in the ancient town, hoping to provide a development idea for the ancient town store format, which can promote the development of the ancient town lighting industry.
Undoubtedly, the ancient town must do its own LED industry channel expansion. "To combine LED technology and sales, to attract some domestic and foreign brands to hatch in the ancient town business district, we support large enterprises to come in. NVC and Osram come to the ancient town, they have strength, we welcome them to do." Huang Zhitong further said.
(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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