The 13th Summit Forum Roundtable Dialogue: The LED industry is scheduled to die for three years. How do you choose?

[Text|High-tech LED reporter Luo Shenghua] Under the impetus of LED lighting demand, the industry seems to have reached a consensus that the LED industry will be set at the end of 2016. Related companies have expanded their production capacity, recruited talents, and paved channels. They have survived several rounds of reshuffle in the LED industry, and no one wants to miss the feast of the LED lighting market.

However, the opportunity belongs to a minority after all. As the “billion-dollar” aircraft carrier-type enterprises continue to increase, the tide of closures and running tides are also sweeping away. The survival pressure of small and medium-sized lighting enterprises is increasing, and the competitive strength among enterprises is widening. For enterprises, how to survive in the split of the group is very crucial.

Then, in the case that the LED industry enters the full market competition cycle, is there any law in the concentration trend of the lighting market in the next three years? From the perspective of supply chain, is there any new opportunity for the LED industry?


Competitive situation still continues <br> <br> Chinese LED industry after years of development, the industry has gone through several rounds of shuffling process of closures and restructuring, but now it seems there is still excessive competition situation.

According to statistics from the High-tech LED Industry Research Institute (GLII), the number of LED application companies in 2014 was 13,300. By 2015, this number will drop to 12,300. The sheer volume of application-oriented enterprises also means that about 1,000 application companies will face a crisis of bankruptcy in the coming year. In this case, the middle and upper reaches of the enterprise can not be avoided.

"For packaging companies, it is almost a survival in the cracks. At present, the general gross profit margin of the packaging industry is low. In the absence of profit, the after-sales service and innovation capabilities of the company will not find a sustained point, and the gap in strength will continue. Pull up." Jing Ke Electronics President, special assistance Song Dong said.

"In the case of such fierce competition, the most important thing is to focus on it. It is too early for the company to go where it will end up." Xu Yuming, technical director of Xuyu Optoelectronics, further said.

Industry concentration is still low <br> <br> any industry has its life cycle, after the market will enter a mature stage of oligopolistic competition, the emergence of a 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. However, there are currently no oligopolistic companies in the industry.

“Actually, the concentration of the LED industry is still very low. Whether it is ordinary home lighting or office lighting, it does not form a monopoly brand. In the field of indoor lighting, there are many product lines, and the market concentration is not high. Enterprises can also go very far," said Lu Degang, deputy general manager of Liyang Optoelectronics.

“In outdoor lighting, the concentration of the brand is even lower. For example, port lights or garden lights, there is no uniform brand.” Lu Degang further stressed.

The market is not full, companies still have opportunities, but for companies, scale and brand influence are still the most important factors to measure the competitiveness of enterprises.

"In the field of packaging with cost-effective competition standards, standardization and continuous innovation are the way for enterprises to go," said Li Kun, director of Hongli Optoelectronics Engineering Technology Center.

"The shape of the package is changing. In the current competitive situation, if you want to win by volume, it will be very difficult for the company to enter the 3K club. Of course, if the company is in a niche market, it has a unique product. , there will still be a lot of room for survival." Li Kun cone further explained.


After three years, the LED industry continues to drive the growth of the industry by exploiting new application areas. The upstream technological advancement offers the possibility of downstream entry into new application areas, while downstream innovation applications have driven the vigorous development of upstream related industry chains. In the past 10 years, landscape lighting, cell phone backlighting, display screens, and TV backlights have all provided the driving force for the industry's advancement in a certain period of time.

In 2014, many applications have entered the fastest growing period, and some have entered the recession period. The main driver industry growth that can be seen at present is the LED lighting market. But in the future, the future of LED industry will be as slow as the dotted line, or it will be completely fading with the end of the LED lighting cycle.

“After three years, the industry will be dusty, the pattern will soon be formed, and the brand concentration in the segment will be enhanced.” Zhang Luhua, Marketing Director of Smale, formed the above judgment on the development of LED.

For the future of chip companies, Shi Zhenggang, deputy general manager of Huacan Optoelectronics, said, "For the chip industry, the next three years is the choice of product performance and technology route, and it needs closer integration of downstream applications."

In fact, the optimization of the supply chain is not only a business relationship, but also whether it can form a partner, not only in terms of production capacity, but also whether it can lead in technological innovation.

“Every field in China is a mass market. Take the packaging tape machine as an example. As far as I know, there are more than 60 in 2012, but now it is around 5. We have already done enough in the field of automation. In preparation, the packaging industry also has rich network resources, and also grasps high nodes in terms of investment.” Zhao Yutao, chairman of Hyun Shuo Optoelectronics, believes that the development of the market has laid the foundation for enterprises to enter automation.

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