Similar to the photovoltaic industry, the LED industry model is also a large-scale investment in advance, buying ready-made equipment from abroad, with basic team and technology, you can become a LED company. The â€œlow thresholdâ€ for entry into this industry is an important reason why local governments and various companies have invested in LED projects.
The reason is very good, the funds are also very good, LED lighting sector will naturally rise significantly. However, market speculation is after all expected. It is expected that it may or may not be honored. Some years ago it was expected that LED lamps would replace fluorescent lamps, but eventually fluorescent lamps still dominated the lighting market. LED lighting is still in its infancy and its development is far from mature.
Recent policy trends have made investors feel that LED lighting will enter the fast lane of development. This time, good expectations can be honored?
From the policy level, LED lighting as a substitute has benefited from the phase-out of incandescent lamps. Relevant departments have stated clearly that they will strongly encourage the production and promotion of LED lamps. The market once reported that the subsidy for LED lighting terminal users will reach 8 billion yuan, and the scope and intensity of late subsidies will continue to expand.
Looking at the development of the industry, the LED industry is undergoing reshuffle. As a leading company in the industry, listed companies are expected to benefit from industry consolidation. Many years ago, the policy began to support the LED lighting industry, but the improvement was not obvious. Under the stimulation of the policy, the industry added a lot of production capacity, but lack of R & D strength, resulting in the current status of low-end overcapacity is obvious, the industry reshuffle is also closely related to this.
The bubble triggered by the previous round of policy stimulus is bursting, and a new round of policy stimulus has gradually begun. Of course, policies will be adjusted based on reflections on lessons learned. However, are companies ready?
In the face of the market, enterprises must face the real problems of cost, technology, talent, patents, market demand and follow-up funds. The chaotic disorder of the industry's expansion period is doomed to the current dilemma. However, from a positive perspective, this is not a bad thing. Taking into account market opportunities and risks, an industry can survive.
However, in reality, the key issue that LED companies should solve urgently is technology.
The high-power, high-brightness LED chip products required for LED lighting products are still dominated by foreign companies. On the one hand, domestic LED upstream companies should actively intervene in this "cake" and increase their efforts in technological upgrading; on the other hand, the government's industrial support policy should also change from the previous project subsidy model to encourage technology. With a multi-pronged approach and market cooperation, the industry can enter the virtuous cycle of orderly development led by the government.
At present, the demand for LED lighting in China has not been effectively opened yet, and the policy needs to be accurately "forced." These are problems that can be resolved by facing up to their own shortcomings and working hard.
In the process of development of each generation of light sources, only a broad market can be formed only after it has been recognized by the general public and becomes a common mass of ordinary people. In other words, the product is ultimately used by people is the fundamental way, otherwise it will only become a few "collectibles."
If the LED industry wants to develop, it will be inseparable from the support of ordinary consumers. To get recognition from ordinary consumers, we must provide inexpensive products. Otherwise, all prospects and development will not be discussed.
Recently, the â€œChina's Phase-out Strategy for Phase-out of Incandescent Lampsâ€ published by the National Development and Reform Commission (NDRC) has laid a foundation for the opening of the LED application market in the future when the market is in the doldrums. The market demand for LED general lighting will greatly increase in the future, and companies can also follow their own â€œgold roadmapâ€.
Despite the bright future, industry consolidation at this stage is still inevitable. The LED industry, which exists at the same time as prosperous and chaotic, can enter the orderly and healthy development track only after a deep integration. Insiders pointed out that although the industry will experience a period of pain, but for companies with prominent brands, channels, talent, technology and operational management capabilities, it means more opportunities, these companies can expand on a larger scale.
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