If last year’s overcapacity, falling product prices, and the failure of small and micro enterprises caused the LED industry to feel a slight chill, then this year’s state of the industry is even more pessimistic. A number of LED companies recently complained to reporters that "the narrowing of export links, the poor domestic environment, the entire industry seems to have fallen into a trough."
Businesses complain about difficult survival
On July 25th, the HC Network 2012 China Electronics and LED Industry Top Ten Selection Awards Ceremony was held, but the brilliant award ceremony was difficult to cover up the current domestic LED industry "foreign troubles and civil unrest". At the meeting, Liu Xiaohong, general manager of Smartnet's seventh business group, said that the current electronics industry is in a period of madness, and small businesses flock to the future market of this sunrise industry. However, in reality, the domestic and international market environment is far from apparent. Beautiful.
At the meeting, a representative from the top 10 brands in the LED industry told reporters that their situation is now very difficult. “Our company has been doing dressmaking for others since its establishment in 2003. Nearly 90% of the products are sold to Japan, Europe, and the United States each year. As the debt crisis in Europe continues, the economic recovery in the United States and Japan is weak. The export volume has fallen sharply. In China, LED is still a rising star. The bidding mechanism and access rules have not been formed and it is difficult to digest large quantities of production capacity in a short period of time."
Previously, National Star disclosed that it had lost 125,000 yuan in the first half of this year. The annual half-year performance report released by Dongjing Electronics shows that the net profit was RMB 304.81 million, a 73.01% decrease from the same period of last year. In addition, the recent LED industry has repeatedly exposed the news of business failures, the recession is still spreading.
Industry faces internal and external problems
Foreign economic malaise has created a major export bottleneck. According to industry insiders, China's LED industry has just started, many companies are relying on foreign core technology to produce finished products export stage, nearly 70% of the LED products are sold abroad. In particular, small businesses face severe economic turmoil, and export channels are severely blocked. Domestically, it seems that they are not prepared to accept this new industry. According to experts, the current LED technology is also mainly used in displays, decorations, etc. It takes 10 years for the technology to expand into the home phase.
What is even more noteworthy is that as a large emerging industry, many small businesses have opened their doors to compete for this piece of cake. In the manufacturing process, because there is no uniform standard, the quality of the product is worrying. There is a price chaos in sales. The reporter saw in the market that ordinary LED light bulbs cost 50-60 yuan each, and some of the better ones cost 100 yuan. The difference is only 3.5 yuan.
It is not hopeless to pick up
Although domestic and international pressures are all in place, LED warming is not hopeless. With the national attention to energy saving and emission reduction, LED will become the new darling of the Chinese market with its advantages of energy saving, long service life, and environmental protection. The Secretary-General of China Semiconductor Lighting LED Industry Application Association Guan Baiyu told reporters that the development of LED industry, heavy technology, "in this technological innovation, small businesses or will become the main force."
Guan Baiyu further explained that Chinese LED small businesses have higher flexibility in innovation and are more likely to do better. "In the near future, many companies are strengthening cooperation with research institutes such as Tsinghua University and China Agricultural University to realize the linkage between production and research. At the same time, the small companies will warm up and promote exchanges and cooperation, which will boost the overall strength of the industry."
The state has also increased its attention on this project. In addition to direct government subsidies, corresponding support policies have also been gradually introduced. The "12th Five-Year Plan" for the development of semiconductor lighting technology suggests that by 2015, the LED lighting industry will have a scale of 500 billion yuan, LED lighting products will account for 30% of general lighting, and 50 "ten cities, ten thousand" pilot projects will be established. city.
Experts predict that in the next 8-10 years, China's LED lighting penetration rate will reach 80%. However, its warnings said that emerging industries should not blindly follow suit and flood their investments, otherwise they will urge the production of overcapacity.
Businesses complain about difficult survival
On July 25th, the HC Network 2012 China Electronics and LED Industry Top Ten Selection Awards Ceremony was held, but the brilliant award ceremony was difficult to cover up the current domestic LED industry "foreign troubles and civil unrest". At the meeting, Liu Xiaohong, general manager of Smartnet's seventh business group, said that the current electronics industry is in a period of madness, and small businesses flock to the future market of this sunrise industry. However, in reality, the domestic and international market environment is far from apparent. Beautiful.
At the meeting, a representative from the top 10 brands in the LED industry told reporters that their situation is now very difficult. “Our company has been doing dressmaking for others since its establishment in 2003. Nearly 90% of the products are sold to Japan, Europe, and the United States each year. As the debt crisis in Europe continues, the economic recovery in the United States and Japan is weak. The export volume has fallen sharply. In China, LED is still a rising star. The bidding mechanism and access rules have not been formed and it is difficult to digest large quantities of production capacity in a short period of time."
Previously, National Star disclosed that it had lost 125,000 yuan in the first half of this year. The annual half-year performance report released by Dongjing Electronics shows that the net profit was RMB 304.81 million, a 73.01% decrease from the same period of last year. In addition, the recent LED industry has repeatedly exposed the news of business failures, the recession is still spreading.
Industry faces internal and external problems
Foreign economic malaise has created a major export bottleneck. According to industry insiders, China's LED industry has just started, many companies are relying on foreign core technology to produce finished products export stage, nearly 70% of the LED products are sold abroad. In particular, small businesses face severe economic turmoil, and export channels are severely blocked. Domestically, it seems that they are not prepared to accept this new industry. According to experts, the current LED technology is also mainly used in displays, decorations, etc. It takes 10 years for the technology to expand into the home phase.
What is even more noteworthy is that as a large emerging industry, many small businesses have opened their doors to compete for this piece of cake. In the manufacturing process, because there is no uniform standard, the quality of the product is worrying. There is a price chaos in sales. The reporter saw in the market that ordinary LED light bulbs cost 50-60 yuan each, and some of the better ones cost 100 yuan. The difference is only 3.5 yuan.
It is not hopeless to pick up
Although domestic and international pressures are all in place, LED warming is not hopeless. With the national attention to energy saving and emission reduction, LED will become the new darling of the Chinese market with its advantages of energy saving, long service life, and environmental protection. The Secretary-General of China Semiconductor Lighting LED Industry Application Association Guan Baiyu told reporters that the development of LED industry, heavy technology, "in this technological innovation, small businesses or will become the main force."
Guan Baiyu further explained that Chinese LED small businesses have higher flexibility in innovation and are more likely to do better. "In the near future, many companies are strengthening cooperation with research institutes such as Tsinghua University and China Agricultural University to realize the linkage between production and research. At the same time, the small companies will warm up and promote exchanges and cooperation, which will boost the overall strength of the industry."
The state has also increased its attention on this project. In addition to direct government subsidies, corresponding support policies have also been gradually introduced. The "12th Five-Year Plan" for the development of semiconductor lighting technology suggests that by 2015, the LED lighting industry will have a scale of 500 billion yuan, LED lighting products will account for 30% of general lighting, and 50 "ten cities, ten thousand" pilot projects will be established. city.
Experts predict that in the next 8-10 years, China's LED lighting penetration rate will reach 80%. However, its warnings said that emerging industries should not blindly follow suit and flood their investments, otherwise they will urge the production of overcapacity.
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