Traditional industrial clusters are still "green" How does the Zhongshan LED industry break through?

[Source: "High-tech LED-Lighting Market" October issue Zhou Jianhua]

Zhongshan LED industry is developing rapidly, and the annual growth rate of local LED output value exceeds 35%. However, industry insiders concluded that the Zhongshan LED industry is always a bit embarrassed, showing “three ripeties and three shackles”: the industrial cluster is the most mature, but the product positioning is low-end “bitter”; the application field is the most mature, but in the technical aspect, it shows Short-board “dry”; domestic channels are mature, but compared with strong brands, it is “shame”.

Under the rich resources of traditional industries, how does Zhongshan LED break out?

Mature industrial cluster

Three years ago, I entered the main roads of Xiaolan, Guzhen, Banfu, Dongsheng and other towns in Zhongshan. The billboards on both sides were almost all traditional industrial brands with long history of hardware, lighting, plastics, clothing and electronics. "monopoly". Today, we can find that nearly a quarter of large billboards have been “occupied” by LED brand companies. Looking at the leopard in the tube, it can be seen that the scale of the Zhongshan LED industry has taken shape.

After combing the history of Zhongshan's lighting industry for nearly 30 years, it has had "first close contact" with the LED industry as early as 10 years ago, not inferior to the semiconductor lighting town - Shenzhen.

From the time when Zhongshan positioned LED application as a pillar industry in 2009, it encountered rapid transformation from traditional lighting industry bases across the country, the emergence of emerging LED lighting bases, and even the resources of the surrounding areas.

However, whether it is interviewing local veteran companies or foreign entrepreneurs, they have high hopes for the government to use LED and other energy-saving light sources to drive the transformation and upgrading of traditional industries.

“Zhongshan, which has 26 national industrial bases, is known as the “manufacturing city”. Like other cities in the Pearl River Delta, it faces the arduous challenge of the transformation and upgrading of traditional industries.” Vice Mayor of Zhongshan City, Feng Rongrong, was interviewed by reporters this year. Zhong said that according to Zhongshan’s “Twelfth Five-Year Plan”, at least two “100 billion traditional industrial clusters” of lighting and home appliances should be cultivated in the next five years.

According to incomplete statistics, from 2011 to the present, coupled with the transformation of traditional lighting and lighting companies or involvement in LEDs, there are more than 1,000 new LED lighting products companies in Zhongshan. “But the quantity is not equal to the quality. More than 90% of the enterprises are following suit. Some of them are new entrants of workshop or speculation, not to mention R&D and quality.” President of Zhongshan Lighting Association, Huayi District Bingwen, chairman of the Lighting Group, told the reporter of "High-tech LED".

Let us use a few sets of data to "measure" the Zhongshan LED industry:

In 2011, the total output value of Zhongshan LED industry was about 30 billion yuan, and the number of registered LED enterprises exceeded 1,500. There are also hundreds of “three no-guerrillas” in the ancient town. On average, each company only has 12 million. Yuan's annual sales.

Zhongshan has an enviable comprehensive sales platform, but the rent of the store is 300 to 400 yuan per month. The rent per square meter is nearly one-third of the cost of production and sales; there are no fewer than 10 professional lighting stores, but none of them focus on LED. Brands and light effect experience stores; hundreds of small and medium-sized enterprises are added every year, but there are also nearly 100 companies with the strength to build their own factories to move to Jiangmen and other surrounding areas; a number of LED companies with annual output value of several hundred million yuan are thriving. However, there are still no leading brands and listed companies with national influence.

"Although the development of Zhongshan LED industry is relatively rapid, it is still in the period of transformation and upgrading. The grassroots atmosphere of industrial clusters is still relatively strong. Of course, this has also made Zhongshan the first breakthrough in downstream application areas and national sales channels." Zhongshan City Dong Cai, deputy director of the Science and Technology Bureau, concluded.

Lock application

"In fact, Zhongshan LED industry is more based on the upgrade of traditional lighting and lighting industry. At present, the company with strong strength and high brand awareness is still from the traditional lighting transformation enterprise." Huayi Group, which has been working in Zhongshan for nearly 30 years District Bingwen said.

In the late 1970s, Zhongshan's traditional lighting industry relied on several sales and marketing staff in the ancient town to “turn the lights to the world”. By the early 1990s, there were about 300 lighting streets in the local market. The lighting industry cluster was initially formed.

In 2002, the domestic home building materials market developed rapidly. Zhongshan Guzhen also won the title of “China Lighting Capital” in the same year. The annual light fair will affect the present. During the period, many lighting and lighting companies also began to shift from “sitting business” to “trading”, developing agents throughout the country and developing channels. Some enterprises even hired celebrity endorsements and began to transition from industry brands to mass brands.

A large number of lighting and lighting brands, including Huayi Lighting, Lighting, Taiteng Lighting, Auman Technology Lighting, Xiaobailong Lighting, Minguang Lighting, Guanhua Lighting, Hongguang Lighting, etc., have hundreds or even thousands of domestic and foreign brands. Channel outlets. Together with nearly 200 professional lighting logistics companies to provide enterprises with cheap logistics services and "collection and payment" transaction support, and the six major lighting accessories trading market has greatly reduced the procurement costs of enterprises, these are Zhongshan LED and tradition Lighting integration provides good prerequisites.

“LED is an energy-saving light source, and it can generate new profit growth points when combined with lamps. Therefore, both the government and enterprises have a high recognition of the goal of Zhongshan to build LED application industry base.” Du Jifang, president of Zhongshan Semiconductor Lighting Association Said.

According to Deputy Director Dong Cai, the Zhongshan Municipal Government has planned to build a Zhongshan LED industrial belt along the Gushen Highway covering several towns including Xiaolan, Guzhen, Henglan and Banfu, forming LED packaging and LED lighting. The main LED application industry chain. According to the planning goal, in 2012, Zhongshan LED industry will achieve an output value of 50 billion yuan.

Table 1: Comparison of LED industry situation in Zhongshan, Foshan and Shenzhen

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