'Doing fine and doing special' into the premise of China's LED lighting industry

Being bigger but not stronger is a feature of the rapid development of China's LED industry. Many enterprises have lost their market competitiveness due to neglect of market evaluation and lack of clear positioning, thus facing a difficult situation. In fact, before you become bigger and stronger, you should first do fine work. Only by making achievements in your own field and becoming outstanding can you truly obtain sustainable development momentum. For a long time, the coincidence between LED lighting and market demand has been the object of debate. However, the development of LED industry has not slowed down with these debates, showing a scene of rapid development. But it is not commensurate with the slow start of the market. Today, China's LED industry capacity and market are still in an embarrassing situation. At the same time, entrepreneurs have pushed the entire industry onto a long muddy road in order to seize the market quickly and expand continuously. In fact, before you become bigger and stronger, you should first do fine work. Only by making achievements in your own field and becoming outstanding can you truly obtain sustainable development momentum. The development history of LED industry in China is not long, but China is already a large-scale LED industry base. The development speed of China's LED industry is so rapid, but the terminal market has not been seen to really rise, leaving many thorny problems in the future development of the industry. We have to reflect on whether the LED industry is really too hasty in China? Many companies continue to grow in order to land in the capital market, and their performance is reflected in production capacity. Even though the LED Terminal lighting market has increased in the first half of this year, the capacity utilization rate of China's LED industry is still not high. Take chips as an example. At present, the number of MOCVD machines in mainland China is about 1000, and the capacity utilization rate is about 60. Even so, many chip companies continue to expand their production capacity in order to survive and lay out the market. Under the tremendous pressure of production capacity, the inventory water level has been rising all the way, and the industry has to rely on price and payment cycle to capture the opportunity to survive. It can be predicted that China's LED industry will face more intense market competition in the future. In the increasingly fierce competition, many companies have begun to merge and integrate new ideas for development. This will lead to the emergence of the industry, Evergrande, and the micro-micro. A large number of LED enterprises will be eliminated, including LED chip enterprises. However, under such a severe situation, there are still many enterprises that have lost their market competitiveness due to neglect of market evaluation and lack of clear market positioning, thus facing the situation of riding a tiger. For example, if a group of chip companies are eliminated, there will be hundreds of MOCVD idle and no one will take over, resulting in billions of losses. This is obviously caused by the lack of rationality in the LED industry. Being bigger but not stronger is a feature of the rapid development of China's LED industry. China's LED industry started late, subject to patent technology constraints, inertia dependence on foreign giant patents, so that the entire industry into a homogeneous competition, price war and other quagmire. Many LED enterprises have exhausted all their efforts just to survive, and they have been unable to focus on projects that require time such as technological innovation and product research and development. At present, although general conventional products can be manufactured in China, they still rely on imports in the field of high performance. How to Let enterprises slow down and calm down to do well in products is an urgent problem to be solved in the entire LED industry. In the market economy environment, the competition between enterprises has always been unable to get rid of the laws of the market. In the past two years, the channel of LED industry has developed rapidly. The price of LED general lighting products has dropped rapidly at a rate of more than 30 per year. In the first half of this year, the channel distribution has made the LED industry appear to be in a blowout situation, however, the sales market in the terminal market in the first half of this year was questioned. The reasons are intriguing. From this we can know that the construction of LED lighting channels must be cautious. If LED lighting products do not meet the demand of the terminal market, even if the channel construction is successful and the goods are laid down, the sales volume will not rise, which will only increase the burden on the enterprise. When the market really starts, enterprises need to spend a lot of energy to clean up and integrate the previous channel resources. As a result, the previous efforts have become a thing that hurts more than benefits. For example, in the construction of a city, a large number of houses were built without planning at the beginning, and the previous buildings will be demolished after the planning is implemented. The consequences of getting twice the result with half the effort will be revealed.