LED lighting industry is in trouble

In the context of economic downturn, the lighting and LED industry has entered the traditional sales off-season as scheduled. Recently, both manufacturers and distributors have complained to the author that it is difficult to do business. The author understands that the industry has changed in the near future, some lighting companies have suffered losses, some executives have resigned, and some even have debts. In the face of industry difficulties, advantageous companies have stepped up their acquisitions and group heating, and the industry has ushered in a wave of mergers and acquisitions. In addition, local enterprises in Guangdong have taken a different approach and are preparing to move to the market outside the province to pull the front line to the northwest. The industry believes that with the original industrial advantages and the advantages of the North, it will help local lighting companies to open up the market to tide over the difficulties. The price war has led to market chaos. Recently, many lighting companies or dealers have reported to the author that business has been light this year and life has been difficult. A local dealer revealed that the business was still reluctant in April and May this year. In June, it was bleak, not even 10 thousand yuan. The dealer said that there are still two months from the peak season of The Golden nine silver ten, and the next seven or August will be a difficult day. Some insiders told the author that many companies enjoyed the opening of the year last year, and in the first year of this year, many companies were unfavorable, and sales were blocked for several months, resulting in an increase in inventory, and many companies complained. The person said that the situation in the second half of this year is expected to be more severe. It is understood that the current lighting industry can be described as internal and external anxiety. Many companies have fallen into losses and are struggling and suffering; Some companies face the resignation of senior executives, such as diligence on optoelectronics; Some companies are in debt, such as pure English Optoelectronics; Other companies have been acquired, such as pinshang lighting was acquired by Jiawei shares. According to the above-mentioned industry insiders, overcapacity in the industry has triggered vicious price competition among enterprises, which has caused the prices of downstream enterprises to continue to decline and the profit margin has been severely compressed. The source said that the current gross profit margin of the LED industry is only around 20, while the net profit is less than 5. It is understood that the direct consequence of the vicious price competition of enterprises is that the price of products on the market is low, but the quality is not guaranteed. The author recently visited the market and found that 3 w led bulbs, cheaper 3 yuan can buy one in the wholesale market, while similar products produced by brand companies are sold for tens of dollars, the price is very different. Some manufacturers blindly emphasize low prices, resulting in uneven quality of products on the market and chaotic prices. LED industry: mergers and acquisitions of enterprises join forces to keep warm. With the development of LED industry, many enterprises in other fields have also begun to enter the LED industry. Relevant industry insiders pointed out that excessive investment has caused oversupply in the industry. In the future, a few enterprises with R & D and production strength will develop and grow, while the middle and lower reaches of enterprises with low technical barriers will face the fate of being eliminated. It is understood that the net profit of Zhongjing electronics in 2011, 2012 and 2013 continued to decline, while founder's net profit in 2012 and 2013 was not only higher than that of Zhongjing electronics, but also on the rise. The net profit in 2013 even doubled compared with 2012. The industry believes that the acquisition of Zhongjing Electronics is to save the company's performance dilemma. After the successful acquisition, at least the performance of Zhongjing electronics in the next few years will not have to go downhill. Some insiders have analyzed that the scope of industrial integration will be expanded in 2014, and the integration of mergers and acquisitions in the industry will become a major trend in the future. Local enterprises: go out to explore the Northwest Market. It is understood that Guzhen Town, Zhongshan City, Guangdong province, has always been a large lighting production base in China. Its great advantage lies in its complete industrial chain, all kinds of accessories, power supply and all kinds of assembly one-stop services are in place, and the fierce competition between industries is fully reflected here, thus being called the battlefield concentration place for lighting enterprises in the industry. Some insiders pointed out that Zhongshan lighting enterprises generally have problems such as unclear product positioning and serious homogenization of products. However, under the pressure of a series of problems, the deposit and re-development of Mr. Zhou has become an important topic for many enterprises to actively seek breakthroughs. A relevant person in charge of Zhongshan Yinghuang lighting recently revealed to reporters that the sales situation of the company has been bad since the end of last year. In order to improve the current situation, the company's next step is to open up a new market in Inner Mongolia by cooperating with the dominant enterprises in Inner Mongolia, and use the local location advantages to expand the market scope to the Western or northwestern regions. It is understood that Yinghuang lighting is one of the lighting enterprises in Guzhen Town, Zhongshan City. The national International Lighting City, which was jointly built with the national group of Inner Mongolia's large commercial circulation group, was launched on the 3rd, it is planned to be officially put into operation in June 2015. According to the above-mentioned person in charge, 26 local enterprises have signed contracts with the national state-owned lighting city to prepare for the Northwest market. In response, industry insiders pointed out that local enterprises are seeking the northern market, reflecting from the side that lighting enterprises and even the entire industry are facing severe sales pressure and market tests.