LED market has entered the stage of polarization

Throughout the entire LED lighting industry, although the industry has good news, various market chaos still exists. In this critical period of industry integration, news such as boss running away, shutdown and bankruptcy frequently emerge. the entire LED industry is still undercurrent. According to statistics, since last July, some LED enterprises have broken their capital chains under the pressure of market counter-encirclement and suppression, which has LED to a large-scale collapse. LED manufacturers including Zhongshan Xiongji lighting factory, Shenzhen Yiguang Technology Co. , Ltd. and Zhongshan Shihao leijing factory have successively experienced the incident of the boss running, and the beautiful bubble of the LED industry has been squeezed. One after another, the phenomenon of running away and the collapse of the storm proved that the LED industry crisis is not just a case. With the increasing competition, the LED market has entered a stage of polarization, and large enterprises are getting bigger and bigger. the survival of small and medium-sized enterprises is increasingly difficult. It is reported that the bankrupt LED enterprises are all small and medium-sized or low-end enterprises, and they have no competitive advantage in terms of capital or products. after the double attack of increased competition and blocked channels, it died. Many LED entrepreneurs believe that after two years of rapid development, the LED industry is about to bid farewell to the scuffle, and integrated mergers and acquisitions will be a good way for enterprises in the fierce market competition. At present, the tide of mergers and acquisitions in the LED industry is booming. It is not only an opportunity for listed companies, but also an opportunity for non-listed companies. Although the ownership of the enterprise is handed over, the shareholder of the acquirer obtains the listed stock of the acquirer by reselling the equity, which is equivalent to the indirect listing of the enterprise. Moreover, in most merger cases, the original shareholders will not lose their management rights. However, listed companies obviously have more advantages in M & A activities. Lianjian Optoelectronics announced on September 26 that it acquired Shenzhen yishida Electronics Co. , Ltd. in the form of stock cash. The main business of yishida is LED display. It has previously planned an IPO, and the profitability of the company is not inferior to that of its peers. Whether it is from the development track of both parties, or from the support of national policies, or from the current rising market environment, M & A seems to be a good way to avoid risks and gain a competitive advantage in the industry reshuffle. In the upstream of the industrial chain, LED chips have benefited from the rapid development of the Terminal LED lighting market. In the first half of this year, the market for LED chips is still continuing. Some experts believe that the number of enterprises with high-power chip production capacity in China is rare, and the integration of domestic enterprises should be in line with the market. In the future, the trend of the big enterprise Evergrande will be more obvious. In the middle of the industrial chain, there is little difference in technology among domestic LED packaging enterprises, but the only difference is the capacity scale of enterprises. Some companies integrate other small business resources through mergers and acquisitions to achieve the purpose of expanding production capacity. Gong Wen, general manager of Jingtai Co. , Ltd. believes that the decisive factors for the competition of packaging enterprises in the future will be management capabilities, cost control, scale and brand. In the downstream of the industrial chain, the LED Lighting Market 2014 as a whole is improving, but due to the homogenization of products, the competition of lighting products is often limited to the price level. Some enterprises open up a competitive strategy of business alienation through integration with the upstream. For example, Hong Kong-listed Zhen Mingli has completed the integration with Tongfang's shares. In the view of Jiang Guangjun, deputy general manager of Zhen Mingli's domestic Center, from the development of the industry last year, LED lighting products will break away from pure price competition and turn to value competition of products. He said that the intelligent building/home lighting solution launched by Zhen Mingli this year is precisely the trend of smart city and the action to adapt to market development. Industry insiders believe that 2013 is only a prelude to industry integration, and 2014 is the real year of integration. The number of LED sales enterprises may reach a peak in 2014, and the market competition will be more intense. The sales and circulation fields of LED channels will be saturated in provincial capitals and secondary cities. however, there is still much room for market development in third-and fourth-tier cities and counties and towns.