LED upstream and downstream are increasingly competitive

In order to obtain more living space, some packaging enterprises choose to expand downstream. For example, Hongli Optoelectronics has Letia lighting and Wanrun technology also has some lighting products. Last year, Changfang lighting's revenue in lighting products accounted for about 30% of the total revenue. Packaging enterprises involved in downstream applications adopt different strategies in channels, and their final effects are also different. Hongli Optoelectronics started channel construction in March 2012, when Hongli Optoelectronics had about 100 distributors and direct selling centers in Shenzhen, Suzhou and other five cities. Li Guoping, chairman of the company, said at that time: Up to now, a lot of money has been invested, frankly speaking, the income is not high. On April 3 this year, Deng Shoutie, the secretary of Hongli Optoelectronics, said in an interview with reporters that the dealer is now suspended, not done, and the cost is too high. At present, the company is mainly a municipal engineering channel, and cooperates with engineering companies. This kind of channel does not need any investment. Wanrun technology is also cautious about the investment in physical channels. Hao, the company's secretary, told reporters that since last year, the company has also been building channels and has several stores, but it has not been built on a large scale. Channel construction has not been the focus of the company in recent years. Hao said that due to price factors, the company believes that the civil market has not really started, so Wanrun technology is currently focusing on commercial lighting and lighting projects, the characteristics of this product also determine that it does not need to develop dealers on a large scale and carry out large-scale Channel promotion. Changfang lighting is also expanding its channels on a large scale in downstream industries. According to the information disclosed in last December, the company has established an agent system in more than 30 provincial administrative regions and hundreds of municipal and county administrative regions, with more than distributors. Large-scale channel construction has generated sales expenses of up to 52 million yuan, up year on year. 80, although the revenue of Changfang lighting increased by in 2013. 03, but net profit fell 42. 21, become one of the LED packaging companies with a large decline in profits. Mei Zhimin, director of Zhou Ming science and technology brand, told reporters that as far as traditional channels are concerned, 100 thousand yuan will be subsidized for building a store, and 100 yuan for 10 million stores will be gone. Hao, on the other hand, said that if 100 thousand yuan is not enough to build a direct store, it may cost 200 thousand yuan. The construction of traditional channels still faces inventory problems. Mei Zhimin pointed out that after the store was built, the manufacturer had to press the dealer, but the LED was an electronic product, and the risk of inventory falling was very high. On April 10, the reporter called the Changfang lighting Securities Department. The staff said that Changfang lighting is already doing brand integration and will be dominated by the Changfang brand. The other two LED lighting brands of the company depend on the development. The life of LED upstream enterprises is difficult, and the downstream is also difficult. Based on the expectation of the outbreak of LED lighting industry, many listed companies have entered this field, such as qinshang optoelectronics and zhouming technology; Traditional enterprises such as NVC Lighting and Foshan Lighting are obviously unwilling to hand over the market to their competitors. They offer price knives to maintain their comparative advantages in the LED lighting industry. In the downstream of LED, as enterprises set foot on each other's territory, the competition pattern in the industry is intertwined and short-term combat is inevitable.