Profits of LED industry in 2013 fell short of expectations
Profits of LED industry in 2013 fell short of expectations
As 2013 is about to pass, a cavity rushed into LED lighting (Semiconductor Lighting)
Entrepreneurs in the industry found that although there were many orders, the profits were not as large as expected.
A few days ago, LED, an independent research institution in the LED industry, held its annual meeting in Guangzhou. New research data released by Zhang Xiaofei, president of the institution, showed that in the first three quarters of this year, the total output value of the LED industry was 263. 8 billion yuan, year-on-year growth of 28, but most of the company's revenue growth, net profit did not grow at the same time.
Zhang Xiaofei believes that with the rapid warming of the industry at the beginning of the year and the sharp increase of new entrants, the price war in the industry has become more and more fierce, and many enterprises have lost money. In the next five years, the industry will face a major reshuffle.
Price war runs through the whole industrial chain in the past two years, LED industry has serious overcapacity and frequent closures.
At the beginning of this year, with the opening of the LED lighting market, the whole industrial chain was thriving.
Despite the sharp increase in orders from enterprises, the fierce price war almost runs through the upstream and downstream of the entire industrial chain.
Tongfang shares engaged in upstream chip production feel obvious price competition.
It can be said that chip manufacturers have brought opportunities for the rapid development of the entire LED industry because we are constantly competing in prices.
Wang Lianghai, vice president of Tongfang shares, said with a wry smile that in 2013, domestic chip manufacturers reduced the price of chips to between 20 and 30 in the past, and this figure can only be completed by Chinese enterprises.
Wang Lianghai believes that the price war will last for at least two years, but the price is basically stable and there is little room for price reduction in the future, because it is unlikely that chips will reduce costs.
In the future, we will enter an era of product performance competition, with the same price to see who has better product performance.
For packaging manufacturers in the middle reaches, although the rapid start of the downstream LED lighting market this year has brought huge orders, the price competition among peers is still very fierce.
Downstream manufacturers do not have any loyalty at all, so there are many things that make a fuss about the price and Rob customers. A packaging manufacturer told the Securities Times reporter.
Downstream LED lighting applications are also fiercely competitive.
Due to the government's task of energy conservation and emission reduction and the launch of overseas markets, especially the European indoor lighting market, the competition between domestic LED lighting manufacturers in the field of engineering lighting and indoor lighting has reached white-hot. At the same time, due to the low technical threshold, some Layman enterprises have also entered this market, and new entrants often seize the market with a low price strategy.
In addition to the price war, the downstream field also launched a dealer resource grab war.
Guan Yong, general manager of sunshine lighting, has a deep understanding of this. He analyzed that in addition to upstream and downstream cooperation and self-built channels, more lighting enterprises in China are currently carrying out vertical integration of supply chains, and many upstream manufacturers (Manufacturer of light source devices)Direct access to downstream channels.
There is still a lot of market space in the future, although the LED business executives attending the meeting almost unanimously said that the industry will not increase profits and will not decide how to arrange it in the coming year, however, they almost all agree that there is still a lot of market space in the future, depending on who can survive and the rest will be king.
Optimism in the industry comes from the support of incandescent lamp withdrawal roadmap.
In the past few years, Japan, the European Union, the United States, China and other countries and regions have launched a road map for the withdrawal of incandescent lamps, stipulating that high-energy-consuming incandescent lamps will be eliminated in the next few years and encouraging the replacement of low-pollution LED lamps.
This year is just the year after the EU incandescent lamp withdraws from the road map, so at the beginning of this year, enterprises engaged in LED lighting obviously felt that orders from the European market were pouring in.
Guan Yong believes that there is no room for the Japanese market, and the European market has entered fierce competition this year. The big opportunity in the next year or two depends on the US market, because the United States will phase out 40 to 60 watt incandescent lamps next year.
The Chinese market may be a little further away because the Chinese version of incandescent lamps will allow incandescent lamps to survive for several years.
We can thus predict which years the next LED industry summit will be held.
However, under the fierce market competition, some enterprises may not be able to wait for the next industrial peak.
According to the data released by Gaogong LED, there are currently nearly 20 thousand domestic enterprises engaged in LED.
Zhang Xiaofei predicts that in the next five years, these enterprises will probably have less than half left.
Zhang Xiaofei predicts that industrial integration is the general trend. In the future, there will be about 10 domestic chip manufacturers, and the number of packaging factories in the middle reaches will be reduced by about 50, while the downstream application manufacturers will be 1. The number of 50 thousand has decreased to less than 10 thousand.
Enterprises with profits below 10 million yuan will no longer exist.