The development of LED lighting industry cannot be rushed

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. For a long time, the coincidence between LED lighting and market demand has become the object of debate. However, the development of the industry has not been neglected with these arguments. Up to now, the production capacity and market of China's LED industry are still in an embarrassing situation. At the same time, in order to quickly seize the market and continue to grow, entrepreneurs have pushed the entire industry to a long muddy road. Holiday promotion, LED general lighting hopes to live in the real estate sales season, whether this year is successful, it is not good to draw conclusions. But what can be concluded is: If LED general lighting realizes blowout in the peak season of real estate sales and decoration, it means that the intensity of channel distribution in the first half of this year is still too strong, which also indicates that LED lighting is completely suitable for the market; If LED general lighting cannot be sold well in the peak season of real estate sales and decoration, it means that LED general lighting itself still has problems, and it is inevitable that the channels and distribution will be too hasty. In fact, the development history of LED industry in China is not long. China is now 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 behind many thorny difficulties in the future development of the industry. We have to reflect on whether the LED industry is really too hasty in China? After Shenzhen Lehman Optoelectronics successfully landed in the capital market, LED companies emerged in the market. Up to now, there are as many as 25 LED companies successfully listed with LED projects, and more than 100 LED companies are sprinting to the market. Judging from the performance reports of LED listed companies, most companies have not reached the expected investment targets. A small number of listed companies began to change their performance after a few months of listing. Listing for listing is a feature of Chinese LED listed companies. The crux of the problem also lies in how many LED listed enterprises China needs and how many LED enterprises are worth landing in the capital market? I am afraid that the entire industry needs to ponder before the IPO opens. 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. Currently, 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. In the future, China's LED industry will face more intense market competition. 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. Many enterprises have neglected the market evaluation and set foot in the LED industry under the encouragement of the local government. However, they have lost their market competitiveness due to the lack of clear market positioning, thus facing a difficult situation. If a batch 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. Becoming bigger but not stronger is another feature of the rapid development of China's LED industry. China's LED industry started late, subject to the constraints of patent technology, China's LED industry inertia relies on foreign giant patents, so that the entire industry into a homogeneous competition, price war and other quagmire. In order to survive, many LED enterprises have been unable to focus on projects that require time such as technological innovation and product research and development. Today, although general conventional products can be manufactured in China, they still rely on imports in high-performance fields. 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.