The future of LED lighting market: demand growth and fierce competition coexist

In the 2015 annual report cards successively released, due to the influence of macro-economy, many domestic lighting enterprises have experienced different degrees of performance decline. This includes the Foshan Lighting, which is mainly engaged in LED lighting and has been in an eventful autumn in the past year. 1. Restricted by the general environment in 2015, it was said that 20LED enterprises left the market. In fact, looking at the economic situation in 2015, we can find that the whole last year was still in a period of deep adjustment after the international financial crisis, with limited growth momentum. According to the analysis of economic experts, in the foreign economy, although the US economy is slowly recovering, the major economies are uneven, and geopolitical risk factors occur from time to time, making the road to economic recovery still bumpy; In contrast, the domestic economy is affected by many factors such as economic restructuring, insufficient demand and overcapacity, and is also facing insufficient investment growth potential, and the downward trend of related industries appears, problems such as difficulties in business operations. It is understood that in recent years, due to the gradual transition of the lighting industry to the LED lighting era, the market has shown explosive growth, attracting a large amount of social capital, what followed was the emergence of new manufacturers. However, last year, the growth rate of the industry slowed down for the first time. Relevant statistics show that the total output value of China's LED industry in the whole year was 396. 7 billion yuan (Does not contain, China Hong Kong, Macao and Taiwan regions), An increase of 15. 1. The growth rate dropped by 15 compared with 2014. 5 percentage points. Among them, the output value of upstream chips is 13 billion yuan, the output value of midstream packaging is 64. 2 billion yuan, and the output value of downstream applications is 319. 5 billion yuan. Admittedly, as far as many LED enterprises are concerned, 2015 is indeed a year of suffering. In this year, the market demand of traditional lighting products continues to decline rapidly. LED lighting has slowed down after rapid development and replacement in recent years, at the same time, the homogenization competition and price competition of industry products are further intensified. In fact, affected by the exchange rate fluctuations in the international market, the growth rate of China's LED lighting exports slowed down at the end of 2014. In 2015, affected by the low economic prosperity, China's demand for LED lighting was weak, although in May- Demand rose in July, but oversupply and market competition in the first half of the year LED the price of the LED industry chain to a general decline of 30- 50, the price of international enterprise products has also fallen by more than 20. Some LED industry research institutions have said that due to the dual impact of slowing demand and intensified competition, it is estimated that more than 20, totaling about 5000 LED-related enterprises will withdraw from the market throughout the year. Although there are doubts about the real data in the industry, looking back on the impact of fierce competition such as price war and product homogenization in 2015, we can indeed see that a large number of small and medium-sized LED enterprises have withdrawn one after another, as a result, some bankrupt companies have sold their stocks at low prices, which has caused an impact on the market and formed a vicious circle. This has led to the polarization of enterprises in the industry: the big ones will be Evergrande. As for the small and medium-sized enterprises that cannot survive, they have to retreat.