The LED industry is facing a reshuffle. The market space is still large in the future

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. The new survey 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 simultaneously. Zhang Xiaofei believes that with the rapid warming of the industry at the beginning of the year and the sharp increase in new entrants, the price war in the industry has become more and more fierce, and many companies have lost money. In the next five years, the industry will face a major reshuffle. The price war runs through the whole industrial chain in the past two years, the LED industry has a serious overcapacity, and the tide of bankruptcy has frequently hit. At the beginning of this year, with the opening of the LED lighting market, the entire industrial chain is 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 for prices. Wang Lianghai, vice president of Tongfang shares, said with a wry smile that in 2013, domestic chip manufacturers reduced the chip price to between 20 and 30 in the past, and this data 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 cuts in the future, because the chip is unlikely to reduce costs. In the future, it will enter an era of product performance competition. The same price will depend on whose product performance is better. For the packaging manufacturers in the middle reaches, although the downstream LED lighting market has rapidly started this year, bringing huge orders, the price competition among peers is still very fierce. Downstream manufacturers do not have any loyalty, so there are many things that make a fuss about the price and grab 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 companies have also entered this market, and new entrants often seize the market with low-cost strategies. In addition to the price war, the downstream sector 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 companies in China are currently carrying out vertical integration of supply chains. Many upstream manufacturers (Manufacturers that provide light source devices)Directly enter downstream channels. There will still be a lot of market space in the future. Although the senior executives of the LED business community who attended the meeting almost unanimously said that the industry will not increase profits and will not decide how to layout in the coming year, however, they almost all agree that the market space in the future is still very large, depending on who can survive and the rest is king. The optimism of the industry comes from the support of the incandescent lamp exit roadmap. In the past few years, countries and regions such as Japan, the European Union, the United States and China 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 low-pollution LED lamps will be encouraged to replace them. This year is just the end of the EU incandescent lamp exit roadmap, so at the beginning of this year, companies engaged in LED lighting clearly feel that orders from the European market are coming. 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 eliminate 40 to 60 watts of incandescent lamps next year. The Chinese market may be a little further, because the Chinese version of incandescent lamps exit the road map and 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 companies may not wait for the next industrial peak. According to the data released by Gaogong LED, there are currently nearly 20 thousand enterprises engaged in LED in China. Zhang Xiaofei expects that in the next five years, these companies will probably have less than half. Zhang Xiaofei predicts that industrial integration is the trend of the times. 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 number of downstream application manufacturers will be 1. The number of 50 thousand has been reduced to less than 10 thousand. Enterprises with profits below 10 million yuan will no longer exist.