Although there are vicious competitions in the LED industry, many companies believe that after the “shuffleâ€, the industry will eventually return to an orderly operation, and consumers will gradually accept LED products.
“In the past few years, there have been some Copycat products in our market in China, but we always have a positive attitude towards this phenomenon; because if we don’t do well, no one will imitate it.†Already at Puri Optoelectronics Lin Chengyi, who has worked for 11 years, is a senior technical manager. He said that there is vicious competition in the domestic LED industry. "In recent years, the market price has dropped by 30% to 40% every year."
Industry insiders said that with the efforts of local governments to strengthen energy conservation and emission reduction, the emerging LED industry has attracted a large influx of capital. Between 2010 and 2012, there has even been a situation in China that has invested in the LED industry. “In Shenzhen, there are more than 1,000 enterprises in the upstream and downstream of the LED industry chain, and more in Zhongshan.†Wang Songhe, sales manager of Shenzhen Puhui Lighting (Group) Co., Ltd. said.
In the face of fierce competition and falling prices, companies can only survive if they expand sales. There are also companies that choose to take risks and do everything at low cost, such as using poor quality chips, while also using inferior materials to drive down prices.
In this regard, Li Jianming told reporters: "I believe that the price of the LED industry will gradually stabilize, because products of poor quality will be eliminated, and enterprises that do not pay attention to quality will eventually be eliminated." Many industry insiders agree with this view. Someone told reporters that the LED industry will carry out a "big reshuffle" through the market, and then 70% of enterprises will be "eliminated out", leaving a group of companies with strong capital and strong scientific research capabilities.
It is worth noting that the scale of the LED industry has not shrunk as prices have fallen. The Chinese LED market has achieved rapid growth in the past decade. According to the evaluation, in 2013 alone, the overall market sales of LED lamps and lighting equipment was about 32 billion yuan, while the sales of LED kits exceeded 8 billion yuan.
The LED industry chain mainly consists of four parts, namely LED epitaxial wafer, LED chip manufacturing, LED device packaging and product application. At present, American and Japanese companies have monopoly advantages in epitaxial wafers, chip technology and equipment, while European companies have outstanding advantages in applied technology. China's LED is still at a relatively low level. The data shows that about 80% of the products are concentrated in the application market of landscape lighting, traffic lights, etc., and there are relatively few high-end products such as automotive lighting and large screens.
Lin Chengyi has a deep enough observation on the industry in the industry. He said that even now there are people who doubt the environmental protection of LEDs, "but the quality requirements of the Chinese market are improving." .
Chinese companies are also climbing upstream of the LED industry chain. “We have both R&D and production departments in Guangzhou.†Zhang Teng, sales engineer of Jingke Electronics (Guangzhou) Co., Ltd. told reporters that Jingke Electronics is a joint venture located in Nansha, Guangzhou, with the goal of forming a scale in Guangzhou. LED upstream industry chain. "We have a technical operation team composed of many doctors and masters." The reporter learned that Jingke Electronics relied on independent development and gradually mastered the core technology of the LED industry with international leading level.
“In the past few years, there have been some Copycat products in our market in China, but we always have a positive attitude towards this phenomenon; because if we don’t do well, no one will imitate it.†Already at Puri Optoelectronics Lin Chengyi, who has worked for 11 years, is a senior technical manager. He said that there is vicious competition in the domestic LED industry. "In recent years, the market price has dropped by 30% to 40% every year."
Industry insiders said that with the efforts of local governments to strengthen energy conservation and emission reduction, the emerging LED industry has attracted a large influx of capital. Between 2010 and 2012, there has even been a situation in China that has invested in the LED industry. “In Shenzhen, there are more than 1,000 enterprises in the upstream and downstream of the LED industry chain, and more in Zhongshan.†Wang Songhe, sales manager of Shenzhen Puhui Lighting (Group) Co., Ltd. said.
In the face of fierce competition and falling prices, companies can only survive if they expand sales. There are also companies that choose to take risks and do everything at low cost, such as using poor quality chips, while also using inferior materials to drive down prices.
In this regard, Li Jianming told reporters: "I believe that the price of the LED industry will gradually stabilize, because products of poor quality will be eliminated, and enterprises that do not pay attention to quality will eventually be eliminated." Many industry insiders agree with this view. Someone told reporters that the LED industry will carry out a "big reshuffle" through the market, and then 70% of enterprises will be "eliminated out", leaving a group of companies with strong capital and strong scientific research capabilities.
It is worth noting that the scale of the LED industry has not shrunk as prices have fallen. The Chinese LED market has achieved rapid growth in the past decade. According to the evaluation, in 2013 alone, the overall market sales of LED lamps and lighting equipment was about 32 billion yuan, while the sales of LED kits exceeded 8 billion yuan.
The LED industry chain mainly consists of four parts, namely LED epitaxial wafer, LED chip manufacturing, LED device packaging and product application. At present, American and Japanese companies have monopoly advantages in epitaxial wafers, chip technology and equipment, while European companies have outstanding advantages in applied technology. China's LED is still at a relatively low level. The data shows that about 80% of the products are concentrated in the application market of landscape lighting, traffic lights, etc., and there are relatively few high-end products such as automotive lighting and large screens.
Lin Chengyi has a deep enough observation on the industry in the industry. He said that even now there are people who doubt the environmental protection of LEDs, "but the quality requirements of the Chinese market are improving." .
Chinese companies are also climbing upstream of the LED industry chain. “We have both R&D and production departments in Guangzhou.†Zhang Teng, sales engineer of Jingke Electronics (Guangzhou) Co., Ltd. told reporters that Jingke Electronics is a joint venture located in Nansha, Guangzhou, with the goal of forming a scale in Guangzhou. LED upstream industry chain. "We have a technical operation team composed of many doctors and masters." The reporter learned that Jingke Electronics relied on independent development and gradually mastered the core technology of the LED industry with international leading level.
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