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Floor 3, Zone B, Yuanfen Industrial Park,

Longhua New District, Shenzhen City,

Guangdong Province, China

Tel: 86-755-29734131

Fax: 86-755-81472860

E-mail: sales@visionledlight.com

Industry News

LED industry in 2014 What are the problems?

Date: 2014-09-01Source: 0 Read: 201

Now the LED display market segments mainly in the following categories: 
1.LED shaped screen market: ball display, square columns screen, cylindrical screen, lantern display, energy saving display, flexible display, this part of the market is only a small part of manufacturers in the production, not competition, is only a small part of the market, does not exist suit production, technical threshold is high. 
2 fine-pitch market: mainly used in the field of national security sophisticated end monitoring and command centers, military forces, space launch, etc., so that orders will not be much, but also the relationship between the non-general, production technology and quality requirements are very high , challenging for many companies, and the smaller the distance between patchwork problem screen body should bother to do research, product success and adoption rate should reach 99%, this product only state-owned enterprises and listed companies on the scale we go shipped to market. 
3 large spacing market: mainly used in the entire surface of the walls and roof of the city center of benchmark buildings like the Hilton Hotel in Jiaxing, Zhejiang roof is made of nearly 3,000 square meters of P52.5 led display. Shenzhen, Beijing-based 100 had "Tyrant" four hours to spend 4.8 million behind Chen, amazing how advertising revenue. 
4 conventional products on the market: indoor single color has been in China for almost 20 years, module manufacturers do not how willing to do, indoor surface mount board wholesale units, has started a fierce price war. Medium enterprises too much production of such products wholesale, say this product is simple, large, large market. But do these products subject to the light tube and chip manufacturers, wholesale upstream firm determines how much the market can go and go far. 
5 rental market: products in the leasing market, the vertigo Liao chaotic specifications make this market has been kind of too much, a lot of R & D investment, mold costs, product updates too fast, from the original casting imitation Belgian Barco aluminum box, and now brushed aluminum casing simplistic. 
Currently LED market problems mainly from three aspects: 
1, the product is uneven, the market is a lack of industry standards 
Some companies market to compete with low-end products, the price war. Its feature is cheap, quality is not guaranteed. 
One industry source said Guangdong, Zhongshan with more than three cabbage price of money can buy an LED bulb, while the brand's production of this type of lamp may sell tens or even hundreds of dollars yuan, the price difference is very poor. This is because some manufacturers only emphasizes low-cost, low-quality products with low Bo market's attention, in total disregard of the safety and health of consumers. This is a direct result of the entire LED industry market mixed products quality, price chaos phenomenon. 
Recently, the Guangdong Provincial Quality Supervision Bureau released a report on 51 batches of LED lights and light controller sampling results, of which 20 batches of substandard, substandard products reached 39.2%. This means that a large number of unqualified LED products are flooding the market. 
2, low profits, financing difficulties 
Also led to vicious excess capacity among enterprises, the LED industry downstream enterprise product prices continued to fall, profit margins are compressed. Gross margin LED industry is currently only about 20%, while net profit is less than 5%. 
SME financing is also an indisputable fact. External costs increased push to increase capital requirements, capital side is not loose in the case, access to credit for SMEs limited resources, to meet the financing needs of the low. Plus SME foundation thinner, loans difficulty also increases. Even loans to money, loan interest and guarantee fees go up too high, but also to small and medium enterprises can not afford. 
3, overcapacity, survival of the fittest 
With the development of LED industry, many other industries have begun to enter the LED industry, which resulted in severe overcapacity, but also lead to further deterioration of the competitive market environment. Excessive investment makes the LED industry oversupply, many companies in the lower middle and lower technical barriers. Future LED enterprises will face brutal survival of the fittest. Only a few truly R & D, manufacturing strength of enterprises will gradually grow, and more companies will face the fate of being eliminated. 
On price competition in terms of technical requirements for low-end enterprise funds, low barriers to entry makes this very competitive field. Future market share will be more and more to a brand, there are channels, innovative enterprises are concentrated, the industry will face a reshuffle, there may be a large number of small and medium enterprises to exit the competition. 
How to break through the bottleneck of the current development: 
1, build quality to break the siege 
LED companies do when the product does not have to do everything, everything is full, we must form their own unique style, characteristics of the product, by one or two high-quality products, driving sales of other products. Even the lighting fixtures industry characteristics will be applied to all walks of life, but different applications have different requirements for lighting, even in the same field, different types of lighting fixtures and the needs of its required parameters are not the same. Therefore, an enterprise to cover all types of lamps, is bound to disperse the concentration of enterprises, it is difficult to do fine a product, it is difficult to form their own unique competitive in certain areas. Ali Baba's successful experience on persuasive, Alibaba is focused Lynx, Taobao these two very popular brands, then bigger and stronger markets, and achieved great success. After all, the most important is the product positioning must be accurate. Identify the product positioning, in order to improve market competitiveness. 
2, with the "giants" of the shoulder 
Some experts have suggested that SMEs can use the "parasitic" approach to supporting services for big companies and big brands to provide OEM and ODM services. SMEs can strengthen its supporting capacity, orders for large enterprises, relying on the "tree" to develop, seek umbrella, solid sales performance, to ensure that survived in the melee. Of course, LED enterprises leveraging not only point to big brands, big companies move closer. In fact, in product, channel or technology, innovation capability has its own unique advantages, with their powerful combination of complementary businesses or reached as a strategic partner, but also a good choice. If the two sides complement each other, to reach a consensus, so that there is room for development cooperation. 
3, attention talents integrate acquisitions 
By the end of 2012 meeting of the Central Economic Work Conference has proposed "would resolve the contradiction overcapacity as a priority next year," and proposed to the automobile, steel, electronic information, pharmaceuticals, agricultural industry and other industries, focusing on promoting corporate mergers and acquisitions. 
2013, LED industry has emerged more than M & A cases, therefore, in 2014 industry consolidation will expand. 
It should be noted that, in mergers and acquisitions, and joint few large enterprises to accelerate the merger integration is the trend of the industry. Elimination of backward production capacity and acquisitions, eliminate market environment, the formation of domestic and international competitiveness with several leading enterprises is an inevitable trend of future industrial development. Thousands of companies competing in the market veteran, all a test of courage and strength of a business. A business only constant attention to personnel savings, to create a good development environment, constantly doing fine and stronger their products in order to resist being defeated other competitors, and in its product areas and markets continue to develop, consolidate and powerful. 
LED companies do when the product does not have to do everything, everything is full, we must form their own unique style, characteristics of the product, by one or two high-quality products, driving sales of other products. LED spherical screen, cube, cone, cylinder screen, energy saving and environmental protection shaped, personalized products to meet customer needs. And Kangshuo exhibition is seizing market demand innovative products, has been at the forefront of the industry. 
LED enterprises not only need to do to meet customer demand for the product, but also to make innovations in the service, rather than sit back and wait to take the previous mode of service until the problem of customers come back to the LED companies handle customer questions and objections. The service should allow the company to go out and take the initiative, the timing of customer pre-sale, sale and return visit. While customers using the product of the process, should regularly visit, collect customer usage experience, aggregate customer feedback problems in a timely manner to the appropriate strategy to solve customer problems and troubleshooting.
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Foor 3, Zone B, Yuanfen Industrial Park, Longhua New District, Shenzhen City, Guangdong
Province, China
Tel: 86-755-29734131
Fax: 86-755-81472860
E-mail: sales@visionledlight.com