"The LED lighting industry is accelerating the reshuffle. It is expected that 20% of enterprises will close this year due to fierce market competition." Shi Yaozhong, vice president of Dehao Runda Group and chairman of Shenzhen Ruituo Display, said in an interview with Shenzhen Special Zone Daily that Shenzhen In view of the good LED industry foundation and complete industrial chain, this will be a major business opportunity for Shenzhen LED lighting companies.
In fact, since the relevant state departments issued the “elimination of incandescent lamp circuit diagrams†two years ago, the LED industry has become more competitive. Only companies with capital and technology can win market faster with industrial policies.
Excess, shuffling, winter, these glaring words are the status quo of the LED industry. LED companies such as Duo Duoli and Borent are in a state of bankruptcy. The reason is that blind expansion has led to a serious overcapacity, and once the funds go wrong, they will be defeated.
"Now the price of LED products has fallen sharply, and the profit margin has dropped from 30% to 15%-20%. It is time to test the internal strength of the company." A general manager of a LED company in Shenzhen told reporters. Although Shenzhen has gathered more than 1,000 LED companies, its total registered capital is less than 10 billion yuan, and its ability to resist risks is rather weak.
More importantly, the LED industry entry threshold is relatively low, most of the enterprises are small-scale, small workshops. When some small enterprises see the hot LED lighting industry, they will expand blindly, resulting in overcapacity. In order to break the market deadlock, some companies will not hesitate to lower prices and compete at the expense of quality.
"At present, all the links in the LED industry chain have shown a state of overcapacity." The relevant person in charge of Tsinghua Tongfang said that some unqualified enterprises will be eliminated, and some enterprises with development potential will be integrated, and some of the powerful enterprises will be strengthened. The only way to develop LEDs.
“Reshuffle can achieve industrial integration.†The relevant person in charge of the Shenzhen LED Industry Association said that the reshuffle will certainly eliminate a large number of small-scale enterprises lacking technical strength. After the collapse of small businesses, resources such as equipment and talents will flow to large-scale enterprises, which is conducive to the optimization of the entire industry.
In fact, since the relevant state departments issued the “elimination of incandescent lamp circuit diagrams†two years ago, the LED industry has become more competitive. Only companies with capital and technology can win market faster with industrial policies.
Excess, shuffling, winter, these glaring words are the status quo of the LED industry. LED companies such as Duo Duoli and Borent are in a state of bankruptcy. The reason is that blind expansion has led to a serious overcapacity, and once the funds go wrong, they will be defeated.
"Now the price of LED products has fallen sharply, and the profit margin has dropped from 30% to 15%-20%. It is time to test the internal strength of the company." A general manager of a LED company in Shenzhen told reporters. Although Shenzhen has gathered more than 1,000 LED companies, its total registered capital is less than 10 billion yuan, and its ability to resist risks is rather weak.
More importantly, the LED industry entry threshold is relatively low, most of the enterprises are small-scale, small workshops. When some small enterprises see the hot LED lighting industry, they will expand blindly, resulting in overcapacity. In order to break the market deadlock, some companies will not hesitate to lower prices and compete at the expense of quality.
"At present, all the links in the LED industry chain have shown a state of overcapacity." The relevant person in charge of Tsinghua Tongfang said that some unqualified enterprises will be eliminated, and some enterprises with development potential will be integrated, and some of the powerful enterprises will be strengthened. The only way to develop LEDs.
“Reshuffle can achieve industrial integration.†The relevant person in charge of the Shenzhen LED Industry Association said that the reshuffle will certainly eliminate a large number of small-scale enterprises lacking technical strength. After the collapse of small businesses, resources such as equipment and talents will flow to large-scale enterprises, which is conducive to the optimization of the entire industry.
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