2012 LED industry how to face the influx of speculators

Not long ago, Jacky Wu's business career LED shortage of funds, he will only lead to detached Villa Castello luxury yicui villa sell to NT $more than 400 million price, residential rental moved to a building. However, as early as three years ago, has just become the ASL electronic printed circuit board of listed company chairman Jacky Wu, confident claims to do LED industry Jay Chou. And said to use low-cost strategy to eat a cake LED industry.

In the year of Wu Yanzhong, do LED than the host much simpler, and now it seems, LED industry is not as easy as he imagined.

Speculators and misappropriating enclosure, disturb the normal order of price war

At present, the threshold of the LED industry is low, the standard is disordered, and the enterprises swarm into the industry, thus causing the disorder of the industry. It also increases the number of speculative behavior, and a variety of speculation.

Some did not have money capital of small factory, there is no fixed market, there is no strict quality control management, no cost, no development cost, not easy to pick an order over, and earn a little, just make a little more. For product quality, after-sales service, and a series of factors that affect the sustainable development of enterprises, they are not considered the scope of. Poor can only rely on low-cost competition to earn market share, such a low price, the market has a considerable influence, at the same time, also let the normal production of the enterprise in a dilemma, because if speculators follow lower prices, it means that the loss of profit, but if you do not follow down, perhaps it means that the loss of market. But their products are a good, very cheap, as the consumer is concerned, in the two paragraph looks like products before, most of them will choose the low price, and the price is cheap, or have quality defects, or so from the good. This not only undermines the reputation of the domestic LED industry, but also to China's LED industry in the international left a very bad impression.

While some have capital speculators, it can be said that this line of motives, is optimistic about the government to provide funds and land; it is reported that some local governments, not only for the land use right to land ownership, enterprises can be directly to the land as collateral to bank loans. Then use these loans to invest in a new round of capacity expansion. LED the whole industry chain after two years of explosive development, has now shown overcapacity trend, in the relevant financial statements of listed companies, the gross profit margin declined, the performance of growth decline. Intriguing is that a large number of shares break at the same time, many LED companies IPO enthusiasm has not diminished. Riyadh, photoelectric distance, Jufei, rectangular lighting, a large number of new shares will continue to enter the LED series of IPO stage. This can not help but ask people to get together listed LED shares, to investors brought about is a pie or a trap?

Industry exaggerated wind prevails, where is the way out?

Many people worry about, said in the LED industry has now formed a scissors clearly, is the strong stronger, the weak weaker situation. In fact, I believe that this situation does not have to worry about, and now is the market economy, the survival of the fittest, only to enter the LED industry speculation, has been eliminated as a matter of course.

Should be worried about is that speculation is rife, large enterprises have big business speculation methods, small businesses have small business speculation, everyone is going to speculate, then who will bear the responsibility of the development of the industry?

At present, the scale of the transformation of enterprises in the process of size, there are starting, should recognize their own situation and conditions to be differentiated. At present, the plight of the LED industry, is a stage in the development process, the current labor pains are more standardized development of the industry. The formation and development of an industry generally after the bud period, reconstruction stage and mature stage of three stages, namely from the scanty number of companies began to rise, and many enterprises to seize the opportunities of the herd, then according to the market demand, will promote the industry reshuffle, and the formation of brand pattern, development of a few oligopoly or leading industry.

Therefore, the overall situation does not mean the end of the industry as a whole, does not mean that the industry does not have prospects, do not be overly pessimistic and panic.

Some industry insiders believe that the current industry is the main problem of individual failures, not universal. The author believes that the closure is a warning, the future of enterprise investment projects should become more cautious, not because of the government's preferential investment conditions and blind expansion. The development of enterprises need to rely on their own, not only need the core technology and standardized management system, more important is the rational expansion.

At the same time, fully consider their own financial and technical strength, market prospects can support capacity expansion, because when hundreds of billions of funds also hit LED industry, overcapacity, disorderly competition, local protectionism and so on price risk will be magnified indefinitely. And when the investment is settled, the government will not pay for the future of the enterprise, the future development of the enterprise depends on its own good fortune.

Any emerging industry, the trend will not change, there will be ups and downs in the development process, those mature industries have experienced Phoenix Nirvana rebirth, no need to be too pessimistic. Several business failures, and not to 'yiyezhiqiu' attitude to look at the entire industry, after all, an enterprise can fall, but the industry will eventually have its existence