A businessman in the eyes of the LED industry trends

In Li Xuliang's office hung a painting, a "good", four vigorous and forceful characters seem to coincide with the Guangdong merchants low-key yet domineering personality.

2013 new year, Li Xuliang founded KingSun has caused no small stir in the industry. This has become a LED Street boss of listed companies, the end of November last year, the size of non lifting of the ban caused the stock price plummeted, fell in two cities of Shenzhen and Shanghai Second, after the plasticizer incident protagonist JiuGuiJiu; a month later, the company announced again, the issue of not less than 400 million yuan of corporate bonds; and the second week of 2013, on the ground the photoelectric announced solution except Choi Ji 1 billion 500 million yuan order agreement.

Two market noise has begun to spread to the entire LED lighting industry, the voice of the voices of doubt come from the past, and even the media pre judgment, LED will follow the footsteps of the photovoltaic industry, embarked on a road of no return.

According to reports, in early 2012, once the scale of LED lighting enterprises occupy the domestic market before the three Shenzhen deshida due to cash flow problems caused by labor disputes, dozens of cars blocked the door; then, the upstream enterprise XURUI photoelectric Foshan hundreds of millions of dollars in chip project production; in May, online again broke Andy photoelectric Ningbo capital chain rupture, the boss "" run away, a few months after the company filed for bankruptcy; November, Shenzhen hibo photoelectricity also because of funding chain issues into a quagmire......

Even listed companies can not escape, according to public data show that 42 listed companies in the three quarter of 2012, profit decline or loss of a total of 24. Collapse, foot, loss became the head hanging on the head of the LED company Damour sword".

But these seem to be normal in Li Xuliang, downstream enterprises and then closed down or restructuring 60%, the industry will be healthy. In the negative period of the company, he did not respond, but went to Japan, where the LED has just won the bid street lamp project.

2013, LED industry will accelerate the elimination. Li Xuliang believes that the industry will fall a large number of companies, but he strongly denied that LED will repeat the mistakes of the photovoltaic industry, saying, LED and photovoltaic different. "

In the company, Li Xuliang often referred to Apple Corp's process design, which is one of the key points of its comparison with the photovoltaic LED. He believes that photovoltaic solar energy products can be on the line, no need to beautiful, but LED applications can be added to the value of the "Science + art" way. And the LED product except for the enterprise market, the general consumer market is the vast blue ocean, thus gradually into thousands of households from the government the single market demand, but the photovoltaic future for a long period of time will depend on the government procurement.

He often put forward another analogy is that, like a digital camera instead of a film camera, the future of LED lights will replace the traditional lighting products. This trend seems to have been echoed by the traditional lighting companies. At the end of December 2012, LED chip production enterprises Elec-Tech with the traditional lighting leading enterprises NVC mutual holding, trying to integrate LED technology products and channel resources.

Industry consolidation began, the industry competition intensified. Li Xuliang admits that NVC has the advantages of strong channels, but he also said that LED is different from traditional lighting products, "we have been in this field for many years and accumulated experience, is very difficult to go beyond".

In addition to the experience, his confidence largely stems from its ambitious plan is currently being implemented factory incubator program. In 2012, when part of the enterprise to survive, he saw the opportunity to start taking advantage of "fish" game. But this factory "incubator" plan is not a general sense of the acquisition or equity participation, but through strategic cooperation, not only direct investment in the country looking for potential enterprises, and provide technical, standard parts, such as a set of solutions.

He is negotiating with more than and 200 domestic companies, in 2012 has reached an agreement with the 20 companies. Li Xuliang's ultimate goal is to do in the field of LED MediaTek by a simple LED application product manufacturers turned around as a solution provider to Build Turnkey project.

It is interesting that such a choice behind the looming shadow of local government. Based on GOP considerations around the support for energy-saving emission reduction industry are biased towards local enterprises, thereby forming a certain regional barriers. The factory "incubator" plan cleverly solves this problem, cooperative enterprises do not even use KingSun brand, but to create their own independent brand.

Li Xuliang said he was a businessman, every penny spent on the blade. Not to splurge expansion of the plant, will not come up with real money to acquire trade. Just want to take a light way, by increasing the actual market KingSun share, so as to improve the bargaining power of the market.

In 2013, for some small and medium enterprises is a challenge, but for the brand means opportunity. In the LED industry turmoil, Li Xuliang domineering.