Blind LED price war is tantamount to doing

China's LED industry has reached an inflection point. Today, LED industry information platform China LED online person in charge, in the second half of last year, the LED industry had a wave of closures, and now the market is still relatively confusing. Mainly because of too many manufacturers to enter the market capacity over load, and most of the collapse of the enterprise funds strand breaks. "

Some have been engaged in real estate or decorative materials, Chaoshan and Jiangsu and Zhejiang bosses have entered the LED industry, the competition is very intense, profit margins gradually lower, which will inevitably lead to market reshuffle.

"Vicious competition by unscientific and unreasonable, reckless, barbaric price war, this is tantamount to doing, the result is bound to the grave. Chen Zhiping, director of the Department of marketing innovation in Shenzhen, said the company is also very concerned about the current situation of the market, LED industry has not yet introduced a reasonable standard industry standards, which led to uneven product quality. Some small businesses use poor raw materials, production is not standardized, resulting in a lot of formal production companies can not get orders, production costs are high, difficult to operate. "

Since 2008, in the context of policy support, many people are optimistic about the LED emerging industries, want to enter this market share. Total LED industry into the blowout phase, with an average annual growth rate of more than 35% rapid growth. Guangdong province in 2011 LED industry reached 150 billion yuan, ranking first in the country. However, most of the LED enterprises to processing and assembly oriented, lack of technical research and development capabilities.

In the LED industry, the upstream industry is mainly involved in the design and production of raw materials and epitaxial chips, midstream industries, including a variety of LED devices and packaging, downstream industries, including a variety of LED applications. Applications include LED display screen and LED lighting two categories. In China, although the former developed more mature than the latter, but because of serious product homogeneity, excess capacity, price war between enterprises is very fierce, small businesses struggling to survive. In the LED lighting, more dependent on the local government's municipal works to digest, expensive prices make the civil still out of reach. Affected by the weak international market, LED product exports are sluggish. At the end of 2011, Shenzhen's two leading enterprises LED junduoli and deshida collapse.

But there are also focus on technological innovation and product quality of the enterprise, not only survive and grow. Chau Ming Technology in 2011 successfully landed gem, its chairman Lin Mingfeng said that as of December 2011, the company has applied for more than 100 patents. Now LED industry profit polarization. Homogenization of products can be said to enter the white hot competition stage, the profit is relatively low, and has a unique, innovative products have a high profit margin. "

Founded in 2008, Shenzhen Sanjia science and Technology Co Ltd, in the LED industry is not large, but the company also has a number of patents, which is an advantage of high power LED lighting heat dissipation of the invention patent, because of good heat dissipation LED lamp will not light. "Every time we finish a project, we regularly track the quality of our products on a regular basis. "Mr. Li, deputy general manager of the company, said," we have spent a lot of manpower and material resources to do product development and quality tracking, innovation and quality is the survival of our capital. "