Escape lighting off-season, Guangdong enterprises fought Northwest

In the economic growth down the big environment, lighting and LED industry has entered into the traditional off-season sales. Recently, regardless of the manufacturers or channels are complained to reporters that the business is difficult to do business sad.

Reporters learned that the recent internal changes in the industry, some of the loss of lighting companies, some executives to resign, and some even debt on foot. Faced with the plight of the industry, the advantages of enterprises have stepped up the acquisition of Baotuan heating, the industry ushered in a wave of mergers and acquisitions.

In addition, the local enterprises in Guangdong is another way, ready to move outside the market, will pull the front to the northwest. The industry believes that, with the advantages of the original industry and the northern regional advantages, will be conducive to the local lighting companies to open up the market through the storm.

Price war led to confusion in the market

Recently, many lighting companies or dealers told reporters that this year's business is light, the days are not good. A local dealer revealed that in April and May this year, the business is barely, to the June will be bleak, even 10 thousand yuan are not. The dealer said, from the golden nine silver ten season has a full two months, the next July and August will be the most difficult days.

Insiders told reporters that last year many companies have enjoyed a "year fortune", and this year a new year, many enterprises will lose the first battle, for several months since sales blocked, causing inventory increase, many companies complain incessantly. The source said, is expected in the second half of this year, the situation may be more severe.

It is understood that the current lighting industry can be described as internal and external anxiety. Many companies fall into a loss, suffering in the struggle and suffering; some enterprises are facing the resignations, such as KingSun; some enterprises and enterprises are in debt run away; mergers and acquisitions, such as product lighting by Jiawei shares acquisition.

The industry sources, the excess capacity in the industry led to vicious price competition between enterprises, so that the downstream product prices continue to decline, profit margins are severely compressed. The source said that the current LED industry gross margin is only about 20%, while net profit is less than 5%.

It is understood that the direct consequences of vicious price competition is to lead the market price of the product, the quality is not guaranteed. Reporters recently visited the market found that the 3W LED bulbs, cheap 3 yuan will be able to buy more than one in the wholesale market, and similar products produced by the brand company has sold dozens of dollars a price gap. Some manufacturers blindly emphasize low prices, resulting in product quality varies on the market, the price confusion.

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