Guan Rongfu: opportunities and challenges in the LED Era

LED wealth Era

LED as a strategic emerging industry has been developing for 10 years, starting from the beginning of 2003 national semiconductor lighting project, the industrial scale from 9 billion yuan to 200 billion yuan last year, the output value of 19 to LED, the main business of the listed company, from the "11th Five-Year" National 863 plan to the Ministry of science and technology "ten city lights". From six ministries jointly issued the "opinions" semiconductor lighting industry to the "State Council on accelerating the development of energy-saving environmental protection industry in the country has given the opinion", LED semiconductor industry vigorously support, guide the development of the industry to a large number of preferential policies. Only in the first half of this year, the introduction of various places on the clear objectives of the LED industry to land, taxation, financial subsidies and other preferential policies and resource policy tilt up to 14.

According to the analysis of national semiconductor industry alliance, the key technology of LED lighting is constantly in progress, in 2012 the independent intellectual property rights of the silicon LED chip industry light efficiency has reached 130lm/w, the proportion of domestic chip import substitution last year has reached 72%, LED semiconductor lighting industry is also gradually improve, promote LED lighting standardization is positive, Guangdong Taiwan manufacturers and scholars. Back in 2012, the industry chain has been relatively complete, the industry has begun to take shape, the annual output value has reached 200 billion, the first half of 2013, the overall growth of output value of 25%, the scale of the industry continued to grow.

In lighting applications, the scale model used in 2012 has reached 152 billion yuan, is the fastest growing industrial chain links, such as the 2008 Olympic Water Cube for the first time variable full-color LED landscape lighting scene case, the world's largest node 70%, energy-saving LED lighting transformation in 2012 to undertake the Great Hall of the people on the ground and the surrounding stars meeting room in the case of illumination increased by 40%, 75% reduction in energy consumption, size and level of these successful demonstration projects has been leading the world.

Reference to the 2007-2013 lighting market data, LED lamps production growth of around 30%, LED lighting market penetration in 2013 has been far more than last year is expected to be 10%. At the same time, advances in technology have led to the decline in the cost of LED manufacturing, so that the price of the product to decline more than 20%-30% a year, the price of LED has been accepted by ordinary people. At present, lighting products on the market is still in the road lighting and commercial lighting, but the next 2-3 years, Home Furnishing lighting will occupy the mainstream lighting market by 2016 will account for about 40% of the market share, in 2020 will reach about 70%, has become the most important application areas. According to the analysis, the current indoor lighting bulb and straight tube based, market sales accounted for more than 60%, the product structure is still the main alternative to traditional lighting products.

In the LED lighting market outbreak in the start-up period, a stable, mature and stable source of engineering project operation ability, products and funds to advance the ability of payment, stable quality and price advantage of the strong, is the four most important conditions in the market. In the Sichuan market as an example, the replacement market of road lighting has just started, the replacement market road and tunnel lighting is basically still in the stationary state, only Chengdu has replaced more than ten million light development needs market projections to the whole country, the million trillion market for the past 1-3 years is still the mainstream, is only a question of who can eat the cake.

Core competence of enterprise

On the ground to LED semiconductor applications as the main business of the first listed company, is also the focus of lighting applications receivable the largest listed company has strong financial strength. The application experience of LED 16 years of development, with the National Laboratory Accreditation CNAS and his research institute of semiconductor industry, more than 400 patents, has a large scale production base, can realize the procurement, logistics, production of the highest quality lowest cost products. On the ground with a focus on the field of LED lighting applications experienced excellent marketing team of project operation, a mature and stable EMC project operation and management ability, is the engineering case of the highest specifications, the most comprehensive application project of semiconductor lighting solutions provider.

From 2010 onwards, Qinshang cooperation and China Southern Power Grid and local city planning bureau, since the successful operation of the 160 million group including Grandbuy commercial lighting energy-saving, Qingyuan 46 thousand LED street lights, 15 thousand lights and city transformation of energy saving project, Shenzhen 120km road lighting energy saving 23 mature EMC project, has become the current market one of the most mature EMC project operation enterprise.

Market opportunities and challenges

According to the analysis of the national authority of the data show that the traditional lighting billions of lighting market will continue to replace within 10 years, all replaced by LED products, the market size of up to $1 trillion. LED lighting market for this cake, in the next 3-5 years, the project is still the main channel for lighting applications, to deepen the channel construction, enhance the combat effectiveness of the sales must be the most important task for lighting manufacturers in 2014.

According to the current situation of LED market, channel construction can be divided into engineering channel, wholesale and retail channels, channels and four channels of foreign trade business.

Foreign trade channel is the main channel for the survival of many LED companies and even the only channel, concentrating on foreign markets is a good choice for corporate strategy. No need to adapt to the complex market demand, domestic customer response, customer relationship marketing, and many other features of "informal marketing factors", without the cost of building brand, the development of the domestic channels, construction of a huge marketing team.

Electricity supplier channel is a