Incubator factory can crack the bottleneck of LED industry

From China's phasing out incandescent roadmap to 2012, financial subsidies to promote LED lighting products, to the "12th Five-Year" 8 billion yuan purchase plan, accelerating the development of China's LED lighting industry like a raging fire.

In order to further accelerate the overall popularity of LED lighting, the landing of the gem in November 2011, KingSun recently launched a "factory incubator" business model. The plan is to provide "core lighting module + intensive supply chain + professional solutions to our partners, and provide technical research and development, production management, project reporting, patent licensing, marketing strategy and full support, and the partners do not need to use the KingSun brand, which will effectively break local protectionism and further reduce the cost.

"If there are 500 such partners, KingSun will have a stronger bargaining power of upstream," civilian "product realization will be noble. "Qinshang responsible person told the reporter.

At the same time, the national development and Reform Commission and the Ministry of Finance and the central information secretary Secretary for economic planning and the Ministry of science and technology of high-tech company recently jointly commissioned Chinese Electronics Import and Export Corporation for domestic public tender on 2012 financial subsidies to promote LED lighting products, determine the promotion of efficient lighting products enterprises, product specifications and price agreement.

For the recent policy trends, analysts pointed out that the government procurement in the short term will still be the main driving force for the development of the LED industry, the central procurement plan will be implemented directly to the finalists LED companies to contribute. In this regard, KingSun responsible person optimistic that the overseas market has been explosive growth, the subsidy policy landing will further activate the domestic market, the next 3-5 years is expected to continue high growth.

LED high prices has been a major bottleneck restricting the development of the industry, the solution to this problem can not only rely on government policy support, the key lies in the cultivation of enterprises in product technology, production capacity, marketing and so on.

It is understood that the research KingSun has been committed to the application of LED technology, through the integration of a variety of core technology, innovation system, has made a major breakthrough in a number of application technology. Through the ground to create the world's largest intensive procurement and production system, with large-scale production capacity to form a strong bargaining power of the product, the price decline of raw material products. Intensive procurement and abundant supply chain resources are the catalyst of product price". From the beginning of 2010, KingSun began to have launched a "plan A", "A+" and "B plan", spread to civilians prices to promote LED indoor lighting and street lighting.

Insiders said, "Qinshang factory incubator program is full replication Qinshang DNA, construction of a number of new LED star factory, help a hatchery to build its own brand, make it become the location and the surrounding area of the most competitive enterprises, to participate in the bidding project of regional market of major projects, leading regional market Street reconstruction and LED LED indoor and outdoor lighting application trend," incubator factory "to achieve market revenue, land resources, subsidies and other comprehensive benefits, and help the local government to establish the LED semiconductor lighting industry base and a strong industrial cluster, government, enterprise, on the ground of" win win win".