Industry consolidation has become a watershed in the inevitable LED industry

LED industry this year, there are signs of warmer, but there is a significant difference between the large companies and small and medium companies two days. In a number of leading companies reported more than 30% net profit growth at the same time, from the beginning of July, a number of small and medium sized LED companies in Guangdong have been bankrupt. LED industry believes that the LED industry top one hundred enterprises combined market share less than 30%, so the industry to enhance the degree of concentration has become a trend, technology, capital, brand companies can only be forced or be acquired.

LED industry ushered in Watershed

LED product prices and the quality of the stability of the upgrade, making demand gradually pick up, thus the industry, the middle and lower reaches of the collective benefit. Tongfang vice president Wang Lianghai once in June in Nandu reporter quite happily said, because the order is abundant, machine is full load operation. That time, a number of LED listed company executives also revealed that such phenomena are not uncommon.

As of August, a number of LED industry chain company semi annual report released in the two quarter to further confirm the results. From the recent report of three leading companies, three optical main growth performance is better; REFOND and Jufei benefit growth driven backlight and lighting, the first half net profit growth of more than 30%.

However, from the beginning of July, Zhongshan male record lighting factory, Zhongshan City Hao Lei crystal factory, Shenzhen billion light technology, Shenzhen ten party photoelectric and other small and medium sized LED companies have discontinued.

For this phenomenon, Shenzhen Jincheng Electronic Chengxue vice president Peng said that any industry has its life cycle, the market will enter the mature period after the oligopoly stage appeared watershed.

Industry concentration has become a trend

In the eyes of Guangdong Lighting Association Secretary General Liu Jun LED, for small and medium-sized companies, the government does not take a single, intense competition, the quality of price advantage, channel construction to enhance the threshold multiple causes the lack of competitiveness, is facing a grim situation to exit.

In order for the government, the government will set up a general requirement, small business nature and government orders Shouxiang leiyan. In the fierce competition in the industry, some small and medium enterprises rely on poor quality, cheap to win, and once a batch of problems will be very bad influence. Zhongshan xiongji before we sell 10 dollars when he was only three blocks, a lamp and then press the meager profits, some suppliers of funds. A LED industry sources.

In terms of sales channels, the rapid growth of e-commerce channels, many of the past traditional rely on agents and distributors down a level of distribution is no longer as before. The electricity supplier for warehousing, logistics, Internet operations have certain requirements, small and medium companies can not keep up.

Liu Jun said, and now more than LED manufacturers, channel chaos, many dealers are not afraid agent. Furthermore, technology updates faster, almost every quarter of the upstream chip light effect will increase, prices have also declined, the dealer is not Yahuo and distribution. Especially in the scale of the situation, the company's labor costs are very low, those who do not have the core competitive advantage of SMEs, naturally can not resist.

LED industry's top one hundred companies together market share may be less than 30%, so the industry has become a trend to enhance concentration, no technical advantages, the company can not be closed down or the acquisition of the brand. Liu Jun said.

And Peng Chengxue believes that the collapse is a survival of the fittest in the market, the vicious price competition, now the phenomenon is back to normal rational market, the industry still needs capital, technology and resource threshold.