Inventory: 2012 LED industry predicament those things

Spent December 21, 2012, came in early 2013. Fortunately, the world, you are in, LED industry is still!

Looking back on 2012, LED experienced too much, looking forward to the blind crazy investment, turned to mergers and acquisitions, really can be described as a few degrees of joy! In order to take the essence of its dross, so that the LED industry in the new year to show a new atmosphere, LEDinside inventory with you in the 2012 industry dilemma those things.

[inventory] overcapacity

LED broad market prospects and policy support around the government to attract people blindly crazy LED industry. At the beginning of 2012, the industry of the lighting market is full of expectations, and to open the market and actively layout, industry professionals want to see opportunities to make a quick buck, a time of LED industry has become xiangbobo, people from all walks of life stampede in investment.

In addition, local governments have also introduced policies to support the development of LED industry, LED MOCVD of the upstream equipment subsidies and the intensity is maximum, "(upstream of the LED chip) from 2009 to 2010 in the basic balance of supply and demand, in 2011 to 2012 has been a serious pile up in excess of requirement pile up in excess of requirement. An industry source said.

According to information, the entire LED upstream operating rate of less than 50%. Three of the Quarterly Bulletin Elec-Tech showed that 80 sets of MOCVD equipment in two of its subsidiaries, only 38 units in the production state, remove another 5 for R & D, the other 37 machines are still in the installation process, the operating rate is only slightly higher than the 50%. Insiders pointed out that the next year is expected to LED upstream areas will still face pressure on the stock market, shuffle inevitable.

Experts said that from the upstream investment situation, extension investment growth fell from 46% last year to 10% this year, while investment in downstream applications growth last year was 21%, it increased to 53% in 2012, so the LED industry investment focus from upstream to downstream transfer.

[inventory two] price war

The second half of this year, LED shares announced 3W packaging companies Linsen LED bulbs only $1 (6.3 yuan), and T8 LED tube 1.2 meters of less than 50 yuan, the action of the LED formally entered the $1 era, but also allow LED to enter into a new round of price war.

Judging from the market reaction, the price war is one of the results of the direct result of LED upstream overcapacity. Excess capacity, inventory, market competition is becoming increasingly fierce, enterprises in order to maintain the normal operation of funds to maintain the competitiveness of the industry, only to take the price war as a means of promotion. The latest market statistics show that, compared with the beginning of this year, LED upstream substrate and chip prices have dropped by more than 1/3.

The rapid decline in upstream substrate and chip prices, resulting in the downstream product prices have also been down. Operating downstream products, the marketing department staff said, now, many manufacturers sell civilian LED lights, usually a quarter of the price down, the price range of each adjustment in 3% - 5%.

The recent outbreak of a company in Xiamen due to the economic downturn, resulting in high inventory pressure, the operating rate is affected, in only a few dozen machines in less than 7 is still running. At the end of the year, in order to return the funds, the price war had to start again.

LEDinside believes that the price war is the inevitable development of the LED industry, should be a correct view of this phenomenon, to ease the price war hand to ease the upstream of excess capacity, on the other hand, enterprises should also be in lower prices at the same time to ensure the quality of products.

[inventory three] channel construction

LED product terminal market is the consumer market, the ultimate goal is to sell to consumers, channels in this section is particularly important.

Channel is king, the brave advance". LEDinside believes that overcapacity in 2013 further intensified, the channel construction is an important barrier to the survival of LED lighting companies. And how to better the layout of the channel, LEDinside that can be considered from the following:

First, business philosophy, market segments, improve product added value. At this stage of the LED lighting, not only in the general lighting market, including lighting, entertainment lighting, agricultural sports lighting, commercial lighting, medical lighting, enterprises should do deep fine in familiar with the field, and to increase the added value of products, to meet customer demand, establish the brand, so as to improve the reputation and competitiveness of industry.

Second, multi-channel sales network expansion. Store channel is a major channel for the future of LED products, and now LED products in supermarkets and stores everywhere. The channel construction of LED can also refer to the practice of NVC, in home appliances, super channel, expand market share, accelerate product promotion, popularization and promotion,

Third, open up e-commerce channels. Electronic commerce is a new channel model of LED lighting products, and according to the investigation data of alliance national semiconductor lighting project display, through e-commerce sales of the products showed a gradual upward trend, the enterprise can use this platform to develop new sales channels, to occupy more market share.

Fourth, the invisible channel dispute. With the upgrading of lighting designer team's strength and quality, health and fusion light environment has been concerned, enterprises can increase the attention of design elements, through the art design to influence and persuade customers, and gradually expand the brand.

LEDinside summary: 2012, regardless of the LED industry's bustling or quiet struggle has become