LED industry thinking: how to get out of the Red Sea, find blue ocean?

In 2012, the solar photovoltaic industry has been prepared by the industry concerned encountered hitherto unknown development dilemma, so both inside and outside the industry some people ask: "the development of the LED industry will encounter the same problem or the same dilemma?" after all after a period of rapid development, China's LED industry has encountered stage and structural overcapacity investment overheating, disorderly development of the industry and other issues. But I do not think such a problem will occur in the LED industry. Mainly based on the following points: one is the judgment and photovoltaic industry mainly rely on foreign markets, domestic and overseas market of LED industry open up both domestic market, dispersed market risk; two is the LED industry wide application, market segments continue to expand the market to digest capability; three is the LED product price increases, the energy-saving appliances Huimin engineering, out incandescent roadmap and other countries supporting policies to promote the general lighting market space continue to release, industry development potential.

All in all, 2012 is a key year for the adjustment and upgrading of China's LED industry, industrial development to overcome a variety of adverse factors, and made a solid step forward. The industry continues to expand the scale of technology capacity significantly improved, key materials and equipment have breakthrough, chip manufacturing and international advanced level gap shrinking device package close to the international advanced level, the product application has reached the international advanced level. After the emergence of a number of mighty wave crashing on a sandy shore, industry leading enterprises, good policy environment is gradually formed.

However, the development of the industry in the short term, long-term contradictions are still outstanding. In the short term, phased and structural overcapacity, falling prices squeeze corporate profit margins, uneven product quality and other issues still need to resolve; in the long term, the core technology has not yet made a fundamental breakthrough, the industrial structure is still not reasonable, the lack of large enterprises with international competitiveness, and the standard detection system needs to be improved, the risk of intellectual property rights is still outstanding. In particular, the LED industry chain is long, the industry, the middle and lower reaches have different characteristics, enterprises how to get out of the Red Sea, find blue ocean, the industry needs to think. Combined with a little bit of experience in the management of the industry, from the industrial chain, the middle and lower reaches of the individual aspects of the proposed immature consideration for industry colleagues reference.

Scale, management, quality and cost is the key to the success of LED chip companies. With the LED chip light emitting efficiency and technology continues to mature, and the substrate from 2 inches to 4 inches and 6 inches LED chip development, proportion of LED products continue to decrease, the majority of enterprises have a certain technical ability. In the future, only the scale, management, quality and cost advantages of leading enterprises to win in the competition. In this part of the number of enterprises will be very limited, which is similar to the current integrated circuit manufacturing industry. Earlier, there are a number of domestic enterprises to enter the chip manufacturing sector, the acquisition of a large number of MOCVD equipment. However, due to fierce competition in the industry, some of the equipment is idle. Therefore, how to improve the industrial development is the key to the development of the industry through the merger and reorganization of enterprises, and the cultivation of large enterprises.

Two, to extend or enhance the interaction with the application is the main direction of LED packaging companies. China's LED packaging industry and the international advanced level gap is relatively small, the current mainstream technology has been from the direct, SMD, flip chip, integrated packaging and other forms of development, basic and international level. LED packaging industry has gone through the era of high margin, is to maintain the normal gross margin. 2012 China LED lighting white light packaging device average price decline of more than 30%. The rapid decline in the price of packaged devices to promote the development of packaging enterprises high profits, the application of the field of demand for products. Currently, the number of pure packaging LED enterprises do not exceed 15%. In the face of changes in LED chip manufacturing technology and application technology, packaging enterprises to strengthen the response, upward and chip manufacturing convergence, down with the application of product collaboration has become an urgent problem. This is really necessary for our LED lighting products to enter the traditional lighting field, and healthy development, less detours. Packaging enterprises can extend vertically up and down, looking for strategic partners to do vertical integration to do strong; but also can be extended to the horizontal, rely on packaging enterprises to expand cooperation, enhance market competitiveness.

Three, the general lighting market channels and brands, market differentiation is the key to the development of LED applications. From the current market trends, LCD backlight, landscape lighting, outdoor display and general lighting is the main application areas of LED. LCD backlight, landscape lighting, outdoor display market is relatively mature; general lighting market has great potential, competition is fierce, in addition to focus on system integration, heat dissipation, user experience issues, marketing channels and brand building is also a key factor in the success of the enterprise. Traditional lighting manufacturers due to the channel and brand advantages, such as to focus on combining with LED technology, is expected to win in the competition. Now look back, foreign companies PHILPS, OSRAM also belong to the traditional lighting manufacturers. It is worth mentioning that, should attach great importance to the intelligent lighting system LED application of enterprise, it will be a real revolution in the lighting industry, it completely subverts the traditional concept of lighting, in the future will become a new growth point of the lighting industry. And many domestic LED small and medium-sized enterprises should adhere to the development route of differentiation, attention to the market segments and the future development potential of the market, such as agricultural lighting, medical lighting, etc., focusing on the cultivation of the brand,