LED industry will be the formation of a hundred billion market, but it will be painful period?

Recently, the president of beneficial Xin Xin Securities Daily reporters, said that in the long run, the next ten years, the growth of the LED industry are very impressive, and will form a billion market. But on the other hand, it is necessary to go through a period of labor pains and integration. Industry consolidation accelerated, the survival of the fittest will be the inevitable trend of the development of LED industry. The collapse of weak enterprises, exit is a phenomenon. "

Qiao Xin pointed out that the above situation is caused by a combination of multiple factors. First of all, a few years ago because of national policy support, more investment appeared LED heat, led to the formation of a large number of fragmented LED enterprises. According to relevant data show that more than 5000 domestic LED companies. The increase of industry competitors will inevitably lead to fierce competition within the industry.

Second, the rapid decline in the price of LED products, has been able to close to the civilian market, so this round of the battle of LED is not only a price war, but also need to increase the focus on business channels. Because the channel is the product to the consumer fast channel. The construction of the channel just need financial strength, brand strength, experience and strength, but most of the domestic micro companies do not have the ability of these areas.

Finally, merger integration is the inevitable result of industrial development. From the data, the current LED industry concentration is too low, the market share accounted for more than 2% of the individual enterprise does not exist, the industry reshuffle imminent future years, the industry has become an irreversible trend of the concentration gradually improve the process will.

In 2014, ~2016 will be the opportunities and challenges of the times, even some strong corporate short-term internal industry competition and declining profitability, but after a round of deep integration, industry, ecological environment will be greatly improved, high-quality resources will be the first-line lighting brand, a number of well-known brands to grasp the situation of the market will the final form.

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