LED price war in the end who hurt?

Overheated investment squeeze the living space of enterprises, profit decline, some small factories have closed

The fair trading center on the third floor of the LED LED, a string of beads hanging on the wall shining bulb and placed in plug-in shelves, the product looks so similar. The fallen Shenzhen junduoli company and local company, here is just talk in that LED industry stage investment is seriously overheating, but they don't think may fall next is yourself. Data show that in the first 7 months of this year, the average price of domestic LED packaging applications fell by 20%. In the show, there are still many buyers to a novice to spy on Caichang, technology and market.

The price declines become popular

Morita, head of the company in Zhongshan, and his partner are enthusiastic to distribute information to buyers. Their company is Taiwan funded enterprises to invest in Zhongshan, was not to do LED products, 5 years ago in Zhongshan to set up branch offices, specializing in LED packaging. The original LED profit high, now far less than before. He told reporters. At present, the price of their products has dropped by 20%.

"Only compared to last year, this year's profit is much lower, and the future profit will be lower, more high-end products from LED has become popular. He said. For example, a 7W bulb, can sell 40-50 yuan last year, and this year can only sell twenty a few dollars, and even some small factory 12-13 yuan will be sold, only about 1 times higher than the energy-saving lamp, the disadvantage is the price is down, consumers are able to accept the benefits.

He believes that prices are down for two reasons, one is because the upper reaches of the chip and raw material prices are declining, especially for the chip is almost a hundred percent loss on sale, but on the other hand, is because the packaging business competition, we cut prices to grab market. Lee said that the entire LED industry in the second half of this year to next year, the application of the product market sales may increase by 3%, but the product price is expected to fall by 30%.

The current price war is scary

Jiang Peiyang is a company employee in Xiamen, traveled from Xiamen to explore the town market. They both have LED sales company, also do LED project, in his view: "now the price war of death", "now the domestic market is not so good to do," he said, not only is the price competition, as well as engineering, municipal engineering completely see the relationship, while the hotel, KTV engineering price the competition is very fierce.

"Please give me a business card. "Zhongshan city beauty Knight photoelectric Limited company staff Xiong Yi sat in the reception desk, table data has information on her There is not much left., everyone asked, if your reply cards sent out, she will ask for registration information. In her view, too many experts to come today, and many are copied. Xiong Yi complained that many dealers to buy products, just look at the price, do not look at the production process. Each year the company will invest a lot of R & D costs to launch new products, and the imitators easily steal the fruit, and then use low-end low-priced products to grab the market.

For example, a 220 volt lamp with their company's patented products, but now the product market is large, low quality and cheap products flooding the market, the results were put their intellectual property, good quality of LED production enterprises.

Some factories have been unable to carry

In the fierce competition, some manufacturers have not carry, put up the shutters. Fall LED industry famous Shenzhen junduoli company raised industry concerns, and fell more small factory is soundless and stirless. Mr. Li Morita photo told reporters, Henglan Town, many small factory closed down, and in this month. A relatively large size of the factory closed down, owed his friend of the purchase price of 200 thousand yuan. This factory Henglan original do energy-saving lamps, then do LED transformation.

Zhang Xiaofei, Dean of Engineering LED Industry Research Institute in engineering LED exhibition and industry forum had predicted, compared with more than 90% LED packaging companies in 2010 earnings losses this year, the proportion of enterprises will be greatly improved; he also expects there will be 10% of the enterprises were forced to close. While in the country's largest packaging companies in the MLS draft prospectus, there is such a risk warning: risk of industry competition. Affected by the national policy support, LED industry has attracted a lot of capital, the emergence of new manufacturers to join the international well-known LED manufacturers have set up production bases in china. Most of those companies are closed down, we are facing the high-end market. In the interview, many companies have said that they are not afraid of the current competition, and some continue to expand investment.

People outside the city are still in

"City" has been a substantial price cuts, and "outside the city" people are still trying to squeeze in.

Reporters at the show randomly interviewed three buyers, the results are two novice to learn. Jiashijia (Zhongshan) Photoelectric Technology Co. Ltd. Meng Yang He wore buyers card, his company boss had aluminum business, in March this year began to do LED package. Our boss is optimistic about the LED investment company in Zhongshan. He said, "the boss do high-end positioning LED, now the company has a professional team, although he knows that Zhongshan has many LED manufacturers had been turned off, but the boss did not ask them to immediately profitable, but want to make a brand in Guangdong for 35 years. "We are not afraid of risk, because there are aluminum business as a back-end support. He said.