LED self built channels for enterprises to rely on government projects to break through

Under the dual pressure of product price decline and excess supply, China's LED lighting industry is facing a new round of strong reshuffle. As a barometer of the development of LED industry, Guangzhou International Lighting Exhibition data show that the scale continues to expand and contrast, as of the end of April 2013, the number of exhibitors in 2013 for more than 2400, compared with the previous 10% reduction, but the choice of brand exhibition business area has increased by 15%, the display industry further enhance the brand concentration.

This year will be a crucial year for the survival and development of LED lighting companies. The insiders pointed out that because the civil market has failed to open, after the LED enterprise income depends on government projects, but the government orders in listed companies on the hand, so many companies began to seek a breakthrough in LED channel.

Last year, the collective decline in the performance of listed companies

Although the industry has a bright future, but the recent major LED listed companies released 2012 annual report and performance letters show that last year, the general downturn in corporate performance. As in the LED chip, the upstream industry chain extension film company, Huacan photoelectric [-4.14% funding research report] (300323), Silan [-4.21% funding research report] (600460) and changelight [-4.09% funding research report] (300102), Elec-Tech [-1.42% funding research report] (002005) 2012 net profit fell 29.93%, 40.11%, 39.02%, 57.14%.

LED crystal material provider Fujing technology [-4.82% funding research report] (002222) net profit fell by 36.50%; LED power enterprise Moso [-3.86% funding research report] (002660) net profit fell by 11.55%; the LED luminescent materials enterprise Keheng shares [-4.00% funding research report] (300340) fell 80.62%; LED package business rectangular lighting [-3.99% funding research report] (300301), Lehman photoelectric [-5.60% funding research report] (300162), honglitronic [-4.31% funding research report] (300219), nationstar [-3.18% funding research report] (002449) net profit fell 27.45%, 31.59%, 35.27%, 67.36%.

Upstream capacity squeeze serious, downstream market has not yet opened, fierce competition among enterprises. Ruifeng photoelectric [-0.29% funding research report] chairman Gong Weibin said that due to the lack of a unified industry standard lead LED industry into the threshold is low, but high levels of government subsidies, preferential tax policies to attract a large influx of funds, even many companies do not have the relevant technology, leading the industry overcapacity problem is serious.

Relying on government projects is not a long-term strategy

In February 17th this year, the national development and Reform Commission, Ministry of science and other 6 ministries jointly issued the "planning" semiconductor lighting industry, planning clear requirements in 2015 domestic LED output value of nearly 450 billion yuan, in commercial lighting, industrial lighting, public lighting and office areas, focus on the development of LED lamp, lamp etc. application demonstration and promotion of indoor lighting products and systems.

Whether commercial lighting, industrial lighting or government offices, public lighting, most of them are government projects, these orders are unstable, in the long run, not LED lighting companies can rely on long-term. Gong Weibin said so.

But reporters noted that the science and Technology Department of Guangdong Province announced tender results show that successful enterprises are listed companies, such as KingSun [-7.49% funding research report] the first quarter has won a number of street reconstruction project in Guangzhou and Qingyuan, honglitronic also won the Zhuhai landing transformation project. Small companies have a hard time.

Guangzhou International Lighting Exhibition founder Pan Wenbo analysis, said: as the majority of the use of street lights to promote the use of EMC (contract energy management) model, requiring companies to advance funds, so listed companies benefit more. "

Enterprises to expand the electricity supplier channels to seek a breakthrough

Industry forecasts, the LED industry structural overcapacity situation will continue in 2013. It is understood that, in order to speed up the opening of the civilian market, the strength of the LED companies have started from the beginning of last year, self channel, the LED light will be sold to the hands of consumers. Among them, the electricity supplier because of its relatively new model, the relatively low cost of upfront investment is greatly welcomed by LED companies.

Shenzhen Chau Ming technology [-3.93% funding research report] in January 4th this year, officially stationed in Tmall, the month sales reached 70 thousand yuan, followed by a month sales of $90 thousand, to achieve explosive growth in March, reaching $200 thousand. The company's brand director Mei Zhimin said that the current LED market is actually a niche market, some of the higher intellectuals than ordinary consumers are more likely to accept LED lighting products. To this end, we not only add a lot of Tmall interactive educational video shop, but also to strengthen the application of micro-blog, WeChat and other new media, the way people use to promote LED products. "

Compared to the traditional offline channels, electricity supplier channels in the promotion of more money, direct. In contrast, the electricity supplier model is not only accepted by the majority of high intellectuals, eliminating the cost of shop, but also to avoid a large number of channel costs, terminal price can be lower. Mei Zhimin said that through adequate flow of the line to the next line of lactation, and gradually develop the civilian market.