Subject: LED technology price war injured in the sinews or bones how to win

Recently, Chinese Youth Daily reporter was informed that the main LED display Shenzhen hiboled photoelectricity Co. Ltd. into a debt dispute due to huge arrears payment to supplier and employee salary and commission. This is the second year of Shenzhen junduoli Industrial Co., Ltd. bright Optoelectronics Technology Co., Ltd. this year vision optoelectronics shut down after a hundred million yuan level LED enterprise management dilemma.

This year, the Shenzhen LED companies closed down or stop the news appears. In June 29th, once in the industry "famous" Shenzhen Diguang Electronics Limited company suddenly declared bankruptcy in 2007 and 2008, the two sales amounted to 260 million yuan LED display enterprises, due to poor management, the industry price war resulted in low profit margins, and ultimately could not escape the fate of bankruptcy.

Prior to this, Shenzhen junduoli, Shenzhen city in the grand scale China Boren LED enterprise has failed, why are there poor management, capital chain rupture.

"The lack of core technology innovation in LED enterprise, life increasingly difficult, Shenzhen LED Industry Association vice president Pang Guiwei said, Chinese LED industry has entered a low profit era, although the" semiconductor lighting technology development "12th Five-Year" special plan "clearly promote China to become the industry all over the world top three attractive prospect. But like Shenzhen LED industrial area, but also have to take the lead in the country through the darkness before dawn period.

According to the statistics of the Federation of Shenzhen LED industry, Shenzhen has a total of 1800 LED companies, accounting for about 60% of the country's LED enterprises. In 2011 the output value of these enterprises reached 70 billion yuan, the same period the entire province of Shenzhen LED industry output value of nearly $150 billion, accounting for about half of the province's Guangdong. At present, the total number of listed companies LED about 20, Shenzhen accounted for about 10. In a sense, the LED industry in Shenzhen has a sample significance for the national LED industry.

Industry into the era of meager profit

Chinese LED industry originated in the early 90s of last century. LED (Light Emitting Diode), is a light-emitting diode, is a solid state can directly convert electricity into light semiconductor devices.

Early to enter this industry is very small, in 1994 when the country did not have a few, Shenzhen is only two or three, Pang Guiwei said. At that time, due to the difficulty of key technology research and development, the ability to produce almost all LED companies have R & D capabilities, especially in the hands of a handful of control technology companies".

In 90s, LED as "scarce" only exists in the bank, and a few other places and station, due to lower prices of raw materials, key technology research and development difficulties raised the price of the terminal, leading to the market of LED industry has become a "".

However, the competition among enterprises has intensified the popularization of LED market. According to reports, from the beginning of 1997, the market began to have a single color control card and other key technologies of the phenomenon of technology transfer, to the development of color control cards in the market in 2001 to the stage of public sale.

By 2006, the control card technology has gradually been the bulk of the market, the key technology research and development costs of the LED industry has been the most thorough reduction, the number of Chinese LED companies began to grow exponentially. 2008 Beijing Olympic Games and a series of large-scale activities, but also gave birth to the rapid development of LED companies, and peaked in 2009.

"From 2007 to 2008, LED display higher prices, profit margins, the price gap between enterprises is also great, as consumers on product quality of continuous improvement, LED industry increasingly fierce competition, small and medium enterprises in the impact strength of price and scale increase, this is the most fundamental reason." the closure of small and medium enterprises, Pang Guiwei said.

Shenzhen junduoli Industrial Co., the collapse of representative. Was one of the top ten enterprises in Shenzhen optoelectronic junduoli actual registered capital of only about 20000000 yuan, annual sales of less than 200 million yuan, but in the country has 4 production bases, and in 2010 and the Chengdu municipal government of Shuangliu County signed the investment of construction project application protocol LED package of 400 million yuan. But the cost of labor and raw materials, increase the technological innovation of the lack of core competitiveness, coupled with the blind expansion, a sharp decline in corporate profits, make junduoli troubled funds strand breaks.

The development of Shenzhen Semiconductor Lighting Industry Association honorary president Wang Dianfu said, in junduoli, bolunteguang, Diguang electronics these small scale enterprises have been bankrupt under the background of the unknown small companies fall a few. LED display industry reshuffle time is ripe, once the business appears on the business of major mistakes, it will be quickly swallowed.

Pang Guiwei believes that the lack of core technology in the LED industry, lack of innovation, market disorderly competition, shackles of the development of LED display industry. LED industry prices have entered the era of meager profit, we must make a breakthrough in product innovation.

Complete variety of confusion

Another identity of Pang Guiwei is the general manager of LED company, Shenzhen top technology Co. ltd.. In his view, as a result of a series of major events such as the 2008 Olympic Games, in the financial crisis has not been adversely affected by the LED industry, but in the past two years encountered difficulties.

The price war between enterprises is becoming more and more intense, the price of each stage is falling by 20% to 40%. "Many manufacturers have 10 points of gross profit has been very good," said Pang Guiwei.

For example, according to the same species