Thinking: how to realize the benign intervention of LED industry

In February this year, Shenzhen suddenly abolished the Shenzhen LED industry development plan (2009-2015), and once again the public's attention to the level of government intervention in the macro level of the LED industry. Many media on the Shenzhen waste order to carry out in-depth reports.

Since then, the lingering unfinished, today, there are still people relish. Shenzhen waste incident reflects excessive government intervention in the LED industry, resulting in LED upstream production capacity, production congestion, highlighting the development of LED industry needs to comply with market rules.

However, the government's macro intervention on the LED industry still plays an important role, but the intervention needs to be adjusted.

Government subsidies to general LED lighting

LED lighting is not without the market, but at this stage it needs to share with the traditional lighting market. How to grab a certain market share from the traditional lighting, this is the issue of LED lighting needs to face.

Especially in the field of LED general lighting, the government's macro intervention is relatively small, companies need to rely on the real ability to seize market share.

However, when it comes to LED general lighting, when it comes to the government's macro intervention, there are always endless topic.

First of all, that LED general lighting is a most promising future in the field of lighting the whole mass, market prospects, sustainable, this is the current number of LED lighting companies have to develop the main reasons for the channel; secondly, government intervention It is often seen. in the field of LED lighting, from the construction of LED Industrial Park to support MOCVD equipment purchase subsidies. From the above 100W ban incandescent lamp production and sales to all levels of government procurement of outdoor lighting.

Earlier, in addition to prohibit the sale of more than 100W incandescent lamp can give the LED general lighting market to make a line of competitive market space, LED general lighting by the government to intervene less. This can be an excuse for the LED general lighting market can not open, but not the main reason for the LED general lighting market can not be opened.

Fortunately, at the beginning of this year, the government will LED lighting into the government procurement list, create a good start for the development of LED lighting; moreover, in May this year, the government is more directly to the LED bulb into the scope of subsidies.

Price is an important weapon to open the market

If the LED lighting inadequate promotion, so that consumers for its recognition is not high, thereby affecting the market volume, then the sales of LED lighting lighting enterprises why NVC, OPPLE lighting and other channels have obvious advantages is weak, and low price LED Linsen lighting products in the market performance is relatively good? It is clear that there is a recognition of the impact of LED lighting market or the amount of the reasons, mainly in the price.

Cost reduction is one of the main factors affecting prices, many manufacturers have shouted earlier to the price of LED lights close to the slogan of fluorescent lamps.

But the market can not play, then the slogan of many enterprises. No amount of sales and product prices down has become unfavorable factors influence each other. At the same time, but also because of the lack of industry standards, LED lighting industry into a cheap no good, expensive is not necessarily good goods".

Reduce the cost of the industry chain is the only way for the industry to mature, however, the Chinese people's inertia thinking will not fall down to the cost of responsibility in the upstream industry of LED, including the high cost of imported equipment purchase.

Thus, the government subsidies MOVCD machine, sapphire and MO source, resulting in the upstream production capacity soared, the formation of the phenomenon of the lake on the chain.

The LED application product prices have declined, but still did not reach the level acceptable to consumers.

Past subsidies lead to excess capacity in the upstream

Chinese mainland LED listed companies in 2012 earnings report, the upper reaches of the listed company's main business revenue generally decline, net profit attributable to listed companies also appeared to varying degrees of decline, but remained in the basic state of profitability.

Sanan optoelectronics, HC semitek, Silan azure, changelight Elec-Tech, five chip listed companies without exception of capacity expansion.

Despite the expansion of the cost of production, corporate net profit has declined, but the number is still considerable, which is inseparable from the government's subsidies.

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