“I had a long holiday last year.” said Pan Gaofeng, general manager and chief engineer of Jiangmen Wenzhuo Power Technology Co., Ltd.
Indeed, the lighting industry took a long holiday at the beginning of 2015 because the Lunar New Year of the Sheep in 2015 came relatively late, and most LED lighting companies did not officially open their doors for business until after the Lantern Festival.
Through investigation, we learned that most LED lighting companies only started working in early March. Even in the middle of the year, the ancient town of Dengdu was not as lively as in previous years. It seemed a little deserted, because many companies started work one after another during this period. The sound of red firecrackers also continued for days, and the front of the lighting shop was also dyed red with layers of firecrackers and shredded paper, making it appear beaming with joy.
Since the Lunar New Year has passed and manufacturers have started working one after another, the industry has been as busy as usual in March this year. Especially in early March, companies have held product launches and annual meetings one after another. The year-end awards are getting bigger and bigger, which makes people so envious that they can’t help but laugh: They belong to other people’s companies. In addition, shopping festivals are held one after another in each store. Each major store takes turns to hold a shopping carnival. Luxury cars, tablets, iPhones, cash and other gifts are waiting to be received. Walking on the street, you can also see faces of different skin colors shuttling through various stores. Merchants from home and abroad, yellow, black, and white, rush to the ancient town of Dengdu to see, choose, and buy lamps to start their purchase orders for the new year.
90% of companies have plans to expand production and enrich product lines
Pan Gaofeng revealed to the author that Venzhuo Power's sales in the first quarter of this year were basically the same as the same period last year. He said that in the first quarter of last year, that was when the industry was booming. Even if the development of the industry subsequently declined, it was also due to the impact in the second half of the year.
In the survey, the planning team of this newspaper found that 41.67% of the companies showed an increase in sales in the first quarter of this year compared with the same period last year. Most of the increases ranged from 10% to 30%, and some companies increased by 50%. The same 41.67% ratio shows that the sales volume of the company this year is the same as that of the same period last year. It is understood that most manufacturers focus on opening the market in early March, and some orders are left over from the end of last year and the beginning of this year. 16.67% of companies said that sales have declined and they have not received new orders for the time being. They believe that this may be due to the "time lag" in the industry market this year and the lack of complete "recovery".
At the end of 2014 and the beginning of 2015, there were many opinions on the development trend of the LED industry in 2015. Some said it was good, some said it would be more difficult this year, and some said it would be similar to last year. Among them, Illumination people cannot help but have a positive and optimistic attitude. No matter good or bad, they must have an optimistic and positive attitude to welcome 2015. Among the options for manufacturers to survey this year's market expectations, 50% of companies said that the market situation this year will be better than last year, 30% thought it would develop steadily, and 20% thought it would be worse than last year. Whether it is good or bad is the opinion expressed by the companies participating in the survey after combining their own development conditions and understanding various policies this year.
"This year is still significantly improved compared to the second half of last year. Regardless of the domestic market or exports, especially export demand, the orders we have received this year are basically export-oriented." Pan Gaofeng said that as of the first quarter so far, the current industry development is still very optimistic, and the overall industry climate this year will be better than last year. From the perspective of the overall environment, everyone is now talking about the new normal, and many voices in the industry are predicting what opportunities and developments this new normal will bring to our LED industry. However, the new normal also means that the entire industry will become more rational and stable, and there will be less market chaos caused by speculation. This is undoubtedly very beneficial to some manufacturers who are actually making products and selling them. Therefore, the arrival of the new normal will undoubtedly promote the healthy development of the entire industry. At the same time, it will also be a wave of "selective admissions", "poor students" will be kicked out, "progressed students" will stand out, and the original "excellent students" will further integrate resources and continue to lead the way.
50% of companies are optimistic and believe that the industry is developing for the better
In 2015, many corporate product launch conferences and industry summit forums were inseparable from the word "new". Most of them took new opportunities and new developments as the theme of the conference, implying that after bidding farewell to the difficult 2014, there will be a new beginning, new development, and new challenges in 2015.
Since the start of the industry this year, LED companies have been busy. It can be said that large companies have their own practices, and small companies have their own practices. For example, listed companies have announced their financial reports for 2014. Some of them have been announced to hold shares or acquire equity, there have been personnel changes and senior executives have resigned, some have been sued for compensation, and some have been marching forward with high spirits, etc. The field of large enterprises is really like an electrocardiogram, with ups and downs and sweet and bitter tastes. For small and medium-sized enterprises, most of the annual strategic plans were completed years ago, and the production workshops are running normally day after day. At the same time, they are also busy participating in and visiting exhibitions. In March, many professional lighting exhibitions were held in Guangzhou, Shanghai, Zhongshan Ancient Town and other places.
Whether it is at exhibitions or daily activities, reporters learned through surveys and interviews that 90% of companies said they have plans to expand production this year. A few companies revealed that their expansion efforts will double compared with last year, and 10% said they have no plans to expand production. Regardless of whether they have plans to expand production or not, most companies have stated that they will upgrade their product structure and deepen their product lines. This is a trend and a need for development. At this year's Guzhen Lighting Fair Spring Exhibition, some companies bluntly told reporters that this year's exhibition was very dull. In addition to the lively popularity and expansion of the exhibition area, the exhibiting products had no new ideas and innovations. The products were bland and homogeneous, which intensified competition and caused exhibitors to offer product promotions and discounts during the exhibition. Some people in the industry also said that although the current products are clamoring for innovation, they actually do not have much technical content, and the market with technical content is not digested so quickly. They are all in a wait-and-see state. Just like smart lighting and 3D printed lamps, they are seen more and used less. If an enterprise continues to stand still without taking any further steps, it will be eliminated faster and be defeated faster. Therefore, it is necessary to upgrade or innovate the product structure. Who doesn’t want to live well and grow beautifully?
Not too panicky about employment
This newspaper did an investigation and planning on the labor shortage problem in the industry last year. The article mentioned at that time that many manufacturers had posted recruitment notices. This is still the case at this time of year. The reporter observed that both large and medium-sized enterprises are recruiting talented people. High-paying recruitment cannot temporarily solve the manpower shortage. Either the applicants require higher benefits or they are not qualified. However, according to observations, the current recruitment positions are mainly concentrated in front-line basic operation types such as samplers and welding technicians, and there is no obvious shortage of high-tech talents.
Although many companies in the industry are currently recruiting employees, there is no voice of "labor shortage". The boss of a company told reporters that there may be no need to talk about "labor shortage" now. It was normal to have a shortage of workers a year ago, but gradually by the end of March and mid-April, the employment situation will basically be normal. Moreover, many companies are now constantly introducing automated production equipment, which not only reduces labor costs and improves production efficiency, but also improves the problem of high personnel mobility. Workers are not afraid of "strike" at any time.
Summary
At this time last year, the LED industry was in a turbulent time, and there was a sudden announcement that 2014 was the first year of LED development. Unexpectedly, the situation took a turn for the worse. In the second half of the year, various escape attempts, bankruptcies, and mergers and acquisitions began to take place, causing manufacturers to complain endlessly.
So, who knows where the industry will go in 2015 under the new normal! The market is changing so fast. It is really necessary to not only grasp the plan with one hand, but also to take steps with the other hand.
ANNA