As the world's leading LED production site, China's LED industry is booming. However, the reality is that although there are many companies, large leading companies are limited. The development of the industry, which is mainly supported by private enterprises, is subject to many restrictions. At present, China's LED development is in the south, and the northern agent is in a big pattern, and the competition is fierce. In order to compete for market share, production and sellers have started a price war. Whoever has a low bid will be able to survive.

LED market prospects

In 2010, China's LED sales value is expected to exceed 150 billion yuan, twice as much as in 2008, and continue to grow at a rate of 30% per year. In the next 15 years, China's LED industry market and China's export market are expected to be about 5 trillion yuan.

LED market pattern

Domestic LED manufacturers are mainly concentrated in the Pearl River Delta region, and Shenzhen has cultivated and gathered more than 900 LED companies, accounting for 70% of the national total. The competition between the LED industry, especially in the north, is the price war.

LED market worry

At present, there are 3,000 to 4,000 LED lighting companies in China, covering a wide range of fields such as home, business, and electric. However, Liu Shengping, secretary general of the China Lighting Association, said publicly that at present, almost no lighting company in China has a market share of more than 2%.

Good:

LED industry is booming

LED has just started a sunny day. At the just-concluded 12th International Lighting and LED Exhibition in Dalian, Fan Jiye, the chairman of Dalian Yuhuan Zhiye Technology Development Co., Ltd., said with great enthusiasm that in just two and a half days, he accepted the consultation of 466 companies. Among them, 132 were interested in cooperation and 12 were on-site. At the exhibition site, the LED production and dealers interviewed said that at present, it is the LED industry booming. On the single point of China's civil lighting, there is a market of about 40 billion yuan. Earlier, Philips Lighting (China) CEO Bi Baijun said in an interview with the media.

Fan Jiye is also a special researcher at the National Science and Technology Development Strategy Research Center. He revealed to reporters that China is currently the world's largest LED display processing plant, and about 80% of its products are processed in the Chinese market. Foreign companies mainly focus on the low prices of domestic products. For example, Fan Jiye said that a Japanese customer signed an order of 1.1 million yuan to purchase industrial and mining lights and point source groups. For example, an LED light, he received the price of 286 yuan from us, and when it was sold in Japan, the price almost doubled, and the price was around 560 yuan.

Disadvantages:

Price war competition is cruel

Due to its huge development prospects, LED has become a must-attend industry for many businesses.

The LED industry has been gradually invested in the past five years and has now formed a scale. Fan Jiye said that the current domestic LED lighting industry layout is relatively complete. However, although there are many LED lighting companies in China, the number of leading companies is extremely limited.

High-end, high-quality chips are mainly imported from abroad. Fan Jiye admits that although China's LED has certain advantages in quantity, it is still subject to high-end technology. LEDs are currently mainly concentrated in the industry. For ordinary people, although LED lights have many advantages, but the price of hundreds of dollars, still let many people switch to incandescent lights for a few dollars. This certainly limits the large-scale promotion of LEDs. Li Yan, sales manager of Shenyang Kemei Digital, said.

Based on the above factors, the LED industry, which is currently supported by private enterprises, will naturally face many difficulties. Vicious competition has become one of the biggest headaches for LED manufacturers.

Li Yan said that at present, the domestic LED market has formed the basic pattern of southern production and northern agents. Due to the limitations of technology and capital, there are relatively few LED manufacturers in the north, mainly based on agency sales. Tao Xiaoling, head of the sales department of a LED manufacturing company in Dongguan, said.

Cruelty is Li Yan's description of the current domestic LED market. To put it bluntly, the current competition among the LED industry, especially in the northern region, is the price dispute. For example, Tao Xiaoling said that the most common LED light strip on the market, the sales price last year was 60 yuan per meter, and this year has plummeted to 20 to 30 yuan, a decline of more than 50%. No way, if you want to live, you must adapt to this regulation. An LED dealer from Gu, who is from Zhejiang, reluctantly said that the continuous compression of profit margins has also caused enterprises to face the embarrassing situation of developing new technologies and new processes.

market:

Export companies have fought in China

At the same time, affected by the 2008 international financial crisis, many LED companies that have been export-oriented in the past have turned their attention to the domestic market and tried to find new markets from the domestic market. We have been exporting before, mainly in Europe, but the business has not been done well in the past two years. Tao Xiaoling revealed that his company has developed a domestic market development plan, and Dalian is their first stop to open up the Northeast market. The turn of these export companies has also intensified the competition among domestic LED companies.

On August 10th, the opening ceremony of Dalian Dehao Optoelectronics Technology Co., Ltd., Dalian Base of Guangdong Dehao Runda Electric Co., Ltd. was held, which is also the largest LED enterprise in China. This will not only greatly improve the scale and technical level of the city's optoelectronic industry, but will also lead the rapid development of the green industry in the Northeast and even the whole country. Small and medium-sized enterprises without independent intellectual property rights and advanced technology will face the crisis of being eliminated by the industry. Fan Jiye said that companies can only continue to develop high-end applications by continuously expanding their high-end applications, improving the overall level of the domestic LED industry, and getting rid of the dependence on foreign imports.