Domestic LED companies survive the difficult competition
As a private industry research and media organization, Gaogong LED has successively launched seven industry summit forums, and the 8th Gaogong LED Industry Summit Forum, which has gathered 20 leading enterprises in the middle and lower reaches of the industry, is well prepared. The theme of the Japanese Forum is clear: "The war is on the verge of victory."
At the press conference before the summit, the participants believed that overall, the global LED lighting market did not perform as expected in the first half of this year. Due to the over-optimistic forecast of the LED backlight market and its rapid development of general lighting last year, excessive investment has entered the upstream of the LED industry, which has also led to shortage of talents in the industry and structural overcapacity. The semi-annual report of domestic listed companies shows that most of the mid-stream packaging companies face the shackles of increasing revenue.
When talking about the current industry price war, Gong Weibin, chairman of Ruifeng Optoelectronics (300241), listed five positives in one breath. He believes that "the industry is experiencing the most critical period in history. LEDs have a long way to go into application lighting. The price war is only the first level. For enterprises, competition is intensifying, promoting technological innovation and upgrading. At the time of management level and cost control capability, it is also the time to strengthen service and support and increase the added value of products; for the industry, the price war can amplify the market structure, enhance product coverage, and prompt LED to accelerate into the application lighting field."
In analyzing the current situation of the LED industry's stage surplus, Zhang Xiaofei said that in the current LED industry, the upstream sapphire substrate industry is the most serious. The midstream packaging industry has a relatively large capacity, but because of its worst anti-risk capability, it is expected to be at the end of the year. Nearly 10% of companies disappeared; while downstream LED applications performed best overall.
Zhang Xiaofei uses his team's long-term tracking of a set of data to support his views. Data show that from January to August this year, the price of upstream sapphire substrates has dropped from 35 US dollars / piece to 13 to 15 US dollars / piece, the average drop is more than 50%; the average decline of LED chips and midstream packaging products is 25% And 23%, the average decline in downstream lighting applications is 21%, but some string lights have a maximum drop of 75%. Zhang Xiaofei said: "At present, LED companies that do home lighting are almost completely loss-making. Although the terminal lighting market is vast, it has not yet reached a point of explosion."
In the face of the current insufficient demand for LED terminal lighting market, Zhang Xiaofei proposed five major solutions: one is to urge the government to continue to strengthen the subsidies to the terminal; the second is that the production enterprises should continue to improve the cost performance of the products; the third is to identify the product differences The fourth is to strengthen the construction of sales channels; the fifth is that enterprises, governments and other parties should strengthen publicity.
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