3 main reasons for the slow development of the LED lighting industry
The development of the LED lighting industry has not been smooth sailing. The entire LED industry has been flooded with "price wars", "boss running off the road", "counterfeit and shoddy products", and "failed LED lighting inspections". According to analysis, the development of the LED lighting industry is slow. The main reason.
1. There are a large number of enterprises, and it is difficult for small and medium-sized enterprises to obtain financing.
In 2014, there were about 20,000 companies in the domestic LED lighting industry. With the development of the LED industry, many companies in other industries have also begun to enter the LED industry, causing serious overcapacity and further deterioration of the market competition environment. Excessive investment makes the LED industry oversupply, and many companies are in the middle and lower reaches of lower technical barriers. Overcapacity has triggered a vicious price war between companies, which has caused the prices of downstream companies in the LED industry to continue to decline, and their profit margins have been compressed. At present, the gross profit margin of the LED industry is only around 20%, and the net profit is less than 5%. It is also an indisputable fact that SMEs have difficulty financing. Rising external costs have pushed up the demand for funds. In the case of inadequate funding, small and medium-sized enterprises have limited access to credit resources, and the degree of satisfaction of financing needs is low. Coupled with the weaker foundation of small and medium-sized enterprises, the difficulty of obtaining loans has also increased. Even if the loan is received, the loan interest rises and the guarantee fee is too high, which makes SMEs unable to afford it.
2. The homogeneity of the product is serious, and the quality is uneven.
The current homogenization of LED products is flooding, and it is mainly concentrated in the low-end. The positioning of this kind of product itself is low, and it does not require unique shape design and high-end lighting taste. The only advantage is that the price is lower, which caters to the general lighting needs of ordinary consumers. In addition, due to the low industry threshold, lamps can be put into the market after being "assembled", so downstream merchants have similar products and lack innovation.
In 2014, quality supervision bureaus across the country repeatedly announced the results of spot checks on LED lighting and light source controllers. Among them, batches of unqualified phenomenon appeared in many places, and some unqualified LED products are flooding the market. In order to compete for the market, enterprises use low-end products and sacrifice performance to reduce costs. The products are cheap and quality is not guaranteed. This has directly led to the phenomenon of uneven product quality and price confusion in the entire LED industry market.
3. Standards are in urgent need of improvement, and core intellectual property rights are lacking.
The LED industry needs standards to unify the market, but my country is currently facing problems such as a sound standard system, inadequate implementation, and untimely updates. my country's LED standards are relatively scattered and one-sided, mainly focusing on safety and product performance. There are no standards for upstream industry LED chips, packaging, and technology to refer to. At the same time, the current standards cover fewer types of downstream application products. The development of standards in various regions is not balanced, and there are phenomena of overlap, duplication, and even inconsistency. Most of the LED standards are recommended standards, not mandatory, which leads to some companies' lack of attention to the standards and it is difficult to implement them. At the same time, with the rapid development of LED technology, some standard light effects can no longer adapt to the current technology.
my country has now become the world's largest producer and exporter of LED lighting products, but the lack of independent intellectual property rights, weak corporate patent awareness, the protection system is basically in a defensive state, and intellectual property issues are prominent. As of 2014, there were approximately 340,000 intellectual property patents in the global LED field, including more than 70,000 patent applications in China. However, 70% of all patent applications in China were in the application fields downstream of the industrial chain, and more than half of the core patented technologies were Occupied by a few international companies. In terms of the types of patent applications, utility model patent applications accounted for a relatively high proportion of 43.55%, design patent applications accounted for 31.11%, and invention patent applications accounted for only 25.34%. The lack of core patents and invention patents is becoming a bottleneck restricting Chinese LED companies from going out.
Summary: There are a large number of companies, and it is difficult for small and medium-sized enterprises to obtain financing; the homogeneity of products is serious, and the quality is uneven; standards need to be improved urgently, and core intellectual property rights are lacking. This has caused the slow development of the LED lighting industry, and the rapid and healthy development of the LED industry. These problems will not work unless they are solved.
