Shenzhen LED companies will face a reshuffle?
The LED lighting industry is in full swing. New production capacity companies are entering one after another, and the old industries are also beginning to transform and enter. In contrast, Shenzhen may be the most important. For example, at the International Optoelectronics Expo held in early September, The number of Shenzhen LED companies participating in the exhibition is as large as more than 400, basically occupying more than half of the share. Nowadays, the price of LED is indeed declining, and the production capacity has been far greater than the market demand. This has led to increasingly fierce market competition. The word price, It has gradually become a key word in the LED lighting industry in recent years. Looking at the industry chain that has spread from downstream to midstream, it can be seen that the industry chain of the entire industry is also gradually expanding. The problem is that thousands of LED lighting companies in Shenzhen have already faced Shuffled
Two reasons may lead to the acceleration of the reshuffle and overcapacity, but the enthusiasm for investment has not diminished. Those who enter this line are the bright prospects of the fancy industry. Everyone wants to get a share in this cake. Investment The threshold is too low. You can enter this industry by just investing a little bit. It doesn’t pay much attention to technology, product quality, or product research and development. It just depends on what others do, copying each other, and not a little bit. Competitive advantage is just the pursuit of low prices. When it comes to the LED lighting market, the market is still in its infancy. It is impossible to digest the excess capacity in a short period of time. In the industry, products that are highly competitive are in the hands of ordinary consumers. , May be some defective products from price competition, but also make consumers lose confidence in LED lighting products, seriously undermining the normal development order.
The second point is that the LED lighting market is difficult to expand in the short term. According to statistics, the penetration rate of the domestic LED lighting market is only 1%. Although it looks like a vast and unlimited market, the fact is that LED lighting products are recognized in the end consumer market. It is very low, with uneven products. It is not easy to popularize in the short term. Shenzhen's LED lighting companies are mainly small companies, and none of them can form a brand effect. Generally speaking, the diminishing investment effect and terminal market digestion promoted by the previous policies The surviving difficulty of capacity improvement, the quality gap between low, medium and high-end products, and the lack of market access mechanisms have caused continuous market fluctuations, which will increase the difficulty of LED companies’ market layout in 2012, so reshuffling is inevitable.
