Behind the high growth "chaotic phase" LED industry is self-help or saved?

LED unfortunate that the photovoltaic whatever the outcome red for a while, he had not the host, had been bogged down in the quagmire. Structural overcapacity, like a serial killer, down to the ground photovoltaic, and outlasted LED. Who will save the LED? Self-help, or he saved? Go to the mayor, or go to the market?

The country's first LED highbay lights industry planning waste

Abolition of Shenzhen City Shenzhen LED Industry Development Plan (2009-2015) on the issuance of the notification message, the industry LED will step PV footsteps worry.

As to why abolished, Shenzhen LED industry insiders, the Shenzhen Municipal Development and Reform Commission gives explanation is that some of the policies proposed in the "planning", especially on capital and industry support policies, in the other levels of policy-making has been involved in not need to use this "plan".

However, just four years ago, in March, the Shenzhen Municipal Government released the "planning", had also vowed called scientific development of the Programme of Action of Shenzhen LED Industry. "Through the implementation of this plan, Shenzhen will build important national and global LED industry R & D and production base." Moreover, it is the country's first LED industry planning, followed by many other cities to develop planning, are modeled.

What is more noteworthy is that has been playing the role of the leader of the LED industry in Shenzhen in China. For example, "planning" the distribution of domestic LED enterprises, there are 44.3% of the roots in Shenzhen, Guangdong Province 24.7% of nearly twice, both add up, the Guangdong region The number of firms account for most of the country go to the country. Therefore, the LED industry in Shenzhen has been basically represents the industry development, As a result, this time Shenzhen LED suddenly a piece of paper off the book, naturally attracted to the industry of the country has been caught in the dilemma guess.

Kegu De Lighting LED highbay light enterprises, a Shenzhen native of Rochester, general manager of the company, said in an interview with reporters, "planning" is repealed message has not been learned, but the industry has already felt the difficulties of the industry, we the focus is mainly on the production costs, the costs get down, plus sell excess capacity is inevitable. In this case, the policy change is not surprising. For most people, in the face of Shenzhen City, the abolition of the "planning" in one fell swoop, are worried that the government has lost confidence in this market is still in a period of development, the market is not yet mature, the need to support the LED industry, situation into a "besieged" and PV companies will enter into a painful period of consolidation period, the partially competitive enterprises will come down. According to Engineering LED CEO Zhang Xiaofei forecast in 2013 in Mainland China may be 1/5 of the LED lighting business failures.

High growth behind the chaos differential "

Side is called the sunrise industry, the other side but was met with the "cast aside" the LED industry in the end how?

The reporters found that in a random interview For many people, the LED is a very strange word, one is still stuck in the high-tech goods in the laboratory. China's LED industry started in the 1970s, along with the surging development of rapid economic growth. According to insiders, since 2003, China's LED industry showed rapid, sustained and stable development trend. "Last year, LED maintain a growth rate of around 20%, about 190 billion yuan industrial scale LED lighting industry covering upstream and downstream industry chain including epitaxy, chip, package, and application products." Separate data showed that in 2012, LED in the lighting field has maintained a growth rate of 40%, accounted for 28% of the LED application lighting applications.

However, it is undeniable that in these glamorous behind the data, but it is China's LED industry, chaotic, and poor "embarrassing side. Although the speed of development, but the actual application rate is not high, until now, China LED lighting market share of less than 10%, and these products are also low-end products. When the global economic downturn, the sales market declines, corporate naturally be facing a severe test.

The LED Engineering Research Institute statistics show that in 2012, only the closure of LED lighting companies in Shenzhen over 80; Foshan Jin Yicheng lighting business failures; Dongguan, Zhongshan LED lighting companies also bogged down in the collapse of the cold wave. 2013 China's upstream production LED epitaxial silicon competition will be more intense. Do not rule out that some companies can not support down. "Chen Yansheng said.

At the same time, a number of LED enterprises in 2012 both revenue and net profit showed a marked decline. Such as the famous LED chip companies in the industry BDO Runda, 2012 net profit of 168 million yuan, down 57%. Silan 2012 revenue fell 12.74%, net profit fell 88.07%. Country Star Power 2012 revenue fell 11.87%, net profit fell 66.45%.

The dilemma for the industry, industry professionals touched. The company's orders, sales in the first half of last year, the development of good, from the second half of the year, especially in October, to the Spring Festival this year, the development of the situation was not very good, and not much changed after the Spring Festival, as of now, the company's orders have declined compared to the same period last year four or five. "According to him, only 20 million -3000 million in sales last year, however, an area of ​​10,000 square meters of factory production capacity of up to 100 million - 0.2 billion comparison, the value of the company is less than 20% of its production capacity.

But the company had no choice, Rochester, mainly to do foreign trade, sold in the United States, Europe, South America and other countries, overseas markets accounted for up to 90% of domestic sales relatively small. The foreign markets tighten, the domestic market is not open, before the company's products in the LED industry chain have done, but now the lamp, light bar and some non-competitive products basically do not do. "We take the high-end product line, the price is not accepted, it is difficult to sell them in the domestic market."
In the industry view, the current LED industry is highlighting the "structural capacity excess" pattern, the serious excess of the "downstream applications, aliquots, supporting and other areas of production, and in the field of the upper reaches of the chip and the epitaxial such as the performance of the production of low-performance products can excess, a serious shortage of high-performance products and heavily dependent on imports, Shenzhen LED industry is also the LED facing the industry, and even in most areas, the structural crisis of overproduction more serious ".

Not "developed" suffered excess capacity bottlenecks

"90% dependent on exports, overcapacity" LED seems to be what a replica of the photovoltaic industry, Is it really like photovoltaic industry will gradually go bad?

"No", a people in the industry are sure to answer, LED also not brilliant, still in the development stage, especially in the country. The main reason for causing trouble now can use a "chaos" words summed up the.

The industry believes that the so-called excess capacity, in fact, is not up to too many products in the market, did not meet too many small scale enterprises. The rise in the LED industry, the great temptation of economic and social benefits of the world's major developed countries and regions have formulated a development plan, led the research and development of various countries and regions, the continuous increase investment, promote the rapid development of LED industry . Domestic market, of course, not to be outdone, before government support, coupled with the industry, low barriers to entry, many companies rush forward, especially in the case of the absence of relevant industry standards, products of varying quality.

He Turning to the "structural capacity excess" of reason, analysis, said, "First in the market, the domestic market is narrow, sluggish domestic demand, while the international economic downturn, shrinking demand, at the same time such as Europe and the United States 'anti-dumping' of the enterprise exports is very large. In addition, the technical side, the entry in the field of high-end technical threshold is high, in the context of the Government strongly support the LED industry, weigh the costs and benefits, a large number of enterprises gathered in the field of low-end production.

According to statistics, as of now, regardless of the size of the enterprise, only in Guangzhou 4000-5000 LED enterprises in Shenzhen, the number is still more than half of these enterprises, however, not a few are particularly large, the output value of over 100 million yuan is one of the few. When the Beijing Daily reporter asked enterprise most in need of what Rochester did not hesitate to answer that "funds" up to now not credit money can only hope that the investment company financing. But what is puzzling is that the LED is one of the three strategic emerging industries of Guangdong Province, as a government to support the object, and the enterprises but did not get the "welfare".

"Adequate", the industry is helpless, thousands of enterprises get only 1% of the funds to support other companies simply do not get anything soup. Especially LED high production costs, small businesses rely on homegrown, do not earn money. It is understood that the LED lamp production costs than traditional lights up to 30%, which is to become a falling corporate profits, businesses have closed, the root cause is difficult to open the domestic market.

As for the the LED lighting domestic market difficult to open, there is one reason, mainly suffered a local protectionism. According to informed sources, the country now have a basic LED plant, many provinces are required to purchase the products of local manufacturers, "Even if no matter how good the quality of our products, technical advanced, also did not get through.

In addition to the industry directly pointed out that in fact caused the current LED enterprises ", chaotic, and poor" situation, vigorously support policies and pre entrepreneurs in total disregard of the development of the situation of the industry, do not pay attention to quality, the rush to be launched before caused serious overcapacity crisis, which also gave birth to a strange phenomenon, companies rely heavily on government; Therefore, for the continued support may cause the second photovoltaic industry concerns, is the Shenzhen government abolished the root causes of the above planning. "

As a representative of the high-tech products, the technology is the core, Chinese enterprises have actually does not have a competitive advantage in this regard. "As the core part of the chip, to rely on imports. Many small businesses and even the R & D department, direct plagiarism, call a 'price war', so that the original non-standard market even more confusing." The industry source said. And in the the moment rampant protectionism in overseas markets, Europe and the United States market certification barriers to strengthen the LED industry is facing pressure and never be smaller than the photovoltaic industry.

"Excess" low-end enterprises will be eliminated

"Planning" the abolition of fact, should be defined as a flag, businesses and government should be in the process of brakes reposition their role, industry case of hardship is the self-adjustment, transformation and upgrading of the best time to "The industry commented that.

The industry believes that the to solve the LED industrial structure overcapacity crisis, you need to proceed from corporate and government. From the the enterprises own point of view, on the one hand is to be based in overseas markets actively expand the domestic market; on the other hand, is to strengthen the low-end areas of mergers and acquisitions at the same time to increase the research and development of core technology.

In response, companies in fact, has long been self-knowledge. The Insiders said that in order to get rid of barriers to foreign countries, the company plans to register a new brand in a foreign country, the establishment of R & D institutions, in order to further expand the overseas market. At the same time, the domestic market will not be put down, he was running around the country, hoping to find a local company to sell semi-finished products to them or otherwise. LED to replace traditional lighting is an inevitable, we know the potential of this market. "Authoritative institutions predict that by 2020, China's LED lighting market will exceed 50% of the share accounted for.

Therefore, the person in charge of the enterprise open the domestic market, domestic enterprises must be the way to go, not like the photovoltaic industry, 90% dependent on overseas market, such market instability is too large, the global economy is not good, and the resulting lead to protectionism is likely to cause the total destruction of the industry. seen, from this perspective, Shenzhen abolition of "planning" this action can be described as a very wise brakes.

In addition, at the time of European and American market is becoming saturated, to tap into the huge demand for low-cost, ASEAN and other emerging markets has also become the consensus of many people. In many companies, on the one hand, the LED in ASEAN, South Asia and other countries have so far to promote the open market potential, at the same time, with the continuous development of the domestic LED industry, manufacturing costs are lower. For foreign buyers, contrast Vietnam, Laos and other ASEAN local manufacturing enterprises in Shenzhen have a distinct advantage in the quality and cost of the technology of LED.

In addition, the industry also suggested that in order to enhance the competitiveness of enterprise products, product research and development at the same time, we must highlight the difference. "Planning" was canceled, Guangdong Province, the LED industry as the one of the three emerging strategic industries for the development of the industry will still have a significant positive, and the next, more intense wave of mergers and acquisitions in the production of high-quality, differentiated products businesses to be more competitive.
"From the government's point of view, there is an urgent need to do is to change ideas, stop the support of the entire LED highbay lights industry to take full advantage of the market to phase out low-end production areas of business." The industry source said.

State subsidies for changing market situation itself is not a fundamental role only tickle, is likely to allow enterprises to produce over-reliance. "Therefore, the critical period of transition in the industry, in the same time improve their competitiveness through the strengthening of independent research and development Government should "take up and put down."

Be eliminated naturally 'die', 'live' down the enterprise to be bigger and bigger, the ability to compete and foreign companies to phase out at least half of the current market capacity. "At the same time, the government also upstream and downstream enterprises should be encouraged to walk up some special funds by the government to encourage enterprises operating in relatively good condition transformation and upgrading to high-end products.


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