By 2018, half of Chinese LED companies will go bankrupt

2015 is the most tossing year for the Foshan lighting industry. There have been unprecedented events in the industry, and both small and medium-sized enterprises and large enterprises have experienced earthquake-like fluctuations. For example, Foshan Lighting and Guoxing Optoelectronics were acquired by state-owned assets, and 11 executives of Fozhao submitted their resignation reports. The employees of Osram, who had always been “wenjing”, suddenly launched a strike. They worried that the compensation for Osram’s general lighting sales would not be implemented. .

Shunde enterprises have always been famous in the industry of “Dare to be the best in the world”. In 2015, Shunde’s lighting companies also heard the news. Midea’s lighting released “liquidation announcement” and moved to Jiangxi, hoping to create a “beautiful”, but this wish is not achieve. The other two well-known lighting companies in Shunde, which have been operating for nearly 30 years, both Towe and Huaqiang, have sent unfavorable news. In particular, Towe has completely stopped production due to funding problems.

According to data from the Institute of Advanced Industrial Research LED Research, in 2015, about 4,000 LED companies (including upstream chips and midstream downstream lighting applications) disappeared, especially in downstream enterprises. By 2018, the number of enterprises may be reduced by half.

Professionals analyzed that the above problems in Foshan enterprises are the epitome of the national lighting industry. Foshan local lighting companies should attach great importance to the changes that are taking place.

So how do you view the difficulties in the national lighting industry in 2015? The author believes that in addition to the major environmental problems in other industries, there are also unique factors in the industry. The specific analysis is as follows:

1. A listed company represented by Foshan Lighting and Mulinsen initiated a price war on light source products. For example, the 18W LED tube is reduced from a hundred yuan to less than ten yuan. NVC and Ou Pu, the main manufacturer of furniture and commercial lighting, launched a price war on the lamps. As a result, the market was extremely chaotic. The profitability of enterprises without profit support declined rapidly. A large number of small and medium-sized enterprises and even some listed companies had to withdraw because they had no profit. market.

At the same time, the cost of the entire market from chip, packaging to assembly of the entire production chain has declined, and companies lacking capital and capital support are in trouble. Listed companies use capital to crack down on competitors and expand market share. SMEs are trying their best to rush to go public, and hope to rely on financing to solve the financial difficulties.

2. The advantage of LED long life makes the market space smaller. In the era of traditional lighting, product life spans from hundreds of hours to thousands of hours. Due to the short life, the product replacement speed is fast, the replacement rate is high, and the market demand is large. The life of LED products is ten times or even dozens of times that of traditional lighting. The high life expectancy makes the total market demand low. Some companies have a five-year warranty, and some manufacturers even have a lifetime warranty. This seems to be a big market. The market capacity has declined. At present, the number of enterprises has exceeded 10,000, and huge capacity cannot be effectively released. It is normal to have a bankruptcy.

3. Network sales impact traditional markets. With the promotion of Oupu, NVC and other brands in the network marketing layout, Taobao, Jingdong and other large number of individual online stores to join, because the cost of online stores is much lower than the cost of offline operations, many companies that survive the traditional marketing model are more Difficulties, production costs, labor costs, operating costs continue to rise, corporate profits are lower, and the decline in traditional model sales has caused companies to lose money.

According to the survey, even manufacturers with e-commerce are not really profitable. The network model impacts the profits of enterprises, while the main energy-saving advantages of LED products are better than traditional lighting. However, the battle between online and offline channels makes energy-saving LEDs close to traditional lighting, and some are cheaper than traditional lighting. LEDs can't sell good prices, and most companies and distributors are on the verge of losing money.

So, what is the future of the lighting industry in 2016 and the next decade? We have communicated with many companies in Germany for the future, and our conclusion is that the outlook is not optimistic.

In 2015, we worked with a German company to successfully integrate the full spectrum (near the sun) luminaire into the German military shipbuilding industry, which was applied to German cruise ships and German cruise ships. In response to everyone's confusion about the future market, the author consulted the German company's president named "Good Brother" in Chinese. He said that Germany has been studying light health for more than 20 years and started from military use. Researchers live in submarines and closed environments.

The German entrepreneur said that the Germans tried a lot of methods and found that only by changing the lights and simulating people's various life modes and emotional patterns can the officers and men's emotions be stabilized. Since then, Germany has made lighting a professional discipline. Germany has now developed the use of light to treat various diseases, such as the treatment of children with jaundice with blue light and the treatment of depression with yellow light. Now even German aircraft use blue light to stabilize passengers' emotions. The German entrepreneur said that the German lights now have a welcome mode, an entertainment mode, a dining mode, an emergency mode, a rest mode, a drop-off mode and the like. Germany's McDonald's also used red to stimulate customers' appetite.

The top scientists in Germany have studied the therapeutic effects of various colors of light on various organs of the human body. At present, everyone pays attention to the appearance function. In fact, lighting plays a decisive role in people's life and health, which is the embodiment of product value.

In summary, the author believes that China's lighting industry is at the point of change, there are 4,000 companies failing, there must be 4,000 service companies, for the following reasons:

1. Product value change. The influence of LED energy-saving cards has declined, but the influence of health cards has increased rapidly. Due to the technology of LED and the increasing demand for healthy living, there are seven product indicators such as radiation, color rendering, blue light hazard, stroboscopic light and glare. Improper use will cause headache, insomnia, arrhythmia, eye damage, etc. Symptoms that seriously affect physical and mental health. Consumers will increase their demand for the appearance of luminaires to the need for light health, leading to the launch of a large number of high value-added and intelligent products.

2. Product sales changes. Switch from mall mode to custom mode, or from pharmacy mode to hospital mode. The traditional model lacks service and data quantification, only the price has no value, and the customization mode can serve consumers in all directions, launch different lighting modes for different groups of people, pay attention to the consumer experience and physical and mental health, and enhance the added value of the product. It can increase the value of products by ten times or even dozens of times, from hundreds of billions of industries to trillions of industries.

3. Product technology changes. Due to the outstanding advantages of LED, lighting can add new application functions such as communication, disinfection, breeding, medical, music, health, etc., and the product performance space is constantly emerging. Various new combinations will expand the application range of products from single function to unlimited. The combination of functions, and for different markets, the scope of application is expanded, and cross-border cooperation will be the protagonist of the market.

In fact, the development of the lighting industry is the development process of technological change. This field is similar to the development of communication products. We all know that in the past one or two decades, we have experienced changes in telephones, BB machines, analog mobile phones, and smart phones. And each period has a strong out and entry. Therefore, the market for lighting with the main energy-saving brand has not yet ended, and the market for health and cross-border era has arrived. In 2016 and the next decade, due to the technological revolution of LED and OLED products, the lighting industry will have a bright future and bright future from the lighting hardware era to the software era that meets people's various needs.

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