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Shortly after the opening of the spring, Shenzhen Huaqiang North LED Trading Center ushered in a hot investment activity. The market is now expanded from the original 6th floor to the 5th floor, with a total operating area of ​​13,000 square meters, which can meet the needs of 420 LED manufacturers to open stores.
The market organizer also advertised the slogan “I missed the 6th floor, do you want to miss the 5th floor again?†to attract merchants. Many new businesses are entering the market, and everyone is decorating the store and placing goods. They all told reporters, "I hope that with the popularity and popularity of Huaqiang market, I will get more sales orders."
For those old businesses who have been working in the Huaqiangbei LED market for many years, they have different views on the current LED market.
Exhausted by the environment
"Today, as in previous years, business is relatively light." Many dealers have consistently told reporters.
"From the end of 2011, the LED market began to decline, exports were blocked, domestic sales were weak, and the market has not improved much since then." A dealer told reporters straightforwardly that he was affected by the weak economic environment, LED The market has experienced more than a year of ups and downs.
"The expansion of Huaqiang North LED market does not reflect the current market conditions. It is just that some new businesses come to supplement the market vacancies left by the old merchants. This kind of investment activity is actually being carried out every year." .
Under the influence of the economic environment, not only the LED industry, but also all walks of life have been affected to a certain extent.
Today, the gloom of the European and American financial crisis has not completely dissipated, and the Huaqiang North LED trading market mainly relies on exports, resulting in poor sales and a significant decline in trading volume. Many LED companies and businesses turn their attention to the domestic market, and hope that the domestic market will become a new growth point for enterprises.
"The domestic LED market mainly relies on the two support points of commercial photography and engineering. However, since last year was the election year, this year has just completed the handover of the leaders. The economic policy is still unclear. Many construction projects have been shelved and the project has been measured. Less, causing the domestic LED lighting market to fall into the predicament of weak sales." Lan Wenliang of Shenzhen Xianglong Optoelectronics told reporters.
According to his prediction, the LED lighting market will be reactivated as the number of municipal projects and commercial projects increase after the second half or next year's policy is stabilized.
Price reduction
According to the merchants, compared with the 30% drop in the price of LED products last year, the decline in LED prices has continued to narrow since the beginning of this year, and the trend of price cuts is not obvious. Mainly because the downside of LED cost is relatively limited, resulting in LED prices at a relatively fixed level.
"High prices are indeed one of the obstacles that constitute LED promotion. Consumers have concerns about this. In addition, from the perspective of lighting distributors, LEDs have higher profit margins due to higher prices and sales prices. Traditional lighting is more inclined to recommend traditional lighting fixtures to consumers than when there is no advantage," Lan Wenliang said.
The price advantage of traditional lighting, in addition to its relatively low material cost, is more because the market has brought huge orders to manufacturers, so that manufacturers can form scale advantages, and production costs can naturally be minimized.
On the other hand, LEDs, due to insufficient demand, small scale of production capacity, and higher cost of sharing on individual LED products, naturally push up the price of LED products. LEDs are difficult to market due to high prices, and the cost is difficult to drop rapidly due to insufficient demand, just like getting into an infinite loop.
When is the big chaos?
In addition to the problem of high prices, LED still has a more serious problem, that is, the disorderly competition of the terminal market price.
"With the LED tube, there is a difference of tens of dollars between the mid-range and low-end products. In addition, the quality of the brand LED cannot be reflected in a short period of time. Consumers have insufficient understanding of LED, so it is difficult to convince Consumers choose high-priced products."
A merchant reluctantly told reporters that the root cause lies in the lack of standards or standards but poor supervision. LED lighting specifications Touch a very wide range, from lamps to equipment, including modules and components. The state often organizes a group of experts to set standards, but it is difficult to implement the standards.
The reason for the confusion of the LED price system is that the manufacturers have not carried out product development and production according to the standards, resulting in uneven quality of the LED products produced.
Poor quality LED products have a short life span and a high failure rate. In addition, there are serious problems of light decay and higher energy consumption. The practice of these companies to sacrifice low quality and low price has not only affected the sales of good quality LED products, but also hindered the healthy development of the entire industry.
The government can't just "give money"
"According to what I know, there were five LED companies with a registered capital of over 100 million yuan closed down last year." A dealer told reporters about the current bad situation in the LED industry.
According to data from the High-Tech LED Industry Research Institute (GLII), more than 60% of LED listed companies have a downward trend in net profit in 2012, and companies with more profit declines are mainly concentrated in upstream chips, raw materials and ancillary equipment companies. Corporate profits have also fallen.
A dealer said that the current domestic LED business environment is very difficult. "If a small factory fails, it can be quickly replenished by a new enterprise. If the big factory fails to close down, it will be very harmful to the industry. It can only rely on the huge financial subsidies of the government to survive."
Although the government has continuously increased financial subsidies for LED manufacturers, it has little effect from the entire LED industry and is not conducive to the overall performance of the LED industry.
From the perspective of support, the government's financial subsidy for LED companies appears to be relatively simple and weak. The government should have overall planning and guidance for the LED market, and ensure that the support policies can be effectively implemented and implemented.
“Whether it is energy-saving, environmentally friendly or market-oriented, it is necessary for the government to adopt mandatory measures to promote LED lighting. First, apply LED lighting to municipal projects or some commercial projects to increase orders and increase production capacity. And reduce production costs, and then according to the 'two-eight effect', Shenzhen Huaqiang North LED trading center is letting LEDs go into the circulation of consumption," said Lan Wenliang. 
[Source: LED Engineering's "LED lighting channel" 2013, No. 5 (total of 41) reporter / Li Jingyu]
March 28, 2024