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Embarrassing Era of LED Lighting

Contrast 2012 , this year has been warmer LED lighting market , orders increased significantly. Xiaofei expects China LED output value of 263.8 billion yuan last year, downstream , with an increase of 28% next year LED industry output value will be more than 320 billion yuan , of which the output value applications accounted for about 70% , and indoor and outdoor lighting and accounted for them a large proportion.

Why income does not increase profits ? Overcapacity, fierce price competition , is one of the main reasons. "This year, LED chip prices fell by 20 % to 30 %," vice president of Tongfang Lianghai said to the reporter , the same side of the LED chip business more difficult in the first quarter of this year, the end of the third quarter began to improve. Due to industry overcapacity , Tongfang LED chip production base value of nearly 3 billion plan , now only 30% achieved the target . "LED industry, but also to completely upturn in 2012 . "

In addition , in order to expand the civil LED lighting market , invested heavily in the construction of the channel , which also affected the results . Zhubing Zhong said the lighting project is the traditional advantage on the ground , channel layout looks at the long-term commercial lighting , revenue in the future.

Industry Major Reshuffle Next Five Years

Now if the pre-dawn darkness , the Chinese LED industry consolidation has been imminent.

" big reshuffle next five years, the industry , " Zhang Xiaofei boldly predicted that China's domestic chip plant ultimately will not survive more than 12 , most of the upstream business of death , the survival rate is about 30%. Midstream packaging factory 1750 , only 40% survive the future . Vanguard LED lighting companies on the downstream mortality rate will exceed 50 %.

This is not alarmist. GeZongLianHeng are constantly staged, especially in the upstream to the downstream chip plant to accelerate penetration of the future will be the competition between supply chains .

As Lin Jiliang said " ( channels ) into the more difficult it was found out ," many LED lighting companies have lamented channel input is a swamp. Xiaofei suggested that in this war-torn situation , we must identify their product positioning , and then select the matching channel , the channel is doing engineering , wholesale and retail channels, the overseas market is still restricted to the foundry , otherwise difficult to profit .


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