Overcapacity! The cost of LED lighting industry is huge

Affected by the economic situation and the company itself, the lighting industry in China has recently been an eventful event. NVC Lighting (02222, HK) and Foshan Lighting (000541, SZ) have been pushed to the top of the industry due to control disputes and illegal disclosure. With the rising costs of labor and raw materials, plus the overcapacity of the domestic lighting industry, especially the structural investment in the LED industry in the past two years, there is currently a significant cost pressure and the entire industry is still in cold winter conditions.

Wu Ling, Secretary General of the National Semiconductor Lighting Engineering R&D and Industry Alliance, said that it is not surprising that a wave of companies have not made any profits or even failed to enter the LED industry in recent years. Starting in 2010, the industry has already experienced excess investment and structural excess. The industry is in the winter and is expected to pick up in 2013.

Director Li Xinghua, director of the Guangdong Provincial Department of Science and Technology, said that the total investment in five provincial-level LED industry bases in Huizhou, Dongguan, Jiangmen, Nanhai, and Zengcheng in Guangdong Province exceeded 50 billion yuan. Among them, the investment of a batch of heavyweight industrial investment projects such as Huizhou Carey, Zhoulei Technology, Zhongjing LED chip project, Guangzhou Zengcheng LED epitaxial chip project and so on has exceeded 20 billion yuan.

At the same time, he pointed out that the industry is still facing market confusion, LED has no independent brand, bad reputation, low consumer acceptance and so on.

“Only by strictly controlling the quality of products, promoting business model innovation, and stimulating the consumer market with all one's strength, we will vigorously increase industrial concentration, technological innovation, and regional branding in order to achieve rapid development of the LED industry.” Li Xinghua believes that the 2011 Guangdong LED industry output scale It reached 151.5 billion yuan, and the total output value this year is expected to exceed 200 billion yuan.

The person in charge of an international training agency company in the LED industry stated that at present, the prices of some LED lamps that are used as substitutes for 40W incandescent lamps have fallen below the limit of US$10.00. On the one hand, they can promote the substantial growth of the LED lighting market, but on the other The question raised by companies is how to reduce the cost of LED manufacturing.

Data shows that the price of 1.2-meter LED tube lamps exported last year was about 180 yuan, and the foreign price was only 100 yuan this year, and the company's gross profit was also maintained at about 20%-30%. A Shenzhen LED export manager said that for SMEs whose product core technologies and sales capabilities do not have advantages, competition and survival pressures are very high and industry consolidation is accelerating.

Wu Ling also believes that the domestic LED industry is currently in the cold winter before the warm-up, LED companies are no longer simply from the original pursuit of quantitative development, but the pursuit of quality development. It is expected that this industry will recover next year.