Among the many LED companies in China, Guangdong accounts for half. Many insiders of Guangdong LED companies told this reporter that in the past two years, a large number of LED companies have closed down in Guangdong.
The financial director of Zhongshan, a company with annual sales of 1 billion yuan, told this newspaper that their business conditions are generally good compared to other LED companies in Zhongshan. But compared to last year, this year's profit fell by 30%. Although â€œfeeling a little crisisâ€, he firmly believes that the company can persist in the spring of the industry.
"Xiong" type of entry
The above-mentioned chief financial officer told this newspaper that Xiong Yingxiong, the boss of Xiongji, had been in the lighting industry for more than 20 years. In 2005, he suddenly entered the LED industry where he thought the "money" was endless.
Before "running the road", Xie Yingxiong never avoided that he did not understand LED, but confidently believed that "this thing will certainly make money."
The LED companies contacted by this newspaper are the same as Xie Yingxiong. They all know nothing about LEDs, but they dare to take risks.
At an LED industry forum in Dongguan last month, a LED business owner smugly told his audience about his entrepreneurial journey: he turned from an industry that has nothing to do with LEDs, interlaced like a mountain, at the beginning of his business, extremely Hard work, but with the help of the policy, the company is getting bigger and bigger.
A number of interviewed business people told this newspaper that in order to attract investment as soon as possible, the local government will not hesitate to compensate the enterprises to set up factories and provide corresponding preferential policies. But this directly led to the companies that make shoes and socks have come to do LEDs. It is widely known that Taiwanâ€™s presiding boss Wu Zhongxian also invested in an LED company in Guangdong several years ago.
It turns out that after entering the LED industry, Xiongjiâ€™s business scale has indeed achieved rapid growth. Xiongjiâ€™s output value last year was as high as 150 million yuan, while Xie Yingxiong invested less than 10,000 yuan.
According to GLII statistics, in terms of Guangdong alone, the output value of LED in 2012 was as high as 150 billion yuan, accounting for more than 70% of the national total of 205.9 billion yuan. At present, there are more than 6,000 LED companies in Guangdong Province.
Zhongshan, Guangdong is famous for its lighting. According to statistics from Zhongshan Science and Technology Bureau, there were more than 1,200 LED enterprises in Zhongshan in 2012, including nearly 100 enterprises above designated size, employing more than 70,000 people. In 2012, the output value reached 35.65 billion yuan, a year-on-year increase of more than half.
But Zhongshan has only scale. "Guangdong LED industry technology is not mature, the products are not mature, blindly launched." Industry insiders said. Among the companies he has contacted, some companies have blindly entered the LED industry on the basis of having various relationships with the government, in order to obtain generous subsidies from the government for the industry.
In the face of difficulties, Xiongji tried to break through the market by lowering the price of the product. The above-mentioned chief financial officer revealed that some of the products originally sold for 6 yuan were sold for less than 4 yuan before the closure. "This is simply not profitable." The head of the company said, "Hung Kee has no reason not to die."
LED China's sleepy
Unlike many industry experts who attribute the LED dilemma to overcapacity, the above-mentioned industry believes that LED is not widely used in China at present, and it cannot be said that there is excess capacity.
In his view, the blind start of LED companies and the mismatch of sales channels are the dilemmas of China's LED industry. Some companies lack sufficient understanding of LED products and think that "as long as they are bright and can emit light, they can make lights."
The general manager of a Dongguan company that had business dealings with Wu Zongxian said to the newspaper that Wu did not understand LED. "I sometimes get annoyed when I pick up his phone. He always said that his product is out of order on the phone. I want to provide consultation."
The above-mentioned insiders believe that if companies can find out the sales channels of LED products, enterprises will not go bankrupt. "LED products are very good lighting products, and will definitely be a good development direction in the future." He believes that the current price of LED products is still high, and the price-performance ratio of products made by enterprises is not as high as that of traditional fluorescent lamps. No fluorescent lights.
Many in the industry believe that the reason why LEDs are in trouble in China is because China has no corresponding industry standards to refer to. However, the above-mentioned people said that China has long had standards in this respect. "But the manufacturers do not understand, and they think that the lights are on, and they don't understand the standards."
In the face of the collapse of the company, Zhongshan industry people previously said that Zhongshan is now a low-end LED company with a large number of competitors and serious competition. In the future, it will definitely eliminate a group of low-end LED products and price wars. It said that the end of Zhongshan will introduce LED industry planning, which will guide LED companies to develop in the high-end direction and improve the level of industrial development.
On the contrary, Shenzhen, which has an absolute advantage in the LED scale of Guangdong, abolished the â€œNotice on Printing and Distributing the Development Plan of Shenzhen LED Industry (2009-2015)â€ issued in March this year.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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