Reporter: From the data of the semi-annual report of LED listed companies, the operating income in the first half of the year showed a different growth rate, which is much higher than the growth rate of the national economy. It shows that the industry is developing very well. What do you hold for the LED market in the second half and next year? view?
Qiao Wei: In 2013, it was called the first year of the LED market explosion. In the long run, the growth of the LED industry in the next decade will be very impressive, and it will form a billion-dollar market. On the other hand, it is also necessary to go through a period of pain and integration. Accelerating industry integration and survival of the fittest will be an inevitable trend in the development of the LED industry. The collapse and withdrawal of weak enterprises is a certain phenomenon.
The above situation is caused by a combination of factors. First of all, in the past few years, due to the support of national policies, LED investment fever has emerged in many places, resulting in the formation of a large number of scattered LED enterprises in China. According to relevant data, there are more than 5,000 domestic LED companies. The increase in industry competitors will inevitably lead to fierce competition within the industry.
Secondly, the rapid decline in the price of LED products has been able to get closer to the civilian product market. Therefore, this round of LED warfare is not only a price war, but also requires enterprises to pay more attention to the channel. Because the channel is the fast track for the product to reach consumers. The construction of channels requires capital strength, brand strength, and experience strength, but most of the domestic micro-enterprises do not have the capabilities in these areas.
Finally, mergers and acquisitions are the inevitable result of industrial development. From the data point of view, the current concentration of the LED industry is too low, and the single company with a market share of more than 2% does not exist. In the future, the industry will be reshuffled in the future, and the process of gradually increasing the concentration of this industry will become an irreversible trend. .
In summary, 2014~2016 will be a period of coexistence of opportunities and challenges. Even if some strong enterprises have a decline in profitability due to fierce competition in the industry in the short term, after a round of in-depth integration, the ecological environment of the industry will be greatly improved. Resources will be concentrated in the first-line lighting brands, and the situation in which several well-known brands master the market will eventually take shape.
Qiao Wei: In 2013, it was called the first year of the LED market explosion. In the long run, the growth of the LED industry in the next decade will be very impressive, and it will form a billion-dollar market. On the other hand, it is also necessary to go through a period of pain and integration. Accelerating industry integration and survival of the fittest will be an inevitable trend in the development of the LED industry. The collapse and withdrawal of weak enterprises is a certain phenomenon.
Shiyi President Qiao Wei profile picture
The above situation is caused by a combination of factors. First of all, in the past few years, due to the support of national policies, LED investment fever has emerged in many places, resulting in the formation of a large number of scattered LED enterprises in China. According to relevant data, there are more than 5,000 domestic LED companies. The increase in industry competitors will inevitably lead to fierce competition within the industry.
Secondly, the rapid decline in the price of LED products has been able to get closer to the civilian product market. Therefore, this round of LED warfare is not only a price war, but also requires enterprises to pay more attention to the channel. Because the channel is the fast track for the product to reach consumers. The construction of channels requires capital strength, brand strength, and experience strength, but most of the domestic micro-enterprises do not have the capabilities in these areas.
Finally, mergers and acquisitions are the inevitable result of industrial development. From the data point of view, the current concentration of the LED industry is too low, and the single company with a market share of more than 2% does not exist. In the future, the industry will be reshuffled in the future, and the process of gradually increasing the concentration of this industry will become an irreversible trend. .
In summary, 2014~2016 will be a period of coexistence of opportunities and challenges. Even if some strong enterprises have a decline in profitability due to fierce competition in the industry in the short term, after a round of in-depth integration, the ecological environment of the industry will be greatly improved. Resources will be concentrated in the first-line lighting brands, and the situation in which several well-known brands master the market will eventually take shape.
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