LED industry enters the harsh winter period

2018-09-26 14:34:05

Some time ago, the news that the two LED SMEs closed down by Light Energy Technology and Zhongxiang Innovation quickly spread in the industry. Although it is not a two-blockbuster, it is also a big surprise in the entire LED industry. Waves.

According to industry insiders, the direct cause of the collapse of the two companies is the break of the capital chain, and the root cause of the closure of the two companies is different. The problem of light energy technology is as follows: the enterprise locates its products in the middle and low-end market, and is involved in the price war of the industry. The quality of the products is not guaranteed, and the later services can not keep up, the enterprises can not get profitable orders; It is because of the leap-forward development of enterprises, blind expansion, leading to the collapse of corporate capital chains.

Throughout the industry pattern, the closure of these two LED companies is also reflecting the current development status of the entire LED industry in China - overcapacity in the market, oversupply in demand; price wars are intensifying, corporate profits are repeatedly compressed; survival of the fittest, the industry faces integration With shuffling.

In fact, the collapse of the two companies is not a case. Here, the author collects and sorts out the “closed door” incidents in the industry in recent years to readers.

Calm down the reasons behind the analysis, it is not difficult to find that the direct cause of LED business failure is nothing more than the capital chain break, and the root causes are three: First, the industry's vicious price war; Second, the company's own positioning is not accurate; Third, corporate funds Turnaround failure.

First, the industry's vicious price war

At present, the overcapacity of China's LED display industry is believed to be felt by every LED practitioner. China's LED display industry has experienced rapid development for more than 10 years, especially after the investment in the "blowout" in recent years, it has already stepped out of the development stage of the past "staking the horse". Nowadays, China's LED display industry has experienced a serious structural excess, that is, the surplus of medium and low-grade homogenization products, and there are excesses in the fields of epitaxy, chip, packaging, and downstream applications. In addition to the saturation of the domestic market, the international market is not optimistic. The current global economic downturn has left many domestic LED companies that rely mainly on exports for profit.

In today's LED market, especially in the low-end market, price wars are in the way, some LED companies have left behind the concept of brand and quality, have raised the price banner, and seized the terminal market "cake" is busy. Even a lot of listed companies are involved. Many LED SMEs are forced to fight for survival, which makes the competition in the low-end field more intense. With the continuous reshuffle of the industry, the survival pressure of SMEs has increased dramatically.

The price of the product has dropped and dropped, and it has fallen and fallen. At the same time, the profits of the company have been compressed again and again, and the quality of the products is not guaranteed. This kind of vicious competition, which is one thousand injured and self-destructive, is highly respected by the whole industry. Many companies fail because the company can't afford the supplier's payment, but because it can't get the profitable order; even worse, the product quality has problems, and the company can't get the money and it will lead to bankruptcy. It is no wonder that people in the industry will feel that this is the best era and the worst.

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