In 2013, China's LED industry is destined to be a year of terminal outbreak and crisis. With the promotion of macro policies, the LED industry has developed rapidly. Due to breakthroughs in price, technology, and products, the terminal market has slowly opened up. However, at the same time, many traditional companies have switched to the LED industry or many large LED companies continue to expand production capacity, causing greater squeeze to the market, and the situation of excess capacity has not changed. After experiencing a boom in channel construction and a wave of price cuts, the LED industry is entering an era of meager profit. In the second half of the year, let's take a look at the possible trend of LED. Some industry experts said that the industry may face a cold wave in the short term, and reshuffle is inevitable. In the next two to three years, more than 40% of the factories downstream of China's LED industry will close or transform. The collapse of low-end LED lighting companies is a normal phenomenon in the industry, but low-end LED products are popular in the market, casting a shadow on the future development of the LED industry. In July, a number of LED factories in South China announced their failure. Mainly affected by China's policy of rectifying shadow banking, including LED and solar energy are listed as "six idle capacity" industries that restrict lending, causing short-term turnover of LED factories in the mainland. Recently, in Zhongshan, Foshan, Shenzhen and other regions LED factories are frequently closed down, and it is conservatively estimated that at least more than one hundred LED small and medium-sized enterprises in mainland China have closed down this year. In the LED industry, it is difficult to cause sympathy for the collapse of the enterprise. What is more worrying is the harm to the industry from the poor quality LED lamps circulating in the market. Earlier, more than 70% of the results of spot checks on indoor lighting LED lamps published by the Guangdong Quality and Technical Supervision Bureau were unqualified. Some manufacturers take the old road of traditional lighting products. In order to seize market share, the only way is to lower the price of the product. In this way, the company's profit is less, the quality of the product is reduced, and additional funds are needed to replenish and post-sale. No.02 price reduction: can only continue "The price will definitely go down in the second half of the year, and it is normal to expect a 20% year-on-year decline on average throughout the year," said Lin Jiliang, deputy general manager of Mulinsen Lighting. Since entering the dealer order meetings held by many LED companies since June and July, the reporter also found that the prices of new products, especially the circulation light source products, have declined to varying degrees. This is not only true for domestic brands, but also for price reductions of multinational brands. On July 15, Philips announced the launch of a new generation of LED bulb series in Taiwan. Its entry-level 7-watt LED bulb is only 82 yuan, which is about 20% lower than last year's entry-level model, and some products have fallen by as much as 33%. To challenge the current mainstream 8-watt LED bulbs in convenience stores, Philips' latest 8-watt pricing has dropped by as much as 33.39%, and the difference between Everlight and Everlight is only NT $ 50. It can be seen that Philips is actively advancing into the LED lighting industry and has entered the field of general lighting from commercial and architectural lighting. Even if the price of LED street lights has always been high, it has continued to fall. According to GLII research, the average price of LED street lamps in the first half of this year has dropped to about 13-15 yuan / watt. The main reason for the continued decline in the price of LED street lamps is the continued decline in the prices of raw materials such as chips and packaged devices; more and more companies have entered the field of LED street lamps, and the market competition is becoming increasingly fierce. No.03 channel: continued fiery In 2013, it was called the "first year of LED terminal", which refers to the first year of the application of LED products, especially the market application of LED lighting products. Market demand has also entered a critical period of buoyant growth, so the market channel war of various enterprises has started. Channel world ". Domestic companies such as Op, NVC and Sanxiong Aurora are also continuously expanding their scale through integration, and strengthening the number and quality of channel outlets. It is conceivable that in the second half of this year, whether in the international or domestic LED lighting market, competition will enter a fierce stage. The international giants also pay special attention to the layout of mainland channels. In June of this year, Philips emphasized that it will accelerate the strategic transformation from a manufacturer of lighting product components to an integrated lighting solution provider to create an LED business model that is closer to the local market. Coincidentally, on July 8, Siemens officially spun off its subsidiary OSRAM in Germany. OSRAM is expected to increase its efforts to expand the LED lighting market in the Chinese market. In fact, Osram is also vigorously laying out the Chinese market. Osram's LED packaging plant in Wuxi plans to put into production in October this year; an LED R & D center has also been established in Shenzhen; and the output of LED lighting terminal products at the Foshan plant is also on the rise. It can be seen that the competition of several major international lighting giants in the future, especially the competition for the Chinese market, will be more intense, and the pressure on China's local LED lighting industry chain enterprises will increase. At present, traditional lighting companies and emerging LED lighting companies are overly dependent on traditional distributor channels. LED lighting companies lack a set of diversified channel systems such as dealers, specialty stores and e-commerce platforms. Most companies hope to find a channel system suitable for their own companies. I believe the second half of the year will be a watershed for the construction of LED lighting channels in China. More innovative and effective channel models will be explored. No.04 subdivision: become popular At this year's Guangya Exhibition, the LED indoor subdivision area has been interpreted the most, and even some companies such as Zhaoxin Group have launched a series of LED products for Duan Yan crafts professional lighting. The era of LED lighting has caused a disruptive impact on the industry. One of the big opportunities is that all brands will return to the origin of product competition. This year's trends and intentions are particularly evident. At this time, many small and medium-sized enterprises seize the opportunity, knowing that although the scale can not be compared with large enterprises, they can compete for the vanguard in the profession, first locate their own market segments, and pay close attention to brand building and create competitive LEDs. New products, broaden sales channels, and win the right to speak in the market. From the 2013 Guangya Exhibition, we can see a group of more professional manufacturers with special characteristics, such as taking a professional positioning market, focusing on VF and Maoyu that control light; Xinteli, which focuses on personality and lighting design sense; try smart Control, take the lead in the market, such as Hehui, Hongyan, and Tridonic. Compared with previous years, indoor lighting products are more abundant, the goal is clear, and the positioning is professional. Many companies realize that the core competitiveness of commercial lighting lies in the organic integration of optical design, lighting design and meeting the requirements of functional environments. Although the sales platform and service capabilities of large enterprises are the biggest advantages of gaining user trust; but the personalization of commercial lighting The demand is relatively obvious, as long as the enterprise has advantages in technology and product characteristics, it can grasp the opportunity for survival and development. Therefore, small and medium-sized enterprises that are professional high-end and appropriately personalized features will instead form a niche professional brand advantage and form a certain good effect in the lighting technology professional circle. If SMEs are sufficiently focused on technology, there are not many competitors facing them, and they are still able to live out their posture and decent dignity with value. " No.05 expansion: non-stop In the face of the industrial recovery in the first half of the year and the huge market prospects, many domestic and foreign enterprises focusing on LED lighting applications began to increase their capital and expand production in order to seize the lighting market. In particular, companies that launched a series of promotional activities in the domestic market last year and set up a nationwide dealer network. The pick-up in the first half of the year has made many LED companies unable to suppress the long-awaited expansion dream. For a time, from sapphire substrates, epitaxial chips to packaging to downstream lighting applications, the entire LED industry chain seemed to return to the period of crazy expansion in 2008 overnight. At the end of May, Sanan Optoelectronics (600703, share bar), which planned to increase the 3.3 billion yuan plan for the expansion of the Wuhu (Phase II) project, had just announced that it would spend 280 million yuan to expand its capacity, of which the government invested 100 million yuan. Ruifeng Optoelectronics (300241, share it) is also planning to expand its SMDLED project by 183 million. The implementation of this expansion project will further enhance the company's overall strength in the LED packaging industry, consolidate and highlight the company's leading position in the large and medium-sized LCD backlight LED and lighting LED market segments. The chairman of Jingdian Li Bingjie said that expanding the scale of chip production capacity through mergers and acquisitions is the established strategy of Jingdian, and it is also the need of Jingdian for industry integration. Downstream application companies continue to invest in the enrichment of product lines and the increase in production capacity. For example, Mullinson Lighting not only upgrades packaging equipment, but also in the field of finished products. At present, its lamp production capacity can reach 6 million per month. It is expected that the production capacity will reach 20 million per month in the second half of 2014. The price will be further lowered due to the popularization of LEDs. Government guidance has also prompted LED companies to increase their capital and increase production. At the moment when LED investment has tended to be surplus, compared with Shenzhen, the popularity of other local governments in the LED industry is still unabated. For example, the investment delegation from Xiangyang High-tech Zone in Hubei Province sent invitations to many LED companies. Before this, 15 industrialized bases including Xiamen, Shanghai, Dalian, Nanchang, Shenzhen, Yangzhou and Shijiazhuang have been formed nationwide. No.06 integration: has become a trend A few days ago, Ruifeng Optoelectronics announced that TCL Group, Ruifeng Optoelectronics, and Yuxing Enterprise, a wholly-owned subsidiary of Taiwan's "Yuanyuan Optoelectronics", will jointly invest 200 million yuan to establish a joint venture in Zhongkai High-tech Development Zone, Huizhou City, Guangdong Province. LED company. Canyuan Optoelectronics is one of the largest LED chip manufacturers in Taiwan, Ruifeng Optoelectronics is a well-known domestic LED packaging company, and color TV giant TCL has downstream channels and product resources. This time has undoubtedly become a symbol of in-depth cooperation between different enterprises in the upstream, midstream and downstream of the industry. From the dynamic analysis of major companies in the middle of the year, the integration of the entire LED industry chain is surging in the second half of the year. Some companies that want to be bigger and stronger are looking for investment and acquisition targets. Through integration, they can improve production, quality and cost control capabilities; some lack The core of the technology is also looking for companies with dimming technology, wireless control technology, etc. to increase the added value of LED lighting products. Some companies hope to expand the domestic and foreign markets through integration, such as Sanan Optoelectronics' acquisition of American Lumens. For better development, integration of complementary advantages and resource sharing has become an important development trend in the future. The competition pattern of the LED industry chain, especially the downstream lighting market, is scattered and chaotic, with large and small enterprises flooding the market. Relatively speaking, the upstream is relatively strong, and internal integration is basically over. From the perspective of international experience, vertical integration of the industry chain is an inevitable trend, and the extension from upstream chips to downstream products is the first choice for enterprise mergers and acquisitions. No.07 store: rushing customers When an industry develops rapidly, subsequent distribution channels will also emerge. In the booming and mature stage of the home building materials industry, supermarkets such as Red Star Macalline, Actual House and Yuexing Home have also been born, which in turn has promoted the home building materials industry to a higher stage of development. From 350,000 square meters to 350,000 square meters, the volume of professional lighting stores is changing from quantitative to qualitative changes. The lighting market will also gradually move from "shantytowns" to "high-rise buildings". On June 8th, Hall A of the LED Lighting Exhibition and Trade Expo City of Kyushu City, which specializes in LED lighting products, opened. Although the 40,000 square meter exhibition hall was not "filled up", it also opened a prelude to grabbing customers from professional lighting stores in the industrial base. After all, there are 360,000 square meters of ancient town Star Alliance, 1 million square meters of Jiangmen Guangbohui, and 400,000 square meters of Huayi Lighting City under construction, and the World Light Expo Center Lihe Plaza project with a construction area of ​​more than 800,000 square meters. and many more. At present, the area of ​​finished and professional stores in the ancient town and surrounding areas has exceeded 1.5 million square meters, and this has not yet counted more than ten small and medium-sized stores below 20,000 square meters. The construction and investment promotion of other lighting industry bases are also in full swing, such as the light garden. This is the first LED industry tourism in China that focuses on LED light environment, light culture, light wisdom, and light art. Sightseeing base is also an LED industrial platform integrating product display, trading and tourism, with a total planned area of ​​1.5 million square meters. The large-scale Guangzhou Optics Valley has been criticized by the industry because of low passenger traffic, and this year, it has also tried to find ways to increase popularity through forums and exhibitions. Jinhu Weibao Trading Co., Ltd , https://www.weibaoe-cigarette.com