In the economic downturn in the background, the market downturn has become the industry consensus, many LED manufacturers even think that the industry is the development of the "most difficult" period. In fact, since 2015, the LED industry price war after fierce competition and product homogenization, intense industry reshuffle. Today, "shuffle" become the industry keywords. A lighting collapse, opened this year's domestic LED industry reshuffle curtain. Subsequently, Zhongzhou photoelectric lighting, Zhongshan Tongji, delipow optoelectronics, ruigu science and technology has announced that due to poor management led to bankruptcy. According to the several companies announcement and interviews showed that the collapse is due to funding strand breaks. A lighting executive director Liang Ronghua has publicly responded, a lighting is to choose the closed shop, the company capital chain has been a serious problem, ready to apply for bankruptcy liquidation. Zhongshan Tongji Science and technology lighting because of mismanagement, unable to pay 600 million payment owed to suppliers, employees wages are not out. Delipow photoelectric said, due to overcapacity and debt liquidity difficulties lead to industry company funds, decided to clean the inside and held the supplier credit reporting and liquidation. Ruigu technology because of the economic downturn, business difficulties involved in manufacturing, but closures. Transformation failed to accelerate the shuffle although the result is the same, but the cause of fracture of funds are different. Among them, a lighting and ruigu science and technology because of the restructuring failed. At the beginning of 2013, a lighting from factory fought electricity supplier. During the year to 8-10 times the growth rate, from several employees to 180 electricity supplier team, monthly sales reached nearly 10 million. Last year, a lighting has announced a high-profile double 11 day sales exceeded 12 million, become the field of electronic commerce sprang out of a dark horse by the industry wide concern, even once called a model of transition to e-commerce marketing model innovation. Is this transformation created brilliant good times don't last long, only lasted for more than two years disappeared. "A failure, is a victim of transformation." Foshan Lighting Association President Wu Yulin bluntly, a fast development, to the quality and service. A product from its own factory, the other from the supplier, the technology does not pass quality, there are some problems, and no line service mechanism, electricity supplier must have continuity, not only the price, but no value. The failure of transformation and ruigu technology. The power module started ruigu technology, the first domestic main customers are HUAWEI and ZTE, but due to various reasons, the market exit of zte. From the beginning of 2009 HUAWEI was established based on the original product line, power suppliers living space caused great extrusion. Second years, the strategic transformation of the LED industry and solar valley. 2013, ruigu science and technology general manager Xiao Zhiwei once said in an interview this year, LED market ups and downs, spent a lot of energy companies in the field of power LED drive, but the market performance is not as expected. Since 2010, under the policy support, the primary stage of the rapid development of the LED market, relatively high profit. Now or never. Once missed the best period of development, the transformation will be late in the long hardship can not extricate themselves. In recent years, has been in the sun power, ruigu technology was two power companies own family property as far behind. Last year, Xiao Zhiwei also told reporters complained, with respect to the communications industry, LED power price is too messy, too much competition, simply can not do. There is no doubt that the election of the best ruigu science and technology during the transition period of LED, but due to over reliance on of HUAWEI, put down the burden of history, the lack of a thorough transformation of the executive power, finally fell in the transformation of the way. Spell in capital chain bankruptcy, capital chain rupture magic as the shadow follows the form. Since most companies take LED industry development model, price spell spell capacity, need a large and persistent capital support, once a node in a capital slightly block, the whole development mode will fall apart, the enterprise will be in danger. Especially small and medium enterprises, no money and good risk management strategy, more vulnerable to collapse. One of LED's biggest in East China manufacturing enterprises, Zhongzhou photoelectric strategic financing came to failure due to bankruptcy reorganization. Fortunately, filament lamp technology and its resources there is still value is 40 million yuan acquisition restructuring ke'erda technology, snatched from the jaws of death. With the LED industry reshuffle, the lack of technical content of enterprises will have the priority to be eliminated, and some capital technology enterprises still can develop quickly. In "price fight capacity" that need a lot of money to support the development model under the triangle debt makes the enterprise financial maneuvers space more and more narrow, to further increase the corporate cash flow is not smooth degree. Delipow is dead in photoelectric industry overcapacity and triangle debt. However, debt has always shrouded LED of small and medium sized enterprises. In the raw material suppliers and supporting enterprises, enterprise application, distributors, customers in the industry chain, many enterprises take credit as long as one part of funds in arrears, debts may form on the industrial chain. Industry believes that the current LED capacity and serious pile up in excess of requirement to fierce market competition, some enterprises began to fight, fight service, payment cycle, price fight minimum profit in order to customers, because the profit is very low so the book capital turnover is not much; another is to fight payment cycle, some arrears may be up to six months, or for a long time, so it may lead to the company capital chain rupture, make the enterprise into the doomed eternally. "A lot of enterprise capital chain rupture, blind diversification after all or its main business. At the same time, the problem of triangular debts has increased the risk of capital chain rupture." In the view of Xuyu optoelectronics general manager Lin Jintian, the capital chain is the lifeblood of the enterprise. Xuyu optoelectronics keep awake to resist the temptation, the spirit of the supplier responsible attitude, customer choice to healthy cash flow priority principle, resolutely give up does not keep the contract customers. Only innovation can develop in LED terminal market overcapacity, also by homogenization shadow: homogeneous products, channels, price of homogeneous homogeneous. This leads to LED killing each other, "price war" secure to rely on. To this end, businessmen complain, sell their own products next door next door and have. How does the factory get rid of vicious competition? How businesses talent shows itself? How to realize the healthy development of the industry? "Innovation" has become a major weapon. Undoubtedly, "innovation" means "difference" and "value added" means, but also means greater market space". In order to break the long-term low interest and the homogeneity of the embarrassing situation, to seek survival and development in the market reshuffle, LED lighting companies continue to increase innovation, actively layout LED display enterprises with capital advantage of differences in operation. In the field of LED lighting products in the enterprise pay more attention to product positioning and add design elements, break around the appearance, function, concept and so on several aspects, continue to tap the "OLED" lighting, "light health concept", "multifunctional" lighting, intelligent systems, COB power source of new products; in marketing channels, is to increase the electricity supplier channel development, create new business models; in terms of market segments, have stepped up efforts to open up the high margin UV LED, automotive lighting, lighting plant. However, in the field of LED display, LED display in the photoelectric, Riyadh, Abison, Lehman's shares as the representative of the listed companies have transformed development ideas, began to explore new service and profit model, focus on high-end rental, culture media, sports, finance and other fields. Through cooperation or extension of mergers and acquisitions, to explore "new business strategy LED screen +", and thus become the forerunner of LED display model innovation "". In the tide in the development of the industry, small and medium-sized enterprises or technology, or have a market advantage, either has the advantage of customer relationship, or have a price advantage. In a word, do not blindly follow the large enterprises, to clear its own position, strengthen the innovation capacity, product quality work. In the face of big business big step of the transformation and upgrading of small and medium-sized enterprises at the same time, we must be able to endure loneliness, withstand the temptation, clarify its position, to avoid the "big and complete", adhere to the "small and beautiful" product line, do not spread too long, identify suitable market segments, to focus, to go bad the alienation of the route, to prevent blind expansion and transformation, and bring the wrong decision in damage.