The LED industry is not easy, by acting?
Source: Date:2018-01-05

It is no accident lighting products. In 2011 a lighting for the first time involved in the electricity business, mediocre performance, through professional training, again in 2013 to enter the electricity supplier, then the way kaigegaozou, 2015 sales break million, become inspirational story. However, in 2016 only half a year from the "story" the plot reversal "accident". This also produced a lighting exposure under the helpless "Although previous glory development so fast, but do not make money, at a loss". A lighting pain is not alone. The entire LED industry, looking ahead, is full of beautiful performance before acting, is helpless smile, is behind the big expansion of confused restlessness. But the glory of acting according to our understanding, a lighting business strategy, trying to get the market at a low price, then do large-scale, so that the marginal costs decline, resulting in subsequent operations to make money. However, the electricity supplier operating costs up to more than 40%, resulting in a greater in lighting do more, the greater the loss, the accumulation of risk is more and more big, finally even only because of the logistics problem of funds flow, the backlog of suppliers, the supplier was charged, causing the consequences of bankruptcy. This event may indicate that the commercial prosperity of foam LED industry but cannot withstand a single blow, hurt more than the electricity supplier. "The price to occupy the market, only occupied the market, only have to do to earn money." This kind of thinking a lighting, but also our LED industry a lot of people's ideas and practices. With the LED technology gradually transparent, technology content is relatively low, the LED industry has entered a low prices, the size of the fight time. Especially the LED packaging field spread a 1 billion line, LED packaging companies if 3 years to do 1 billion, it will be difficult to survive. At level 1 billion, and level 5 billion, ten billion and so on "inspiring" goal. Therefore, LED packaging enterprises capacity expansion is the most desirable in the whole LED industry be struck dumb. In today's society has changed the concept of entrepreneurial wealth, entrepreneurs make money from consumers to earn money for investors, at a low price, return now to attract consumers and gain market share, the market valuation of bigger, to convince investors to investment. This idea is also affecting the LED industry. And, if the enterprise LED occupy enough market share, and access to local government subsidies and incentives. It seems that only low prices to the size of the fight, only to fight the scale will be enlarged to the ultimate profit. However, low prices, the size of the fight mode of development needs huge lasting financial support, once at a node of funds slightly block, the whole development mode will fall apart, the enterprise will be in danger. LED enterprises in the interpretation of the glory and helpless, LED family enterprise before FengFengGuangGuang, but was flustered. "You are such a large scale enterprise! Such a big sales!" In fact, although the order has been in short supply, but the profits did not get the same increase. In order to diluted cost, and continuous expansion of the scale, the release of production capacity and make the price tends to be lower. The size of the fight to save no profits, low prices and the size of the fight instead of forming a vicious spiral. Market order mean acting is not normal gimmick is also the breeding ground for all kinds of chaos LED industry. Some smart people have an ulterior motive opportunistic, seize the so-called "air", the so-called "new science and technology", as a stunt, trying to grab considerable wealth in between can be called "acting as changeable as clouds and rain, surface view". Acting one: assuming no wrong cross-border, double main industry no wrong, no wrong key lies in the diversification, pragmatic, and really do not forget the early heart. But some people only play concept, irresponsible, he have no technical matter, do not do whatever he. Just idea (idea), think that as long as there is idea (idea) is money (money). This year launched LED enterprise name boom, some are under suspicion. Affected by the business circle nowadays investment philosophy, these qiaolimingmu LED companies believe that as long as the business plan to do a bit more beautiful, the valuation of the market is bigger, the financing sector wide net, there will always be some stupid fish bait. At this rate, later renamed "LED screen enterprise vision technology company, do the webcast, made of red, also don't blame the offence. Acting two: results of water recently a company issued a "shock" in the LED industry: announcement period of 3 years a total of 8 billion 700 million yuan of large orders. But the announcement did not specify what talk ambiguously, LED products, a single customer is mysterious. Such a business information unknown, main information unknown customers in 2015 for the company's revenue was 50 million yuan, just six months was a "rapid" average annual contribution of 2 billion 900 million yuan? As a new listing three new board business, the company's gross margin from 3% in 2014 soared to 32% in 2015, victory over Lehman, Yankon Linsen, A shares and other enterprises. Although the company uses a full automatic production, some of the cost savings of intermediate links, even if the company has Brazil market access, WAL-MART as distribution channels, however, such a high gross margin, so the sudden large orders, unconvincing. Acting three: some LED companies do prostitution fraud is not how to sell products did not make money, but to sell the company's fortune, premium several times, ten times was acquired. Is the acquired enterprise accounting fraud, is the acquisition of money people stupid, or what is behind the exchange. These enterprises to catch up with the bondage of fraud thanks to mergers and acquisitions, sold his good price, otherwise the two do not know is alive or dead. Last year, LED lighting business a little-known is ten times the acquisition premium, the media have questioned, investors are indignant, requires the acquirer to entrust the third party agencies to review accounting. However, the acquirer has not re examination, but also behind the acquired company, said its good prospects. LED the showbiz story sometimes really is whirling blurred. Acting four: fishing. Not long ago a lighting company announced a network technology company limited partnership. However, the two sides agreed in the contract before 2046 were a one-time full payment of investment (500 million and 100 million), after the completion of a limited partnership has become an indirect non wholly owned Affiliated Companies. This contract may be China LED history of the long term contract. In 2046, LED will not be other forms of lighting might also replace. The new company should pay 30 years after the investment is completed the establishment of procedures. With 30 years of time to carry out the contract, this situation is far beyond the conventional, full of suspense, people can not help but daydream. Out of the blind show a lighting bankruptcy, some defects attributed to Tmall business platform, proposed the establishment of a business platform lighting industry. In fact, in recent years there have been several lighting industry the advent of electronic business platform. However, the lighting industry has yet to find a business platform exclusive lighting industry business model, platform operation effect is not ideal. Compared to the electricity supplier platform, LED enterprises need a mutual communication, coordination, self-discipline, platform. Although there are numerous associations at all levels throughout the LED industry, but these associations are basket case, did not really play its function and role. In the LED enterprises have encountered difficulties, the association can learn the first time and start the emergency rescue? "Somewhere else to play the price war is not my business, my site is not in the price war!" The association can come up with such courage? The Association for LED enterprise production and sales to provide substantive services? Other industry associations in order to help enterprises to reduce the cost of raw materials, organize enterprises centralized procurement of raw materials, it is relatively rare in the LED industry association. LED private exchanges between enterprises rely solely on individual entrepreneurs is not enough, need to have each enterprise centralized communication platform. The local lighting market demand and how much, how much capacity to do right, we make good planning of lighting products; local residents for what type of general or focus on the health of the lighting, we look carefully; local lighting market situation, a business situation, we need to discuss. Company LED has the accurate and clear understanding of the local lighting market, in order to make a scientific production and marketing planning, and strengthen self-discipline and coordination of various LED companies, LED companies can go out blindly show, the local LED industry to the healthy and orderly development. If all the orderly and healthy development of LED industry, so the LED industry will also be the orderly and healthy development. Special statement: This is the LED network special author Chang Xin (pseudonym), the contents of the article represents only the personal views of the author, has nothing to do with the platform. In addition, according to the author, this article prohibits any WeChat public number reprint.

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 Archled Technology Co.,Limited, which is a professional Manufacturer and Exporter of  architectural lighting and controlling system. Archled take"zero defect products" as the goal, constantly improve and enhance the quality of products. We quest for innovation and pursue better user solutions and better user experience.

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