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Analysis of the current situation of LED industry in 2014

Chance favors the prepared mind.

On one side is the overall LED market continued to improve, the other side is thegood may not be able to make the enterprise performance rise. Analysts pointed out that, in order to snatch market share, each enterprise has to be eager for a fight, in addition to the previous price war, in the brand, channel contention will start. In 2014, the entire LED industry competition will be more intense.

"The market acceptance on the increase, all in order to seize the market, more and more severe competition. A few manufacturers may be eliminated." President Wu Yulin told reporters FSL association.

Price war is more intense

"LED lighting industry is currently one of the most fiery, the industry appears to be popular, but many problems, disorderly competition, price war, the standard is not unified and other factors restricting the healthy development of the industry,industry consolidation and upgrade has been imminent." Lighting chairman Deng Zichang said.

In order to occupy the market quickly, LED industry first staged a price war.Although this makes many enterprises to increase income, but not for thecorresponding profits.

In 2013 three quarterly reports as an example, the upstream chip enterprises, BDO 润达 before the three quarter operating income of 2270000000 yuan, an increase of 16.69%, net profit fell 56.45%. Huacan photoelectric revenue fell 20.59%,75.77% decline in net profit.

In the middle of the package, Hongli photoelectric revenue grew 24.39%, net profitfell 19.30%. The starlight is slightly better, revenue growth of 20.3% of the three quarter, net profit grew 17.26%, but profits growth rate is still no revenue growthquickly.

In the downstream enterprises, ground the photoelectric revenue increased by 35.31%, net profit fell 4.73%. Lehman photoelectric revenue fell 2.77%, net profit fell sharply to 39.12%.

Not only that, the reporter read a large number of LED listing Corporation earnings found, "income does not increase profits" has become a common phenomenon inthe industry.

President of Guangdong Province Lighting Electric Appliance Association Quan Jian said, in 2014, the price war will continue, but if the price is too low to kill, the industry is not a good thing.

Brand war horizon

In addition, some LED companies set up their own brand influence rapidly in the chaos of the competition in the industry hope, to seize market share.

In January 7, 2014, a lighting issued their own brand upgrade strategy, hoping to "user mentioned LED lighting effect of thought.". Deng Zichang said, in 2014, alighting will be pre cast 100000000 yuan for brand promotion, to further enhance the brand awareness and reputation, to help dealers across the country fastersales of products, to win customers.

The reporter also noticed that, as early as in 2012, de haorun amounts it releases announcement to say, signed the "purchase and the cooperation framework agreement" and S. advertising group limited, the next 3 years, boat beautyadvertising group to BDO 润达 purchasing 210000000 yuan indoor LED displayproducts, compared to the same period 20000000 yuan each year on the BDOÈó´ï media advertising to its.

In order to obtain a higher visibility, de haorun amounts in the NVC, also launched a joint "NVC BDO" brand, the main LED products.

However, in Wu Yulin's view, the current lighting brand is still the foreign Philips,Osram some giant, or is the old enterprises such as FSL, NVC etc.. The emerging LED companies to create their own brand, still need a lot of.

Channel controversy

For the channel is another way of competition among enterprises. LED products through what channels to reach consumers, sales is also very important.

The dealer channel veteran lighting enterprises in line at. For example NVC has 36 national operations center.

More and more enterprises channel construction in their advance, such as itselfhas been widely covered FSL channels, from 2013 April to September Hohhot,north to Inner Mongolia, South to Guangxi Yulin, held more than 40 new product promotion store will join.

But the snow Wright only in 2013 August, in Lanzhou, Wenzhou on the continuous,Taiyuan five regional investment conference and LED held a new conference.

Mei Zhimin said, enter the LED of the enterprise, we must face the fact: there is nochannel. In other words, it is the source of channel brand is weak, weak brand.While the traditional lighting brand in 10 years, 20 years ago, in the channel has agreat accumulation. "That is to say, it has a mountain, if we do not see the situation clearly, don't find strategies, we go after them the mountain, will be very hard,basically is the tramp over mountains and through ravines, and even many trapswaiting for us to jump."

But the online channel is often associated with line channel conflict. In December 18, 2013, Hongli photoelectric in the Shenzhen stock exchange interaction easyplatform said, because some conflict part of LED lighting products online andoffline sales, companies in the Tmall mall LEDIA lighting shop to suspend operations.

Wanrun Technology Vice President Pan Rurong think, in 2014 the market is more and more clear, more and more clear demand. Product specifications are more and more perfect, shuffle is more reflected in the comprehensive strength. An industry can not carry so many companies, may be eliminated in a reshuffle, so will inevitably

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