But where is the road to transformation? The LED lighting industry, which was once hot, has become more competitive due to more and more manufacturers, the market competition has become more intense, the prices of industrial chain products have continued to decline, and the problem of rising cost and compression of gross profit margin has become increasingly prominent, and downstream demand has continued to weaken. This has made many traditional lighting companies that originally planned to transform into the LED lighting industry a dilemma.
Affected by demand costs, LED lighting profits plummeted
Originally, the LED lighting industry is the transformation goal of many traditional lighting industries. Nowadays, there are variables in this industry. The performance growth below the market expectation, the sharp increase in production costs and the drastic price cuts make this year's domestic LED lighting industry. There are quite a few prospects.
The official website of China Lighting Association, the relevant person in charge of China Lighting Network, said that the gross profit margin of LED companies in 2011 was more obvious than that of the same period of last year, mainly due to the lower prices of LED products and the rising prices of raw materials. In addition, the demand for LED backlights in the first half of this year is not as good as expected. The factories have turned their focus to the LED lighting market, and the supply has increased. Intelligent LED ceiling lamps. If this situation continues to develop, product prices may continue to decline in the future. It is also possible that there will be "industry shuffling" and "price-losing competition".
From the semi-annual report issued by LED listed companies at the end of last year, we can also see this: Most companies' net profit margins declined in the first half of the year. Some companies’ semi-annual reports also showed that their operating income has increased, but their net profit has declined. Up to two to 30%. The annual report of a large domestic LED packaging company shows that the gross profit margin of the company's main business is 22.80%, down 9.82 percentage points over the same period of last year. The main reason is: to expand the market share of products, the company actively lowered the price, product sales Significantly increased, gross margin dropped 15.4%, smart LED ceiling lights. In addition, for some export companies, the appreciation of the renminbi has also affected the gross profit level of exported products.
Below the market's expected performance growth and drastic price cuts, this year's domestic LED packaging industry is quite a bit chilly. Moreover, in addition to the reshuffle within domestic companies, foreign companies are also accelerating their deployment into the domestic market. Since 2010, multinational companies including Samsung, LG, CREE , and OSRAM have deployed LED packaging bases in China, and the market competition is facing further escalation.
Traditional lighting companies are in a dilemma
The variables of LED lighting have also made the traditional lighting companies planning to transform. A person in charge of a traditional lighting company said that the company is considering the transformation of energy-saving lamps or LED lighting products, but it is still difficult to make up their minds. Because the LED horizon is unclear, the large amount of domestic investment in the past two years has caused the overcapacity of this industry. Moreover, the price of LED lighting is still higher than traditional bulbs and energy-saving lamps, and price cuts have become the key to increasing market acceptance. The market for energy-saving lamps is also unclear. If the production of energy-saving lamps is changed, on the one hand, the market competition is fierce, and the sales price is declining. On the other hand, the rise in the price of rare earth in the past two years has helped to increase the cost, and the cost of transformation is relatively large.
For China's traditional lighting industry, intelligent LED ceiling lamps, Foshan Lighting Chairman Zhong Xincai said that the market is still chaotic, there are more than 1,000 lighting companies across the country, and many products that do not meet the national standards are also circulating in the market, so he believes China's lighting industry is in the process of integration and merger, and it is enough to leave only a dozen lighting companies through the series of reorganization.
“For a long time in the future, traditional lighting will still not exit the market.†According to the person in charge of the price of Jingtongbao, “For traditional enterprises, it is more to integrate LED and traditional lighting, and even to integrate traditional industries with e-commerce. In this integration, seize the opportunity to develop yourself."
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