[High-tech LED reporter | Yue Mengdi] On September 26-28, 2014, the 12th High-tech LED Industry Summit Forum hosted by Gaogong LED was held at Guangzhou Pazhou Canton Fair. On September 26, Dr. Zhang Xiaofei, CEO of Gaogong LED, opened the forum with its unique speech.
"The overall profitability of the industry is not optimistic. The upper, middle and lower reaches are facing their own problems." Dr. Zhang Xiaofei said this.
At the upstream chip level, benefiting from the accelerated start of the terminal LED lighting market, the market for LED chips in the first half of this year continues. However, in the view of Dr. Zhang Xiaofei, the corporate background is complex, the technology complementarity is low, and the number of companies with high-power chip production capacity is scarce. The wind of mergers and acquisitions in the chip factory is blowing in the market, and the trend of capital competition and scale competition is becoming increasingly clear.
Taking domestic chip makers Sanan and Huacan as examples, Sanan’s gross profit margin industry was the highest in the first half of 2014. The secret is to maintain a high gross profit margin through scale. Huacan Optoelectronics has reduced its scale in 2011-2013. It has also decreased year by year, but in the first half of 2014, the gross profit rate has rebounded rapidly through scale, and the gross profit for the whole year is expected to rise further.
Major LED chip companies are still carrying out or preparing for large-scale expansion, and small enterprises are relatively cautious in expanding production. Dr. Zhang Xiaofei predicts that the top 5 companies in the LED chip industry will account for more than 70% in the next three years. The trend is more obvious."
As far as the current mature packaging industry is concerned, in recent years, the domestic packaging factories have closed down a lot, the price of products has dropped by more than 10%, and the gross profit margin has been declining year by year. “Domestic packaging companies will develop towards a large-scale, more cost-effective trend.†Dr. Zhang Xiaofei pointed out that as the capital market is generally not optimistic about the packaging industry, corporate financing is more difficult, and with the launch of listed companies’ investment projects, listed companies The growth rate will be faster than that of non-listed companies.
In fact, there is not much difference in the technical aspects of LED packaging companies in China. The difference is only the scale of production capacity of enterprises. When the consistency of profitability and revenue growth cannot be guaranteed, the positive layout of differentiated products becomes a package. One of the most important ways for companies to improve their profitability.
With the rapid development of LED industry technology, downstream application vendors are constantly adjusting their product layout and positioning to meet market requirements. There are many opportunities in the LED lighting industry, and the choice is wide. At present, the disorderly competition of downstream channels is fierce, and most enterprises are in the process of exploration, and the product homogenization competition and price competition are fierce.
But overall, LED lighting is in the golden period of development. Dr. Zhang Xiaofei predicts that the market penetration of LED general lighting will exceed 80% in 2017. Although the overall size of domestic enterprises is small compared with international companies, the industry is fast. During the integration period, there will be more and more mergers and acquisitions, and the degree of concentration will be higher and higher.
Change is passed. The LED industry in the period of change also needs to make its own choices and find its own way out.
Dr. Zhang Xiaofei believes that mergers and acquisitions are the best way out. "The idea of ​​running a business should be developed in the direction of capital integration." In his view, the M&A boom that began in March 2013 is further fermenting and is currently in the best period of M&A. Whether it is from the development track of both parties, or the support of national policies, or the current rising market environment, M&A seems to be the best way out for avoiding risks and gaining competitive advantage in the industry reshuffle.
Second, it is to seek product differentiation. The importance of uniqueness to the company is self-evident. Segmenting the field, segmenting customers, focusing on a certain type of product or a certain kind of products, doing bigger and deeper, it is more meaningful than doing nothing but doing nothing.
At the same time, Dr. Zhang Xiaofei also mentioned that the extension of the industrial chain is equally important. “This extension can be either horizontal extension or vertical extension.†SMEs can unite and seek complementary products, complementary customers, complementary channels, and joint procurement. In order to reduce vicious price competition. Vertical alliances can be used to find strategic development partners for joint development.
“Don’t forget to scale. Scale is the most direct manifestation of enterprise competitiveness. Only large-scale enterprises are more likely to survive in the market.†Dr. Zhang Xiaofei finally mentioned that large-scale enterprises are more likely to maintain higher gross profit margins. It is an important "outlet."
"The overall profitability of the industry is not optimistic. The upper, middle and lower reaches are facing their own problems." Dr. Zhang Xiaofei said this.
At the upstream chip level, benefiting from the accelerated start of the terminal LED lighting market, the market for LED chips in the first half of this year continues. However, in the view of Dr. Zhang Xiaofei, the corporate background is complex, the technology complementarity is low, and the number of companies with high-power chip production capacity is scarce. The wind of mergers and acquisitions in the chip factory is blowing in the market, and the trend of capital competition and scale competition is becoming increasingly clear.
Taking domestic chip makers Sanan and Huacan as examples, Sanan’s gross profit margin industry was the highest in the first half of 2014. The secret is to maintain a high gross profit margin through scale. Huacan Optoelectronics has reduced its scale in 2011-2013. It has also decreased year by year, but in the first half of 2014, the gross profit rate has rebounded rapidly through scale, and the gross profit for the whole year is expected to rise further.
Major LED chip companies are still carrying out or preparing for large-scale expansion, and small enterprises are relatively cautious in expanding production. Dr. Zhang Xiaofei predicts that the top 5 companies in the LED chip industry will account for more than 70% in the next three years. The trend is more obvious."
As far as the current mature packaging industry is concerned, in recent years, the domestic packaging factories have closed down a lot, the price of products has dropped by more than 10%, and the gross profit margin has been declining year by year. “Domestic packaging companies will develop towards a large-scale, more cost-effective trend.†Dr. Zhang Xiaofei pointed out that as the capital market is generally not optimistic about the packaging industry, corporate financing is more difficult, and with the launch of listed companies’ investment projects, listed companies The growth rate will be faster than that of non-listed companies.
In fact, there is not much difference in the technical aspects of LED packaging companies in China. The difference is only the scale of production capacity of enterprises. When the consistency of profitability and revenue growth cannot be guaranteed, the positive layout of differentiated products becomes a package. One of the most important ways for companies to improve their profitability.
With the rapid development of LED industry technology, downstream application vendors are constantly adjusting their product layout and positioning to meet market requirements. There are many opportunities in the LED lighting industry, and the choice is wide. At present, the disorderly competition of downstream channels is fierce, and most enterprises are in the process of exploration, and the product homogenization competition and price competition are fierce.
But overall, LED lighting is in the golden period of development. Dr. Zhang Xiaofei predicts that the market penetration of LED general lighting will exceed 80% in 2017. Although the overall size of domestic enterprises is small compared with international companies, the industry is fast. During the integration period, there will be more and more mergers and acquisitions, and the degree of concentration will be higher and higher.
Change is passed. The LED industry in the period of change also needs to make its own choices and find its own way out.
Dr. Zhang Xiaofei believes that mergers and acquisitions are the best way out. "The idea of ​​running a business should be developed in the direction of capital integration." In his view, the M&A boom that began in March 2013 is further fermenting and is currently in the best period of M&A. Whether it is from the development track of both parties, or the support of national policies, or the current rising market environment, M&A seems to be the best way out for avoiding risks and gaining competitive advantage in the industry reshuffle.
Second, it is to seek product differentiation. The importance of uniqueness to the company is self-evident. Segmenting the field, segmenting customers, focusing on a certain type of product or a certain kind of products, doing bigger and deeper, it is more meaningful than doing nothing but doing nothing.
At the same time, Dr. Zhang Xiaofei also mentioned that the extension of the industrial chain is equally important. “This extension can be either horizontal extension or vertical extension.†SMEs can unite and seek complementary products, complementary customers, complementary channels, and joint procurement. In order to reduce vicious price competition. Vertical alliances can be used to find strategic development partners for joint development.
“Don’t forget to scale. Scale is the most direct manifestation of enterprise competitiveness. Only large-scale enterprises are more likely to survive in the market.†Dr. Zhang Xiaofei finally mentioned that large-scale enterprises are more likely to maintain higher gross profit margins. It is an important "outlet."
white Color paraffin wax Fluted Candle also called velas, bougies, house hold candles, the candles surface with lines. Very beatiful .usually packed by color polybag. as client design, we also can design for client.
and 6pcs in polybag ,and 25bag/.ctn the weight 30-75g per piece to africa countries.
different market need different candles size ,we can supply best price as popular size
the shipment in the 30days after get the depsoit .
Fluted Candle
Fluted Candle,Large Fluted Candle,White Decor Fluted Candle,Bright Fluted Candles
Shijiazhuang Zhongya Candle Co,. Ltd. , https://www.zycandlefactory.com