Shenzhen has 3,200 LED companies, accounting for about 40% of the national total. What challenges have China's LED industry development encountered in this year's severe economic situation?
The reporter recently visited Shenzhen LED leading enterprises and related industry associations and research institutions. Relevant people bluntly said that enterprises in Shenzhen will reduce by 20%-30% this year, which means that nearly 1,000 LED companies will "die" in the economic winter. The more pessimistic forecast is that there are nearly 8,000 LED companies in the country. “When the whole industry is shuffled, the remaining 300 companies in the country will be enough.â€
Scarcity of talent: a technician "three thrills" a year
Shenzhen Kelida Photoelectric Co., Ltd. was once the supplier of water cube and bird nest lighting design during the Beijing Olympic Games. The company currently specializes in high-power LED bulbs, pico projectors, virtual cinema optical solutions, and streetlight solutions.
According to Kelly Opto, president of Kelida Optoelectronics, the company entered the LED industry in 2006, but LED is not the core business of the company. "This industry has changed too fast, and it has to be implemented by concept speculation." At present, the company's LED products account for 80% of the total investment, but the proportion of benefits is only 20%.
Why is it that the big investment is not high? According to Kaikai's analysis, "the LED industry as a sunrise industry has received strong support from the state, and domestic enterprises have repeatedly carried out repeated constructions. Not only do the talents 'excavate the wall feet' phenomenon stand out; some capital accumulation companies have begun to cut prices and make sales after making LED products. Markets; more companies are simply holding the name of LED to defraud government support funds."
For example, one of the company’s former technicians, “Thirteen Jumpsâ€, has been migrating to 13 different companies in the Shenzhen industry within a year. The public capital has also risen from the initial 3,000 yuan/month to 13,000 yuan/month. The skill of this employee is still in place, because the industry is too talented. This made the baht open and made him realize the lack of talent in the LED industry.
The threshold is too low: "Too many companies can only make the market bad!"
On the support of the government, Kaikai said, "The government's policy on the introduction of the industry is absolutely good, but it has not been implemented." He said that his company will apply for 30% of overseas subsidies from the government. In the end, funds will be available. However, he also pointed out that "if local governments do not examine whether LED companies truly master core technologies, or whether there are land, funds, and equipment idle, too many companies entering the industry can only make the market worse!"
Has the export of LED industry in Shenzhen been affected by the economic downturn this year? Qi Kaitai believes that "the biggest limitation of the industry is that there is no technology, patents, and no industry standards." He told reporters that his company's orders are increasing, but compared to the past, profits are declining.
Kaikai suggested that the government should review the entry barriers for LED companies and increase the tax burden of LED companies. As for the government subsidy funds, the current situation is that there are no standards and no rules, the organization is loose, no one guides the development route, and the enterprises are allowed to fend for themselves, but the government funding subsidy standards should be re-enacted.
Market: Exports are greatly affected
Bao Enzhong, former deputy secretary-general of the Shenzhen LED Industry Federation, said that in the context of the European debt crisis, the overseas economic environment is not good this year, and exports are the main outlet for Shenzhen LED products. He introduced that in the early years, the export of LED products in Shenzhen was mainly exported, and the proportion was as high as 80% to 90%; this ratio data has only decreased since the previous year, and is currently about 80%. "The economic environment is not good, LED products exports will definitely be greatly affected, and the appreciation of the renminbi has also greatly reduced the profit margin of these LED companies." Bao Enzhong said.
Bao Enzhong analyzed the three major problems facing the development of the LED industry in Shenzhen, namely capital, market and policy. Among them, in terms of funds, many LED small and medium-sized enterprises are difficult to finance, so they turn to private lending, and the interest on private lending is often high, which is not conducive to business operations.
On the market front, the economic downturn has led to a shrinking of foreign markets. Although the domestic market has increased, it has not been fully liberalized. The technology of LED lighting products in China is not mature enough and the price is also high. Mainly, it has not been time to enter thousands of households.
Bao Enzhong said that from 2008 to 2010, the rapid development of the industry allowed some domestic enterprises that were originally engaged in traditional industries such as clothing, real estate, mobile phones, and plastics to transform into LED industry forces, but with more transformation in the middle and lower reaches. For the survival rate of Shenzhen enterprises under this severe economic situation, Bao Enzhong said that it is not easy to estimate because it has not passed the scientific budget, but Shenzhen's enterprises have relatively strong anti-risk ability.
Pattern: “300 companies nationwide will suffice!â€
In an interview with reporters, Zhang Xiaofei, director of the High-tech LED Industry Research Institute (GLII), pointed out that since the second quarter of this year, orders from downstream enterprises in the Shenzhen LED industry chain have begun to pick up, and demand has begun to open compared to the beginning of the year, mainly due to the upstream. The price of the product has dropped; but it is not optimistic that the quality of LED products needs to be improved and the price needs to be lowered.
Zhang Xiaofei gave such a set of data: According to the statistics of (GLII) as of the end of 2011, there are about 4,000 downstream enterprises in the industrial chain that operate purely LED products, and about 150-1700 in the middle reaches. In addition, there are no more than 6,000 companies in the country, including upstream materials and equipment.
In addition, there are some companies that have traditionally transformed into LED companies or made LED products, with about 2,000 companies nationwide. Together with pure-type companies, there are no more than 8,000 LED products companies. Among them, Shenzhen enterprises account for about 40% of the country.
“The elimination rate of the LED industry is relatively high. Large state-owned enterprises are entering, and small enterprises are withdrawing due to competition.†Zhang Xiaofei estimates that the number of LED enterprises in Shenzhen will decrease this year, which means that nearly 1,000 LED enterprises will be in the economic winter. Going to death. “The lack of talents in the upstream enterprises of the industrial chain is more serious, and upstream enterprises need to be integrated. Many enterprises will certainly not survive this year.â€
According to Kelly's president, Kelly's prediction is that when the entire industry is shuffled, the remaining 300 companies in the country will suffice.
The reporter recently visited Shenzhen LED leading enterprises and related industry associations and research institutions. Relevant people bluntly said that enterprises in Shenzhen will reduce by 20%-30% this year, which means that nearly 1,000 LED companies will "die" in the economic winter. The more pessimistic forecast is that there are nearly 8,000 LED companies in the country. “When the whole industry is shuffled, the remaining 300 companies in the country will be enough.â€
Scarcity of talent: a technician "three thrills" a year
Shenzhen Kelida Photoelectric Co., Ltd. was once the supplier of water cube and bird nest lighting design during the Beijing Olympic Games. The company currently specializes in high-power LED bulbs, pico projectors, virtual cinema optical solutions, and streetlight solutions.
According to Kelly Opto, president of Kelida Optoelectronics, the company entered the LED industry in 2006, but LED is not the core business of the company. "This industry has changed too fast, and it has to be implemented by concept speculation." At present, the company's LED products account for 80% of the total investment, but the proportion of benefits is only 20%.
Why is it that the big investment is not high? According to Kaikai's analysis, "the LED industry as a sunrise industry has received strong support from the state, and domestic enterprises have repeatedly carried out repeated constructions. Not only do the talents 'excavate the wall feet' phenomenon stand out; some capital accumulation companies have begun to cut prices and make sales after making LED products. Markets; more companies are simply holding the name of LED to defraud government support funds."
For example, one of the company’s former technicians, “Thirteen Jumpsâ€, has been migrating to 13 different companies in the Shenzhen industry within a year. The public capital has also risen from the initial 3,000 yuan/month to 13,000 yuan/month. The skill of this employee is still in place, because the industry is too talented. This made the baht open and made him realize the lack of talent in the LED industry.
The threshold is too low: "Too many companies can only make the market bad!"
On the support of the government, Kaikai said, "The government's policy on the introduction of the industry is absolutely good, but it has not been implemented." He said that his company will apply for 30% of overseas subsidies from the government. In the end, funds will be available. However, he also pointed out that "if local governments do not examine whether LED companies truly master core technologies, or whether there are land, funds, and equipment idle, too many companies entering the industry can only make the market worse!"
Has the export of LED industry in Shenzhen been affected by the economic downturn this year? Qi Kaitai believes that "the biggest limitation of the industry is that there is no technology, patents, and no industry standards." He told reporters that his company's orders are increasing, but compared to the past, profits are declining.
Kaikai suggested that the government should review the entry barriers for LED companies and increase the tax burden of LED companies. As for the government subsidy funds, the current situation is that there are no standards and no rules, the organization is loose, no one guides the development route, and the enterprises are allowed to fend for themselves, but the government funding subsidy standards should be re-enacted.
Market: Exports are greatly affected
Bao Enzhong, former deputy secretary-general of the Shenzhen LED Industry Federation, said that in the context of the European debt crisis, the overseas economic environment is not good this year, and exports are the main outlet for Shenzhen LED products. He introduced that in the early years, the export of LED products in Shenzhen was mainly exported, and the proportion was as high as 80% to 90%; this ratio data has only decreased since the previous year, and is currently about 80%. "The economic environment is not good, LED products exports will definitely be greatly affected, and the appreciation of the renminbi has also greatly reduced the profit margin of these LED companies." Bao Enzhong said.
Bao Enzhong analyzed the three major problems facing the development of the LED industry in Shenzhen, namely capital, market and policy. Among them, in terms of funds, many LED small and medium-sized enterprises are difficult to finance, so they turn to private lending, and the interest on private lending is often high, which is not conducive to business operations.
On the market front, the economic downturn has led to a shrinking of foreign markets. Although the domestic market has increased, it has not been fully liberalized. The technology of LED lighting products in China is not mature enough and the price is also high. Mainly, it has not been time to enter thousands of households.
Bao Enzhong said that from 2008 to 2010, the rapid development of the industry allowed some domestic enterprises that were originally engaged in traditional industries such as clothing, real estate, mobile phones, and plastics to transform into LED industry forces, but with more transformation in the middle and lower reaches. For the survival rate of Shenzhen enterprises under this severe economic situation, Bao Enzhong said that it is not easy to estimate because it has not passed the scientific budget, but Shenzhen's enterprises have relatively strong anti-risk ability.
Pattern: “300 companies nationwide will suffice!â€
In an interview with reporters, Zhang Xiaofei, director of the High-tech LED Industry Research Institute (GLII), pointed out that since the second quarter of this year, orders from downstream enterprises in the Shenzhen LED industry chain have begun to pick up, and demand has begun to open compared to the beginning of the year, mainly due to the upstream. The price of the product has dropped; but it is not optimistic that the quality of LED products needs to be improved and the price needs to be lowered.
Zhang Xiaofei gave such a set of data: According to the statistics of (GLII) as of the end of 2011, there are about 4,000 downstream enterprises in the industrial chain that operate purely LED products, and about 150-1700 in the middle reaches. In addition, there are no more than 6,000 companies in the country, including upstream materials and equipment.
In addition, there are some companies that have traditionally transformed into LED companies or made LED products, with about 2,000 companies nationwide. Together with pure-type companies, there are no more than 8,000 LED products companies. Among them, Shenzhen enterprises account for about 40% of the country.
“The elimination rate of the LED industry is relatively high. Large state-owned enterprises are entering, and small enterprises are withdrawing due to competition.†Zhang Xiaofei estimates that the number of LED enterprises in Shenzhen will decrease this year, which means that nearly 1,000 LED enterprises will be in the economic winter. Going to death. “The lack of talents in the upstream enterprises of the industrial chain is more serious, and upstream enterprises need to be integrated. Many enterprises will certainly not survive this year.â€
According to Kelly's president, Kelly's prediction is that when the entire industry is shuffled, the remaining 300 companies in the country will suffice.
Shenzhen Isource lighting Co., Ltd , https://www.isourceled.com