The LED market is about to fall into the "overcapacity" crisis


In a lighting city located in the South Third Ring Road in Beijing, when the reporter asked a shop owner whether there was LED lamp sales, the owner of the surname Wang was quite proud to claim that the store only sells LED lamps. According to Wang Boss, his store never sells LED lights and only sells LED lights. This 180-degree transition took only over a year. This change is also a true portrayal of LED lighting products that are rapidly invading the terminal sales market.
High-speed growth of 2013
Boss Wang told reporters that at this time of the previous year, the sales of LED products in this lighting city was only the gimmick of some merchants to attract consumers. But after only one year, there is no store that does not make LED products. And there are several of them who, like him, replaced all the products sold in the store with LEDs.
Talking about this change, Wang Bo said that the LED products in previous years are not only high in price, but also low in market recognition, and the quality is not guaranteed. Although it claims to have a long service life, there are always quality problems and the service life is also Nothing to talk about. In 2013, the price of LED products continued to decline, which brands are reliable and which quality is not good, and they gradually came out of the doorway. Looking at the sales momentum of LEDs, Wang Boss put all the products in the store two months ago. Replace with LED products. Now the store only sells LEDs and it has almost become a slogan for Wang Bo.
Corresponding to the popularity of the terminal market is the rapid recovery in the production field. At this time last year, the deputy secretary-general of the National Semiconductor Lighting Engineering R&D and Industry Alliance (hereinafter referred to as the Alliance), in an interview with reporters, is still in the LED industry. Overcapacity defense, a fast-growing industry, moderate overcapacity is a normal phenomenon.
And just one year later, the LED industry basically bid farewell to the four words of overcapacity. Zibo told reporters that although the statistics for the fourth quarter of 2013 have not yet come out, it is conservatively estimated that the industry output value has increased by more than 20 over last year. In the past few years, due to the rapid development of the industry and the overcapacity problem that has always existed, this year has basically been alleviated. The overall capacity utilization rate of the industry has increased from 50 last year to more than 90, especially in the upstream chip production process. Because of its high capital and technology, when the market is good, its revenue is also large.
The accumulated production capacity has become a huge production force in today's market demand. Zibo is very proud that his judgment on the industry was verified a year ago.
For the future of the LED industry, industry insiders generally believe that as the technology matures, the price of LED lighting products will become more and more grounded, and the industry will usher in structural opportunities. Ren Guanghui, honorary director of the China Lighting Association's Interior Lighting Committee, said: At present, LED technology is becoming more and more mature. The life of LED lighting is generally between 20,000 and 30,000 hours. Its price is gradually approaching that of traditional lighting products. The degree is getting higher and higher, and the current LED lighting industry is recovering significantly.
There are also troubles in growing up. In fact, for LED lighting companies, 2013 is both a year full of opportunities and a year of non-year. On the one hand, explosive market growth has caused some LED lighting companies to earn a lot of money. On the other hand, under the homogenization competition, Shenzhen Yiguang, Keli Optoelectronics and many other well-known LED lighting companies have closed down, and there is still a crisis behind the prosperity.
Zibo believes that the current market price of LED products is different, the brand channels are mixed, the quality needs to be further improved, and the industry faces deep adjustment. The merger and closure of many LED companies in the first half of 2013 was a concrete performance. The LED market demand is growing, and many factors are testing the market power of manufacturers. Where should the enterprise go, whether the market will face a new round of reshuffle, is a problem that major manufacturers need to think about.
On the other hand, although the industry's overcapacity has been alleviated as a whole, structural overcapacity still exists. High-end high-quality production capacity is insufficient, and low-end overcapacity is a problem that has always existed in the industry. At the same time, based on the accumulation of investment in the industry in the past few years, the production capacity will continue to be released, and the market demand is also constantly improving, but whether it can match the production capacity is still unknown. In particular, the market's prosperity has risen, and there are also signs of a renewed inflow of investment. Whether this will trigger a new round of overcapacity is also a concern of many insiders.
Zibo also said that the low price caused by overcapacity has driven the market, but it has also made the company miserable. Even in 2013, the market began to pick up, but most companies are increasing their incomes, and the net interest rate is seriously declining. How to seize the excellent opportunity of rapid market growth, adjust the strategy, and solve the problems that have been plaguing the industry before, is the next LED enterprise to face.

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