GG-LED·Quick comment: I saw a huge market, not overcapacity!

At the beginning of the year, the Central Economic Work Conference put forward the five major tasks of 2016, in which the industrial surplus capacity was solved. China’s overcapacity has also become a consensus.

"Don't just call for innovation, stir up new concepts, and many of the products we produce now, if the quality is improved a bit, and there is a huge market."

Indeed, over the years, China’s export orientation has brought about a sequel, and good things first export and earn foreign exchange, leading to a lagging concept. It seems that domestic demand can only be cheap and not quality.

In the Spring Festival of the Year of the Goat, the Chinese people went to Japan to snap up the toilet cover, which led to the beginning of the out of stock. The quality problems caused by China were soaring and attracted attention from all sides.

"China's consumer goods market is facing a 'quality revolution', whoever brings this head, who can go up. China's light middle class has hundreds of millions of people, and a group of companies seriously underestimated the Chinese consumers' demand for quality."

Relevant agencies have conducted on-the-spot investigations, large supermarkets in first-tier cities such as Beijing, Guangzhou, and Shenzhen. The food consumption trends of middle- and high-income households in China are mostly imported goods. German pork, Argentine fruit, New Zealand milk... everything, if not Launching a revolution to improve quality, China’s overcapacity problem will increase.

What is the significance of the success of Xiaomi mobile phone? It signals the entire "Made in China", the real thing is good, and the market will buy it. Indeed, many of the products now produced, as long as the quality has improved, to keep up with the rapidly rising quality demand of the domestic middle class, has ushered in a huge market.

Suddenly remembered a report I had seen before, someone asked Lei Jun who was the first goal of starting a business to learn? Lei Jun said that it is definitely not an Internet thinking. He said that it is Tong Ren Tang, that is, real materials are not bullying, and they are willing to make good products with good things.

How many years have the Chinese manufacturing prices killed, and even cut the price to lower prices? This road will come to an end. Next, it is possible to take a path by focusing on quality.

Therefore, please don't talk about any excess capacity. The actual situation is that some can be beaten. The key is to look for it and look at it.

Cold thinking behind LED overcapacity, high-end products are lacking

With the increase in the penetration rate of LED lighting, product prices continue to decline. In order to obtain more profits, LED companies have expanded their production lines, intending to achieve small profits but quick turnover by stimulating demand.

Taking LED upstream as an example, under the double stimulation of market environment and government subsidies, the production capacity continues to expand. Most enterprises dilute the production cost by expanding the production scale, and lower the price in exchange for market share, resulting in the LED chip price falling.

In the situation that domestic LED companies generally increase capacity expansion, international companies such as Jingyuan Optoelectronics, Samsung Electronics, and CREE have made the decision to selectively reduce production to alleviate the current situation of supply and demand imbalance in the LED industry and the pressure of falling prices. Excess has become a major obstacle to the development of the LED industry.

On the one hand, LED companies compete at low prices, and the market is bleak. On the other hand, high-end LED products still need a large amount of imports. What lies behind the import data is the flaw in the shortcomings of LED high-end products.

In fact, in the high-end market of LEDs, there has never been a surplus. The large number of imported products abroad actually shows that there is no surplus in the high-end products field, but it is lacking. Most people in the industry also agree that there is such a situation.

Indeed, the increasingly rational LED industry, in the technology has not yet reached full maturity, the overcapacity is still too far away, LED is still in the stage of rapid development, domestic companies need to further improve the technology.

Leaving quality talk about price? For example, the eunuch said it was climax!

As the demand for LED lighting began to slow down, companies were caught in a dilemma of sharp decline in profits. What is even more worrying is that the phenomenon of “quality black list” in the domestic LED lighting industry is frequent. This is undoubtedly not a new round of “crisis” for the LED market, and it has become a problem for many consumers.

However, it is gratifying that since the entry into 2016, the demand for LED applications, especially in the lighting market, has gradually increased, and the market is showing signs of recovery.

According to the research data of the High-tech Research Institute LED Research Institute (GGII), it is expected that large-scale enterprises in the industry will maintain an annual revenue growth rate of 20%-30% in the next 3-5 years.

In fact, as LED lighting gradually matures, consumers become more rational, and price is no longer the only standard for customers to choose products. Product quality has quietly become the most important factor affecting customer purchase.

In the situation of the prevailing price war, being able to do a good job is to improve the company's own ability to resist risks. Companies can achieve both the price and the quality of the ultimate winner.

At the same time, as the initial level of competition, price competition should increase the technical content, increase the value of products, and shift the competition of products from price competition in order to obtain more comprehensive and longer-term development.

A new round of "vehicle lighting" battle for the curtain opened, have you?

Since entering 2016, the LED general lighting market does not seem to have a big wave, but the car lighting has surged and become a veritable “black horse”.

For example, as the “leader” of OSRAM, OSRAM took the lead in setting off this car lighting revolution and helping to create “China's good car lights”; Ziyahua's 2016 operation strategy will focus on the automotive lighting field; Jingdian will also actively sprint four yuan this year. LED products for vehicles; Yiguang Electronics also released 67-63U (AM) three-in-one RGB LED products for vehicles; Longda Electronics launched headlights for vehicles to penetrate the high-end application lighting market.

Recently, Xingyu shares and Matsushita Electric Industrial Co., Ltd. signed a "Strategic Cooperation Agreement" in Changzhou. Both parties will give full play to their respective products and business advantages and jointly promote their respective products and business development in LED automotive lighting and automotive electronics.

In fact, automotive lighting can stand out in many LED applications because of its large market size and high product added value.

At present, the Chinese auto market is growing at a rate of 10% per year. At the same time, the proportion of LED lighting in the Chinese auto market has also increased rapidly, reaching 20%-30%. Domestic LED lighting companies should seize the opportunity of the development of automotive lighting and continuously improve their technological competitiveness in order to gain a place in this vast "blue ocean" market.

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