Good policy has become a catalyst for the LED industry
As we all know, the rapid development of the domestic LED industry is mainly due to the strong support of national policies. Since 2011, the country has released a roadmap for eliminating incandescent lamps, providing a huge market space for the development of LED lighting. In addition, this year's LED industry's favorable policies are also constantly being introduced.
From mid-May to early June, the LED industry “policy honeymoon period†was ushered in. On May 7, the Ministry of Science and Technology released the "12th Five-Year Plan" for the development of semiconductor lighting technology (draft for comments). The "Plan" proposes that by 2015, the semiconductor lighting industry will reach 500 billion yuan, and semiconductor lighting products will account for 30% of the general lighting market. On May 16, the State Council executive meeting passed the "12th Five-Year Plan" of the National Basic Public Service System. The meeting decided to arrange 2.2 billion yuan to support the promotion of energy-saving lamps and LED lights. On May 30, the executive meeting of the State Council discussed and approved the “12th Five-Year National Strategic Emerging Industry Development Planâ€, for energy conservation and environmental protection industry, new generation information technology industry, biological industry, high-end equipment manufacturing industry, new energy industry, new The seven major industries, such as the materials industry and the new energy automobile industry, have clearly defined their development direction. At the same time, Guangdong Province also announced the mandatory promotion of LED lighting products in the public lighting sector. All public lighting fields invested by government finance or state-owned capital will adopt LED lighting products.
The high-profile layout of the government in the LED industry has made the domestic LED industry develop rapidly in recent years. According to statistics, there are fewer than one hundred companies involved in the LED field five years ago, and now there are more than 8,000. The government's favorable policies have attracted a large influx of hot money, giving the entire industry a thriving scene. However, under the appearance of the booming LED industry, it is undercurrent and the development prospects of the LED industry.
Excessive catalysis is difficult to cover the pain of the transformation of the enterprise
Many LED companies took the policy and drove freely. Everyone was overwhelmed by this rapid development boom, and they were overly optimistic about the market prospects. They finally fell into the dilemma of blind expansion and over-investment. The local government's investment promotion policy and huge market prospects have spawned a batch of LED projects. However, due to the economic environment and many obstacles, the growth rate of the LED application market is not as good as expected. The overcapacity of the production capacity has led to a large backlog of LED products, and the company's profits have fallen sharply, which has seriously disrupted the development of the LED industry.
At the same time, some enterprises that were not in the LED industry, under the stimulation of favorable policies, also rushed to take the LED policy of the free ride, and turned to the LED lighting market. However, their purpose is not to produce, but to defraud the government's huge subsidies. The more helpless result is that these companies do not have any core technology, and the quality of their products is often criticized. Their existence can be said to seriously disrupt the competition order of the LED industry, leading to intensified competition in the industry. Take the current Jiangsu LED lighting market as an example, the products are mixed, there is no industry development standard and product quality standards, which sets a bottleneck for the popularization of LED lighting. Commercial competition among LED lighting companies has created a vicious battle for prices, which has brought potential hidden dangers to LED lighting products, and there is no industry quality standard, which has resulted in inferior products entering the market.
The LED industry shuffles more and more
According to public information, there are currently about 8,000 LED companies in China, of which more than 5,000 are in the downstream of the industrial chain. These enterprises in the downstream of the industrial chain can only share the least part of the profit share of the entire industry chain due to the lack of core technology. Nowadays, these enterprises are faced with various problems such as the decline in exports and disorderly competition in the industry, which makes them likely to face the risk of bankruptcy at any time. Take Shenzhen City as an example, there are more than 80 LED lighting companies that have closed down. In Foshan, Guangdong, nearly 10% of LED lighting companies closed down in mid-2011, and LED lighting companies in Dongguan and Zhongshan were also caught in the cold.
China's current LED industry accounts for less than 5% of the entire lighting market. The high cost of LED has increased its difficulty in promotion. Without the government's financial subsidies and policy support, it is difficult for LEDs to open the market in the short term, so relying on policies It is also a good shortcut to influence the market. However, how to make the domestic LED industry that has experienced blind expansion and overcapacity use the LED New Deal to achieve industrial upgrading, stimulate the adjustment of the industry itself, and guide enterprises to develop upstream of the industrial chain. This not only tests the adaptability of domestic LED companies, but also spurs the government to deepen the implementation of various policy details. While introducing various support policies, the government should also set industry standards to stop disorderly competition and curb investment overheating, and guide the healthy and stable development of the LED lighting industry.
As we all know, the rapid development of the domestic LED industry is mainly due to the strong support of national policies. Since 2011, the country has released a roadmap for eliminating incandescent lamps, providing a huge market space for the development of LED lighting. In addition, this year's LED industry's favorable policies are also constantly being introduced.
From mid-May to early June, the LED industry “policy honeymoon period†was ushered in. On May 7, the Ministry of Science and Technology released the "12th Five-Year Plan" for the development of semiconductor lighting technology (draft for comments). The "Plan" proposes that by 2015, the semiconductor lighting industry will reach 500 billion yuan, and semiconductor lighting products will account for 30% of the general lighting market. On May 16, the State Council executive meeting passed the "12th Five-Year Plan" of the National Basic Public Service System. The meeting decided to arrange 2.2 billion yuan to support the promotion of energy-saving lamps and LED lights. On May 30, the executive meeting of the State Council discussed and approved the “12th Five-Year National Strategic Emerging Industry Development Planâ€, for energy conservation and environmental protection industry, new generation information technology industry, biological industry, high-end equipment manufacturing industry, new energy industry, new The seven major industries, such as the materials industry and the new energy automobile industry, have clearly defined their development direction. At the same time, Guangdong Province also announced the mandatory promotion of LED lighting products in the public lighting sector. All public lighting fields invested by government finance or state-owned capital will adopt LED lighting products.
The high-profile layout of the government in the LED industry has made the domestic LED industry develop rapidly in recent years. According to statistics, there are fewer than one hundred companies involved in the LED field five years ago, and now there are more than 8,000. The government's favorable policies have attracted a large influx of hot money, giving the entire industry a thriving scene. However, under the appearance of the booming LED industry, it is undercurrent and the development prospects of the LED industry.
Excessive catalysis is difficult to cover the pain of the transformation of the enterprise
Many LED companies took the policy and drove freely. Everyone was overwhelmed by this rapid development boom, and they were overly optimistic about the market prospects. They finally fell into the dilemma of blind expansion and over-investment. The local government's investment promotion policy and huge market prospects have spawned a batch of LED projects. However, due to the economic environment and many obstacles, the growth rate of the LED application market is not as good as expected. The overcapacity of the production capacity has led to a large backlog of LED products, and the company's profits have fallen sharply, which has seriously disrupted the development of the LED industry.
At the same time, some enterprises that were not in the LED industry, under the stimulation of favorable policies, also rushed to take the LED policy of the free ride, and turned to the LED lighting market. However, their purpose is not to produce, but to defraud the government's huge subsidies. The more helpless result is that these companies do not have any core technology, and the quality of their products is often criticized. Their existence can be said to seriously disrupt the competition order of the LED industry, leading to intensified competition in the industry. Take the current Jiangsu LED lighting market as an example, the products are mixed, there is no industry development standard and product quality standards, which sets a bottleneck for the popularization of LED lighting. Commercial competition among LED lighting companies has created a vicious battle for prices, which has brought potential hidden dangers to LED lighting products, and there is no industry quality standard, which has resulted in inferior products entering the market.
The LED industry shuffles more and more
According to public information, there are currently about 8,000 LED companies in China, of which more than 5,000 are in the downstream of the industrial chain. These enterprises in the downstream of the industrial chain can only share the least part of the profit share of the entire industry chain due to the lack of core technology. Nowadays, these enterprises are faced with various problems such as the decline in exports and disorderly competition in the industry, which makes them likely to face the risk of bankruptcy at any time. Take Shenzhen City as an example, there are more than 80 LED lighting companies that have closed down. In Foshan, Guangdong, nearly 10% of LED lighting companies closed down in mid-2011, and LED lighting companies in Dongguan and Zhongshan were also caught in the cold.
China's current LED industry accounts for less than 5% of the entire lighting market. The high cost of LED has increased its difficulty in promotion. Without the government's financial subsidies and policy support, it is difficult for LEDs to open the market in the short term, so relying on policies It is also a good shortcut to influence the market. However, how to make the domestic LED industry that has experienced blind expansion and overcapacity use the LED New Deal to achieve industrial upgrading, stimulate the adjustment of the industry itself, and guide enterprises to develop upstream of the industrial chain. This not only tests the adaptability of domestic LED companies, but also spurs the government to deepen the implementation of various policy details. While introducing various support policies, the government should also set industry standards to stop disorderly competition and curb investment overheating, and guide the healthy and stable development of the LED lighting industry.
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