Recently, the person in charge of the Xiongji LED Lighting Factory in Zhongshan City, Guangdong Province, owed a wage arrears. The total wages of more than 400 workers were nearly 1 million yuan, and the supplier’s payment was nearly 20 million yuan. At present, the person in charge of the escaped enterprise has been arrested by the public security organs and transferred to the procuratorate for arrest. The wages of the workers have been temporarily paid in full by the local arrears protection fund, and the supplier’s payment is repaid in accordance with the law after the court’s decision.
LED business owners "running the road" incidents have occurred. Previously, similar incidents occurred in Shenzhen, Dongguan, Shanghai, and Taiwan, which caused waves in the industry.
LED industry problems
The Xiongji Run Road event is a microcosm of the LED industry. The reporter's investigation found that the emerging LED industry has many problems and its competitiveness needs to be improved.
Problem 1: The local investment is repeated, and the LED industry is “cookedâ€. Wu Changjiang, founder of NVC Lighting, said that the LED industry's production capacity has expanded blindly, and the terminal demand market has not kept pace. According to Caitong Securities Research Report, although China's semiconductor lighting industry grew by 23% in 2012, the growth rate slowed down and became the lowest growth rate.
Question 2: The core patent technology is lacking and the industry leading power is out of control. Yang Sihua, deputy general manager of Alto Electronics, believes that the core technology of global patents is mainly in the hands of giants such as Osram of Germany. Thousands of LED companies in China, only dozens of companies involved in chips and extensions, core parts such as chips are highly dependent on imports. The lack of core technology has led to the homogenization of products, and the price war has intensified.
Problem 3: The industry lacks uniform standards, and the new sunrise industry faces the risk of premature aging. Chai Guosheng, chairman of Snowlight Optoelectronics, said that most LED products are going through the sales channels of five-star building materials wholesale, and the quality inspection department is difficult to supervise. The quality inspection department applies the general standard of general lighting to check LED lighting products, and it is difficult to filter LED inferior products.
In the market, the products are mixed, and the inferior products hurt consumer confidence. Mr. Wang, a buyer in Jilin, said: “The LED product market is very deep in water. It is easy to plant it without rubbing the eyes.†Take the 3.8-watt bulb as an example, the brand product sells for 19 yuan, and the lowest price on the market is 2.8 yuan. Inferior lighting products produced by "Electric Iron Factory" (power + lampshade + chip) have serious safety hazards.
Question 4: The corporate capital chain is tight, and the “running†incident has occurred from time to time. According to industry insiders, among the suppliers who are in arrears with the LED lighting factory, the short check is about half. The current economic pressure is relatively large, the LED industry's capital chain is tight, and there is a problem in the middle of the link, which will trigger a chain reaction.
Should grasp the industry at both ends of the smile curve
Experts suggest that uniform industry standards should be formulated as soon as possible, accelerate industrial transformation and upgrading, actively deploy industries at both ends of the smile curve, and enhance the international competitiveness of LED strategic emerging industries.
Industry insiders suggest that relevant departments should introduce unified industry standards as soon as possible, strengthen the linkage of regulatory authorities, standardize the LED market, and create a good development environment. At the same time, strengthen intellectual property protection, guide enterprises to strengthen research and development of core technologies, and enhance market competitiveness.
"In order to break through the dilemma of overcapacity, midstream enterprises should accelerate technological upgrading and extension, extend vertically and vertically to the upstream and downstream of the industrial chain, fully tap market demand, establish competitive advantages, and cultivate independent brands." Chai Guosheng said.
The relevant person in charge of Essence Securities believes that from the perspective of the industrial chain, enterprises should develop upstream chips and downstream lighting applications with great potential according to the smile curve layout.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
LED business owners "running the road" incidents have occurred. Previously, similar incidents occurred in Shenzhen, Dongguan, Shanghai, and Taiwan, which caused waves in the industry.
LED industry problems
The Xiongji Run Road event is a microcosm of the LED industry. The reporter's investigation found that the emerging LED industry has many problems and its competitiveness needs to be improved.
Problem 1: The local investment is repeated, and the LED industry is “cookedâ€. Wu Changjiang, founder of NVC Lighting, said that the LED industry's production capacity has expanded blindly, and the terminal demand market has not kept pace. According to Caitong Securities Research Report, although China's semiconductor lighting industry grew by 23% in 2012, the growth rate slowed down and became the lowest growth rate.
Question 2: The core patent technology is lacking and the industry leading power is out of control. Yang Sihua, deputy general manager of Alto Electronics, believes that the core technology of global patents is mainly in the hands of giants such as Osram of Germany. Thousands of LED companies in China, only dozens of companies involved in chips and extensions, core parts such as chips are highly dependent on imports. The lack of core technology has led to the homogenization of products, and the price war has intensified.
Problem 3: The industry lacks uniform standards, and the new sunrise industry faces the risk of premature aging. Chai Guosheng, chairman of Snowlight Optoelectronics, said that most LED products are going through the sales channels of five-star building materials wholesale, and the quality inspection department is difficult to supervise. The quality inspection department applies the general standard of general lighting to check LED lighting products, and it is difficult to filter LED inferior products.
In the market, the products are mixed, and the inferior products hurt consumer confidence. Mr. Wang, a buyer in Jilin, said: “The LED product market is very deep in water. It is easy to plant it without rubbing the eyes.†Take the 3.8-watt bulb as an example, the brand product sells for 19 yuan, and the lowest price on the market is 2.8 yuan. Inferior lighting products produced by "Electric Iron Factory" (power + lampshade + chip) have serious safety hazards.
Question 4: The corporate capital chain is tight, and the “running†incident has occurred from time to time. According to industry insiders, among the suppliers who are in arrears with the LED lighting factory, the short check is about half. The current economic pressure is relatively large, the LED industry's capital chain is tight, and there is a problem in the middle of the link, which will trigger a chain reaction.
Should grasp the industry at both ends of the smile curve
Experts suggest that uniform industry standards should be formulated as soon as possible, accelerate industrial transformation and upgrading, actively deploy industries at both ends of the smile curve, and enhance the international competitiveness of LED strategic emerging industries.
Industry insiders suggest that relevant departments should introduce unified industry standards as soon as possible, strengthen the linkage of regulatory authorities, standardize the LED market, and create a good development environment. At the same time, strengthen intellectual property protection, guide enterprises to strengthen research and development of core technologies, and enhance market competitiveness.
"In order to break through the dilemma of overcapacity, midstream enterprises should accelerate technological upgrading and extension, extend vertically and vertically to the upstream and downstream of the industrial chain, fully tap market demand, establish competitive advantages, and cultivate independent brands." Chai Guosheng said.
The relevant person in charge of Essence Securities believes that from the perspective of the industrial chain, enterprises should develop upstream chips and downstream lighting applications with great potential according to the smile curve layout.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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