Domestic lighting enterprises encounter barriers industry development difficult"

At this stage, China's LED lighting products, the main market is still concentrated in the developed markets in Europe and America, especially in the European market. Europe and the United States economic downturn, LED export blocked, resulting in the industry more difficult. Guangdong as the country's LED industry leader, the impact is also more obvious.

Over the past few years, affected by the policy and the future growth potential of the temptation, coupled with low barriers to entry, various funds have to get together and LED lighting industry, resulting in downstream vicious competition, corporate profits dropped significantly, and the emergence of closures.

At the end of 2011, LED lighting business only in Shenzhen city on more than 80, and in more than 2 thousand LED enterprises in the city, most of which belongs to the packaging and application of low field, semiconductor materials, phosphors are vital to the production of the production enterprise is a never have.

The main impact of the following two aspects.

The first is the impact of exports, the crisis led to the decline in economic growth in the euro area countries.

The EU is the largest export market for China, the proportion of Chinese export market is about 18% to 21%, so if the decline in external demand from the EU, trade protectionism will rise, the export situation will not be optimistic.

Secondly, the debt crisis led to increased global risk aversion, capital return of the dollar, Chinese faced by the inflow of short-term capital outflow into, investment slowdown, economic growth will be affected; and if the continued appreciation of the renminbi, or Chinese and stimulus policies will lead to more short-term capital inflows, resulting in greater pressure to the domestic inflation and asset price.

Economic downturn in Europe and the United States is indeed an important reason for the plight of the LED lighting industry, but in fact, the brightest funds blindly get together, it is the root cause of the plight of LED.

Capital keen on LED's enthusiasm to a large extent, benefit from the state and local governments to support the industry continues to increase. By the favorable policies and the future growth potential of the great temptation, coupled with the LED lighting industry access threshold is low, many small enterprises, small workshops can easily enter, so there have been various funds have to get together and LED lighting boom.

In addition, the impact of inflation, labor costs, logistics costs are also deeply troubled by the development of enterprises, production costs increased by two to $30%.

Although the LED cost increased significantly, but due to the downturn in the economic environment, industry competition, the vast majority of enterprises are not the price, in order to maintain normal operating factories, can only bear the fact gradually thin profit.

Keyword:

Lighting Engineering Co., Ltd.

Source: Aladdin lighting network

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