LED Market: radish quickly wash mud

From the Internet to buy two sets of LED day light, installed in the car with a month did not have a light. The heart is very unhappy, find the store said. Shop owner is very happy, no nonsense promised to change a group, but that can not guarantee how long the lamp can be used. This makes me unhappy, said to return to their homes to buy. I did not expect the store is still happy, replied, even if all the shops and stores to find all the time, there is no one who can give you a guarantee how long, because the whole of China's LED market are the same.

The so-called "this" is the quality of domestic LED products are not bad.

Although I have some doubts, but thought soon found evidence that living there is a park, the area near the last autumn, the park management personnel with two rows of solar LED street in the main road on both sides, it is very beautiful, can not long before these lights have broken out, up to now less than a year, has almost half not bright.

Perhaps it is because the "do", the domestic LED lighting industry is now faced with a wave of closures, many enterprises are like a park that bursts of collapse, as this trend continues, is likely to be less than half of the enterprise forever "bright".

In fact, the domestic LED market decline, Taiwan enterprises has also been implicated, such as Qili photoelectric once in the industry and good benefit of large enterprises, now also came out of business news. Said the sunrise industry, which has just started a few years, how can not say no, it is so, the reason is actually very simple.

In 2009 the global financial crisis is fierce, in order to expand domestic demand, the Ministry of science and Technology launched the "ten city lights" semiconductor lighting demonstration city, Beijing plans to Shanghai, Shenzhen and other 21 city public lighting as the carrier, and vigorously promote the LED industry. Since then, the development of the LED industry into the fast lane, policy subsidies one after another, from the upstream equipment to the downstream procurement applications readily available.

LED industry is also a small branch of the semiconductor industry, has become the focus of many local training or pillar industries. LED industry's high profit, low threshold and continue to improve the policy guidance, not only brought a large number of gold diggers, but also brought chaos in the industry. 3 years ago, LED industry profits as high as 20% to 30%, but later because of too much profit into the enterprise like a swarm of bees, quickly diluted, now only about 5% of the net profit can be earned. Data show that in 2012, only the size of enterprises in Guangdong province has reached 4028, which is more than the total size of the country by the end of 2009, more than 1000 LED.

Nationally, the number has soared to more than 6 thousand. So many enterprises to a component of the finite cake, can not berserk and accident? The brutal price war is inevitable. Two years ago, 1 watts LED chip price is about $3, but now has dropped to less than $1. Meager profit makes a large number of follow suit to the collapse of LED companies.

As the saying goes, radish is not washed mud. LED market expansion out of control, a large number of corporate infighting, and in order to survive, some (or even the vast majority) companies have to give up the quality requirements, so that poor quality products flooded the market.

Earlier this year, the Guangdong Provincial Quality Supervision Bureau of the local market LED street light and light source controller sampling, the results show that the product pass rate of only 6. Only a few enterprises to gradually grow, those speculators and powerful enterprises will inevitably destroy that like LED lights failed. Share will be more and more to the brand, there are channels, innovative business focus. But in any case, companies want to survive in this market, one thing must be kept in mind: radish and soon have to wash mud.

You know, no quality assurance, any enterprise is not far away.