LED industry is not easy, thanks to acting?

A product of the lighting is not accidental. In 2011 a lighting for the first time involved in the electricity business, mediocre performance, through professional training, again in 2013 to enter the electricity supplier, then the way kaigegaozou, 2015 sales break million, become inspirational story.

However, only six months into 2016 by the story of the plot reversal as an accident". This is also exposed to produce a light before the glory of frustration, although the development so fast, but really do not make money, at a loss".

A lighting pain is not a case. The entire LED industry, looking ahead, full of acting, beautiful performance in front of the helpless smile, big expansion behind the confusion of restlessness.

Under the glory of acting helpless

It is understood that the product is a lighting electricity supplier strategy, trying to get the market at a low price, and then do a large scale, so that the marginal cost of decline, thus making money in the subsequent operations. However, the electricity supplier operating costs up to more than 40%, resulting in a greater in lighting do more, the greater the loss, the accumulation of risk is more and more big, finally even only because of the logistics problem of funds flow, the backlog of suppliers, the supplier was charged, causing the consequences of bankruptcy.

This event may indicate that the commercial prosperity of foam LED industry but cannot withstand a single blow, hurt more than the electricity supplier. To occupy the market low, only the occupation of the market, have to do, only to earn money. The idea of a product lighting, but also many of our LED industry ideas and practices.

With the gradual transparency of LED technology, the relative reduction in the amount of gold technology, LED industry into the fight cheap, fight the scale of the era. Especially in the field of LED packaging spread a 1 billion line of life and death line, LED packaging enterprises, if not done in 3 years, it will be difficult to survive in the 1 billion. On the 1 billion level, there is a level of 5 billion, 10 billion, and so on, urge the progress of the goal. Therefore, LED packaging capacity expansion in the entire LED industry is the most impressive.

In today's society has changed the concept of entrepreneurial wealth, entrepreneurs make money from consumers to earn money for investors, at a low price, return now to attract consumers and gain market share, the market valuation of bigger, to convince investors to investment. This entrepreneurial concept is also affecting the LED industry. Moreover, if LED companies occupy a large market share, as well as access to local government subsidies and incentives.

It seems only to fight the price to fight the scale, only the scale of the scale can be expanded to the ultimate profit. However, low prices, the size of the fight mode of development needs huge lasting financial support, once at a node of funds slightly block, the whole development mode will fall apart, the enterprise will be in danger.

LED companies in the interpretation of the glory and frustration, LED family business before the wind light, but he was flustered. "Your business is so big! Sales so big! In fact, although the order has been in short supply, but the profit has not been the same increase. In order to dilute the cost, but also expanding the scale of production capacity and lower prices prompted lower. Fight the scale did not save the profits, but the fight and fight the scale of the formation of a vicious circle.

Stunt under the acting

Abnormal market order has also spawned a variety of chaos in the LED industry. Some smart people have an ulterior motive opportunistic, seize the so-called "air", the so-called "new science and technology", as a stunt, trying to grab considerable wealth in between can be called "acting as changeable as clouds and rain, surface view".

One of the pretexts: Acting

No mistakes in the cross, double main industry is not wrong, the diversification is not wrong, the key lies in the pragmatic, really dry, do not forget the beginning of the heart. But some people only play the concept, irresponsible, there is no technology he no matter, do not come to him. He wants only idea (idea), as long as there is idea (idea) there is money (money).

This year launched LED enterprise name boom, some are under suspicion. Affected by the business circle nowadays investment philosophy, these qiaolimingmu LED companies believe that as long as the business plan to do a bit more beautiful, the valuation of the market is bigger, the financing sector wide net, there will always be some stupid fish bait. At this rate, later renamed "LED screen enterprise vision technology company, do the webcast, made of red, also don't blame the offence.

Acting two: performance water injection

Recently, a company released a shock LED industry announcement: get 3 year period of $8 billion 700 million of large orders. However, the announcement vague, did not explain what LED products, a single customer is also mysterious. Such an enterprise information is unknown, the main information is unknown to the customer in 2015 for the company to bring revenue of 50 million yuan, just six months, even by leaps and bounds annual contribution of $2 billion 900 million?

As a new listing of three new board companies, the company's gross profit margin soared from 3% in 2015 to $32% in 2014, to win Lehman, wood wood, lighting and other A companies. Although the company uses a full automatic production, some of the cost savings of intermediate links, even if the company has Brazil market access, WAL-MART as distribution channels, however, such a high gross margin, so the sudden large orders, unconvincing.

Acting three: prostitute fraud

Some LED companies do not how to sell the product did not make money, but to sell the company to get rich, premium several times, ten times was acquired. Is the acquisition of corporate accounting fraud, is the acquisition