LED industry status: happy and painful

"Joy and pain. Sitting opposite the reporter, Zhang Yusheng so led evaluation of the current Chinese market can be called hot emerging industry status.

Zhang Yusheng is executive vice president of a large domestic LED lighting enterprises Huaye group, and the LED lamp products is one of the main business Huaye, "the market early, we used to think that LED lights will become a breakthrough in the market for LED lighting". And now he was unable to spread his hands, his eyes revealed a trace of frustration.

But the happy and painful, but has been accompanied by such a pathfinder Chinese LED industry. "Happiness is because the industry prospects, national policy support; pain, is not profitable from the perspective of business management. Zhang Yusheng admitted to reporters, Hua Ye in 2006 to enter the LED lighting industry, has not been to earn money, is a loss".

Data from iSuppli show that the current China LED lighting market, more than 50% focused on street lamps project. The embarrassment of the industry has emerged - in the early stage of the LED lighting market, subject to the high cost of relying on government projects LED street lamp business, was once high hopes.

And the experience of China, in the industry is not a case. Many LED Street business executives admitted in an interview with this reporter, said: the company is currently engaged in LED street lamp, 90% are losses. "

90% loss of enterprise traceability

Do LED street lamp is normal, not loss is not normal. Zhang Yusheng told reporters.

Reporters learned that, due to the current LED industry is a new energy saving industry, a considerable part of the project in the form of demonstration projects.

The essence of the demonstration project is to advance the enterprise funds, the government to detect the power saving rate and lighting effect, and then pay. A number of people involved in the LED street demonstration project executives bluntly: the mode of corporate funds to occupy a greater pressure, accounts receivable is too high. "

However, in the early stages of market promotion, "demonstration project" project has become a business in the absence of too much choice, a passive acceptance.

By December 2007, Shenzhen Huaye installed Cotton Tree Drive LED replacement project, Shenzhen is the first LED street lamp demonstration project. After passing the test is not a problem, but has not received payment. Zhang Yusheng told reporters, only in Shenzhen, China will be involved in more than seven models of the road LED street reconstruction project, but no money back.

A person not to mention the name of the person in charge of the LED street lamp analysis, although the national level in the direction of the big policy to support LED energy saving industry, but the specific implementation of the local government level, it will be greatly reduced.

More than that, the industry also believes that the Chinese market is relatively low electricity tariffs, but also to a certain extent, so that the government lacks the driving force to promote the LED industry. Zhang Yusheng bluntly: the speed of government cooperation is not ideal. "

This is not all of the loss of the current situation LED street industry. The reporter learned that the LED street market at the beginning, in the enterprise to engage in the uneven in quality, low profit price fight.

"Due to municipal engineering is generally not easy to replace new suppliers, so the first round of the winning bid is very important. An industry source, in this context, many companies take cheap vicious competition.

The largest LED lamp enterprises KingSun secretaries Li Chunyong said in an interview, KingSun in part involved in the project bidding, encountered a lot of "cheap" competitors, "a lot of enterprises are the loss of price".

Government related industry

Li Chunyong analysis, relative to the commercial market, street lighting project greater power consumption, energy saving effect is more obvious. Coupled with the guidance of the government at the policy level, a time from other industries into the new entrants have LED street market, as a breakthrough into the LED market.

A lot of companies into the LED street lighting industry, in fact, have more or less government relations. "Shenzhen special lighting chairman Feng Jun bluntly, in quite a long time, the LED lights as a" government relations type "industry," as long as the fix of the purchaser, the project won the".

In this context, engaged in plastic, hardware, digital products and other unrelated practitioners have flocked to the lighting industry. "These new entrants only see the future, but the lack of technical reserves. Feng Jun bluntly.

In fact, the external factor is only the appearance of LED Street business losses. The real reason is that a large number of enterprise LED street lamp technical performance is not stable. ISuppli senior analyst Gu Wenjun told reporters.

"Because of the external environment of street lamp, it is more complicated than indoor lighting. Therefore, LED street lamp on the technical requirements of the higher. Li Chunyong also said.

According to our reporter survey was informed that the current domestic LED street lamp products, in terms of light efficiency, uniformity of illumination, color rendering, service life, there are technical instability. The main issue is too serious in life.

"Part of the LED lamp products, less than half the time, light reached half. Zhang Yusheng analysis, the current domestic LED street lighting control technology is not yet mature.

This reporter has learned that the current number of places LED street demonstration project, due to the acceptance of failure, but in a state of abeyance.

In early 2009, in order to expand domestic demand, promote the development of China's LED industry, reduce energy consumption, the Ministry of science and Technology launched the "city of ten million" semiconductor lighting applications