LED serious excess capacity constraints LED lighting industry development

At present, the lower threshold of the LED lighting industry, coupled with the government's high subsidies and preferential tax policies, making a large number of enterprises to enter, leading to serious excess capacity of low-end products. LED overcapacity is mainly due to excessive enterprise. Domestic optical registration of LED companies up to more than 7 thousand, coupled with a number of small workshops did not register and some people hiding in the back of the registered company 3-5 small working group, engaged in the LED lighting industry enterprises can be described as numerous.

Water can carry a boat, can also capsize, the "water" as the LED market, the "boat" is like LED in the enterprise; government subsidy policy induced profit driven by the same market, the number of LED companies suddenly soared, serious excess capacity, which will inevitably lead to market volatility, resulting in vicious spiral competition to the market. Which is not conducive to the development of LED lighting industry.

Recently, although the Chinese market is good, but the problem of excess capacity still exists. At present, the lower threshold of the LED lighting industry, coupled with the government's high subsidies and preferential tax policies, making a large number of enterprises to enter, leading to serious excess capacity of low-end products.

LED overcapacity is mainly due to excessive enterprise. Domestic optical registration of LED companies up to more than 7 thousand, coupled with a number of small workshops did not register and some people hiding in the back of the registered company 3-5 small working group, engaged in the LED lighting industry enterprises can be described as numerous.

The existence of many small and medium enterprises and small workshops, so that a serious excess capacity of low-end products, resulting in vicious price competition. It is understood that, LED lighting products in just two years, the price of the product has experienced a roller coaster, the market price from the original 180 yuan has been as low as 20-30 yuan. At the same time, there are still a large number of low-priced products in the market price of 10-15 yuan.

The quality problems, technical problems, research and development and patent issues of LED lamps are the first major problems encountered by small businesses. Product homogeneity, quality, but had to compete at a low price, a large number of low prices caused by the phenomenon of serious return, at the same time, the company can not guarantee after-sales service, which is a common feature of China's LED small businesses. Two years ago, LED small business days are not sad now, the market price of cheap LED lamps for small businesses to get a huge living space, many small businesses have become medium-sized enterprises.

Lighting market is not standardized, the existence of this problem is also quite a long time. Lighting market atmosphere is not very good, shoddy results, consumers of LED lamps greatly impressed. Low price war, which has lasted for several years in the lighting market.

In recent years, in the relevant government departments, the media, public opinion, many companies stationed, but also a lot of small businesses to withdraw from the stage. Into the lighting industry after the traditional off-season, small businesses more difficult. Itself there are a lot of product quality problems, the subsequent development of the first half of the increase in sales is facing more and more returns, customers no longer single. This is mainly caused by quality problems. Medium-sized enterprises like this, not to mention the small business?