LED companies began to turn to supply chain competition

On July 23rd, 2013 Guangdong LED lighting supply chain high-level symposium sponsored by Foshan Lighting Association was held in Foshan. The heads of domestic and foreign lighting companies from hundreds of LED upstream and downstream companies such as National Star Optoelectronics, Philips, etc. were involved in the development of the industry. The focus of the issue began a lively discussion, in which more and more companies have realized that the supply chain competition under the LED lighting era is more critical.

Technology Update Accelerates Inventory Depreciation
As Guangdong, China's LED lighting industry cluster, Guangdong, the number of related companies in the industrial chain accounts for nearly 70% of the country's total. However, in the past few years, the upstream and downstream companies in the LED lighting industry chain have misled the forecast of market demand, causing companies to pile up large amounts of inventory.

Wu Yulin, president of the Foshan Lighting Association, told reporters that last year the association investigated two well-known companies in Foshan that their inventory was very high. One of the companies gave Jiangsu a store with 2 million yuan worth of goods and sold only 5,000 yuan in three months.

"Although LED lighting technology has stabilized, it is still in the process of continuous change, which has a huge impact on the company's capacity deployment and inventory devaluation." Wu Yulin said that more and more LED lighting companies have realized that Today's competition is no longer the competition between the company and the company in the era of traditional lighting, or just the competition between the brand and the brand, but the competition between the supply chain and the supply chain.

“In the past, our association wanted to pull a leading lighting company in Foshan to come in and how to pull them out. Now they are actively requesting that they be added and to strengthen their ties with upstream and downstream companies,” said Wu Yulin.

Market is blown but full of traps

"This year, the LED market has a very clear outbreak." Zhou Xuejun, director of marketing for Philips Asia who deliberately came from Shanghai to participate in the seminar yesterday, told reporters that Philips' medium-power LED is currently in a state of supply shortage. This is mainly due to the expansion of engineering and application companies. A large number of distribution channels.

"With the improvement of technology, improvement of processes, and mass production, LED prices have dropped by at least 30% from two years ago, and the return on investment has been reduced to two years." Zhou Xuejun believes that LED lighting has entered a faster The rising path of growth, “its development trajectory is very similar to that of the energy-saving lamps of the past decade. Thanks to the economic development and the increased awareness of environmental protection by consumers, the LED will open up to market faster.”

However, unlike many entrepreneurs, the view that the “civil market is the largest LED market” is different. Zhou Xuejun believes that 70% of LED's market is commercial instead of civilian. He pointed to a lamp in the hotel above the head and told reporters: "You see, three years ago, energy-saving lamps were replaced by LEDs. The concentration of hotels and shopping centers is N times that of the family. They are more willing to trade in order to save electricity. Lamps."

Home appliance giants do not necessarily have a bright future in cross-border play

This attractive LED cake has attracted the entry of all walks of life to the bosses, including the original shoes that made the letter and the home appliance giant Midea.

However, the beauty lighting that entered into the lighting industry from the home appliance industry has also gone through a small detour, entered the war and retired state after the initial slogan, until recently launched 200 products to re-attack the LED. In this regard, Zhou Xuejun said that the home appliance giants such as Midea, Skyworth, and TCL had two problems in the field of LED lighting. One is the channel and the other is professionalism. "Made's doing a lamp certainly sells better than an unknown brand, but the question is, how do you put the goods on the shelf?"

Wu Yulin concluded that there are three kinds of advice that Midea Lighting provides to in-house companies: Bigger companies also get into trouble if they have a strategic error; they don’t pay attention to quality and do not have long-term acceptance in the market; slogans are not as good as they are.

"A well-known enterprise cross-border into the LED is often dragged down by the brand, and its position is not right. Take for granted that the price is more expensive than others." Zhou Xuejun said that in terms of the lighting of the United States, there are still many tests for it, such as determination is large enough Is it an ongoing investment or the pursuit of short-term profits. If we lose a few hundred million at the beginning, will we cut it off? "Like Haier, 12 years ago he said he would come in. The result was a circle and he returned to the main business."

However, Zhou Xuejun admits that if Samsung, who entered the LED field three years ago, can persist, it will be a terrible opponent for Philips. "Everyone started running on the same starting line. Now it has entered an oxygen-free state. It needs not only endurance but also speed. People with poor physical strength will fall down first. This is a spelling process, and there are scales and cost advantages. The company can finally survive."