Industry players interpret the rumors of the upcoming LED industry

Under the background of “money shortage”, recently, the rumors that the top ten industries such as group purchase, steel and LED will go bankrupt have attracted much attention. “Will we go bankrupt?” It has even become a greeting for many business people and relevant industry practitioners.

Will these industries be faced with bankruptcy? What is the current status of the top ten industries? The reporter visited the LED industry practitioners and industry-leading experts to hear about whether these industries will face bankruptcy risks.

Some experts estimate that, for example, more than 400 million households in the country, each family uses only 3 LED energy-saving lamps, at least 30 billion yuan in market size. However, LED-related companies that are ready to eat a meal have not been able to eat the "big cake". In 2012, the national LED enterprise equipment operating rate was less than 60%, and the capacity utilization rate was only about 30%. The price war caused by overcapacity is fierce. In the next two to three years, more than 60% of China's LED downstream will be closed or transformed.

Guo Bingyin is the sales manager of a LED company in Shenzhen. His company is one of the earliest companies engaged in the LED industry. What he is facing now is that competitors are desperately pressing down prices. The price of LED products in the factory is plunging at a rate of 60% per year to keep the share. “Our original energy is on technology research and development, and now the main energy is how to reduce costs to keep the market!” he said. Even so, they often have contracts that have almost been signed and are taken away by peers at a lower price.

"This year, the LED market will usher in a real outbreak," said Li Xuliang, chairman of Qinshang Optoelectronics Co., Ltd. (002638). "In the past two years, the LED industry's 'main dish' has not yet, and enterprises are rushing to eat 'pre-dish', and everyone is not eating enough. In 2013, the LED 'main dish' started to be on the table, but some companies will starve to death."

"Only the sluggish enterprises, there is no sluggish industry, this sentence is no longer suitable for the LED industry at present! In fact, the state's policy on the LED industry is very favorable!" Senior industry observer Liu Heqing told reporters a few days ago. The evaluation was described by the outside world as the LED industry facing the “bankruptcy tide”. He believes that the current LED industry problem is not healthy enough, and the truly healthy LED industry is promising.

After experiencing investment heat, price cuts, and the tide of goods, the LED industry is entering the era of low profit. Among the thousands of LED companies, 90% of LED companies in 2012 are not very good. The LED industry naturally has a high degree of concentration. In 2013, the LED market will be truly stifled. Industry experts said that in the next two to three years, more than 60% of China's LED downstream plants will close down or undergo transformation. Under the huge investment in the past few years, the scale of the industry has begun to grow, and it has also brought overcapacity. LED companies are facing fierce competition for the survival of the fittest. Many people in the industry believe that the industry will face a cold wave in the short term, and it is inevitable to shuffle.

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