Jiangmen: LED lighting penetration exceeds 20% of the industrial chain optimization pattern

[Text reporter/Zhou Jianhua] On the afternoon of July 30th, “2013 Guangdong LED Lighting Supply Chain High-Level Seminar” Jiangmen Station was successfully held at Yihao Hotel. Nearly 200 LED companies were responsible for the crowds and discussed the supply chain optimization trend. .

Alliance concept breaks bottleneck

"The explosion of LED lighting terminals is obvious to all this year. It is expected that the LED lighting penetration rate (sales) will reach 20% in 2013 (50% for individual large enterprises) and 50% in 2015." Gaogong LED CEO "High-tech LED" series magazine Edited by Zhang Xiaofei at the "2013 Guangdong LED Lighting Supply Chain High-Level Seminar" Jiangmen Station said. He also said that the polarization of lighting companies has become very obvious. On the one hand, there may be a batch of billion-level LED lighting companies, and on the other hand, the tide of closure will continue. “The key to its decision is whether the company can integrate and optimize the industrial chain.”






Activity scene

In this regard, Jiang Yanshi Lighting Industry Association President, Guangmingyuan Lighting Electric Co., Ltd. Chairman Hong Yannan also expressed his strong agreement, he pointed out: LED industry features a mixed line, rapid development, the solution is flexible supply chain plus alliance Business. “Whether the choice of the company is small and beautiful, it is still big and comprehensive. Only the specialized industry chain integration spirit can win the world together.”



Participants are interested in the new products brought by the sponsors.


According to the data of the High-tech LED Research Institute, the output value of China's LED industry reached 205.9 billion yuan in 2012, a year-on-year increase of 34%, and the growth rate was slightly higher than expected. In 2013, the output value will be close to 300 billion, an increase of 50%. Indoor lighting will grow by more than 120% and outdoor lighting will increase by 100%. In 2013, LED application plans to increase indoor lighting by 80%. It can be said that the LED lighting market has unlimited prospects. This year, lighting has set off a new round of investment fever. This year, a total of 92 lighting projects with a planned investment of 100 million yuan and above will be added.

But at the same time, LED is also a high-risk industry. At present, LED lighting companies (including traditional lighting transformation) have more than 10,000. Enterprise competition is fierce, product homogeneity is serious, and price wars have broken out. Channels are difficult to establish, and most lighting companies are currently in a tough period.

On the afternoon of July 30th, “2013 Guangdong LED Lighting Supply Chain High-level Seminar” Jiangmen Station was successfully held at Yihao Hotel, attracting Hong Yannan, Chairman of Guangmingyuan Lighting, Luo Zhida, Secretary General of Jiangmen Lighting Association, Shanghai Luyuan Lighting Executive Vice President Luo Quanxing, Coolbo Optoelectronics General Manager Han Congqiang, Fantian Lighting General Manager Zhu Zhongwu, Ward Lighting General Manager Cai Xianghu, One Voice Lighting Chairman He Ping, Guangbohui Deputy General Manager Deputy General Manager Hui Yongxin More than 180 LEDs The senior executives of the company attended.

The heads of enterprises in the middle and upper reaches of the industrial chain, such as Jingtai Optoelectronics, Moso Power, Mingwei Electronics, and Confucian Electronics, also bring the latest products and technologies to share with Jiangmen enterprises.

Participants said that the conference integrated the cost-effective lighting source and key components and accessories manufacturers resources in mainland China and overseas, helping LED lighting companies to screen and introduce high-quality, cost-effective upstream components and lighting accessories resources to achieve Enhance the value-added value of LED lighting companies.

Optimized integration just started

Jiangmen is one of the early start-up cities in the domestic LED industry. After two years of development, more than 300 green light source companies including Orende, Zhenmingli, Deli Optoelectronics and Citizen have been introduced, and more than 1,000 related industrial chain supporting enterprises have been introduced. Forming a development model and industrial cluster of “leading enterprises + complete industrial chain + scale professional park + government promotion”, some core technologies are close to the international advanced level. In 2012, its LED industry's total production value reached 16 billion yuan, and it has been sung at an average annual growth rate of 30% for four consecutive years. According to the plan, its industry scale will exceed 50 billion yuan in 2015.

“Compared with Zhongshan and Foshan, each has its own professional exhibition platform. Jiangmen is indeed behind this one. There is no obvious advantage in the integration of the industrial chain.” A person in charge of the Jiangmen Economic and Trade Bureau said, “But it can’t The footsteps of the low-end industrial chain in Bugu Town, the current industrial cluster of Guzhen is well-known and has no reputation."

In fact, not only the industrial chain integration of emerging LED areas such as Jiangmen is lagging behind, but the integration of high-quality industrial chains of old bases such as Zhongshan and Foshan is just beginning. The industry generally said that this is a common problem in the current LED industry base.

"Light source, power supply, and aluminum substrate are the three core components of the whole lamp. The chaos of the aluminum substrate is the epitome of the industry, and ultimately affects the finished LED lamp market. Supply chain optimization can not keep up, which will inevitably lead to regional industry lag or even retrogression. Shenzhen Yufu Electronics Co., Ltd. Confucian Electronics General Manager Jian Yucang extended analysis from one of the components.

To survive in the LED tide and determine the status of the industry, Chairman Hong Yannan suggested: First, it is necessary to integrate the supply chain, and then form a virtuous circle of cash flow, cost control, refusal to temptation, and quality.



Group efforts to optimize the industrial chain

Gaogong LED CEO Zhang Xiaofei, editor-in-chief of "High-tech LED" series magazine

Optimizing the supply chain is as important as managing risk


Let us analyze the situation of the middle and lower reaches of the LED industry in 2013. Upstream: The price of epitaxial chips has risen and companies have begun to concentrate; while midstream packaging plants have closed down 20%, and most packaging companies have turned to lighting devices; now the hottest application lighting has six trends:

1. Display business collapses faster and shifts to lighting (but will not succeed)
2. The price of LED lighting products is lower than that of traditional energy-saving lamps. 3. LED downlights and LED spotlights have a penetration rate of over 30% in China.
4. The bulb is from the target of 1 US dollar to 1 RMB per watt. 5. Polarization of lighting enterprises 6. A batch of LED lighting enterprises with sales of one billion

The optimization of the supply chain is, in the final analysis, nothing more than three aspects: choosing good products, choosing good suppliers, and choosing good channels. Take the inventory that everyone is very concerned about as an example. At present, the inventory of LED lighting products is in good condition, the sales cycle of products is shortened, and the overall sales cycle is about 20 days. If you are too optimistic, it is easy to generate inventory. The decision to channel inventory risk is mainly concentrated on price and scale, which is closely related to supply chain optimization.


Chairman of Jiangmen Lighting Industry Association Guangmingyuan Lighting Appliance Co., Ltd. Chairman Hong Yannan's survival and development under the industrial chain crisis

The good side doesn't need to go into details. When we are in danger, we should see how our supply chain optimization and risk management can not be effectively solved. How should we deal with it? The current situation facing LEDs can be said to be triangular debts and monetary roots.

The brand echelon also formed a polarization between the best and the worst. For example, the collapse of the low-end big family Xiongji is a microcosm, and it is also worth learning from many LED companies. Such as high procurement costs but low prices; poor product quality and opaque management.

LED market chaos and troubles stem from “three noes”:

1. The product price has no bottom line 2. The product quality has no standard 3. The channel competition is irregular.

The traditional lighting operation mode is: single product output; now LED is more: product + capital output or product + capital + service output). The upstream is monopolized by giants, and the downstream channels are taken advantage of by traditional lighting companies. Therefore, the newly-advanced LED brand can only adapt to the characteristics of the LED industry by rapidly integrating the optimized supply chain. I think that companies should try a flexible supply chain and a coalition-style operation of the regional group. In this way, to re-recognize the industry; define the position of the company in the industry; define the relationship between the company and employees, customers, and stakeholders.  

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