Winners take all the time, the LED market "oligarch" is emerging

The ancients said that "there must be a long time, and the long-term must be combined." Zhou Yi said "circular reciprocation, no extreme Thai come." The LED industry's "Golden Three Silver Four" sales season ended, the LED lighting industry is moving from the previous fragmented development to concentration. After encountering the price quagmire and increasing the profit without increasing profits, the LED lighting industry finally ushered in a phased recovery in the first half of last year, and even the momentum of the outbreak. Quietly, in 2014, it was again in June. Looking back at the LED industry, I couldn’t help but feel that I’ve been reminiscing about the past and the hope of the Ming Dynasty’s prosperity. Some companies have collapsed during the shuffling period, and some have earned a lot of money. full. With the various policies introduced by the government to support the development of the LED industry, the market recovery effect has become clearer. Preferential policies and strong market demand have led to the smashing of small and medium-sized enterprises. For the main body of many new LED companies to join the battlefield, they can only choose the survival of the fittest in the market. If an industry wants to develop healthily, it must conform to the laws of the market economy and must not build a "air castle" from the market demand. Many industry experts predict that the current LED industry needs a vigorous reshuffle, for a LED company that wants to survive in this period, a storm is hard to avoid. After the reshuffle of the market for the survival of the fittest, nearly 70% of the enterprises will be eliminated, leaving a group of LED companies with strong capital and strong scientific research capabilities, and eventually become a "champion game" of "winners take all". Market restructuring, competition “expedited” Since last year, local governments have continuously introduced measures to save energy and reduce emissions. Injecting a shot of intensive agent into emerging LED companies, LED has attracted a large amount of capital as a sample of national energy conservation and environmental protection industries. Especially in 2010~2012, there has been a wave of domestic investment in the LED industry. The production capacity generated by the overheated investment in the previous period was released in the second half of 2011 to the first half of 2013, causing the LED price to continue to fall. Among the most exciting of these policies, the National Development and Reform Commission issued the "Notice on Strengthening Work to Ensure the Implementation of the 2013 Energy Saving and Emission Reduction Targets." According to the spirit of the Notice, the National Development and Reform Commission, the Ministry of Finance and the Ministry of Housing and Urban-Rural Development are jointly responsible for promoting the implementation of green lighting projects, implementing semiconductor lighting energy-saving industrial planning, implementing energy-saving products for the benefit of the people, and promoting 130 million efficient lighting products. "With the development of the industry, the government's policy on the LED industry is definitely good, but sometimes it is difficult to implement it." A corporate executive who did not want to be named also expressed his concern. He said that if local governments do not examine whether LED companies truly master core technologies, or whether there are land, funds, and equipment idle, too many companies entering the LED industry may cause negative effects and undermine market rules. Up to now, LED industry chain in the middle and lower reaches is experiencing big waves, and the game and integration between the emerging LED companies and traditional lighting manufacturers has begun. An industry insider complained that the LED terminal application market is also uneven: the outdoor media market is in a downturn, and the LED display market is almost saturated; LED-backlit liquid crystal display products did not open until last year, but after a year of explosive development The market penetration rate of this product is nearly 70%, but it is facing the impact of the new display technology OLED; the lighting market relies on government projects such as street lamp renewal and subway lighting. For example, chip makers, midstream package manufacturers face more intense competition. Some insiders said in an interview that at present, there are about 4,000 downstream enterprises in the industry chain that operate purely LED products, and about 1,200 mid-stream enterprises, plus upstream enterprises that make materials and equipment, and the whole country. There are no more than 6,000 companies in total. In addition, there are some companies that have traditionally transformed into LED companies or made LED products, with about 2,000 companies nationwide. Together with pure-type companies, there are no more than 8,000 LED products companies. Among them, Shenzhen enterprises accounted for about 40% of the country, which is about 3,200. At the same time, due to the intermediate link in the industry chain, most packaging manufacturers are mired in the "linkage debt" dilemma, that is, the downstream terminal application manufacturers are in arrears with the packaging manufacturers' money, and the packaging manufacturers can only owe money to the upstream chip and luminescent material manufacturers. In addition, traditional lighting manufacturers such as Philips, Sunlight, Op Lighting and Foshan Lighting are slowing down the bow, transforming and changing in twists and turns, and attempting to regain control of the sovereign stick. Undoubtedly, the game between emerging LED oligarchs and traditional lighting manufacturers will influence the pattern of the entire industry in the future, and the merger and acquisition of the upstream, midstream and downstream industry chains is gradually becoming the main theme of the LED industry. Deep shuffling continues, the LED industry will reconstruct shuffle, triangle debt... These dazzling words appear frequently in the LED industry. Some LED companies have fallen into a wave of bankruptcy because the blind expansion has led to a serious overcapacity, and once the funds go wrong, they will be defeated. The new and old oligars at home and abroad, represented by Cree, Yiguang Electronics, Sanan Optoelectronics, Dehao Runda and Jingyuan Optoelectronics, have begun to accelerate the integration of mergers and acquisitions between the upstream, midstream and downstream industries. The movements are as frequent as the tigers. Impact on the LED industry landscape. The new star enterprises are also two-level differentiation, and the time to enter the LED field is not long. For example, the speed of Foshan Lighting in the market is unmatched, and it is called “industry scavenger” by the industry media. It is reported that at this stage, Foshan lighting LED products can be described as "supply in short supply". After the completion of the new workshop, Foshan Lighting's LEDT8 fluorescent lamp glass tube production capacity has exceeded 1 million / month. In the future, the market share will be more and more concentrated in enterprises with brands, channels and innovations. The industry will face reshuffle, and there may be a large number of SMEs withdrawing from the competition. It is understood that many LED companies will have big moves in the past two months. Under the premise of ensuring professional quality, they will attract high attention from inside and outside the industry with shocking prices. The relevant person in charge also said that after the bulbs, the large movements of the crystal series lamps will re-establish the benchmarks and standards of the industry, giving consumers greater benefits while making the market more clear and conducive to promoting the industry. The overall level. It can be seen that with the further maturity of the LED market, resources will be further concentrated, and uncompetitive products and manufacturers will be accelerated to be eliminated. Cost-effective has long been a distinctive label for Foshan Lighting. It is believed that companies with cost control capabilities and upstream resource advantages will bring continuous shock waves to the industry and lead the LED tube manufacturing field. Some industry experts pointed out that at present, every company is seeking strategic partners, and the era of stronger is coming. Now the entire LED industry is in the initial stage of integration. Last year, the integration project was much larger than the actual number of successful mergers and acquisitions. More integration cases will appear this year. “Shuffle can achieve industrial integration.” Zhao Kun, vice president of Xinli Light Source, also pointed out that shuffling will definitely eliminate a large number of small and lacking technical strength. After the collapse of small businesses, resources such as equipment and talents will flow to large-scale enterprises, which is conducive to the optimization of the entire industry. The market has “boundary” and “oligarchic pattern”. In the past year, the LED industry has been warming up from the original LED leading enterprises, and now the horizontal and vertical integration between the upstream and downstream enterprises continues to heat up. It is easy to see that the whole LED The lighting industry is accelerating from the previous fragmented development to concentration. For companies with technology and capital strength, this also means new opportunities and challenges. The various difficulties in the LED industry are intensifying, and industry consolidation is only a matter of timing. For example, the alliance between NVC Lighting and Dehao Runda is a typical representative of the industrial integration of the LED lighting industry. “With the problems of some capital chain breaks and poor management in the LED industry, the whole industry will enter the integration stage, and the reshuffle will be more and more intense. This concentration trend will be intensified, and the top five will occupy most market share. The possibility is also great. In the future, the market share will be more and more concentrated to enterprises with brands, channels and innovations. The industry will face reshuffle, and there may be a large number of small and medium-sized enterprises to withdraw from the competition.” Zhao, Vice President of Xinli Light Source Kun said. "The future of LED must be an oligopolistic market. One big difference from the traditional industry is that 'winners take it all.'" An industry insider predicts that in the next five to ten years, there will be ten management in the field of LED lighting. Emerging LED companies with assets exceeding one billion yuan; the formation of the first camp and the second camp may occupy most of the market share. Many industry experts have suggested that the government should review the entry barriers for LED companies and increase the tax burden of LED companies. As for the government subsidy funds, the current situation is that there are no standards and no rules, the organization is loose, no one guides the development route, and the enterprises are allowed to fend for themselves, but the government funding subsidy standards should be re-enacted. At present, the elimination rate of the LED industry is relatively high, large state-owned enterprises are entering, and small enterprises are withdrawing due to competition. Some insiders even assert that the shortage of LED enterprises in the upstream of the industry chain is more serious, and upstream enterprises need to be integrated. Many enterprises will certainly not survive this year. Next year, LED companies in Shenzhen will be reduced by 20%-30%, which means that nearly 1,000 LED companies will "die" in the economic winter. The chairman of Zhejiang University's three-color chairman, Tong Tongsheng, predicts that when the entire industry is shuffled, the remaining 300 companies in the country will suffice. "The low threshold of the LED industry and the lack of industry leaders are likely to attract them." Chen Zebo, general manager of Mai Rui Optoelectronics, said that there is still a lack of "big bang" in the entire LED industry, and it has not yet emerged in the industry. Enterprises with market share can foresee that China's LED industry will enter the oligarchy era in the next decade, and a number of leading enterprises will occupy a larger market share in the industry and become a well-deserved leader in the industry.

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