LED lighting market in the future: demand growth and competition coexist
Date: 2016-07-04 14:41:39 Hits: 428

In 2015 1, the global environment, 20%LED plant lamp companies to

in fact, in 2015, the global economic situation, we can find that the last year is still in the depth adjustment period after the international financial crisis, the growth power co.. According to the

economics experts pointed out that, in the foreign economy, although the U.S. economy is slowly recovering, but the major economies Lengrebujun, geopolitical risk factors occur from time to time, the economic recovery of the road is still bumpy; in contrast, the domestic economy is affected by many factors due to economic restructuring, lack of demand and overcapacity. Is also facing a lack of investment growth potential, related industries appear downward trend, business difficulties.

it is understood that in recent years, the lighting industry gradually transition to the era of LED lighting, the market showing explosive growth, attracting a large number of social capital, followed by new entrants such as emerged like bamboo shoots after a spring rain. By the end of last year, however, the industry's growth rate had slowed considerably for the first time. According to

related statistics, annual China LED industry output scale is 396 billion 700 million yuan (excluding Hong Kong and Macao China), an increase of 15.1%, down 15.5 percentage points higher than the growth rate in 2014. Among them, the upstream chip output value of 13 billion yuan, the middle reaches of the packaging output value of 64 billion 200 million yuan, the downstream application output value of 319 billion 500 million yuan.

indeed, many of the LED enterprises, 2015 is a year of suffering.

in this year, the traditional lighting products market demand continues to decline rapidly, LED lighting and replacement after the rapid development in recent years, the slowdown in the pace of development, the industry product homogeneity competition, price competition further intensified.

in fact, affected by the international market exchange rate fluctuations, China LED lighting at the end of 2014 export growth had slowed in 2015, affected by the global economic downturn, a low degree of influence, China LED lighting demand weak, despite the rise in 5-7 months of demand, but the first half of the market and pile up in excess of requirement for the LED industry chain prices fell 30-50%, the price of products of international enterprises have more than 20% decline.

LED industry researcher said, by the slowdown in demand and competition of the double impact of the year is expected to have more than 20% of a total of approximately 5000 LED related enterprises out of the market. Although the real data of doubt, but back in 2015, affected by the price war and the homogenization of products such as fierce competition, can see there are a large number of small and medium sized LED enterprises continue to exit, resulting in some bankrupt enterprises have low selling stock, which impact on the market, and form a vicious spiral.

triggered polarization: large enterprises in the industry or will not survive as Hengda, the small and medium-sized enterprises will be An important juncture of life and death, exit.

2, LED and traditional lighting changes, fozhao net profit fell 80%

in FSL released a few days ago the 2015 annual report in the disclosure, in the reporting period, the company achieved operating income of 2 billion 876 million 659 thousand and 100 yuan, down 6.26%. The

traditional lighting products sales revenue 1 billion 460 million 294 thousand and 100 yuan, down 31.84%. LED products sales revenue of 1 billion 416 million 365 thousand yuan, an increase of 52.92%.

domestic sales revenue 1 billion 923 million 383 thousand and 600 yuan, down 12.13%, foreign sales revenue 953 million 275 thousand and 500 yuan, an increase of 8.37%. Total profit of 45 million 993 thousand yuan, down 85.59%. Attributable to shareholders of listed companies net profit of 53 million 405 thousand and 600 yuan, down 79.93%.

for 2015 net profit decline is as high as 80%, FSL in its latest annual report made the following explanation that is one of the important reasons, according to the Guangzhou intermediate people's court for Securities Misrepresentation dispute case series decision last year to investors pay 132 million yuan. In addition, the company intends to write an impairment of assets of 89 million 473 thousand and 900 yuan. Another is that the company's product sales price decline, leading to a decline in gross profit margins, profits decreased.

however, as the saying goes: “ thin dead camel Ma ”, not to mention as one of the earliest engaged in lighting products production and sales enterprises, and was crowned king ” “ hailed the China lamp head “ cash cow ”?

even after the vicissitudes, but FSL after all after decades precipitation accumulation, the core competitiveness of the performance in the aspects of channel, brand, scale out, is still remarkable.

for example, FSL has four major sales channels (the wholesale channel, store channel, the electricity supplier retail channels, commercial lighting, engineering channels) forming a nationwide marketing network layout.

three own brand, “FSL” “ and Fenjiang ” are also China well-known trademarks, in view of this, can be said to one of the FSL brand is still the most influential brand in the industry Chinese.

issued shortly before the 2016 Chinese real estate 500 strong preferred supplier brand lighting rankings, FSL brand 4% bit rate to the first choice in the eighth row, in front of it is the brand of choice rate is 4% with Matsushita and OSRAM. In addition

, in Foshan, Nanjing, Xinxiang three places have a production base, large-scale production, so that FSL has obvious economic benefits, which is mainly reflected in the product manufacturing cost and raw material procurement, product pricing etc.. According to the annual report released

days before FSL revealed that although the traditional lighting products market in 2015 continued to shrink, but the market is still in the LED lighting products with higher speed in growth.

at the same time, FSL also for the development of the market has made a series of emergency measures, for example, quickly adjust product structure, from all aspects of research and development, production and sales of LED products and increase investment, in addition to the introduction of light source, the original traditional office lighting products, is still the original weak shangzhao the field and the field of decoration launched a new series of LED products.

said in the report period, FSL LED sales revenue reached 1 billion 416 million yuan, an increase of 52.92% over the previous year.

while facing the complex environment of the overall industry slowdown and the internal and external, FSL said, “ “ will continue to adjust the structure, steady growth, weight management, increase the benefit of ” as the guiding ideology, the main business focus, good products, by continuing to promote the product structure adjustment and optimization of marketing system, cost control measures the adverse effects of ”, and actively respond to market environment.

3, LED industry entered the stage of integration, there are still 3 to 5 years of rapid growth in

2015 is good or bad is over, the outlook for the 2016 new year, from the observation of the macroeconomic situation is not difficult to find, Chinese downtown pressure on the economy still exists, investment growth is weak.

real estate policy has been relaxed, but the recovery is slow, especially the three or four line of the city real estate market downturn, insufficient domestic demand growth. Due to the growth of foreign economies, differentiation, fluctuations in exchange rates and political turmoil, the export situation is expected to be generally not optimistic. In addition

, in the lighting industry, the traditional source of market demand will continue to decline, LED lighting will gradually replace the traditional light source and lighting market at the same time, with the accelerating process of urbanization, to create a broad market space, so it can be expected, LED lighting in the next 3 to 5 years, will remain with the rapid growth.

however cannot ignore is that local governments strongly support the past “ under ”, LED lighting industry has also undergone a barbaric growth stage ” “.

due to the lower threshold, the current LED lighting industry has been the existence of structural overcapacity problems are more obvious, and thus lead to disorderly and vicious competition in the market, more especially in the field of application of the following tour.

with macro downtown pressure on the economy and market competition, the strength of large enterprises will continue to expand through mergers and acquisitions to enhance market competitiveness, lack of market competitiveness of small and medium-sized enterprises will continue to gradually withdraw from the market.

whole industry entered a stage of integration, “ shuffle ” bigger. It can be expected that the future of LED lighting will show a pattern of demand growth and fierce competition.

can imagine, for many domestic LED enterprises, due to the large environment, then still have to face competition in the market, operating cost, inventory and other aspects may encounter the many risks.

according to the introduction, first of all, by the domestic economic growth downward and the real estate market recovery is slow, the foreign economic growth differentiation and political environment is complicated, due to the uncertainty of market demand. At the same time

, LED lighting products market in recent years after gradually increase the permeability, alternative market growth has been slowing, the current LED industry has structural overcapacity problem is more obvious, the market competition is becoming increasingly fierce. If the future

macro economy deteriorates further, market competition continues to be intense, it may lead to lower prices, to increase market share to increase the difficulty. In addition

, demand for upstream raw materials of large enterprises, the future raw material prices rose once, will bring great pressure on production costs. With the expansion of the market, sales, management and other costs increased accordingly, rising labor costs, increased turnover of staff, wages will continue to rise. These

rising operating costs, which does not exclude the decline will result in a decline in product gross margin and operating profit.

especially many kinds of products, specifications or will lead to many enterprises, including raw materials, semi-finished products, finished products, consumables such as the amount of inventory is relatively high.

future market of raw materials, product sales market price changes or demand, are likely to lead to a decline in value of inventory risk.

therefore, FSL is also clearly expressed in such cases will be multi pronged, for example, will be in 2016 from efforts to enhance research and innovation capacity, to enhance the competitiveness of enterprises; improve marketing ability, expand the space for development; improve the level of production automation, promote industrial upgrading; strengthen management, improve efficiency; strengthen the construction of enterprise culture, optimization of human resource management and other aspects, in order to cope with the future development trend of the industry and meet the challenges.

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