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LED lighting entered the commercial market and dawned on the scene. How to reduce costs and expand sales channels has become a hot topic at the G20-LED summit on August 16. The 20 LED lighting companies attending the conference jointly set up a procurement platform and a brand-name store to open up the cost and channel.
Zhang Xiaofei, director of the High-tech LED Industry Research Institute, told the "First Financial Daily" that the LED market is mixed, and that excellent enterprises can be united to reduce costs by opening up the upstream and downstream industry chains. LED lighting costs 4 to 5 yuan per watt, and if it falls to 2 to 3 yuan, it can enter the retail market, which may be realized early next year.
The 20 companies that have been linked to each other last year have formed an alliance and have gathered again this year. Among them are Philips Lumen, Tsinghua Tongfang, Huacan Optoelectronics, Hongli Optoelectronics, Ruifeng Optoelectronics, Sunlight Lighting, Qinshang Optoelectronics, Lianchuang Optoelectronics, Xinli Light Source, Shandong Inspur and other well-known enterprises.
Zhang Xiaofei believes that the upstream, middle and lower reaches of the supply chain platform is open, with the aim of concentrating scattered orders and handing them over to excellent suppliers. There are 9 listed companies in the G20, and 6 are preparing to go public. They are involved in all aspects of the industry chain, from LED materials, epitaxial wafers, chips, packages, and finished products to power supplies. By cooperating with the group, each company's production capacity can be more stable, and more resources can be concentrated for product development, which is beneficial to the industry chain cleaning and industry development.
Dongguan Qinshang Optoelectronics Co., Ltd. has been focusing on the government LED lighting project in the past, and has now heard the prelude of the commercial market launch. Zhu Bingzhong, deputy general manager of Qinshang Optoelectronics, revealed to the newspaper that some newly-built hotels, supermarkets and chain stores have recently asked about LED lighting.
In order to seize the opportunity, Zhu Bingzhong said that Qinshang Optoelectronics is also strengthening the construction of the terminal channel network this year, such as opening up engineering channels. Diversified and eclectic, participating in the G20's joint sales platform, making the channel more diversified.
According to Zhang Xiaofei's concept, the G20-LED brand store will cooperate with excellent LED lighting companies to carry out layout in the whole country in the form of brand chain, and to make small Gome of LED lighting. This can skip the dealership and become a bridgehead for brand manufacturers to push products to the consumer market, and integrate engineering procurement, distribution wholesale and retail experience.
Although LED lighting companies have begun to try their own distribution channels, but the individual enterprises have relatively few talents and funds, and the variety of lighting fixtures is not complete, it is difficult to obtain customer trust. Zhang Xiaofei said that borrowing traditional lighting channels is another way, but traditional lighting companies are also moving toward the LED direction. The conflict of interests between the two sides is difficult to work.
Huacan Optoelectronics Co., Ltd. has just landed on the GEM in June this year and is one of the major LED chip suppliers in China. Bian Difei, director and vice president of Huacan Optoelectronics, admitted that although they are upstream companies, they are a bit far from the terminal market. However, with the gradual launch of the commercial market, Huacan is also happy to open channels for communication with consumers through the alliance. We can do some advertising in the store, hold promotional activities, and provide technical counseling.
Biandifei believes that the LED lighting civilian market is still in the cultivation stage, and the penetration rate of LED lighting around us is still very low. The downstream LED lighting market is mixed, consumers are unclear about technology and brands, and some companies are fighting price wars and shoddy. I hope that the chip, package, and lighting factory will unite and set some standards to regulate the market.
In fact, in July this year, the above 20 LED companies have jointly launched the G20-LED lighting product specification. The next step will be marketing.
From the government to the market, the direction of energy conservation and emission reduction has ignited the entire LED lighting industry, making the LED project a favorite for local governments. However, the excessive participation of the government and the frantic pursuit of venture capital have caused the phenomenon of oversupply in the sunrise industry, which is still in its infancy, and the price of products has flown down.
According to the statistics of the high-tech LED industry, the production and sales volume of LED chips in China reached 6 billion yuan in 2011, an increase of 50.
As of the end of March 2012, there are more than 1,700 LED packaging companies in China that have been scaled up and have been mass-produced, accounting for 80% of the global LED packaging companies. In 2011, the price of white LEDs in the domestic market fell by more than 25. Compared with the same period of last year, on the other hand, the demand in the LED market was lower than expected. In 2012, China's LED industry new project planning investment totaled 44.1 billion yuan, down 63.
In the first half of this year, the performance of several LED listed companies declined. For example, Hongli Optoelectronics reported that the net profit for the first half of the year was 278.9 million yuan to 37.18 million yuan, a decrease of 0~25 compared with the same period of the previous year. Wanrun Technology's revenue increased by 3.15 in the first half of the year, and the net profit was 25.628 million yuan, down from the same period of last year. 6.78.
Excessive reliance on government orders and financial subsidies has also become a significant risk for LED companies. A senior person in the LED industry bluntly said that Chinese LED companies who can get government orders can live.
According to the statistics of this reporter, among the net profits of several major LED companies such as Sanan, Dehao Runda and Huacan, the proportion of government subsidies is more than half. In the first half of 2012, Huacan Optoelectronics accounted for a net profit of 54.4; Sanan Optoelectronics' government subsidy accounted for 86% of net profit in 2011; Dehao Runda's 2011 government subsidy accounted for a net profit of 79.08.
Therefore, to get rid of the dependence on the government, developers use the market at the right time. Since last year, LED commercial lighting revenue has increased by about 70. When will commercial lighting usher in a turning point in large-scale growth? Guan Yong, the person in charge of Sunshine Lighting, believes that the profit of LED commercial lighting can be flat, because some people are not willing to take risks because of problems such as light effects.
Zhu Bingzhong said frankly that Qinshang Optoelectronics has been involved in the civil field from engineering projects. LEDs need to open the gap in the civilian market, the key is cost. Cross-enterprise joint procurement is an attempt to reduce procurement costs.
However, how to coordinate the interests of many companies within the alliance in joint procurement and co-construction channels may be the key to turning this beautiful concept into reality. Zhang Xiaofei said that the details of the plan are still under study.
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