In the post-lighting era, traditional general-purpose lighting is now growing weak, and GGII expects that the general-purpose lighting market will maintain a growth rate of around 15% in the future. Compared with the previous high-speed growth, the limitation of the alternative market has made lighting companies have no previous "vigor". In the first half of this year, although the LED industry continued its past prosperity, the growth rate of listed companies' net profit has slowed down noticeably. The “sluggishness†of the overall market puts the company under heavy pressure. In addition, external pressures pose a huge challenge for business operations.
In the first half of 2018, LED lighting companies can clearly feel the pressure from the outside. First, the strictening of environmental protection policies has led many companies to suspend business for rectification, affecting normal supply, resulting in tight supply. Second, raw material prices have risen, increasing the cost pressure on enterprises. In addition, the Sino-US trade war continues to escalate, resulting in some products. Exports are blocked, while exchange rate fluctuations affect the profitability of exporting companies.
First, the environmental protection policy is tightening to promote industry reshuffle. The environmental protection tax officially levied on January 1, 2018 is a national policy for regulating environmental protection, which fully demonstrates that the country attaches great importance to environmental protection. In fact, a year or two ago, the lighting industry was already in the midst of an environmental storm. At that time, the price surge and the stoppage of work were still vivid. This environmental storm swept across the country and was called the harshest environmental protection in history. In this storm, the manufacturers were shut down and rectified, the enterprises stopped water and electricity in a large area, the prices of raw materials skyrocketed, workers stopped working and lost their jobs, and the entire market environment was chaotic.
The impact of this environmental protection tide on the lighting accessories industry is very far-reaching. The first is very intuitive for manufacturers to rectify environmental protection; the second is the price increase of raw materials; finally, there are new ideas for environmentally friendly products. The future of China's manufacturing industry will certainly not require factories with serious environmental pollution. If you experience a short period of "pain", you can usher in a longer-term sustainable development, and it is not a bad thing. It can be said that the strict environmental protection storm has accelerated the “shuffle†of the lighting industry.
In addition, the price increase of raw materials further increases the burden on lighting companies. As we all know, with the intensified competition in the lighting industry, from upstream chips to midstream packaging and downstream applications, product prices continue to fall, leading to the continuous compression of corporate profit margins, and the survival faces serious pressures and challenges.
In the first half of this year, electronic components, including aluminum electrolytic capacitors, resistors, and MOS tubes, have been showing price increases. The situation faced by most LED driver companies is more severe. Zhao Nannan, deputy general manager of Igor Electric Lighting Industry Center, told Gaogong LED: "The price increase is not the most terrible now. The most frightening thing is that many raw materials are in short supply, which has a very big impact on power companies." In addition, it is closely related to the PCB industry. The price of materials such as copper clad laminates has experienced ups and downs.
Of course, the most "fire" in the first half of the year is to continue to upgrade the Sino-US trade war. The total amount of taxable products in the United States has expanded from 50 billion to 200 billion, and it has gradually spread to the lighting industry. In the second round of the 200 billion taxation list, the LED products involved are widely covered, including more than ten kinds of LED and lighting products, and the trade amount is also relatively large. As the largest export destination of LED lighting products in China, if the US$200 billion tariff item is approved, China's LED-related industries will be greatly affected.
Ye Weifu, chairman of Everlight, said that the US-China trade friction has continued to burn in the recent past. At present, it seems that the impact on the LED-related components manufactured by mainland brands or mainland China will be affected, and the future will definitely have a negative impact on the price of LED lighting. In recent years, the global LED lighting market has been dominated by China, which has the largest production volume. If the LED lighting production capacity originally exported to the United States is not affected by the trade war, it will not be able to sell normally. A large amount of production capacity may be low in the market outside the US, making the price low. LED lighting products face the pressure of price.
Of course, rising labor costs also bring huge business pressure to enterprises. Some insiders believe that changes in the business environment will accelerate the disappearance of small brands, and the "running tide" of the LED lighting industry may come early. Stimulated by multiple factors, the LED industry will return to the right path at the end of 2018 or early 2019.
LED companies should actively respond to the changing business environment. Dr. Zhang Xiaofei, Chairman of Gaogong LED, suggested that companies in the post-lighting era should conduct a survey and analysis of competitors in the upper, middle and lower reaches. The so-called "knowing oneself and knowing oneself, not fighting one hundred battles" can only formulate effective countermeasures only after correctly clarifying the positioning and strategy of competitors. Take Ops Lighting's previous price reduction incidents for standard products as an example. Before you follow up on price cuts, you need to know exactly what Opte Lighting is aiming at, and what actions to follow.
In the industrial chain, the coordination of all links should be better and cost control should be done. As we all know, at present, large packaging companies such as Mulinsen, Zhaochi, and Guoxing Optoelectronics have successively carried out the whole industrial chain layout. At the same time, the upper, middle and lower reaches of the effective synergy effect, if the coordination is not enough, it is easy to cause "form bloated". Therefore, for enterprises covering the entire industrial chain, it is necessary to do a good job in all aspects of the industrial chain, "shape the body" and avoid Some unnecessary costs increase.
In addition, the industry chain is well organized and the management of funds is emphasized. Judging from the quarterly reports of the major listed companies in the first quarter of this year, many listed companies are facing cash flow problems. For example, Lianjian Optoelectronics borrowed nearly 100 million yuan in less than one month. From the comprehensive recovery last year to the gradual differentiation in the first half of this year, the LED industry is already in the second half of the full-fledged variable. With the intensification of competition, falling prices, rising raw materials prices and the Sino-US trade war, the entire industry will face growth in performance. Slow risk. Therefore, in this situation, enterprises should pay more attention to the issue of financial security.
Also, to do product innovation, new functional products should start from the terminal needs. Many LED companies have been annoyed that customers do not know where to go, in fact, not the lack of demand, but the lack of matching supply demand. How to grasp customers and meet customer needs is extremely important. Taking intelligent lighting as an example, the true value is still not reflected. TCL marketing director Guan Wei said that in the future, intelligent lighting needs to focus on the interaction between people and lighting equipment, the interaction between lighting equipment and the environment, and the control methods should be diversified, and the user operation is simple. Only in this way can intelligent lighting be truly welcomed and supported by consumers.
Dr. Zhang Xiaofei pointed out at the 2018 High-tech LED Industry Summit: "The post-illumination era needs to recognize the essence and needs to do something more intelligently, not only limited to smart lighting. In fact, LED can bring more and better. In addition, in terms of intellectual property, it is necessary for large enterprises, but for small enterprises, this is not your most important aspect. From the perspective of innovation, it is necessary for every enterprise. Large enterprises must first think and innovate, the second enters the field to be innovative, the third is especially product innovation, small enterprises still take product innovation as the first, and second is marketing, these two aspects are enough for you to sell the products."
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