The National LED Product Quality Inspection Center Technology Alliance was established in Xiamen last weekend. The reporter learned from the meeting that at present, LED manufacturers have entered the "consolidation period". In order to withdraw funds at the end of the year, many companies have once again launched a crazy "price war."
Entering the deep "consolidation period" this year
The person in charge of a LED production company in Xiamen told reporters worriedly that due to the economic downturn and high inventory, the recent operating rate of their enterprises was also significantly affected. “Always open and stop, but they cannot be turned offâ€.
On December 23, in the company's production workshop in Tong'an, the reporter saw that dozens of machines, about 70% of them are still running. In the workshop, Xiao Huang, a 23-year-old worker, told reporters that since last year, the business in the factory has been bad, and many of the goods have not yet been sold. "And other related businesses in the park, the business is equally bleak."
The reporter learned from the Xiamen Optoelectronics Industry Association that there are currently more than 200 LED manufacturing companies in Xiamen. “Having experienced the high-speed development period of the previous two years, this industry has entered the 'consolidation period' since last year.â€
It is reported that most of the companies affected by the company are engaged in simple product assembly and do not have their own patents and technologies. Most of them have been followed up in the past two years.
In order to withdraw funds, sell inventory
To deal with the high inventory caused by overcapacity, the “price war†has become the most direct “promotional†means. According to the statistics of the High-tech LED Industry Research Institute, the price of LED upstream substrate and chip has dropped by more than one-third compared with the beginning of the year, resulting in a serious compression of upstream profits.
"Products that cannot be sold will generally be stocked at the end of the year." A person from the marketing department of Xiamen Tongshida told reporters that from the upstream industry, since the first half of this year, the display chips of LED upstream have fallen by as much as 50. %the above. A related person from Xiamen Photonics Industry Association told reporters that the average annual decline of such chips is 10% to 20%.
According to industry sources, Sanan Optoelectronics will clean up inventory every quarter, the sales price is much lower than the normal price, generally 30% off the market price.
A related person from Xiamen Guanyu Technology Co., Ltd. told reporters that many domestic downstream companies should first buy chips, often do not ask about product performance, but focus on price. "When the price is getting lower and lower, more and more LED chip manufacturers will also fall into a situation of losing money."
LED retail products are significantly lower prices
With the rapid decline in the price of upstream chips, the price of downstream products has also been lowered. A marketing department of Tongshida told reporters that nowadays, many domestic manufacturers sell LED lights, which are usually lowered once a quarter, and the price adjustment is 3%-5%.
Mr. Liu, a well-known LED manufacturer in Xiamen, told reporters that a 7W bulb can be sold for 40-50 yuan last year, but only 20 yuan can be sold this year. Some small factories can sell 12 yuan to 13 yuan.
It is reported that some small and medium-sized enterprises will sell finished products at a price lower than the market price in order to withdraw funds. "For example, a 3 watt LED ceiling light, its normal cost price is 13 yuan, the ex-factory price is 16 yuan or more, but some dealers will sell 10 yuan or even lower." Mr. Liu said. In addition, the reporter also found that some LED TV prices have begun to decline. For example, a 32-inch LED TV, the price dropped from 2,000 yuan to 1,500 yuan.
"LED products have been reduced, which is really a good thing for consumers, because they can buy cheaper products." Xiamen Photonics Association told reporters, but it should be noted that the current LED market is chaotic, and some rely on “Price war†gets the market, its products do not necessarily guarantee quality, and the brand is also messy.
When people buy, they should not buy "three no" inferior products in order to be cheap.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
Entering the deep "consolidation period" this year
The person in charge of a LED production company in Xiamen told reporters worriedly that due to the economic downturn and high inventory, the recent operating rate of their enterprises was also significantly affected. “Always open and stop, but they cannot be turned offâ€.
On December 23, in the company's production workshop in Tong'an, the reporter saw that dozens of machines, about 70% of them are still running. In the workshop, Xiao Huang, a 23-year-old worker, told reporters that since last year, the business in the factory has been bad, and many of the goods have not yet been sold. "And other related businesses in the park, the business is equally bleak."
The reporter learned from the Xiamen Optoelectronics Industry Association that there are currently more than 200 LED manufacturing companies in Xiamen. “Having experienced the high-speed development period of the previous two years, this industry has entered the 'consolidation period' since last year.â€
It is reported that most of the companies affected by the company are engaged in simple product assembly and do not have their own patents and technologies. Most of them have been followed up in the past two years.
In order to withdraw funds, sell inventory
To deal with the high inventory caused by overcapacity, the “price war†has become the most direct “promotional†means. According to the statistics of the High-tech LED Industry Research Institute, the price of LED upstream substrate and chip has dropped by more than one-third compared with the beginning of the year, resulting in a serious compression of upstream profits.
"Products that cannot be sold will generally be stocked at the end of the year." A person from the marketing department of Xiamen Tongshida told reporters that from the upstream industry, since the first half of this year, the display chips of LED upstream have fallen by as much as 50. %the above. A related person from Xiamen Photonics Industry Association told reporters that the average annual decline of such chips is 10% to 20%.
According to industry sources, Sanan Optoelectronics will clean up inventory every quarter, the sales price is much lower than the normal price, generally 30% off the market price.
A related person from Xiamen Guanyu Technology Co., Ltd. told reporters that many domestic downstream companies should first buy chips, often do not ask about product performance, but focus on price. "When the price is getting lower and lower, more and more LED chip manufacturers will also fall into a situation of losing money."
LED retail products are significantly lower prices
With the rapid decline in the price of upstream chips, the price of downstream products has also been lowered. A marketing department of Tongshida told reporters that nowadays, many domestic manufacturers sell LED lights, which are usually lowered once a quarter, and the price adjustment is 3%-5%.
Mr. Liu, a well-known LED manufacturer in Xiamen, told reporters that a 7W bulb can be sold for 40-50 yuan last year, but only 20 yuan can be sold this year. Some small factories can sell 12 yuan to 13 yuan.
It is reported that some small and medium-sized enterprises will sell finished products at a price lower than the market price in order to withdraw funds. "For example, a 3 watt LED ceiling light, its normal cost price is 13 yuan, the ex-factory price is 16 yuan or more, but some dealers will sell 10 yuan or even lower." Mr. Liu said. In addition, the reporter also found that some LED TV prices have begun to decline. For example, a 32-inch LED TV, the price dropped from 2,000 yuan to 1,500 yuan.
"LED products have been reduced, which is really a good thing for consumers, because they can buy cheaper products." Xiamen Photonics Association told reporters, but it should be noted that the current LED market is chaotic, and some rely on “Price war†gets the market, its products do not necessarily guarantee quality, and the brand is also messy.
When people buy, they should not buy "three no" inferior products in order to be cheap.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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