Looking at Guangdong's LED industry development: Is it an opportunity or a challenge?

Looking at China's global LED industry development, China's LED industry development looks at Guangdong. LED industry is one of the 11 most promising industries in China's strategic emerging industries. As China's economy continues to grow and develop, the scale of LED lighting industry is also expanding. Guangdong is the most concentrated area of ​​the national LED lighting industry. The scale of the industry has grown from around 3,000 in 2013 to more than 4,000, driving nearly 3 million related jobs and an output value of more than 350 billion yuan.

As is known to all, as the economic center of China, Guangdong has always been at the forefront of the times. At the same time, as one of the coastal cities in the country, Guangdong has become the link between China and the world. In such an open and inclusive environment, the LED industry, one of China's 11 emerging industries, has been recognized by China and the world.

At present, the LED industry in Guangdong has initially formed four industrial clusters centered on Shenzhen, Huizhou, Zhongshan and Foshan, and the industrial service chain radiates to the periphery. Together with the favorable industrial support policies and rich service projects in Guangdong, the LED industry is Guangdong has gained a lot of development assistance in this vast fertile soil.

Policy articles

The development of the LED industry has never lacked policy support in Guangdong. Regardless of capital subsidies or policy preferences, governments across Guangdong have spared no effort in the development of the LED industry. Below we will take a closer look at the preferential policies of the Guangdong region.

1, Shenzhen 2 billion subsidized conscience enterprises

In order to give full play to the role of unemployment insurance in preventing unemployment and promoting employment, and encouraging enterprises to stabilize their jobs, the Shenzhen Municipal Human Resources and Social Security Bureau and the Municipal Finance Committee jointly issued a new policy on the job subsidy for unemployment insurance support enterprises, and adopted effective measures. For layoffs, less layoffs, and stable employment, the unemployment insurance fund will provide stable job subsidies, and the stable subsidy policy will be implemented until the end of 2020. It is estimated that there will be about 300,000 qualified enterprises in 2016, and the actual reduction of the subsidy policy for stable subsidies is about 2 billion yuan.

2, Shenzhen Longgang opened special subsidies for science and technology

Shenzhen, as a concentration of technological innovation, the government's encouragement for technological innovation is also comprehensive. Longgang District, Shenzhen City, in order to fully strengthen the orientation and incentives for the industry, accelerate the transformation of the economic development mode of the region and optimize the industrial structure, the district government set up special funds for economic and technological development, the maximum subsidy can reach 3 million.

3, Shenzhen launched energy-saving emission reduction plan, LED enterprises can be up to 15 million

Shenzhen has launched a special fund support plan for circular economy and energy conservation and emission reduction. The key areas of support include circular economy demonstration projects, energy conservation, emission reduction, pollution prevention and water conservation. Energy conservation mainly includes energy saving of motor system, optimization of energy system, utilization of residual heat and residual pressure, and high-efficiency LED green lighting project. The subsidy amount of each project is determined according to a certain proportion of the fixed assets of the project approved by experts, and the maximum is not more than 15 million. yuan.

4. Guangzhou, Shenzhen will build an intellectual property center

On February 16th, at the Guangdong Innovation Drive Development Conference, “The Key Points for the Implementation of the Innovation-Driven Development Strategy in Our Province in 2016”, we proposed to vigorously develop the intellectual property service industry and build intellectual property concentration centers in Guangzhou and Shenzhen.

5. Zhongshan Construction “China Export Industrial Products (Lighting) Quality and Safety Demonstration Zone”

The lighting industry is one of the advantageous industries of Zhongshan. The ancient town of Zhongshan is a world-famous “China Light Capital”. Earlier, Zhongshan City issued the "Implementation Plan for the Construction of China's Export Industrial Products (Lighting) Quality and Safety Demonstration Zone", proposing to standardize and strengthen the construction of the Zhongshan Export Lighting Quality and Safety Demonstration Zone (hereinafter referred to as the "Demonstration Zone") to enhance The overall quality and safety level and core competitiveness of Zhongshan Export Lighting have found new breakthroughs for the innovation and development of Zhongshan Lighting Industry, and further promoted the transformation and upgrading of Zhongshan Lighting Industry.

6. Zhongshan strengthens LED enterprise incubation plan

The Zhongshan Municipal Government has formulated the “Zhongshan LED Industry Development Plan (2014-2020)”. According to the LED industry development plan, Zhongshan City will be centered on Guzhen Town and Xiaolan Town, and will be integrated with Henglan Town, Banfu Town and Torch Development. Coordinated development of other towns such as the district, through the expansion of LED industry clusters, the development of LED packaging and high-end application industries, the development of LED supporting industries, the development of LED service industry and other initiatives, by 2015, the annual output value of LED enterprises above designated size will exceed 30 billion yuan. Cultivate 1-2 LED companies with an annual output value of over 5 billion yuan and 5 annual output values ​​of over 500 million yuan, and cultivate 1-2 LED companies to go public. By 2020, LED enterprises above designated size will achieve an annual output value of more than 80 billion yuan, driving the related supporting and modern service industries to exceed 200 billion yuan, and cultivating two LED enterprises with annual output value exceeding 10 billion yuan and having international market competitiveness.

7. Nanhai District of Foshan City launched special funds to support high-tech enterprises

On February 23, Nanhai held a high-tech enterprise (referred to as “high-level enterprise”) cultivation work conference and announced the “Nanhai District High-tech Enterprise Cultivation Action Plan”, demanding a large increase in the number of high-tech enterprises this year. Family. At the meeting, the target task was decomposed into various town streets. Zheng Lanru, the head of the Nanhai District, said that the next step will be to provide special support funds to reward successful high-tech enterprises.

8. Guangdong released the “Guangdong Zhijian Development Plan” and promoted “Guangdong Zhizhuang”

In July 2015, the Guangdong Provincial Government issued the “Guangdong Province Intelligent Manufacturing Development Plan (2015-2025)”. This plan is the development plan for Guangdong Province to fully connect “Made in China 2025”, which is called “Guangdong Zhizhuang” by the industry. . The transition from “manufacturing” to “intellectual creation” will not only bring huge development opportunities for emerging manufacturing industries, including the LED industry, but also predict the future direction of industrial development from the policy level.

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An industrial development requires a fertile soil and a suitable environment for growth, and Guangdong has always been a province that is good at creating the environment. The LED industry is welcoming rapid development under the premise of many favorable policies. Therefore, what we are seeing is a very sunny situation. The scale of the LED industry in Guangdong is becoming stronger and stronger. The layout of the middle and lower reaches of the industrial chain is perfect, and the scale of the region is becoming increasingly obvious. At the same time, the synergy effect of industrial clusters is gradually strengthening.

Opportunity

Guangdong is a very inclusive province where companies can easily find their own position. For the emergence of any fresh industry, the attitude embodied in Guangdong is acceptance, not exclusion. For the development of the LED industry, it is a process of innovation. Therefore, the urban inclusiveness embodied in Guangdong is conducive to the sustainable development of the LED industry.

At present, with the continuous implementation and deepening of “Guangdong Zhizao”, Guangdong LED lighting industry is showing five major development trends, and these momentum will undoubtedly bring new development opportunities for the development of the industry.

Wind direction one: intelligent

In July last year, the Guangdong government has embarked on a comprehensive docking of the "Made in China 2025" plan, called "Guangdong Zhizhuang." The transition from “manufacturing” to “intellectual creation” has brought tremendous development opportunities for emerging manufacturing industries, including the LED industry.

Wind direction two: informationization

"Guangdong Smart Manufacturing Development Plan" proposes: To implement the "Internet + Manufacturing" action plan, the LED industry has now presented the "Internet +" informationization development trend, with the "Guangdong Zhizhuang" informationization height Emphasis on, under the drive of policy support and industrial development, informationization will be one of the important directions for the future development of the LED industry.

Wind direction three: quality

On July 3, the “Guiding Opinions on Quality Improvement Actions in Guangdong Province” issued by the General Office of the Guangdong Provincial Government clearly stated: “With five years, a group of leading enterprises with quality innovations will be formed, in advanced manufacturing, strategic emerging industries, modern In the service industry and other fields, we will cultivate a group of multinational companies with leading domestic and international competitiveness, and create a group of modern enterprises and industrial clusters with outstanding brand image, complete innovation platform and first-class quality.

At present, there is no shortage of high-quality products in the LED industry in Guangdong. However, it is undeniable that in the international competition, we still use price war as the main means of competition. Taking "Guangdong Zhizhuang" as an opportunity to improve quality and establish a brand, this will be the only way for Guangdong LED companies to become strong.

Wind four: standardization

For “Guangdong Zhizhuang”, standardization also contains two levels of connotation: on the one hand, let Guangdong manufacturing move closer to the existing standard system, and through the “manufacturing” to the “intelligence”, the Guangdong products meet the domestic and international standards. Claim.

For modern manufacturing, whoever seizes the right to standardize, who can get the industry's right to speak. The LED industry in Guangdong started the standardization process as early as 2011. The standard optical component standard system has already had certain influence at home and abroad. Under the background of “Guangdong Zhijian”, more LED companies participate in the standard. The formulation and application of the “Standard Optical Component” standard system will gain greater influence and become a domestic and international standard. By then, Guangdong LED enterprises will gain a huge industry voice.

Wind Five: Internationalization

Since the reform and opening up, Guangdong's manufacturing industry has been widely involved in the development and competition of internationalization, while “Guangdong Zhizao” will promote the Guangdong manufacturing industry to get rid of the current “big but not strong” dilemma and participate in a stronger posture. International competition.

At present, Guangdong has already owned a number of LED companies with certain international influence, but compared with international giants, there are still gaps in technology, brand and market channels. Under the impetus of “Guangdong Zhizao”, with the good development momentum and policy support of Guangdong LED industry, the future LED enterprises will be more comprehensive in internationalization. In this process, there will be international lighting in Guangdong. Giant.

In addition, Guangdong undoubtedly has a very strong capital market. Promoting the development of the LED industry - technology innovation, capacity expansion, capital expansion, etc. all need to rely on capital operation, and Guangdong has always been a breeding ground for capital. As long as LED companies have sufficient strength and brand influence, they can not only get preferential treatment from the policy, but also include various kinds of subsidies and support, and they are also very easy to get the favor of the capital market, which is quite impressive. Market financing or investment.

In addition, Guangdong LED industry chain development is relatively complete, the industry has a leading enterprise in the middle and lower reaches. The upstream chip industry is distributed by well-known enterprises such as Shenzhen Tongfang, Zhuhai Dehao Runda and Guangdong Jingke Electronics. The packaging industry also includes Hongli Optoelectronics, Mulinsen, Guoxing Optoelectronics and Ruifeng Optoelectronics. The well-known enterprises in the downstream application industry are numerous. Lift. A perfect industrial chain makes it easier to cluster the industry. At the same time, the “bringing” development mode also enhances the ability of the industry to withstand risks. This undoubtedly provides a very convenient advantage for the development of the LED industry in Guangdong.

Challenge

For the development of any industry, opportunities and challenges coexist, and the Guangdong LED industry is no exception. For the Guangdong LED industry, the development opportunities are unprecedented, but the challenges are also enormous.

First of all, the generous support policies and industrial advantages are very likely to cause enterprises to get together. In the process of industrial development, this will inevitably lead to the risk of overcapacity, which will have adverse effects. Overcapacity is likely to cause vicious competition, price wars and quality cases have emerged. This phenomenon has been initially reflected in the past 2015. At the same time, overcapacity will also bring about corporate outflows. It is evidence that many LED companies in Guangdong have built factories in the Mainland.

How to balance the development of the middle and lower reaches of the LED industry chain and its corresponding periphery reasonably and effectively has become an urgent problem for Guangdong to solve and solve.

Secondly, the labor cost in Guangdong has been increasing year by year, and the LED manufacturing industry has gradually lost its advantage. Labor cost is one of the main costs of manufacturing. How to control labor cost has become the top priority of every manufacturing enterprise. However, the wages in Guangdong have been rising year by year, which undoubtedly increases the operational burden of manufacturing enterprises. Therefore, the manufacturing advantages of Guangdong are being eroded year by year. The “escape” of enterprises is likely to cause faults in the industrial chain.

Enterprises are an important part of the development of the LED industry. Once a large-scale "escape" of enterprises occurs, the development of the industry will be in a difficult situation and even fall back. Therefore, how to reduce corporate pressure from the internal and external environment has become a problem that must be faced in the development of the contemporary LED industry.

In addition, high consumer prices have caused brain drain. Guangdong has a large population outside the country. Whether it is the bottom-level workers, middle-level technicians, or even senior managers and technical backbones, outsiders have made tremendous contributions to industrial development. However, due to the increasing consumption level in Guangdong in recent years, many outsiders said that they can't afford to eat, can't afford it, and can't afford it. Therefore, many outsiders choose to go home to develop or start a business, which is undoubtedly a devastating blow to the development of the LED industry.

Talent plays an indispensable role in the Guangdong LED industry chain. Previously, Guangdong’s appeal to talent was still quite strong, but in recent years, this attraction has been weakening. Therefore, the introduction of talents and the stability of work are becoming one of the headaches for the LED industry in Guangdong.

Guangdong's active economic conditions, generous policy support and an open and inclusive environment have brought many favorable conditions for the development of the LED industry. This makes Guangdong's LED industry cluster far ahead of other parts of the country and thus dominates. However, in the process of industrial development, problems such as overcapacity, corporate flight, and brain drain have become increasingly serious. Therefore, how to face up and cope with development challenges will become the key to whether Guangdong's LED industry can further take off.

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