In the past few years, there have been some copycats of our products in the Chinese market, but we have always been positive about this phenomenon; because if we don't do well, no one will imitate it. Lin Chengyi, who has been working at Purui Optoelectronics for 11 years, is a senior technical manager. He said that there is vicious competition in the domestic LED industry. In recent years, the market price has dropped at a rate of 30 to 40 per year.
Industry insiders said that with the efforts of local governments to strengthen energy conservation and emission reduction, the emerging LED industry has attracted a large influx of capital. Between 2010 and 2012, there was even a rush of investment in the LED industry in China. There are more than 1,000 enterprises in the upstream and downstream of the LED industry chain in Shenzhen, and more in Zhongshan. Wang Songhe, sales manager of Shenzhen Puhui Lighting (Group) Co., Ltd. said.
In the face of fierce competition and falling prices, companies can only survive if they expand sales. There are also companies that choose to take risks and do everything at low cost, such as using poor quality chips, while also using inferior materials to drive down prices.
In this regard, Li Jianming told reporters: I believe that the price of the LED industry will gradually stabilize, because products of poor quality will be eliminated, and enterprises that do not pay attention to quality will eventually be eliminated. Many people in the industry agree with this point. Someone told reporters that the LED industry will undergo a major reshuffle through the market, and then 70% of enterprises will be eliminated, leaving a group of companies with strong capital and strong scientific research capabilities.
It is worth noting that Guangdong enterprises climbed up the industrial chain. The scale of the LED industry has not shrunk as prices have fallen. The Chinese LED market has achieved rapid growth in the past decade. According to the evaluation, in 2013 alone, the overall market sales of LED lamps and lighting equipment was about 32 billion yuan, while the sales of LED kits exceeded 8 billion yuan.
The LED industry chain mainly consists of four parts, namely LED epitaxial wafer, LED chip manufacturing, LED device packaging and product application. At present, American and Japanese companies have monopoly advantages in epitaxial wafers, chip technology and equipment, while European companies have outstanding advantages in applied technology. China's LED is still at a relatively low level. The data shows that 80 products are concentrated in application markets such as landscape lighting and traffic lights, and there are relatively few high-end products such as automotive lighting and large screens.
The experience of climbing and accumulating in the industry has made Lin Chengyi have a deep enough observation on the industry. He said that even if there are people who have doubts about the environmental properties of LEDs, the quality requirements of the Chinese market are increasing.
At the lighting exhibition, the reporter also found that Chinese companies are also climbing upstream of the LED industry chain. We have both R&D and production departments in Guangzhou. Zhang Teng, sales engineer of Jingke Electronics (Guangzhou) Co., Ltd. told reporters that Jingke Electronics is a joint venture located in Nansha, Guangzhou, with the goal of forming a large-scale LED upstream and upstream industrial chain in Guangzhou. We have a technical operations team consisting of many doctors and masters. The reporter learned that Jingke Electronics relied on independent development and gradually mastered the core technology of the LED industry with international leading level.
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