Henan LED low-end price-cutting competition technology research and development enterprises

Many LED companies in Henan are engaged in the matching and assembly of parts and components, and carry out low-end price-cutting competition. However, there are very few real-world technology research and development, and this kind of enterprises are facing very difficult life in Guangdong and Shanghai. Not only is it facing technical level competition, but also subject to competition in marketing.

“A large number of LED companies in Henan are struggling on the line of life and death.” Zhang Mingguang, technical manager of Henan Yutong Photoelectric Technology Co., Ltd. told reporters.

Affected by objective conditions such as technology, talents, and policy support, Henan LED industry has been at a low level.

Low-end price cut competition
In recent years, the development of Henan LED industry can be described as mixed. On the one hand, under the strong advocacy of national policies, people are optimistic about their development prospects; on the other hand, the lack of core technology, uneven quality and vicious competition in the industry have caused some enterprises to close down, which has cast a shadow on the development of the LED industry. A layer of shadow.

Li Shuaiqi, general manager of Zhengzhou Tiancai Technology Co., Ltd. told reporters: "At this stage, the concept of energy conservation and environmental protection is subtly changing people's lives. At the same time, the dual opportunities of the Central Plains economic zone and new urbanization construction have prompted the LED industry chain to enter new. In the development period, the market space in the future is immeasurable."

Taking the LED lighting industry as an example, Chen Hongda, deputy director of the Institute of Semiconductors of the Chinese Academy of Sciences, released a message to the outside world at the "2012 Optoelectronic Industry and Investment and Financing Cooperation Forum": "If 50% of China's light source is replaced with LED, it will realize annual energy saving of 210 billion. Kilowatt hours is equivalent to building another 2.5 Three Gorges Project."

It is precisely because of the obvious energy-saving effect of the traditional lighting industry that LEDs will be valued by the state and widely used in various fields.

However, the reality is that due to the huge difference between the two prices, the development of LED lighting industry in Henan is not ideal.

Li Shuaiqi told reporters: "The economic development speed of Henan has determined that the LED industry has been at a low level." Li Shuaiqi gave reporters an example. Now home incandescent lamps are generally at the price of 3 to 10 yuan. And an LED light is at the price of 30 yuan to 60 yuan.

"Although people know the energy-saving and environmental protection effects of LEDs, sales are very limited." Liu Guoqing, deputy general manager of Zhengzhou Guanglei Technology Co., Ltd., is also confused.

However, the development of the industry is not as good as the improvement of the consumption level of the residents.

The reporter learned that in the developed southern provinces such as Shenzhen and Fujian, the competition of LED is very fierce. In particular, the price competition between LED street lamps and LED bulbs has become fierce. Many manufacturers have turned to special lighting because they are not profitable in the mass lighting field. Application aspect.

Li Shuaiqi told reporters: "In 2013, in addition to various solutions to provide cost-effective lighting products, various manufacturers began to turn to other lighting-related applications, such as industrial lighting, plant lighting, frozen lighting, etc. Special application areas."

It is not difficult to see from the above situation that the LED industry has a large horizontal penetration space in both Henan and the whole country.

There are only two or three companies engaged in scientific research.
Li Shuaiqi, who has 6 years of experience, told reporters: "Most of Henan's LED displays are bought from southern cities such as Guangdong and Fujian. Most of our companies are mainly engaged in the assembly and sales of LED components."

Li Shuaiqi told reporters that many LED companies in Henan have said that they have their own factories. In fact, they are all engaged in the matching and assembly of parts and components, and there are very few technical research and development.

Zhengzhou Yinte Technology Co., Ltd. is one of the leaders among these few companies. However, due to the backwardness of the supporting industry in Henan LED industry, the company moved its technology research and development company to Shenzhen.

"In the big environment of Shenzhen, we can communicate with foreign merchants and local enterprises frequently, which is very helpful for the development of technology." Wang Junkuan told reporters.

However, Henan will not work.

Wang Junkuan pointed out that the LED industry in Henan faces challenges such as the relatively small scale of enterprises, low industrial concentration, breakthroughs in core patents, and disorderly market competition. In Henan, the market is the largest in the middle and low-end LED products, but these low-end products are completely controlled by products in cities such as Shenzhen.

"So, there will be things that low-end products are transported from Shenzhen to Henan. But this often affects the quality of service to customers." Li Shuaiqi has a deep understanding of this.

It takes three or four days to transport goods from Shenzhen and Fuzhou to Henan. During this time, customers often can't wait to choose other companies.

The reporter learned that throughout Henan, there are only two or three companies that can engage in technology research and development like Zhengzhou Yinte Technology Co., Ltd. and Henan Zhongxian Electronics Co., Ltd.

"This type of business is harder to live because they face opponents such as Guangdong, Fujian, and Shanghai. The same level of technology, people's marketing is better than Henan's." Zhang Mingguang said.

Technology-based enterprises urgently want policy Ganlin
Henan Times Display Technology Co., Ltd., which installed high-definition displays at the southwest corner of Zhengzhou Garden Road and Dongfeng Road and established its industry influence, has expanded from the original screen display to other integrated services such as lighting.

"This is actually determined by the market. In recent years, the market in Henan has been very difficult to do. First, the competition between the peers has intensified, and second, the impact of the economic downturn on the consumption level of the residents." Wang Junkuan said, "But from the end of last year Now, the market has a tendency to recover."

Wang Junkuan hopes that under the current situation of good industry, the government can help enterprises to complete the technological upgrading of the entire industry.

“After a company acquires patented technology, it takes a huge amount of money to start the market. If the government can provide guarantees to make these enterprises grow and develop, many small and medium-sized enterprises will develop into large enterprises.” Wang Junkuan said.

Wang Junkuan said that the government should set up a "photonics incubator" to provide professional services and support to these SMEs in terms of capital, technology, talents, management, etc., based on the experience and advantages of entrepreneurial incubation. Rapid growth, while accelerating the promotion of “incubation companies” to “incubation industries”, and rapidly cultivating an industrial chain and industrial belt.

In this regard, Liu Guoqing said that the tax preferential policy will bring substantial benefits to the upstream of the LED industry, and the continued expansion of the scope of financial subsidies will effectively drive the downstream consumer market and promote the LED market.

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