Product homogeneity demand falls Foshan LED encounters pain

In just one or two years, under the policy's breeze, almost 80% of Foshan traditional lighting companies turned to the LED lighting industry, but this kind of “fast-moving” has encountered a shrinking market.

The reporter recently interviewed some lighting companies in Foshan that as the economic situation in the developed countries in Europe and America continues to be sluggish, orders from abroad have been greatly reduced, and the demand in the domestic market has also declined because of the impact of macro-control. Coupled with the impact of rising manpower and raw material costs, most of the LED companies in Foshan have not had a good day. However, some enterprises with strong product innovation capabilities have received more orders than in previous years, but they are worried that workers are not enough. This may indicate the direction of the LED industry in Foshan.

Most of the company's orders are reduced. Domestic or external demand, the current situation is not optimistic for LED companies.

The four-day Hong Kong International Lighting Fair for the Fall ended on Sunday. This year's event, which is considered the second largest lighting show in Asia, is not so satisfying. Due to the weak economic recovery in the United States and the debt crisis in the EU countries, foreign consumer demand has declined.

Barry, a sales manager from DG Lighting in the United States, told reporters that he has purchased related products from China for many years, but due to the lack of economic growth in the United States, Americans’ willingness to consume is also shrinking. “I’ve purchased this year from the Chinese market. The order is 30%-50% less than in previous years."

The decrease in foreign demand was confirmed by the performance of some lighting companies in Foshan in the first three quarters. Foshan Lighting is a leading company in the lighting industry in China. It has also entered the LED field in the past two years. However, its on-site staff at the Hong Kong Lighting Fair told reporters that whether in the traditional lighting or LED field, the company’s orders for foreign trade this year are all presented. Downward trend, but the specific ratio is difficult to predict.

Not only abroad, due to the impact of the country's macro-control, especially the regulation of the property market, the demand for home and decoration has declined, and domestic sales of companies have not been satisfactory. The sales director of the United States lighting electrical lighting Han Mo told reporters that the company's sales in the field of lighting lamps last year reached more than 600 million, the target set earlier this year is to double, but due to the impact of declining domestic and foreign demand, so far only achieved 8 About 100 million yuan, it is more difficult to achieve the original goal of doubling.

“From what we learned from the association, the situation of Foshan LED companies is currently more difficult. Although there is no definite statistics, most companies have reported that orders have decreased, and many companies have also caused millions of losses.” Foshan Zhang Hua, secretary general of the Lighting Lighting Industry Association, said.

Most LED products in Foshan have no new ideas. In fact, the current business dilemma in the Foshan LED industry has a lot to do with the speed of development in the past two years. Wu Yulin, president of Foshan Lighting and Lighting Industry Association and general manager of Kasei Lighting Co., Ltd., told reporters that there were not many companies that had previously entered this field. In recent years, governments at all levels in the province and city have attached great importance to the LED industry and introduced various supporting policies. Caused many traditional lighting companies to compete to make LED products. According to incomplete estimates, about 80% of the traditional lighting companies have entered the LED field.

“But these traditional lighting companies have not conducted detailed investigations on the LED market capacity and product characteristics. The homogenization of the products produced is quite serious. Everyone’s products have no special features or new ideas. When the market demand declines, the competition is very high. Intense," said Zhang Hua.

This phenomenon of homogenization has been evident in the Hong Kong Lighting Fair. It is understood that a total of 32 companies exhibited in Foshan, most of which are exhibiting LED products. "A lot of products are chips that have been replaced by LEDs. The appearance and functional design of the products are still similar to those of traditional halogen lamps and fluorescent lamps. It is impossible for people to get a bright light." Kathy Ou Lighting Engineering Department has a deep research on lighting design. Manager Li Haifeng said.

Compared with foreign exhibitors, Foshan LED companies have more obvious gaps in technology, design, and technology. At the Hong Kong Lighting Fair, pavilions such as BJB, CREE, MEGAMEN and other internationally renowned brands have attracted many visitors. The United States CREE exhibited many LED chips at the exhibition and was one of the few companies with more than 2,000 exhibitors that had chip production technology. The automatic tape feeder exhibited by Germany BJB Company can fully control the wire distribution through machinery, which can greatly increase the production efficiency of LED-related products.

"The chip is a very important part of the LED product, but Foshan lighting companies do not have the relevant core technology. With no new product design, the LED products rushed into the market are not much competitive, and there is no improvement in the natural operation." Wu Yulin Say.