In the case of lower and lower profits in traditional industries, many companies choose to transform into emerging industries. In addition to the most popular photovoltaic industry, many companies have chosen to enter the LED industry. Since last year, there has been a phenomenon of hot investment in LEDs. The market competition is fierce, which has led to the emergence of many companies with no profit on orders. As a result, some enterprises in Wenzhou are closed, and the LED industry is experiencing a new round of reshuffle.
At the moment, LEDs are no longer unfamiliar, and the lighting market is everywhere. Because of its energy-saving and emission-reduction characteristics, the LED industry, known as the fourth-generation light source, attracts investors' attention.
In recent years, many traditional enterprises in Wenzhou have entered the LED industry with bare hands, hoping to catch up with this express train. However, when the company squeezed its head into the industry, it found that the LED industry was overcapacity.
The production of LED lamps can be easily divided into three steps. The first step is chip manufacturing. This technology is firmly in the hands of a few companies. In Wenzhou, a small number of companies with mastery of technology are only doing the second step of packaging, that is, processing the chip into a light source, and more companies are sourcing LED light sources, equipped with a light stand and power supply, assembled into a complete light fixture, which Also known as the third step, there is almost no technical content.
Like other emerging industries, overcapacity in the LED industry is mainly reflected in the excess of downstream low-end products, while the upstream high value-added products are insufficient. Affected by the international economic downturn, in recent years, some enterprises in Wenzhou Yueqing that have exported holiday lights have launched LED lights. Generally speaking, these enterprises mainly purchase LED light sources directly, and then assemble and produce them. In fact, almost all companies are able to produce LED holiday lights, the products have no features, and only the processing fee is earned after export. This production mode has not brought higher profits to the industry.
Industry insiders told reporters that packaging still needs a certain amount of technical content, such as solving heat dissipation problems and delaying the life of LED lights. I thought that mastering technology can easily win the market, but unexpectedly, due to vicious competition, many inferior LED lamps flooded the market and lowered the reasonable profit margin, which made the company unprepared.
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