The LED market is not only promising but now in the midst of trouble. In another word, the performance of LED market in the channel is not as successful as people thought in the first place.
1.As there are a great deal of enterprises engaged inside and outside the industry and the severe homogenization of the products, the sales and distribution capacity of the channel greatly reduced under the over-all situation of economic recession. As a result, “The man-made malignant excess production capacity has been the established fact”; the market positioning and difference of products between the enterprises are not so clear.
2.The price war brought by the malignant excess production capacity.
3.As a consequence, the first wave is the LED launching tide; the second wave is the closing down tide.
4.The core technology of LED –the chip, especially the upscale chip is all controlled by others. How will the enterprises in our country compete with others in the future? Maybe the upstream market can do nothing but meander? Or maybe they can only develop into LED application market?
It is mixed information mentioned above. But we should firmly believe that the better comes after the worse. Choosing LED industry is beneficial to the nation, the people, and everyone. Corporations launching into LED project are working in the contemporary era and benefit our future generations. But the businesses lacking of deep understanding insight towards LED industry and merely aiming to get short-term profits will inevitably delist and end mutely.
The current situation of LED is so much like the Internet in the late 1990s. It was just like a rising wind and scudding clouds in the 1990s but soon followed with recession. LED is more positive than the Internet then because the market demand will promptly digest the excess production capacity.
Jack Ma once said, “Today is cruel and tomorrow will be more brutal but it will be glorious the day after tomorrow. However, most of the enterprises die at tomorrow night. Only the true heroes can see the rising sun the day after tomorrow.”
Maybe the dark horse ending the traditional lighting enterprises is not from the internal industry just like the Apple ending the industry of cell phone, digital ending the industry of camera. In the replacement phase of LED, it is advantageous for people from outside the industry set foot inside the industry because they often possess the assets and technology. They are top in market expansion and sales promotion in the primary market only with the market of lighting to be familiar with.