Focus on the two sessions: How can LED companies develop healthily?

March is the time for the annual "Two Sessions". At this time, the solemn Great Hall of the People is open to the public, and people's questions about the focus of the times are answered. As an LED person, the editor’s biggest focus is of course how LED companies develop healthily.

As we all know, with the huge investment in the past ten years, the LED industry has developed rapidly. The high profits have caused the LED industry to be labeled as "huge profits", which has led to many companies switching to the LED industry or many large LED companies to continue to expand production capacity. The scale of the industry has begun to grow, and it has also brought overcapacity.

Overcapacity will inevitably bring about industry adjustments. In the past 2015, the "cold winter theory" was repeatedly mentioned in the development of the LED industry. It is not surprising that many companies have closed down. Product homogeneity and price competition have led to a wave of industry bankruptcies and mergers and acquisitions. LED companies are facing fierce competition in the survival of the fittest. According to Xiao Zhiguo, director of the Guangaohui Optoelectronics Industry Research Institute, more than 80% of factories in the downstream of China's LED industry will close down or transform in the next two to three years.

What’s worse is that the global economy continues to be sluggish, the national macroeconomic downward pressure is strong, the demand for LED products is weak, companies increase production without increasing revenue, and there are many situations where increasing revenue does not increase profits. Therefore, how LED companies develop healthily has become a big stone in our hearts.

During the two sessions last year, Liang Fengyi, a representative of the National People's Congress, pointed out that the LED industry is facing a major reshuffle. She believed that the latest cooperation model between enterprises will be to break through the integration of innovation and joint development of individual efforts.

Yesterday, Wang Guoqing, spokesperson of the National Committee of the Chinese People’s Political Consultative Conference, responded to reporters’ questions about how to help companies boost confidence and promote the healthy economic development of private enterprises. He said that if companies want to develop healthily, they must accelerate innovation in technology, products, business formats, etc., and focus development on quality and efficiency. At the same time, it actively participates in the industrial foundation strengthening project, "Made in China 2025" and "Internet +" action plans implemented during the country's "Thirteenth Five-Year Plan" period, and continuously improves its development capabilities and core competitiveness. In addition, he also said that the country will build a platform for in-depth understanding, timely reflection and promotion of solutions to outstanding problems faced by enterprises in their development, and promote the formation of a policy environment, legal environment, market environment and social environment that is conducive to the economic development of enterprises.

Therefore, the author believes that with the strong support of the country, our LED business managers cannot just shout slogans, but must take real action, face the new economic normal by increasing the company's own adjustment efforts, use hard work to improve the efficiency and capabilities of business operations, and drive the upward development of the entire industry.

To use a bad saying: This is the best of times, and it is also the worst of times. I believe that with the further development of LED display technology and market segments, and with the opportunities of the “13th Five-Year Plan” and supply-side reform, our LED industry will be able to break through the darkness and usher in the light.