my country's LED will move towards a period of healthy development with quality standards

     At this stage, the led industry seems to be on the cusp of the storm. There is news every day, and it is hard to describe it with "earthquake" and "typhoon". Recently, at least 5 led companies have closed down, many of which are large companies. The phenomenon of business failure that usually occurs at the end of the year appears in the middle of the year. Why? What should the LED lighting industry do in 2014?

First, the impact of policies. The introduction of led industrial policies in various places has brought too many false impressions to enterprises and industries, causing companies in different industries to enter the led industry, but companies that can grab the "cake" are after all a minority. In addition to the transformation of traditional lighting companies to LEDs, household appliances, automobiles, materials, and even real estate have all entered the led industry, causing the led industry to suddenly expand and the phenomenon of "indigestion".

2. Relative overcapacity. At present, there are more than 10,000 led production enterprises, and the production capacity has exceeded the demand capacity of the market. Led has a long life, high upstream and midstream thresholds, and lacks core technology. Therefore, more enterprises are concentrated in the low-end areas downstream of LEDs, resulting in serious product homogeneity. At the same time, although the downstream application market is developing rapidly, after all, it takes time and process, and the market's digestion capacity is insufficient, resulting in a relative overcapacity of LEDs.

3. LED is an electronic product and conforms to the characteristics of Moore's Law. Every 18 months, the performance of LEDs doubles and the price drops by half. As a result, manufacturers do not dare to make large quantities of inventory, or even do not make inventory, and merchants do not dare to purchase goods easily. Just like houses, even if the price drops, consumers are still worried that house prices will drop again. In order to prevent losses, they delay buying, which actually leads to a decrease in the overall number of buyers.

4. LED technology is developing too fast, but standards lag behind. At present, the industry is focusing on developing and breaking through the latest LED technology. LED performance and applications are updated very quickly, and laboratory data are updated every month. Therefore, LED technology has a large space for improvement and its parameters are unstable, which affects the speed of standard formulation and also brings certain difficulties to the formulation of standards. At present, LED companies in the market are characterized by irregularities, standards, and disorder.

Today’s LED industry, including upstream, midstream and downstream, has launched a comprehensive melee. "Great chaos can lead to great governance." Survival of the fittest is the law of development in nature. Which industry has not experienced an elimination war? Therefore, rather than saying that there is a "wave of bankruptcies" in LED, it is better to say that there is a "wave of elimination" in LED. After experiencing the harsh "tide of elimination", LED will surely usher in a period of healthy development with standardized quality, superior performance and reasonable price!