Anxiety and Depression in expression of the LED industry

In addition to the “successful biding”, some companies are also listed on the news, only the first half of 2012, there are eight LED companies successfully listed, six of which landed on the GEM. More than last year where listed seven. Another similar sense of joy: a growing number of G24 LED enterprises focus on the market, vigorously develop the channels, and pay attention to the difference advantage of market competition and strengthen the culture of investment in technology and brand.

Anxiety and Depression in expression of the LED industry

Anxiety

In 2012, due to the price advantage is not obvious, and the quality is unstable factors,  LED industry applications market are limited. The market outbreak is not as expected, in the short term, it is difficult to see the clear signs of rapid growth. Capacity continued to enlarge, and can not stop, the rapid increase of firms intensified market competition, but the very anxious is that most bereavement market channels are not good enough, the inventory can not digest. LED enterprises seem very anxious and very confused.

Perhaps because of this, entrepreneurs and experts hold a lively discussion on LED electricity providers and traditional channels in 2012. More entrepreneurs lamented the current channels of dispute as volcanic eruptions.

Some companies began operations, including the construction of the Tmall online store, self-built e-commerce platform; more people in the industry believe that LED lighting e-commerce model is not yet mature, which is still in a stage of promotion. In addition to a good line stores, dealers channels, enterprises start to think about how online sales channels, brand promotion and offline traditional channels combined to form a full three-dimensional marketing communication channels.

Depression

In 2012, the structural surplus of production capacity has resulted in the rapid decline in the profitability of the business. The three quarterly of 2012, 20 enterprises have 11 enterprises who decline different degrees in net profit in the third quarter, real data feel the loss of these enterprises.

On the announcement, the companies said that the caused reason are mainly due to the decline in performance: whether domestic or foreign, by the international financial crisis and other factors, the poor performance of the LED industry, the overall market environment; fierce market competition, to occupy higher market share, the overall input plus, develop the domestic channels, increase research and development funding efforts to significantly reduce the net profit income;