Analysis of Zhongshan LED Industry in the Third Quarter of 2018: Slow Growth in Domestic and Foreign Sales
In the international market, including Sino-US trade frictions and exchange rate fluctuations, the impact in the industry is quite large; at the domestic channel and industrial cluster base level, the big platform innovation model takes root, the innovative “manufacturing revitalization plan”, etc., listed companies and mergers and acquisitions, social security Tax and fee reform, giant layout of smart home, etc.; let the industry have lost on the future of the industry and have more expectations.
Industrial cluster advantage
In mid-November, "Zhongshan LED Industry Operation Monitoring Report for the Third Quarter of 2018" was released. The report shows that in the third quarter of 2018, the LED output value reached 17.35 billion yuan, a year-on-year increase of only 5.2%, and the growth rate was significantly reduced.
The export value was 268 million US dollars, lower than Shenzhen, Guangzhou and Dongguan. It showed a small increase in July, a slight decline in August, and a sharp decline in exports in September, which is in line with the overall decline in double-digit year-on-year decline in Guangdong's exports.
Although the macroeconomic growth rate is becoming more stable, the financing policy is gradually tilting towards the entity, and the real economy is intensifying, but the industry's competitive environment is fierce. There are various cost rigidities, structural overcapacity, serious product homogeneity, and malicious price competition. The ability to break through in a single enterprise or even a single format is limited.
In this situation, small and medium-sized LED lighting companies can only rely on differentiated innovation, multi-channel development, and help each other.
Of course, among the middle and lower reaches of Zhongshan City, the first listed company in the national LED industry with a production value of 10 billion yuan has been listed. According to the financial report data, its revenue in the first three quarters reached 12.35 billion yuan, an increase of 110.79%, and net profit: 601 million yuan, an increase of 36.68%.
At the same time, due to the gradual improvement of Zhongshan Lighting Lighting Industry Cluster, it also attracted a group of listed companies to return or layout Zhongshan, and even set up the headquarters of the Lighting Division. For example, Shenzhen Zhaochi shares the lighting field headquarters in Zhongshan Guzhen, and Op Lighting also plans to invest in the construction of the Guangdong, Hong Kong and Macao Dawan District Regional Headquarters project in the Zhongshan area, with an estimated total of about 2.58 billion yuan.
This situation has been gradually changed since 2018, such as the joint purchase of hardcover houses by large real estate developers, the group purchase of commercial chain brands such as hotels, restaurants, supermarkets, and the procurement of concentrated standard products by large chain dealers in foreign markets. In the unified bidding of large projects in the city management department of Lianghua, the procurement of these large customers is tending to be intensive, and in this supply chain, a new situation of standardization, large scale, brand concentration and category standards will be formed.
In the case that the demand side is gradually concentrated, the LED lighting application end of Zhongshan City also reflects the obvious industrial intensification trend. This trend indicates that the LED industry in Zhongshan has shown obvious characteristics in terms of brand expansion, cross-border integration, deep technology, and improvement of the industrial chain. In the future, companies with capital strength and channel brands will absorb more resources and gradually form category oligarchy, which will also lead to increased industry reshuffle.