As Qinshang Optoelectronics, Dehao Runda, NVC Lighting and other companies have launched a channel strategy of high-altitude, "outbreak" has become the key word of the LED industry in 2013. However, at the end of recent years, various problems behind the industry outbreak have begun to emerge.
On November 25th, the 2013 High-tech LED Conference with the theme of “LED China Dream – The Future Five Years†was grandly opened at Guangzhou Poly World Trade Expo. Many industry insiders said that this year is a year for LED companies to increase revenue but not increase profits. Moreover, the price war that has gradually slowed down in the second half has not completely stopped. In the next two years, China's LED industry will still face the risk of continued dilution of gross profit.
Analysts said that before this, LED companies had high gross margins in their left hands and high government subsidies in their right hands. Since 2013, both weapons have been brutally suppressed. With the gradual reduction of the manufacturing threshold, the competition in the industry's internal channel will become more intense in the future, and the scale will be the winner of the decision whether the listed companies in the industry can maintain profits.
On November 25th, the 2013 High-tech LED Conference with the theme of “LED China Dream – The Future Five Years†was grandly opened at Guangzhou Poly World Trade Expo. Many industry insiders said that this year is a year for LED companies to increase revenue but not increase profits. Moreover, the price war that has gradually slowed down in the second half has not completely stopped. In the next two years, China's LED industry will still face the risk of continued dilution of gross profit.
Analysts said that before this, LED companies had high gross margins in their left hands and high government subsidies in their right hands. Since 2013, both weapons have been brutally suppressed. With the gradual reduction of the manufacturing threshold, the competition in the industry's internal channel will become more intense in the future, and the scale will be the winner of the decision whether the listed companies in the industry can maintain profits.
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