Being big and not strong is a feature of the rapid development of China's LED industry. Many enterprises have lost market competitiveness due to neglect of market assessment and lack of clear positioning, thus facing the situation of riding a tiger. In fact, before becoming bigger and stronger, you should first do a fine job, and only by making achievements in your own field and becoming outstanding can you truly gain sustainable development momentum. For a long time, the coincidence of LED lighting and market demand is the object of debate. However, the development of the LED industry has not slowed down with these disputes, showing a high-speed development. But it is not commensurate with the slow start of the market. Today, China's LED industry capacity and market is still in an awkward situation. At the same time, entrepreneurs have been pushing the entire industry into a long and tidy road in order to quickly seize the market. In fact, before becoming bigger and stronger, they should first do fine work, only in their own fields. To achieve outstanding results, you can truly achieve sustainable development. The history of the LED industry in China is not long, but China is now the largest LED industry base in the world. The development speed of China's LED industry is so rapid, but it has not seen the terminal market really rise, and there are many difficult problems left in the future development of the industry. We have to reflect on whether the LED industry is really arrogant in China. Many companies continue to grow bigger in order to land in the capital market, and the big performance is reflected in the production capacity. Even though the LED terminal lighting market has increased in the first half of this year, the capacity utilization rate of China's LED industry is still not high. Take the chip as an example. At present, the number of MOCVD machines in mainland China is about 1,000, and the capacity utilization rate is about 60. Even so, many chip companies continue to expand production capacity in order to survive and lay out the market. Under the tremendous pressure of production capacity of the whole industry, the inventory water level has been rising all the way, and it has to rely on the price and the payment cycle to capture the survival opportunities. It can be foreseen that the Chinese LED industry will face more intense market competition in the future. In the increasingly fierce competition, many companies have begun to integrate new ideas for mergers and acquisitions. This has led to the phenomenon that the industry is bigger and smaller. A large number of LED companies will be eliminated, including LED chip companies. However, under such a severe situation, many companies still lose market competitiveness by neglecting market assessment and lack of clear market positioning, thus facing the situation of riding a tiger. For example, if a group of chip companies are eliminated, there will be hundreds of MOCVD idle takeovers, resulting in billions of losses. This is obviously caused by the lack of rational and rapid development of the LED industry. Being big and not strong is a feature of the rapid development of China's LED industry. China's LED industry started late, subject to patent technology constraints, inertia relies on foreign giant patents, which makes the entire industry into a quagmire of homogenization competition and price wars. Many LED companies have exhausted all their efforts just to survive, and have been unable to focus on projects that require time, such as technological innovation and product development. At present, although general conventional products can be manufactured in China, they still rely on imports in the high-end field of high performance. How to enable enterprises to slow down and calm down to make products is an urgent problem that the entire LED industry needs to solve. In the market economy environment, the competition between enterprises can never get rid of the market law. In the past two years, the LED industry channel has developed rapidly. The price of LED general lighting products has dropped rapidly at a rate of more than 30 per year. The channel distribution in the first half of this year has caused the LED industry to appear on the surface, but the sales market in the terminal market in the first half of this year has not been Less questioning. The reason is intriguing. From this we can know that the construction of LED lighting channels must be cautious. If the LED lighting products do not meet the needs of the end market, even if the channel construction is successful, the goods will be rolled down, and the sales will not start, which will only increase the burden on the enterprise. When the market really starts, the company needs to spend a lot of energy to clean up and integrate the previous channel resources. As a result, the efforts made before have become a matter of damage greater than profit. For example, when a city is built, it is not planned at the beginning, and a large number of houses are built. After the implementation of the plan, the former building will be demolished, and the consequences of half the effort will be revealed.
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