LED reflection on the "closed tide" of Wenzhou factory

Text / Shenzhen Changfang Semiconductor Lighting Co., Ltd. Yang Zizhao

In Shenzhen, there is such a peculiar phenomenon. Whether you are chatting on the bus, in the subway or on the roadside, you can always talk about LED related aspects. A while ago, the author is still secretly stealing this phenomenon, but this time as a person who loves this cause, the author can not blindly be too happy anyway.

Wenzhou is famous because it is a model of China's private economic system. Once upon a time, Wenzhou’s clever business minds were everywhere in the world, and they set off one wave after another. Even Hainan’s chances of building an international tourist island would not be let go. This is not the performance of Sanya’s housing prices. It is their masterpiece. However, in recent Wenzhou, there has been a factory “closing tide”. This time, the intelligent Wenzhou people have no ability to save their own difficulties by their own wisdom. In fact, the factory's "closing tide" is only a small reaction to Wenzhou's problems.

It can be seen from the “closed tide” of the factory in Wenzhou that most enterprises in China have strong tolerance, including raw material supply and business sales. This phenomenon is particularly prominent in the LED industry. Except for a few large companies that are also lighting fixtures while doing packaging, others are singular. Of course, this is a very good phenomenon, indicating that companies are more specific. But the specific flexibility of LED is not enough.

In recent years, the slogan of advocating a low-carbon life has never been heard in the world. Regardless of whether there is suspicion of capital speculation in the LED industry, low-carbon life is really necessary, otherwise people will only have a nerve to observe the daily oil price every day. However, the explosive development must be endless, and is the company capable of resisting risks?

The author wrote an article a few days ago, "There is a prospect in the LED market is not equal to the future of LED companies." LED is indeed a good industry, but not everyone is suitable to fish a barrel in this "circle." Briefly summarize the phenomenon of the LED industry: LED lighting is still very difficult in China at present, LED display technology is only half a bucket of water, LED packaging is only the world of several large companies. The market is good, but the crisis is heavy. Where did the crisis come from? That is because there are too many people who are blindly employed, resulting in oversupply in the market. Oversupply does not mean that the market space for LEDs is not large enough, but the conditions of LED itself determine the limitations of consumer choice. Nowadays, LED companies are experiencing explosive growth in China. In the face of a small market, competition is still fierce. LED companies can reduce risk by:

First, the technical aspects of the increase. The low-carbon product market has an invaluable market in China and around the world, but given the performance of low-carbon production in the market, technology is a key issue. The LED industry's problems are still a few: heat, light, dead lights, illumination and so on. Judging from the current situation, many companies do not seem to work hard in this respect, but opportunistic and perfunctory. The technology is not solved, and the endless rework will cost the company's financial resources. The long-term development of enterprises will be greatly restricted.

Second, apply for patents to reduce homogenization competition. Homogenization is the toughest problem in every industry. Unfair homogenization competition has made many large enterprises face various challenges, and even many companies are dying. If a big company falls, it will lead to a large industrial chain behind it, and even the entire industry will be greatly affected. It is recommended that companies protect their own professions in order to maintain their own development and survival.

Third, the price fits the market. LED products are not recognized by the market largely because of their high prices. Smart people will settle accounts, and profit margins are the last word, but earning money is the truth. There was a brand of LED ceiling lamps that cost more than 1,300 yuan. The fool knows how much profit space this lamp has. But as a daily lighting appliance, consumers do not pay. The profit margin is big, there is no deal, and making money is just an empty talk. It is recommended that manufacturers adhere to the market and be practical, so as not to have too much inventory, which will affect the company's capital turnover. In fact, although the technical department is mature, once the price breaks the ice barrier, the market will expand geometrically several times.

Fourth, the diversity of the sales market. At present, the sales pattern of the LED industry is nothing more than such: foreign trade, domestic engineering, OEM processing, channel distribution, online sales and loose orders. It is recommended that companies be as diversified as possible in terms of sales, so as to avoid problems in a certain sales process and bring great pressure to the company. At the same time, we should also pay attention to sales cost control and try to achieve sales profit.

Fifth, reduce production costs. In the white-hot stage of price competition, the ability of enterprises to survive is the cost control of production. There are many factors to reduce production costs, such as strong stable suppliers, strengthening production management to increase yield, effectively expanding the scale of energy production, or achieving joint restructuring of enterprises to maximize the use of resources.

6. Increase the withdrawal of funds. This is a problem that directly affects the survival of enterprises. If the company has a large inventory, it is necessary to “cut the meat” in time to clear the inventory. The LED industry is an emerging industry, and the speed of upgrading is fast. A large amount of inventory and other prices is not wise. It is recommended that the company do a good job in production and sales planning, and coordinate production with production. At the same time, increase financial management efforts and track the payment in time.

Seven, do a good job in enterprise positioning and planning. This is also a relatively important factor. Of course, the plan will never catch up with the changes, which puts higher demands on the company. Enterprises need to grasp the market dynamics from time to time, adjust the company strategy, and effectively realize profits through planning. At the same time, the cultivation and reserve of talents is the core of enterprise development. Many companies have stalled because of high turnover, and even went down.

I don't know when people started, people's lives have become so stressful. If the progress of human civilization can only be reflected in the pressure of life, then it is estimated that many people are willing to return to the truth. But the pressure is for oneself, and the excellent company can pass the test of time and become the Laozi. The times are changing, and innovation is the eternal theme of this world. I hope that the LED industry can progress and develop in innovation.

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