LED production and management continue to deteriorate, need to differentiate the strategy to deal with the overall downturn
In the first half of this year, the overall global economy was in a downturn, product exports fell sharply, LED companies' costs increased, profits fell, and production and operation continued to deteriorate, exposing three serious problems. First, the short-term problems caused by the economic cycle, the second is the inevitable problem in the development of the LED industry, and the third is the industrial environmental problem. The causes of the three problems are different, and the countermeasures adopted are different.
First of all, enterprises should actively face the short-term problems caused by the economic cycle. The market economy is cyclical, and the market's prosperity and depression alternate. The problems brought about by the macroeconomic downturn to the LED industry are temporary, and enterprises must face it correctly. At present, due to the impact of the global economy, domestic and foreign demand is insufficient, and exports have fallen sharply. Many LED companies believe that the industry is facing a crisis and is unsustainable. However, it is necessary to be certain that the LED industry is still a sunrise industry. Since 2005, China's LED industry has been developing at a high growth rate of more than 30%, and the internal and external demand for LED products is still promising for a long time. The market penetration rate of current LED lamps is about 5%. LED products also have a very large market space. The current situation is a temporary decline in exports and a relative surplus of production capacity. In the anti-market, enterprises must seriously consider and identify the market position, and seek survival after survival and wait for economic recovery.
Secondly, we must take the initiative to deal with the inevitable problems in the development of the industry. The rapid decline or even the rapid decline in prices is inevitable in the development of the LED industry. A notable feature of the semiconductor lighting market is that LED lamps will appear as replacements for incandescent and energy-saving lamps for quite some time, and the high cost and price of LED products will be one of the main obstacles before semiconductor lighting enters households. "Haize's Law" is considered to be the "Moore's Law" of the LED industry. The law states that "at a given wavelength of light (light color), the lumen cost per unit of LED components is reduced by 90% every 10 years, and the amount of luminescence is every 10 years. 20 times higher." As an alternative light source, LED's cost and price drop are inevitable. After 10 years, LED products will be as cheap as energy-saving lamps, and performance will be better. In order to maintain a stable profit rate under this trend, enterprises must actively reduce costs to meet the requirements of industrial development, so that production costs fall faster than product prices.
In accordance with the law of economic development, rising labor costs and homogenization of products are inevitable in the process of industrial development. This phenomenon has also occurred in other industries such as textiles, automobiles, and computers. But looking at these issues from another angle is the most fundamental driving force for innovation and development of enterprises and improvement of competitiveness. The increase in labor costs forced labor-intensive enterprises to upgrade their technology, strengthen cost control, change production methods, and improve production efficiency. Product homogenization competition forced enterprises to increase profits through technological innovation and model innovation. Some enterprises will be eliminated by the market because profits are falling. And another part of innovative companies will form core competitiveness to promote industrial development.
Finally, the industrial and environmental issues must be resolved scientifically and cautiously. A good industrial environment is a necessary condition for the sustainable development of the industry, and it requires the joint efforts of enterprises, associations, alliances, and industry-related government departments. The industrial environment can be improved through communication, coordination, negotiation or administrative methods. However, due to the multi-party factors involved, it is easy to deal with it and deal with it scientifically and cautiously.
The methods and methods of financial subsidies need to be carefully studied and carefully implemented. Financial subsidies are “double-edged swordsâ€. On the positive side, the effect of financial subsidies on industrial development is very obvious. Subsidies can attract domestic and foreign investment in a short period of time, drive high-speed production growth, and stimulate market demand; It is the subsidy to the production link that is likely to cause overheating of investment, overcapacity, and waste of resources. It also provides a basis for other countries to impose countervailing duties. Financial subsidies are necessary, but they must be more reasonably compliant, respect the objective laws of economic development, and comply with or circumvent the rules of the World Trade Organization (WTO).
The collection and collection of certain LED related products is not synchronized with the national industrial policy. The National “Twelfth Five-Year Plan for Energy Conservation and Environmental Protection Industry Development†released in June 2012 listed LEDs as energy-saving and environmentally friendly products. In September, the State Council issued “Several Opinions on Promoting Stable Growth of Foreign Trade†(Guofa No. 49) pointed out “Expanding technology and capital-intensive electromechanical products, high-tech and high value-added products, and export of energy-saving and environmentally friendly productsâ€.
The national industrial policy encourages the import and export of LED-related products, but there are still some tax and fee systems for the import and export of LED products to be improved. In terms of product exports, the export tax rebate for LED lamps is still implemented at the rate of “13% for other lamps and lighting devicesâ€, while the export tax rebate for energy-saving lamps is 17%. The export tax rebate for LED lamps is lower than other energy-saving products. In terms of raw material imports, since 2011, LED sapphire substrate imports are subject to a 10% consumption tax. LED sapphire substrates should be industrial raw materials, but consumption tax is levied according to “jewelry and jadeâ€.
Strengthen the standardization work and guide the orderly competition in the LED market. At present, the LED market has a phenomenon of “bad money expelling good moneyâ€. Low-quality and low-priced products flood the market and disrupt market order. Consumers lack trust in the quality of domestic LED products, which seriously damages the healthy development of the industry. Orderly competition in the product market requires the guidance of normative documents such as standards. In the market economy, normative documents (technical specifications, standards, rules, guidelines, etc.) provide a scientific basis for measuring the quality of products entering the market. China's semiconductor lighting / LED field standards are being actively developed. As of September 2012, there are 146 LED related standards that have been released, approved and formulated, covering LED substrate materials, chip devices, light source components, and LED lamps. , engineering applications and testing methods. However, it should be noted that the task of standardization is not only to develop standards, but also to organize implementation standards and supervision of standards implementation. To regulate market competition and guide the healthy development of the industry through standard and other normative documents, it is necessary to strengthen the standardization work, especially to strengthen the implementation and implementation supervision of the published standards.
First of all, enterprises should actively face the short-term problems caused by the economic cycle. The market economy is cyclical, and the market's prosperity and depression alternate. The problems brought about by the macroeconomic downturn to the LED industry are temporary, and enterprises must face it correctly. At present, due to the impact of the global economy, domestic and foreign demand is insufficient, and exports have fallen sharply. Many LED companies believe that the industry is facing a crisis and is unsustainable. However, it is necessary to be certain that the LED industry is still a sunrise industry. Since 2005, China's LED industry has been developing at a high growth rate of more than 30%, and the internal and external demand for LED products is still promising for a long time. The market penetration rate of current LED lamps is about 5%. LED products also have a very large market space. The current situation is a temporary decline in exports and a relative surplus of production capacity. In the anti-market, enterprises must seriously consider and identify the market position, and seek survival after survival and wait for economic recovery.
Secondly, we must take the initiative to deal with the inevitable problems in the development of the industry. The rapid decline or even the rapid decline in prices is inevitable in the development of the LED industry. A notable feature of the semiconductor lighting market is that LED lamps will appear as replacements for incandescent and energy-saving lamps for quite some time, and the high cost and price of LED products will be one of the main obstacles before semiconductor lighting enters households. "Haize's Law" is considered to be the "Moore's Law" of the LED industry. The law states that "at a given wavelength of light (light color), the lumen cost per unit of LED components is reduced by 90% every 10 years, and the amount of luminescence is every 10 years. 20 times higher." As an alternative light source, LED's cost and price drop are inevitable. After 10 years, LED products will be as cheap as energy-saving lamps, and performance will be better. In order to maintain a stable profit rate under this trend, enterprises must actively reduce costs to meet the requirements of industrial development, so that production costs fall faster than product prices.
In accordance with the law of economic development, rising labor costs and homogenization of products are inevitable in the process of industrial development. This phenomenon has also occurred in other industries such as textiles, automobiles, and computers. But looking at these issues from another angle is the most fundamental driving force for innovation and development of enterprises and improvement of competitiveness. The increase in labor costs forced labor-intensive enterprises to upgrade their technology, strengthen cost control, change production methods, and improve production efficiency. Product homogenization competition forced enterprises to increase profits through technological innovation and model innovation. Some enterprises will be eliminated by the market because profits are falling. And another part of innovative companies will form core competitiveness to promote industrial development.
Finally, the industrial and environmental issues must be resolved scientifically and cautiously. A good industrial environment is a necessary condition for the sustainable development of the industry, and it requires the joint efforts of enterprises, associations, alliances, and industry-related government departments. The industrial environment can be improved through communication, coordination, negotiation or administrative methods. However, due to the multi-party factors involved, it is easy to deal with it and deal with it scientifically and cautiously.
The methods and methods of financial subsidies need to be carefully studied and carefully implemented. Financial subsidies are “double-edged swordsâ€. On the positive side, the effect of financial subsidies on industrial development is very obvious. Subsidies can attract domestic and foreign investment in a short period of time, drive high-speed production growth, and stimulate market demand; It is the subsidy to the production link that is likely to cause overheating of investment, overcapacity, and waste of resources. It also provides a basis for other countries to impose countervailing duties. Financial subsidies are necessary, but they must be more reasonably compliant, respect the objective laws of economic development, and comply with or circumvent the rules of the World Trade Organization (WTO).
The collection and collection of certain LED related products is not synchronized with the national industrial policy. The National “Twelfth Five-Year Plan for Energy Conservation and Environmental Protection Industry Development†released in June 2012 listed LEDs as energy-saving and environmentally friendly products. In September, the State Council issued “Several Opinions on Promoting Stable Growth of Foreign Trade†(Guofa No. 49) pointed out “Expanding technology and capital-intensive electromechanical products, high-tech and high value-added products, and export of energy-saving and environmentally friendly productsâ€.
The national industrial policy encourages the import and export of LED-related products, but there are still some tax and fee systems for the import and export of LED products to be improved. In terms of product exports, the export tax rebate for LED lamps is still implemented at the rate of “13% for other lamps and lighting devicesâ€, while the export tax rebate for energy-saving lamps is 17%. The export tax rebate for LED lamps is lower than other energy-saving products. In terms of raw material imports, since 2011, LED sapphire substrate imports are subject to a 10% consumption tax. LED sapphire substrates should be industrial raw materials, but consumption tax is levied according to “jewelry and jadeâ€.
Strengthen the standardization work and guide the orderly competition in the LED market. At present, the LED market has a phenomenon of “bad money expelling good moneyâ€. Low-quality and low-priced products flood the market and disrupt market order. Consumers lack trust in the quality of domestic LED products, which seriously damages the healthy development of the industry. Orderly competition in the product market requires the guidance of normative documents such as standards. In the market economy, normative documents (technical specifications, standards, rules, guidelines, etc.) provide a scientific basis for measuring the quality of products entering the market. China's semiconductor lighting / LED field standards are being actively developed. As of September 2012, there are 146 LED related standards that have been released, approved and formulated, covering LED substrate materials, chip devices, light source components, and LED lamps. , engineering applications and testing methods. However, it should be noted that the task of standardization is not only to develop standards, but also to organize implementation standards and supervision of standards implementation. To regulate market competition and guide the healthy development of the industry through standard and other normative documents, it is necessary to strengthen the standardization work, especially to strengthen the implementation and implementation supervision of the published standards.
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