"Golden September and Silver 10" market can be expected, LED drive power into the "integrated deep water area"
In 2015, it was a very difficult year for most LED power companies. Many companies were dragged down by customers and faced a capital chain dilemma. Many power companies cut off many small profits or losses in order to profit.
According to the statistics of the High-tech Research Institute LED Research Institute (GGII), about 20% of LED companies have withdrawn from the market in 2015. In addition, many small and medium-sized enterprises have given up only a little profit space to survive.
Since 2016, the domestic and international economic environment has been complicated and changeable. The competition in the LED power supply industry is still very fierce. Many power companies have made fine adjustments in price.
In the first half of this year, LED power companies Delip Optoelectronics and Ruigu Technology issued a notice that due to overcapacity and industry triangle debts, the capital turnover was difficult, and it was decided to clean up and convene suppliers to declare and liquidate claims.
The poor LED power market competition environment and the downstream application market, which is still in the growth stage, the situation of “two hot days†makes many companies that are still insisting must make changes to adapt to new changes.
Jiang Haizhong, assistant general manager of Jiansen Technology, said, “Jiansen Technology has always opposed profiteering and insisted on optimizing the cost performance so that every customer can afford it.â€
In fact, the cost of the same performance product is not very different, only the enterprises that are optimal in terms of material cost, management cost, quality control, etc. can occupy a favorable market competition position.
Yang Qinghua, vice president of power sales at Yusheng, also believes that the overall market for outdoor high-power power supplies in the first half of the year is bleak, and competition has reached a feverish phenomenon. However, it has improved since August, and the phenomenon of “Golden September and Silver 10†has begun to appear.
For high-power outdoor power companies, the market tends to become more and more centralized.
The power industry is getting rid of the "slump" and tends to concentrate
As we all know, in recent years, the LED power supply market has become saturated, the engineering case is very limited, and the market continues to be in a situation of oversupply. Therefore, how to use the price strategy has become a direct means of competition among various power companies.
According to the statistics of the High-tech Research Institute LED Research Institute (GGII), the total revenue of the top 10 LED power companies in 2015 accounted for less than 10% of the industry's revenue.
After a long period of reshuffle, the decentralized state of the power industry began to improve.
According to industry insiders, "At present, the LED power supply industry is really doing well, doing big, and doing branding. There are still ten homes left. The power market share tends to be concentrated, especially in terms of price, quality, service and other factors. This trend is more obvious."
Note: The above data comes from the semi-annual report of the New Third Board Company, unit: 100 million yuan
In terms of the performance of the new three-board LED power supply companies in the first half of this year, the total revenue increased by 71.94% year-on-year, but the total net profit increased by 61.05%.
Compared with the number of enterprises with medium and small power supplies, medium and large power supply companies are relatively few and concentrated.
"The high-power outdoor power supply technology threshold is relatively high, the certification is strict, the maintenance cost far exceeds the power supply cost, and the market is monopolized by several existing large power supply manufacturers. Therefore, the pattern will not undergo fundamental changes." Special Deputy General Manager Zhang Huajian told Gaogong LED.
In fact, high-power power companies want to achieve the desired performance, relying on excellent quality, unique intellectual property and comprehensive services. In operation, we must also carefully balance risks. We must not pursue scale and maximize profits to be the ultimate winner.
The power industry is uneven, and outdoor high-power customers are increasingly demanding product yields. Jiang Haizhong pointed out that "Jiansen Technology's power product defect rate has been less than one-thousandth, and has won the praise of customers."
The more homogenized power market drags the industry to the Red Sea, most products lack innovation and competitiveness, but in the high-power power market, some companies are striving for their own advantages to seek product differentiation and branding routes, making high-quality LEDs High-power power supplies have become the market leader.
Product technology upgrade, competition pattern will change
The concept of LED intelligent lighting has been heated by the industry in recent years. With the gradual saturation of the replacement market, the industry has also said that smart lighting will become a new growth point in the LED lighting market.
As the upstream product of the lighting industry, LED power supply has gradually embarked on the intelligent development path following the development trend of the industry.
Zhang Huajian said, "Now most enterprises are doing constant power, adjustable and intelligent power products. At present, Infineon's intelligent power supply products integrate all control into one power supply, using all-in-one. The control method can adjust the output current as desired."
Next, the focus of outdoor high-power power supply competition will no longer be focused on price, technology upgrades, and product optimization is the last word.
The trend of intelligent LED power supply has become quite obvious. From the initial thyristor dimming, to the current DALI dimming, 1-10V dimming, Zigbee dimming, etc., the dimming technology of LED single lamp has been quite mature, and the advantages of smart power supply have also been well played. .
In particular, at present, local governments have focused on promoting the construction of smart cities, and the intelligent regulation of public lighting has become one of the highlights. This is different from the "virtual heat" of previous years.
At the 2016 Huawei Connected Conference, China Micro-Optical Electronics Co., Ltd. from Shandong announced that it will cooperate with Huawei to jointly implement smart lighting projects and rely on NB-IoT to complete the intelligentization of street lamps and lay a solid foundation for the realization of smart cities in the future.
"NB-IoT can provide a reliable and secure infrastructure network, providing IoT networks for the whole city of smart city to achieve the Wisdom Electronics," said Lu Hongliang, CEO of Micro-Optical Electronics.
High power threshold, difficult industry integration
Recently, the horizontal and vertical integration of the industrial chain represented by mergers and acquisitions is beginning to become the norm, and the integration speed is further accelerated.
Dr. Zhang Xiaofei, Chairman of Gaogong LED, said, “It is expected that the LED industry integration will be particularly obvious in 2016, and the deep cooperation between large international brands and domestic enterprises will have a great impact on the SMEs with a revenue of 100 million yuan per year. Therefore, from the point of view of business management, to improve efficiency and enhance value, we must mention the agenda. In the case of low gross profit, how to improve profitability becomes the value."
For the future, the power industry will have a series of integrated actions. There are two different voices in the process of high-tech LED visits.
Most people in the industry believe that the integration of the power industry is not very likely, of course, a small number of people believe that the future integration of the power industry will also become a trend.
"The high-quality high-power power plant has a high gold content, and the downstream acquisition and integration may not be large." Jiang Haizhong mentioned.
Zhang Huajian also believes that the possibility of integrating power supply companies downstream is not particularly large. Power companies have technical thresholds and relatively high quality risks. If the lighting companies integrate power supply companies, the power supply business is not enough to support the use of a medium- and large-scale power supply enterprise.
In addition, after the acquisition of power companies, the original power supply customers, in addition to their own customers, others will become competitors, which is not conducive to power companies to expand power business.
However, as several LED power companies continue to enter the capital market, the future of these LED power companies will not rule out the possibility of mergers and acquisitions in the industry.
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