Today, we should jump out of prices to see prices, if the LED companies are busy paying attention to price cuts or prices, then who care about the quality of the product? If the company's products only rely on the cost of raw materials, that product "value" and where?
In the city full of "price tide" today, we should jump out of prices to see prices, if the LED companies are busy paying attention to price cuts or prices, then who care about the quality of the product? If the company's products only rely on the cost of raw materials, that product "value" and where?
Since 2016, with the manufacturing industry, rising raw material costs, "price" has become the industry's hot words, LED is no exception. Especially since the second half, with the circuit boards, gold and other raw materials continued to rise sharply, as well as labor, rent costs increase, LED packaging and downstream applications ushered in the "price tide."
In the last month of the year 2016 when the start, including Hongli, National Star, Si Maide, trillion Chi, Xu Yu, including several major packaging plant collective price increases, the industry's focus. One side is rising raw materials and labor costs, the other side is increasingly fierce competition in the Red Sea market, in the cost and competition under the double weight, the price has become the most helpless LED business but the most urgent choice.
Is the initiative or industry forcing?
In fact, starting from May this year, LED set off a "price tide", but the first round of the price increase is the first from the chip field began, starting from the crystal power started the first shot, as of now LED industry Has launched a four rounds of price increases. Prices include upstream chips, stents, lamp beads, wafers, packaging materials, aluminum substrates and other raw materials, the middle reaches of the packaging business and the downstream display and even part of the lighting business, the price range concentrated in the 5% -15% of the between.
However, the first three prices are limited to the chip and display RGB field. Still remember that many industry insiders predicted that prices can not spread to the field of lighting, and now, with the end of this wave of unusually fierce price tide, LED industry-wide are involved in the "price tide", the original micro Bo's profits have been completely eroded by rising raw material prices.
Various enterprises issued price announcement letter, given the reasons are without exception, are due to rising raw materials and labor costs lead. But the price is really the last enterprise straw?
Hongli Zhihui, deputy general manager of the high price of the event said, "in order to healthy development of enterprises, a reasonable profit margins is a necessary condition, raw material prices, we mainly through two paths to maintain the normal operation of enterprises, the first , Internal digestion, through continuous upgrading of technology, technical level, efficiency, to strengthen the output ratio, that is, the use of the same proportion of the material under the premise of more industry-standard product output; second, external help.
Throughout the development of LED for decades, such a wide range of "price tide" is undoubtedly the first time there. Slawn Semiconductor Marketing Director Zhang Luhua that, for the packaging business, this round of price increases is due to industry due to force, but also the initiative to attack a strategy. On the one hand, raw material prices have been beyond the scope of the manufacturers can afford, companies need to price means to ensure product quality; the other hand, the industry needs to return to the rational level of competition, and active price is undoubtedly a good beginning.
Price behind the cold thinking: LED from the price war to the value of war
"We have received a lot of notice of material prices in the second half of this year, and in December is a burst of points.We have been committed to reducing the cost through the management of the supply chain to achieve the goal of price increase, but the product is business survival The fundamental, we must ensure that the product of good quality. "Zhang said.
However, analysts said in the ultra-pointed out that this wave of LED prices is only the trend of enterprises for raw material prices to respond to the real profits of manufacturers to help limited, so most of the LED manufacturers are actively thinking about transition strategy, Base market.
Polarization is becoming more pronounced
When faced with rising costs, large enterprises are still difficult to bear, let alone small businesses. Today, the LED industry has become increasingly mature, competition from the initial simple price competition into the scale and technology contest. According to the relevant research institutions data show that 2017 chip, packaging device prices in the short term there is still room to rise, but with the product cost to further enhance the upside is not big. It is expected that the growth rate of the global LED industry will decrease from about 10% in 2016 to less than 5% in 2020.
The slowdown in market growth will also accelerate the reshuffle of the industry. This year, LED industry polarization trend has become increasingly obvious. The other side is to compete with the big business competition, began to seize the high-margin market, more and more small and medium enterprises.
In this regard, the general manager of the implementation of the forest Lin Sen Lin Jiliang also said that LED upstream and middle reaches a significant increase in the output value of the opportunity, but the market share will be relatively concentrated, some enterprises in the expansion of the time to be careful.
From the published third quarter results report can be seen in the LED epitaxial chip links to San'an Optoelectronics, Huacan photoelectric as the representative of the performance of Chinese enterprises remained stable growth; LED packaging links to the wood Linsen, Hongli Zhihui, Guoxing photoelectric as the representative of the packaging manufacturers, the first three quarters are showing a situation of increasing profits.