Price wars and low profits, only 20% of the profits of Shenzhen LED companies
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With the ebb and flow of LED Red Sea, Shenzhen has recently formed a few industry leading companies, and more small and micro enterprises have gone bankrupt, and there have been phenomena of significant price cuts in LED products. According to industry insiders, the proportion of Shenzhen LED lighting profitable enterprises will not exceed 20.
Due to the high expectations of LED lighting, many companies are involved in the LED industry, and the threshold for the LED industry has been greatly reduced. But at the same time, the influx of large amounts of capital led to overcapacity, and the price war of one month's quotation made LED companies miserable. For example, the price of an ordinary LED fluorescent lamp two years ago was 200 yuan, 150 yuan a year ago, 100 yuan six months ago, and now only 80 yuan, the price is fast.
The influence and scale of Shenzhen's LED industry is second to none in the country. In 2011, the output value of Shenzhen LED enterprises reached 70 billion yuan. In the same period, the industrial output value of Guangdong Province was nearly 150 billion yuan, and Shenzhen accounted for half of the province. At present, there are about 20 LED listed companies in China, and Shenzhen accounts for almost half.