Product price war "Mountain rain is coming to the wind," see LED packaging company "fancy" breakout

Affected by the improvement of China's packaging technology and cost advantages, China has gradually taken over the global LED packaging industry transfer, and now it has become the world's largest LED packaging production base, and the market share continues to increase.

According to the data of the High-tech Research Institute LED Research Institute (GGII), the global LED packaging market has a production value of 149.3 billion yuan in 2017. Among them, the output value of LED packaging in mainland China reached 87 billion yuan, an increase of nearly 18% year-on-year, and the global proportion reached 58.27. %.

However, it must be noted that while the market is growing at a high speed, the LED packaging market is changing. It can be said that large enterprises take advantage of capital and take the lead in scale, while small and medium-sized enterprises focus on segmenting the market and take the “single product champion” route. All in all, under the current situation, all packaging companies have their own "routines."

From April 6th to 9th, the 10th Hong Kong International Spring Lighting Fair hosted by the Hong Kong Trade Development Council was held at the Hong Kong Convention and Exhibition Centre. At the exhibition, Gaogong LED visited several domestic LED packaging companies such as Smect, Zhonghao Optoelectronics, Silicon Energy Optoelectronics, and Xuyu Optoelectronics to focus on understanding their “business approach”.

As we all know, in 2017, various LED packaging manufacturers have carried out large-scale expansion, including Mulinsen, Guoxing Optoelectronics, Hongli Zhihui, Zhaochi Energy Saving Lighting, Ruifeng Optoelectronics, Wanrun Technology and so on.

For the expansion of the packaging industry in 2017, Dr. Zhang Xiaofei, Chairman of Gaogong LED, said, “According to my observation, the packaging strength of the top ten packaging companies is not very strong, and the 'sweetness' of the expansion has not been fully reflected. In the next three years, large companies will need to expand production. If they do not continue to expand production, the gross profit margin will continue to decline."

In fact, through the 2017 financial report data of several LED packaging listed companies, it can be seen that the profit of the whole packaged products is not high, and the comprehensive profit is not up to 10%, which is equivalent to the profits of the traditional manufacturing industry to some extent. As for the overall market situation of packaging in 2018, people in the industry have said that 2018 is a year with opportunities and a very difficult year.

In this situation, we have done the most appropriate products, giving priority to quality and giving back to customers with the highest cost performance. In terms of technology, we accept the most advanced and cutting-edge. Technology, continuous research and development, and the development of new products with the most market competitiveness."

At the exhibition site, Gaogong LED also noticed that Smax exhibited the EMC7070 series, EMC 5050 series, EMC 3030 series (EMC 3030 (square cup) / EMC 3030 (round cup)), 2835 series, high-end COB and Filament lamps and other products.

It can be seen that Smect is mainly engaged in products and technology, constantly improving and updating old products, and launching attractive new products in due course. "On the one hand, we will strengthen the layout on the basis of the original products, and strive to be 'big and fine', and we will make the largest part to be refined and move toward the packaging giant; on the other hand, we will do a good job of 'small and beautiful'. Doing beauty, occupying a favorable market position." Zhang Luhua told Gaogong LED.

However, for small and medium-sized packaging enterprises, in 2018, it is necessary to avoid price wars with large enterprises, deepen the market segment, and achieve the ultimate, to take advantage of the small and fine-tuning of the ship, to provide customization and broaden for downstream application enterprises. market.

Wang Mengyuan, general manager of Zhonghao Optoelectronics, believes that “the next step, SMEs should dig deep into the market and avoid price wars with circulation products through special products.”

In fact, the current domestic commercial COB high-end market is still occupied by Citizen, Seoul Semiconductor, Cree and other companies. There is still a gap between domestic product performance and world-class products. For domestic packaging companies, it is definitely not an opportunity.

At the Hong Kong exhibition, COB expert Zhonghao Optoelectronics focused on special light color special lighting products, through high-end customized mode, into a special segment, mainly used in mahogany furniture, clothing stores, supermarkets, jewelry, ceramic sanitary ware, etc. field.

According to Gaogong LED, Zhonghao Optoelectronics COB products have passed many certifications such as Energy Star LM-80, Rohs and NVLAP.

For Xuyu Optoelectronics, the secret of its survival is to stick to the artisan spirit of LED packaging and do a good job of products. It is understood that Xuyu Optoelectronics SMD products are all made of 99.99% pure gold wire and copper bracket. Over the years, we have continued to focus on high-reliability LED packaging, which only brings better solutions for a series of applications.

At this year's Hong Kong exhibition, Xuyu Optoelectronics produced the slogan of "multiple light, good light, less heat". In order to implement this slogan, Xuyu Optoelectronics not only has deep cooperation with international giants (Jingyuan Optoelectronics, Purui Optoelectronics, etc.), but also cooperates with Tsinghua University through the integration of “production, study and research”.

For 8 years, Xuanyu Optoelectronics has a place in the packaging industry with its excellent products, forward-looking technological innovation awareness and timely involvement in new applications. Lin Jin, chairman of Xuyu Optoelectronics, said to Gao Gong LED: "Let the world fall in love with China, let the lighting fall in love with Xu Yu!"

Summary: With the continuous improvement of LED penetration, LED lighting still has a large room for development. At this stage, although the “dark war” of the packaging market is not limited, enterprises only need to find their own positioning, and exert their strength in various aspects such as scale, technology and products, and will eventually find their own “outlet”.

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