On September 28th, including Wu Changjiang, president of NVC Lighting Holdings Co., Ltd., the owners of major lighting companies in Guangdong rushed to a luxury hotel in Guangzhou. During the dinner, they exchanged ideas and tried to find a warmth when the LED was hit by the “cold winter”.

“In recent years, there have been too many LED companies in Guangdong to close down.” At the dinner party that day, a business owner who did not want to name said, “There are especially prominent in Zhongshan and Shenzhen.”

An obvious example is that the Guzhen Town Government of Zhongshan City reported that the boss of a local billion-dollar Xiongji LED Lighting Factory (hereinafter referred to as “Xiongji”) suspected of escaping, suspected of contract fraud and refused to pay labor compensation.

A Zhongshan industry source revealed that the public security organs have intervened. The police found that Xie Yingxiong had a large number of bank cards and had a half-meter long LED length. "He spread the risk by running so many bank cards. ”

Xiongji is the epitome of the blind expansion of many LED companies in Guangdong and even the whole country. After entering the LED industry, Xiongji’s business scale has grown by leaps and bounds. Xiongji’s output value last year was as high as 150 million yuan, while Xie Yingxiong invested less than 10,000 yuan.

Industry insiders analyzed that Guangdong LED industry technology is not mature, the products are not mature, blindly launched. When companies encounter difficulties, they compete with each other for vicious price competition. According to reports, Xiongji some products that originally sold for 6 yuan, sold less than 4 yuan before the closure.

Some business owners admit that the government's excessive preferential policies and financial subsidies make companies dare to take risks and gain more wealth in a short period of time.

During the “Twelfth Five-Year Plan” period, Guangdong Provincial Finance invested 450 million yuan each year to set up special funds for LED industry development. According to the “Implementation Plan for Promoting the Use of LED Lighting Products in Guangdong Province” issued in May 2012, Guangdong will take the lead in lighting projects in the public lighting sector, namely, roads, public places, government agencies, state-owned enterprises and institutions, etc. In the field, the application of LED lighting products is fully promoted. According to the plan, the scale of the LED industry in Guangdong Province will reach 500 billion yuan at the end of the “Twelfth Five-Year Plan” period.

The above-mentioned insiders analyzed that the blindness of LED companies and the mismatch of sales channels are the dilemmas of China's LED industry. Some companies lack sufficient understanding of LED products and do not know what LEDs are. Guangdong is the main producing area of ​​China's lighting and lighting industry. It has thousands of lighting and lighting companies. It is hoped that these entrepreneurs can unite to promote the development of the Guangdong lighting industry.

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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