Industry reshuffling is the best way to sort out the blind development of LED

A wave of bankruptcies, low entry barriers, subsidy fraud… faced with the recent spate of negative news in the LED industry, this once-glorious industry has been cast in a grey shadow. However, at this very moment, Guangzhou Optics Valley, the country's largest LED and lighting exhibition and trading platform invested by Grandbuy Group, opened yesterday in Panyu, Guangzhou.

Regarding the various problems facing the industry, many LED merchants who have moved in said: "The LED industry was indeed overheated in the past two years, with a flood of hot money pouring in. The current reshuffle across the entire industry is definitely a good phenomenon, and is the best way to sort out the previous blind development."

Ma Yiji, brand manager of Honeywell Lonon, believes: "There is no doubt that competition in the LED market will become increasingly fierce, but the trend of these energy-saving and environmentally friendly lighting products eventually replacing traditional lighting products will not change."

　　"To make LED products, only companies with considerable strength and focus can ultimately win the market," said Liang Yingyi, Managing Director of Guangzhou Ruiguang Lighting Technology Co., Ltd., which began the R&D and production of LED products back in 2001. "In the past two years, we saw the LED industry boom and a flood of speculative capital. Even shoe and hat makers dared to produce LEDs. The industry was indeed quite chaotic, and the impact on the sector was significant. However, such irrationality will inevitably come at a price - I have already seen many companies that could not hold on."

　　Speaking of the wave of closures in the LED industry, many enterprises that entered the market predict that even more companies will close down next year. "But this does not affect the development of quality enterprises," Wu Wenbin, General Manager of Guangri Electric, told reporters. LED products of the same power cost three to four times more than traditional lighting products, but the large number of shoddily-made LED products on the market have not invested nearly that much in cost. Pursuing a low-price, low-quality route has left consumers with a very poor impression of the entire industry, which in the end hurts only the companies themselves.

　　"With Guangdong being a dominant region accounting for 40% of China's lighting industry every year, the establishment of a hub centered on the LED industry has become imperative," a relevant official from the Guangzhou Economic and Trade Commission told reporters yesterday. The state and Guangdong Province have already introduced relevant policies hoping to promote the further development of the LED industry.