China's LED market space is huge, corporate opportunities are many


Compared with foreign countries, China's LED technology has a gap between technology and brand strength. However, China's market capacity is large and the terminal consumer market is diversified and dispersed. This has a greater protection and support for enterprises that are relatively backward in technology, and the market monopoly situation is not easy to form.

Lack of craft elite core competitiveness is weak

The lack of LED technology and brand strength in China directly leads to the lack of competitiveness of high-end customers in the LED high-end application market.

Among them, there is a problem of “stable technology” between technology and industry. The LED industry is currently the main means of technology introduction and digestion, and the "stability process" is a more important issue than technology.

Many emerging companies explain the contradiction between high technology and actual low output for such reasons: “Our technology is very advanced, but it needs further stability.” And many relatively mature companies are facing the market to taste brands. At the time of the problem, the core issues are often “stability” rather than technical issues.

Many times we are not willing to face up to our own gaps, always emphasizing what level of technology we have reached and how close we are to the international leading level. But in fact, we know that the first bright blue LED chip was introduced in 1993, and the ability to form a mass supply market is five years later. We also know that technical success may only take three months or less, while maturity requires three years or more.

This is also the most fundamental reason why local companies have introduced so many overseas “technical teams” and “technical elites” in recent years, but they cannot achieve a successful enterprise. There are often “technical elites” in the enterprise but no “technical elites”. Successful business operations rely more on process teams than on individual technology elites.

At the same time, the lack of channels between scientific research results and industrial transformation is a big problem.

In fact, looking at the leading companies in the same industry, there are universities and scientific research institutions in the process of growth. It should be said that from the perspective of entity cooperation, there is little successful example of cooperation between industry, universities and research institutes, but the research institutions The transformation of technological achievements is still the most important foundation for the healthy growth of enterprises. The reason for this is that scientific research institutions and enterprises need to conduct in-depth reviews.

Market capacity is high and the barrier to entry is low

However, China's development of LED technology and industry also has certain advantages. First of all, China's market capacity is large, and the terminal consumer market is diversified and dispersed.

In particular, the leading companies in the world are not pursuing the expansion of production capacity in the implementation stage, but are the most suitable time to wait for the general lighting market while leading the technology trend. At the same time, they are actually letting go of some technical requirements. Low-end, end-use applications are more fragmented, and this pattern is expected to remain for a longer period of time, which to some extent gives the company a space to grow and catch up.

The learning and entry barriers of LED technology are actually relatively low, and the investment threshold is actually not high. Even for the upstream with the highest investment requirements, hundreds of millions of investment, even billions of dollars, compared with the target market size of hundreds of billions. I can't talk much.

At present, it is at an unprecedented stage of development of liquidity funds. It is easy to form an LED industry cluster on the macro level. Of course, the maturity of the process and the expansion of scale require more time, but this is a process that will come to fruition. As long as there is input, there must be a return. It is nothing but a question of which subjects are reflected. At present, the gap between leading companies in the technical level and international big manufacturers is constantly getting closer. Of course, it is also possible to cause vicious competition, but this is only the pressure on the individual enterprises. For the industry, it is ok to integrate the market at a certain stage.

In addition, the issue of intellectual property rights, although relatively stressful on the LED industry, is not entirely space-free. At present, the main LED technology patents in the world are not monopolistic. In essence, they are still long-term. However, these international companies have different strategies in their patent protection. European and American companies are more active in patent licensing, which has given Japanese companies greater pressure.

On the one hand, the cost of obtaining patent authorization for Chinese enterprises will gradually decrease; on the other hand, the opportunities for strengthening their own research and development for cross-licensing are also increasing. Such an approach is easy to form a demonstration effect in China.

Learn about Xinjiang lighting and lighting market from its profile 2007-12-28
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? China's lighting industry development status and trends 2007-12-19
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