LED company's "frustration": gambling market may not flee from China

Ning Muli Group, which occupies 60% of the global lighting market, has not had a good time in recent years. On the one hand, exports are affected by the weak market in Europe and the United States. On the other hand, the investment in LED is also quite huge. In fact, the day is not easy, not only a true Mingli, a lot of export-oriented enterprises this year's hard times. Coupled with the rapid disappearance of the dividends of the mainland population, companies can guarantee capital preservation, let alone make profits.

In recent years, real estate has been unusually hot, but almost all wealthy companies are involved in real estate development. The biggest source of annual local government revenue is basically through the transfer of land. Under this circumstance, the slogan of industrial upgrading of many companies seems to have become empty talk.

The entrepreneurs may feel helpless. Seeing that in the western developed countries, the government has come forward to establish research institutions and lead the industry to upgrade. Enterprises do not need to invest huge sums of money to enter R&D and other areas. They only need to work closely with research institutions and purchase patents when the results are available. In China, most of the responsibility for scientific research seems to fall on the company itself. There is nothing to say about self-development, but companies have run into a bad environment. After the US financial crisis, there were a few volts, and the global economy has not seen any improvement. Where can companies get so much money for R&D? At a loss like Zhen Mingli, there are still a few companies that still invest more than a billion yuan in new products. Some people say that this is a force, others say it is gambling. However, Taiwanese people always seem to pursue the spirit of "fighting will win." Fan Bangyang, the chairman of the company, also said from time to time that as long as he does his best, he will be able to do a good job.

However, corporate entities have always been single-minded and the overall industry upgrade still requires the government's clear industrial support. In recent years, Guangdong Province has successively distributed municipal construction lighting cakes to the LED industry, which involves a market share of 10 billion. Many LED companies are staring at this piece of cake, because this is the straw before the LED market is immature. However, there are nearly 300 LED companies in Jiangmen alone, and there are as many as 1,000 in Shenzhen, Foshan and other places. This piece of cake is obviously not enough. Ming Bangli Chairman Fan Bangyang said that indoor lighting is the main market for LED. But at present, let LED enter the family, its price is one to two times higher than ordinary lighting, still is the threshold. Reducing costs requires technological innovation, and technological innovation requires capital investment. However, it has been losing money year after year, and the money must be invested with caution.

In recent years, many labor-intensive industries have chosen to flee China, flee the PRD, and move to countries such as Vietnam and India where labor costs are cheaper. If the government's support for industrial upgrading is not clear enough and no effort is made, these companies may only choose to flee. We do not want to see that the LED industry in Jiangmen has such an intensive situation.