LEDinside: China's LED industry is facing four major challenges2017-10-16 14:40:34
In LED eyes, 2015 is a tough year, and now 2015 has become the past, many people look forward to in 2016 LED industry situation can be improved, the harsh situation will ease, but recently a new Burst point of view for the LED industry poured a pot of cold water. The view is that 2016 will be the first year in which China's macro economy will continue to bottom out and the toughest year in recent years. However, this is not the end of the world for large enterprises, but it can be said to be "life-or-death" for small and medium-sized enterprises.
Data show that in 2014 the number of LED companies up to 20,000, just after a year, a decrease of 20%, 4,000 companies out of the market.
Shocking data, behind the map is the price war, product homogeneity, backward production capacity flooding the industry chaos. Not long ago, the industry broke the news of bankruptcy owed to businesses, veteran packaging plant Jiangnan optoelectronic wages are on the brink of collapse. This case is a microcosm of the current status of the LED industry in the industry, once again alarm for the business. Insiders pointed out that once the enterprise problems, they should immediately "downsizing."
What is "downsizing"? Insiders explained that, in addition to downsizing, reduce costs, the most common is layoffs, there is one to retain high-quality customers, remove inferior customers.
Layoffs. When market conditions or poor business operations lead to serious business conditions and profitability declines, and enterprises are faced with the crisis of survival and development, in order to reduce operating costs, enterprises should take layoffs to ease the economic pressure. Layoffs are benign job cuts, the object is those poor performance, can not meet the needs of business development staff.
In the second half of this year, Taiwan's LED chip industry quietly set off a wave of "small-scale" layoffs. In September, Taiwan-based LED chip maker Epistar Optoelectronics deployed 65 employees, and then is expected to be divided into three groups to impose 76 employees in the bamboo plant; In addition, Epistar Epitaxy Optoelectronics Group will plant in Longtan and peace plant Severance total of 39 people. According to research institutions analysis shows that in 2015 LED chip industry oversupply ratio as high as 22%, the imbalance between supply and demand of a serious impact on the LED chip industry. Faced with such a severe industrial form, layoffs seem to be the most direct way for chip companies to reduce costs and improve efficiency.
Second, to poor quality to take high-quality customers. Customer is the life of the enterprise, how many inferior customers can not compare with a good customer; High-quality customer contributes to the enterprise profit greatly, which is a good growth space for customers; Low-quality customers on the contrary, the profit contribution is small, even without contribution. Of course, whether a new customer or an old customer is an enterprise customer, it needs more high-quality customers in the process of business growth and is eliminated for inferior customers.
Generally do a good job of enterprises, mostly in the "downsizing" work hard, focus on the main thing to do, excellence. In addition to "downsizing", the enterprises also need to make "strong bones", that is, to improve their core competitiveness and devote more efforts to products.