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How does LED Industry to deal with the Influx Speculators in 2012? by 3w mr16
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How does LED Industry to deal with the Influx Speculators in 2012? by 3W MR16
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| Article Posted: 08/08/2012 |
| Article Views: 57 |
| Articles Written: 887 - MORE ARTICLES FROM THIS AUTHOR |
| Word Count: 534 |
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How does LED Industry to deal with the Influx Speculators in 2012? |
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Business
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The speculation in LED industry increased due to low threshold
Currently the LED industry has low threshold, whose standards are disordered, the businesses are flocking, which makes the industry to be disorderly and unsystematic. It also increased businesses speculation and speculations are available for a variety of ways. The small plants with no money or no capital have no fixed market, no strict quality control, no inputs for management costs, no investment in R & D costs, they aim to earn when finally receive an order. But the product quality and after-sales service, or factors affecting sustainable development are not what they consider about. They gain market share relying on low-quality low-cost competition, so the cheap prices have quite a big impact on the market, which also makes the normal production enterprises to be at dilemma, because if they lower the prices following the speculators, it means loss of profits; if not following the depression, perhaps it means the loss of the market. The products they produce have an advantage, that is very cheap, as a consumer in the face of two same products, most of them will choose the cheap one, but the and inexpensive products have quality defects or sub better. This is not only damages the domestic LED industry reputation, but also left a very bad impression of China led light industry in the international arena.
LED industry chain has shown signs of overcapacity trend
LED industry chain has shown signs of overcapacity trend after the first two years of explosive development. In the financial statements of the relevant listed companies, the gross margin declines and the performance growth for landslide. Interestingly, when the new shares broke, a large number of IPO enthusiasms for LED canopy lights have not diminished. Liard, distant photoelectric, Poly flying photoelectric, Changfang lighting and a large number of LED new shares successively have moved into the IPO stage. It begs to ask what is a pie or a trap does the LED new shares launched on the market bring to investors?
The overall situation of LED industry does not mean the end of the industry
So far the enterprise size is large or small and has initial order in the transition process; they should have a clear understanding of their own circumstances and conditions to distinguish. The dilemma suffered by the LED industry is a stage in the process of development; the current pain is for the more standardized development of industry. The formation and development of an industry will go through the initial stage, reconstruction and maturity three stages, that is begin to rise from very few number of companies, and then followed by a number of enterprises to seize business opportunities and rush into mass action, then promote the industry reshuffle according to market demand, and thus form brand pattern and there will be a handful of oligopolistic to monopolize or lead the development of the industry. Therefore, the overall situation does not mean the end of the industry, which does not mean that this industry has no prospect, do not be over-pessimism and panic.
This article is come from: http://cell.battery-products.com/led-light-curing/how-does-led-industry-to-deal-with-the-influx-speculators-in-2012.htm
Related Articles -
China led light, LED canopy lights,
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