[Source: LED Engineering's "LED Research Review" magazine May issue of reporter / Zhao Hui] Pearl River Delta region, especially in Shenzhen, with thousands of LED enterprises, these enterprises are located in all areas of packaging, displays, lighting, and other supporting materials .
In the face of the depressed market environment in 2012, some companies have chosen to quit, some companies have embarked on the road of bankruptcy and liquidation, while for others, they have the advantage of technology, quality and innovation. The brutal market survived.
Shenzhen Dechen Optoelectronics Technology Co., Ltd. (hereinafter referred to as “Dechen Optoelectronicsâ€) is the representative of these small and medium-sized LED enterprises. With high-quality white LED packaging devices, it has a place in the market and has achieved sales of five times in two years. In the context of the sluggish environment, the name of Dechen Optoelectronics is increasingly mentioned in the industry.
"Since its establishment, our product positioning has never wavered. To do high-quality white LED packaging devices for high-end lighting is our only position for ourselves." Su Lixiong, chairman of Dechen Optoelectronics, told the reporter of "High-tech LED".
Quality is "German", making a century-old shop
"Quality is the life of an enterprise. Small wins rely on wisdom and wins by virtue. We don't have the basis and conditions for speculation. Therefore, it is the way to survive if we do a good job. We are latecomers, we must be modest and prudent, and we must be down-to-earth. There is a foothold." Su Lixiong said that the company was named from the second article of the Analects of Confucius, and the son of the Analects of Confucius said: "To be political and moral, such as Beichen, where the family is in the same place." It is the "German" that the company relies on for survival.
"Enterprises do not aim at quality, they are rogue." This is the original words of Liu Hongchuan, the general manager of Dechen Optoelectronics. He explained the survival of this enterprise with a very fashionable sentence.
In 2010, the profit of LED packaging industry in mainland China was relatively optimistic, and the gross profit margin remained basically above 20%. However, since 2011, with the rapid increase in the number and capacity of packaging companies, the market competition has become increasingly fierce, product homogeneity is serious, and price wars can be seen everywhere. The gross profit of many packaging companies has fallen to the bottom. During this period, many packaging companies with broken capital chains “closed†and withdrew from the industry.
"We are new recruits in the industry, but we are starting to stand on the shoulders of veterans." Su Lixiong told reporters that he had given great attention as early as the beginning of the rise of LED. Although the company started to operate in 2010. But he and his team have been preparing since 2007.
"At that time, the white light device only had more than 30 lumens per watt, and the price was almost 10 yuan. It is obviously not the product that the market really needs." At the beginning of the company's preparation, Su Lixiong visited more than a dozen packaging companies and got to know some packaging aspects. The talents, which also laid the foundation for the core team that later formed Dechen Optoelectronics.
“The company has only been established for 4 years, but we have 8 years of precipitation and more than 10 years of industry experience. Our senior staff are senior practitioners in this industry, and no one has left this team.†To the team, Su’s pride is beyond words.
In the early days of the venture, Dechen also faced a sales dilemma. Enterprises have no visibility, and most of the inferior and low-cost packaging products are flooding the market. At this time, a lot of temptations followed: project pieces, large wafers, inferior brackets, aluminum wire, domestic glue, etc., a batch of sub-filled raw material suppliers, the cost can suddenly drop a lot .
"Seeking truth from facts, there was some heartbeat at that time. We must know that our orders could not support the production line at that time. But we know that there is no one in the century-old store that sells defective products. Enterprises need to live for a long time. It can stand the temptation and endure loneliness.†Su Lixiong said that we never think that Dechen is a big company, and we don’t think Dechen can meet the needs of all customers. I don’t even want to make it a big company. But I hope to make it a boutique in this industry and to be the conscience of this industry. We will only serve customers who care about quality and ethics.
Innovation is soul-oriented
"Currently, 95% of the company's products use wafer chips, 95% are white, 95% are used for lighting, and the main specifications are 2835 and high power." Su Lixiong said that after nearly four years of market testing, the company's packaged devices have Obtained recognition from the market and customers.
In the increasingly competitive packaging industry, the continually lower product prices force companies to constantly work on technological advancement and product innovation. Only packaged devices that are cost-effective and meet the needs of downstream customers can capture more “sites†in the market.
As the middle reaches of the LED industry chain, in recent years, packaging technology has developed rapidly, and product upgrades are extremely fast. Segmented markets and personalized customized products are increasingly valued by enterprises.
“The 2 8 3 5 lamp beads that are very popular in the market have already been introduced to the market as early as mid-2011. It should be regarded as the pioneer of 2 8 3 5.†In Su Lixiong’s view, it is With one-step product innovation, Dechen Optoelectronics can continue to grow and develop in the fierce market competition.
"Su has a number of unchanging standards, which brings great challenges to our technology research and development."
A person in charge of research and development at Dechen Optoelectronics told the reporter of "High-tech LED" that the company's current hot-selling 2835 products and 1W high-power products capable of 150 lumens, for example, must be based on regular wafer chips. It is a full copper plated bracket, it must be the glue of Japan Shin-Etsu, it must be the gold wire of Heraeus. Under the premise of determining the main materials, the brightness should be higher than the market average of 5% or more, and the unit price should be The market is in line.
Su Lixiong said that small and medium-sized LED packaging companies can't compare with big companies in terms of capital and scale, and relying on price can only be a dead end.
In his view, small businesses can have their own unique advantages, can focus on the segmentation field, can make more efforts in the research and development of products, and make different products for market demand.
The market is promising
Last year, the overseas market was affected by the economic crisis and continued to slump. The demand in the domestic market has not really opened up. For a time, the "winter" theory of the LED industry is full of the entire industry.
In this regard, Su Lixiong has his own different views.
"The LED market is still promising. The current overcapacity is only relative, and the real market demand has not yet opened."
Su Lixiong believes that the LED market is still only a small cake, so many companies to eat, of course, everyone will feel that the share is too small. When the LED application market, especially the indoor lighting market, really bursts out, the “cake†will be dozens or even hundreds of times now, which will allow more LED companies to survive.
According to the statistics of the High-tech LED Industry Research Institute (GLII), the total output value of China's LED industry in the first quarter of 2013 was 59.33 billion yuan, up 6.5% from the previous month and up 25.2% year-on-year. Among them, the mid-stream LED package output value was 11.14 billion, an increase of 5.2% from the previous month; the downstream application output value was 46.22 billion, an increase of 7.0% from the previous month.
In the first quarter of this year, the LED industry market growth was lower than expected, but with the continuous maturity of LED application technology, the quality has been continuously improved, and the price has continued to drop significantly. It is expected that LED applications, especially the LED general lighting market, will continue to develop rapidly in the next few years. .
Su Lixiong said that the decline in the profit margin of the LED industry is an indisputable fact. It is a normal reaction to the maturity of the industry and an inevitable trend of bidding farewell to "noble".
"'When the old Wang Xietang Qianyan', I want to 'fly into the homes of ordinary people' sooner or later, I think this market is still very promising, not to mention the real explosion point has not yet arrived." Su Lixiong believes that as a company, it is now clear that For the coming of this day, what have you done and what you have done, and whether this is in line with the needs of this market development. This is the key.
In the face of the depressed market environment in 2012, some companies have chosen to quit, some companies have embarked on the road of bankruptcy and liquidation, while for others, they have the advantage of technology, quality and innovation. The brutal market survived.
Shenzhen Dechen Optoelectronics Technology Co., Ltd. (hereinafter referred to as “Dechen Optoelectronicsâ€) is the representative of these small and medium-sized LED enterprises. With high-quality white LED packaging devices, it has a place in the market and has achieved sales of five times in two years. In the context of the sluggish environment, the name of Dechen Optoelectronics is increasingly mentioned in the industry.
"Since its establishment, our product positioning has never wavered. To do high-quality white LED packaging devices for high-end lighting is our only position for ourselves." Su Lixiong, chairman of Dechen Optoelectronics, told the reporter of "High-tech LED".
Quality is "German", making a century-old shop
"Quality is the life of an enterprise. Small wins rely on wisdom and wins by virtue. We don't have the basis and conditions for speculation. Therefore, it is the way to survive if we do a good job. We are latecomers, we must be modest and prudent, and we must be down-to-earth. There is a foothold." Su Lixiong said that the company was named from the second article of the Analects of Confucius, and the son of the Analects of Confucius said: "To be political and moral, such as Beichen, where the family is in the same place." It is the "German" that the company relies on for survival.
"Enterprises do not aim at quality, they are rogue." This is the original words of Liu Hongchuan, the general manager of Dechen Optoelectronics. He explained the survival of this enterprise with a very fashionable sentence.
In 2010, the profit of LED packaging industry in mainland China was relatively optimistic, and the gross profit margin remained basically above 20%. However, since 2011, with the rapid increase in the number and capacity of packaging companies, the market competition has become increasingly fierce, product homogeneity is serious, and price wars can be seen everywhere. The gross profit of many packaging companies has fallen to the bottom. During this period, many packaging companies with broken capital chains “closed†and withdrew from the industry.
"We are new recruits in the industry, but we are starting to stand on the shoulders of veterans." Su Lixiong told reporters that he had given great attention as early as the beginning of the rise of LED. Although the company started to operate in 2010. But he and his team have been preparing since 2007.
"At that time, the white light device only had more than 30 lumens per watt, and the price was almost 10 yuan. It is obviously not the product that the market really needs." At the beginning of the company's preparation, Su Lixiong visited more than a dozen packaging companies and got to know some packaging aspects. The talents, which also laid the foundation for the core team that later formed Dechen Optoelectronics.
“The company has only been established for 4 years, but we have 8 years of precipitation and more than 10 years of industry experience. Our senior staff are senior practitioners in this industry, and no one has left this team.†To the team, Su’s pride is beyond words.
In the early days of the venture, Dechen also faced a sales dilemma. Enterprises have no visibility, and most of the inferior and low-cost packaging products are flooding the market. At this time, a lot of temptations followed: project pieces, large wafers, inferior brackets, aluminum wire, domestic glue, etc., a batch of sub-filled raw material suppliers, the cost can suddenly drop a lot .
"Seeking truth from facts, there was some heartbeat at that time. We must know that our orders could not support the production line at that time. But we know that there is no one in the century-old store that sells defective products. Enterprises need to live for a long time. It can stand the temptation and endure loneliness.†Su Lixiong said that we never think that Dechen is a big company, and we don’t think Dechen can meet the needs of all customers. I don’t even want to make it a big company. But I hope to make it a boutique in this industry and to be the conscience of this industry. We will only serve customers who care about quality and ethics.
Innovation is soul-oriented
"Currently, 95% of the company's products use wafer chips, 95% are white, 95% are used for lighting, and the main specifications are 2835 and high power." Su Lixiong said that after nearly four years of market testing, the company's packaged devices have Obtained recognition from the market and customers.
In the increasingly competitive packaging industry, the continually lower product prices force companies to constantly work on technological advancement and product innovation. Only packaged devices that are cost-effective and meet the needs of downstream customers can capture more “sites†in the market.
As the middle reaches of the LED industry chain, in recent years, packaging technology has developed rapidly, and product upgrades are extremely fast. Segmented markets and personalized customized products are increasingly valued by enterprises.
“The 2 8 3 5 lamp beads that are very popular in the market have already been introduced to the market as early as mid-2011. It should be regarded as the pioneer of 2 8 3 5.†In Su Lixiong’s view, it is With one-step product innovation, Dechen Optoelectronics can continue to grow and develop in the fierce market competition.
"Su has a number of unchanging standards, which brings great challenges to our technology research and development."
A person in charge of research and development at Dechen Optoelectronics told the reporter of "High-tech LED" that the company's current hot-selling 2835 products and 1W high-power products capable of 150 lumens, for example, must be based on regular wafer chips. It is a full copper plated bracket, it must be the glue of Japan Shin-Etsu, it must be the gold wire of Heraeus. Under the premise of determining the main materials, the brightness should be higher than the market average of 5% or more, and the unit price should be The market is in line.
Su Lixiong said that small and medium-sized LED packaging companies can't compare with big companies in terms of capital and scale, and relying on price can only be a dead end.
In his view, small businesses can have their own unique advantages, can focus on the segmentation field, can make more efforts in the research and development of products, and make different products for market demand.
The market is promising
Last year, the overseas market was affected by the economic crisis and continued to slump. The demand in the domestic market has not really opened up. For a time, the "winter" theory of the LED industry is full of the entire industry.
In this regard, Su Lixiong has his own different views.
"The LED market is still promising. The current overcapacity is only relative, and the real market demand has not yet opened."
Su Lixiong believes that the LED market is still only a small cake, so many companies to eat, of course, everyone will feel that the share is too small. When the LED application market, especially the indoor lighting market, really bursts out, the “cake†will be dozens or even hundreds of times now, which will allow more LED companies to survive.
According to the statistics of the High-tech LED Industry Research Institute (GLII), the total output value of China's LED industry in the first quarter of 2013 was 59.33 billion yuan, up 6.5% from the previous month and up 25.2% year-on-year. Among them, the mid-stream LED package output value was 11.14 billion, an increase of 5.2% from the previous month; the downstream application output value was 46.22 billion, an increase of 7.0% from the previous month.
In the first quarter of this year, the LED industry market growth was lower than expected, but with the continuous maturity of LED application technology, the quality has been continuously improved, and the price has continued to drop significantly. It is expected that LED applications, especially the LED general lighting market, will continue to develop rapidly in the next few years. .
Su Lixiong said that the decline in the profit margin of the LED industry is an indisputable fact. It is a normal reaction to the maturity of the industry and an inevitable trend of bidding farewell to "noble".
"'When the old Wang Xietang Qianyan', I want to 'fly into the homes of ordinary people' sooner or later, I think this market is still very promising, not to mention the real explosion point has not yet arrived." Su Lixiong believes that as a company, it is now clear that For the coming of this day, what have you done and what you have done, and whether this is in line with the needs of this market development. This is the key.
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