At present, the LED manufacturing sector is hot. On the one hand, small and medium-sized processing and assembly-type enterprises have production and sales, and there is a hot scene; on the other side, brand companies are actively warming up for channel laying and market share. "Now small and medium-sized assembly manufacturers in Guzhen, Foshan and other places have large shipments. Although the value of the goods is not high, the LED boom has created a group of entrepreneurs who started from workshops." Marketing Director of Johnson Electric (China) Co., Ltd. Xiao Nannan told the reporter a little helplessly. Qiaosen Electric is currently fully transforming its LED home and business photo series products, but the channel market's price shock caused by excessively "favoring" cheap assembly products undoubtedly makes it a headache. Large volume and low price "There are now 0.3 watts of pretending to be 1 watt of lamp beads on the market, and the 3 watt downlights add up to less than 1 watt. Some engineers and consumers are only staring at the price, and the light efficiency and warranty are naturally ignored." The merchants who opened stores in Ruifeng Accessories City in the ancient town were also shocked by the boldness of certain workshops. At present, the ex-factory price of the 3-watt ceiling lamp in Guzhen is only about 6 yuan. "This kind of price is beyond the imagination of brand companies. The price of the entire lamp is only equal to our purchase price of a 3-watt LED driver." Ye Zhengping, general manager of Pinshang Lighting Marketing, calculated an account for the reporter: a mid-range For a 3-watt LED lamp, the driver costs 5 to 6 yuan, the chip is about 4 yuan, and the lamp housing is about 8 to 10 yuan. The material cost of the main components is almost 20 yuan, not including labor, marketing and other expenses. "The LED products assembled in a workshop are of no quality at all." Due to the current booming LED industry, profits are slightly more than traditional lighting products, especially in the domestic channel terminal, coupled with the lack of national unified standards and regulations and related agencies to supervise, resulting in a large number of workshop-type small enterprises springing up in the industrial cluster base Growing. Low-end and low-end manufacturers of assembled products start purchasing, producing and selling only after receiving orders. The brand image is also inexplicable. The cost is relatively low, and the lower product prices are more acceptable to dealers, engineers and consumers. On the contrary, it can quickly and massively penetrate the market terminals, especially the third and fourth tier markets with relatively low consumption capacity. According to the reporter's summary, the current smaller LED manufacturers mainly come from five aspects: 1. The original small and medium-sized traditional lighting companies established independent branches to serve the manufacturing part of the parent company and other companies. 2. Some brand distributors across the country came to the industrial base to open assembly plants. Some of them have reached the bottleneck in the local distribution of lamps and lanterns, hoping to enter the field of finished products; others are continuing to represent major brands and privately switching to their own assembled products after receiving the project, so as to obtain high profits. 3. The marketing director or technical backbone of a large local company resigned to open the factory. Because they have domestic channel resources or control the core technology of the original enterprise products, such manufacturers are relatively easy to enter the market. 4. The original LED accessories are directly assembled into the ranks of finished products. Due to the advantages of scale in the production of major parts such as aluminum parts and drives, the price of finished products is relatively low. 5. Various people who invaded the LED field for a period of time and entered the industry as entrepreneurs with tens of thousands of dollars and screwdrivers. The power of cheap operation Weibang Lighting is an LED assembly company that only officially started operation in June 2011. Considering that the government's tax revenue will increase by 15-20% in 2012, in order to save the certificate and monthly fixed tax, as well as the "extra" charges of related departments, boss Chen Wei (pseudonym) chose the "underground party" in the second half of 2011— —The production operation mode of the assembly workshop without any license. "This is not a long-term plan. Because there is no company account without an industrial and commercial business license, customers will not believe in private accounts and come in cash, so they can only collect the goods after shipment, which is very risky." Chen Wei said solemnly. At the beginning of this year, he had obtained a self-employed license and had at least one name. A reporter's investigation in the ancient town of Zhongshan found that most of the workshop-style assembly manufacturers exist in the form of self-employed and trading companies, and even many of them are "three no blacks", specializing in providing low-cost products or providing OEM services for other manufacturers. In order to hide people's eyes and ears, some manufacturers tricked suppliers to swindle distributors, kept registering brands, and closed their doors once the funds stopped. According to incomplete statistics from insiders, the number exceeds 1,500. According to official statistics, the number of lighting and lighting companies in Guzhen at the end of 2011 was more than 8,300, and this proportion has reached 18%. The reporter visited some workshop assembly manufacturers, the basic structure of which is: properties with a lease area of ​​200 to 300 square meters, and production dormitory downstairs. The staffing is that the husband does both procurement and sales, the wife takes care of administration and finance, and there are three or five workers. When the orders are long, temporary workers are recruited, and even outsourced to colleagues who open factories nearby to OEM. The equipment is made up of two assembly stations to form a "pipeline", plus a high and low pressure constant current aging station, the general aging time of finished products is only 2 to 4 hours. It can be seen from the table below that, excluding the cost of raw materials, the initial investment and other monthly expenses of the workshop assembly plant are about 30,000 yuan, calculated according to the current industry average gross profit of 30-35%, that is, such manufacturers only need to sell about 100,000 yuan per month. Can operate normally and generate meager profits. "The workshop assembly plant is currently the most active LED manufacturing group because of low operating costs. The tens of thousands of dollars in entrepreneurship cost is equivalent to the reimbursement of the advertising expenses of the big brand companies for the dealers for the month. The operating costs are quite different. Know. "An insider told reporters after comparison. Difficult to replicate success Just like the entrepreneur who made lighting more than ten years ago, and the light source seven or eight years ago, Chen Wei went to the professional market of LED accessories almost every other day, even if there was no purchase demand. "Because the prices of the" three big pieces "such as LED chips, aluminum parts, and drivers change every few days, small factories have no brand value-added and can only rely on meager profits. A batch of goods only needs a 6-point profit quotation error. May result in a loss. "Chen Wei told reporters. For the current LED assembly and workshop manufacturers attempting to replicate the successful trajectory of traditional lighting development, Ye Zhengping, general manager of Pinshang Lighting, disagrees: "LED is an energy-saving light source and is very different from lighting products. Especially in the market, LED brands have begun to accept , Manufacturers have no comprehensive technology and good product mentality, will soon be eliminated. " It is understood that assembly manufacturers also face problems such as low bargaining power, cash transactions for raw material purchases, customer requirements for warehousing, long OEM settlement cycles, unstable orders, and large employee turnover. At present, no matter whether it is a traditional lighting product enterprise or a foreign consortium entering the LED field, it has strengths such as channels, funds, talents, and technology. The market environment has also changed from the original processing of raw materials, scattered and extensive to the economic model of brand competition and intensive opening. Regarding the development of the trend of LED terminal products, Yu Weiguang, chairman of Chengdu Weiguang Lamp Art Chain, said firmly: "Like all products and consumption have reached the mature stage, the future of LED terminals must be in the quality products of brand companies. Although there are now Price, channels and other aspects are heavily restricted. "
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