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LED Packaging Capacity Expansion Who Is Hidden Behind The Push Hands

- Dec 18, 2018 -

   Currently, both upstream LED GYM lights chips, packaging or midstream, or downstream applications, are faced with difficult and highly competitive market forms, combined with technology, products, markets, capital and other aspects, major companies will always have their own Selected strategy and way out. However, in the field of LED gym lighting package, LED packaging manufacturers in this most choice allows puzzled, they did not seem too much choice, apply network buzzwords say, is this: do you choose to expand production capacity, or expand backpfrontp capacity it is, is a single item:? capacity expansion. backpfrontp In recent years, a little bit of the capital strength of LED stadium light packaging companies are planning or have already carried out the expansion of the production line, and those large groups listed packaging company, is the massive expansion territory, set up production bases in mainland around, trying to further improve production scale. backpfrontp Some analysts believe that the reason why the focus of this year's packaging industry to expand production capacity, was due to rising prices last year to stimulate the lighting, so from the second half of last year, China's LED stadium lighting packaging field appeared round of expansion peak. In other words, this year the major packaging companies to accelerate the expansion of production capacity, not for the pressure of market competition, to seek means to break through, simply because of this year's market is too overvalued results. backpfrontp This analysis appears to be little reason now, this year, LED stadium flood lighting products affected by the price war, LED packaging companies living space is further squeezed, the market once again into a state of increased profits are not incremental. A direct result of sharp decline in the price of high power LED flood lights packaging market as a whole as expected, the vast majority of corporate profits and not with shipments grows, some even saw a decline. Although the size of the market is still maintained rapid growth, but the company's earnings performance is still in the doldrums. According to relevant data show that the first half of 2015, the domestic LED gym lights package device most products prices fell by more than 50%, LED tunnel lights packaging manufacturers international product prices also fell more than 20%. 2014 has been eliminated hundreds packaging companies, is expected this year, the phase-out situation will be further widened. backpfrontp we can foresee that in case prices fall, packaging companies compete to expand production capacity, Make it had been very fierce market competition more severe for those SMEs lack of funds, technology, channels, in terms of competitiveness, facing more enormous operational difficulties and risks, serious or even collapse due to funding strand breaks. backpfrontp Therefore, we can say that this addition to the expansion, or the expansion of the initiative is not appropriate? apparently not, and now the entire LED high bay lights industry trend is to accelerate the integration, industry concentration increased. Packaging manufacturers to expand production scale of strength, and indeed accelerated phase-out and promote the industry reshuffle, the large enterprises which accelerate the integration of resources and our strength for the future market development in advance to do the layout. backpfrontp because competitive packaging field, in addition to process technology, market development, etc., often whether the specific cost advantages, with advanced and efficient production scale of strength, is the key to winning business. The vast majority of packaging manufacturers are planning expansion in the expansion, in fact, also illustrate this point. Despite falling prices resulted in an increase does not increase profits, but I believe that after a period of adjustment, prices tend to be stable or an inevitable rise. backpfrontp course, since packaging companies competing to expand production capacity, leading to industry structural overcapacity problems are more prominent, and this is likely to do. If the problem is exacerbated by overcapacity, vicious cycle increment does not increase profits also continue. backpfrontp That being said, it seems that everywhere traps companies more confused on how to choose: Large packages of price declines, companies naturally unable to parry continuing price war; exploring new markets or develop new technology products, will undoubtedly need more large capital and other inputs, the ability to obtain full return unknown. So as LED lights for stadium packaging companies, how to find a way to break through? And whether to continue to adhere to the business expansion of the road? This is currently worth attention. backp


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