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Affected by the industry environment, the demand for LED packaging increased rapidly in the first half of 2013, and many companies are welcoming the full year of orders. However, the price of LED packaging has dropped very fast, causing some companies to have an increase in profits. Then, in this environment of ice and fire, how should LED packaging companies polish the fire and strive to seal up the land in the LED market? On the hot topic of the development of the LED industry, an exclusive interview with the senior executives of the company.
Note that the use of re-techniques, careful evaluation of EMC new products with the decline of light costs, LED products are being integrated in a cost-effective direction, new technologies will become a powerful weapon in the industry to curb LED price declines, and EMC packaging has become a 2013 The key words in the packaging industry are hot, so will stability be pursued? Mr. Zhao Qiang, Director of Steady Optoelectronics Technology believes that the research and development and introduction of new materials and new technologies is an important part of the steady technology leading strategy and the key to leading the company to break through the competition crisis. As a highly integrated form of support, EMC is a new technology that is closely focused on R&D. Any new technology and new process need to be evaluated for maturity, continuity, and compliance with customers and markets. The needs of our R&D and technical teams are already evaluating EMC technology and will be based on the results of the evaluation to determine whether to import.
Sealed circuit, involved in the LED application, creating a stable lighting brand effect With the continued spread of the global incandescent lamp ban, LED lamps began to enter the home lighting market. LED lighting penetration has also increased as luminous efficiency has increased and LED lamp prices have fallen. According to the "China Lighting Market Report" published by LEDinside, the scale of China's LED lighting market will reach RMB 32.4 billion in 2013, with an annual growth of 36, especially in the home lighting market, which has become the second largest application market for commercial lighting. The growth rate will be as high as 96, and the annual growth rate of outdoor lighting will reach 46.
Mr. Zhou Feng, executive vice president of Wenrun Optoelectronics, revealed to LEDinside that based on the huge market demand for LED lighting, Wenrun has started the “Development Strategy for LED Application Fields†project in 2009 with years of experience in LED packaging manufacturing. Both manufacturing and quality control have been continuously explored. In 2012, Wenrun established an application product division at the company headquarters, once again increased the research and development of application-side products, and began the road of application product brand promotion. As an end-customer service provider, Wenrun has paved the way for channel sales throughout the country, and is committed to creating a brand effect of stable lighting in the terminal market. In June 2013, the company launched a variety of lighting applications in the Guangzhou International Lighting Exhibition, including the newly developed Galaxy series large space lighting, the Big Dipper series ceiling lamps and the Aurora series fluorescent lamps, which were highly praised by domestic and foreign customers, and the market feedback was very good. Well, it increases the confidence of the company to enter the application field.
For the future development of LED lighting products, Zhou pointed out that LED lighting has not entered the market for a long time, and the technology maturity needs to be improved. However, as the global energy crisis intensifies, LED energy-saving products will become the lighting industry in the next 5-8 years. The main force will inevitably be fully accepted by consumers. According to LEDinside's recent survey of the awareness of ordinary consumers' LED lamps in the Chinese market, the recognition of LED lighting in the Chinese market is still low. The number of people who can correctly identify LED bulbs is only the number of people participating in the survey. In order to open the ordinary household market, China's LED lighting still needs to carry out sufficient consumer education work, so that ordinary household consumers have a fuller and more comprehensive understanding of LED lights, and it is possible to usher in the sustainability of stable growth.
In response to the cold and hot demand in the lighting market in the first half of this year, Zhou believes that a large part of the reason comes down to the rapid decline in prices. Some enterprises reduce costs by sacrificing product quality and after-sales service, and join the price war and vicious competition to gain market share, which leads to the company not increasing profits and negative net profit growth. The fall in market demand in July is also a normal reaction to the end of the vicious price war. And Wenrun always adheres to the concept of product quality first and rejects price war. It is recognized by domestic and foreign customers, and the order is stable and stable, and the impact is relatively small. The company plans to achieve annual sales of 200 million yuan in the Applied Products Division by 2014, accounting for more than 30-40 of the company's sales.
In addition to the recovery of market demand, the development of the LED industry is also relatively large, both large investment expansion, but also large enterprises closed down. After experiencing the situation of mutual killing in the previous two years, a large number of mergers and acquisitions have recently begun to appear. Mr. Zhou believes that this phenomenon indicates that the industry is breaking the deadlock of vicious competition and developing towards active cooperation, and will certainly bring about the improvement of the comprehensive strength of the industry. At the same time, the integration of resources brought about by the alliance has formed a group of more advantageous industry giants, and a group of small and weak enterprises without core technologies will also be eliminated because they cannot be separated. The packaging market in which stability is located is relatively less affected by fluctuations in the industry. On the one hand, the steady R&D capability and innovation speed have always been in the forefront of the industry. On the other hand, the stable customer base is a strategic partner for many years of cooperation, with high loyalty and stable orders. The terminal application market that entered last year showed a rapid development trend with an increase of up to 150. Therefore, the company believes that there is no need for mergers and acquisitions.
Gold Triangle R&D, quality and management help to stabilize and win as the leader of LED lighting equipment in China. Since its establishment, Wenrun Optoelectronics has gone through 21 spring and autumn. In the LED packaging industry, it is an uncompromising veteran. Level manufacturer. Since its establishment, Wenrun Optoelectronics has been developing steadily, reaching the domestic leading level in the production process and large-scale production of LED devices, and has maintained stable cooperative relations with Fortune 500, Siemens, Osram, Philips and other Fortune 500 companies. Mr. Zhou said that Wenrun Optoelectronics can become a strategic partner of Fortune 500 companies, mainly due to customers' trust in stable R&D, quality and management.
In terms of research and development, Wenrun is not only the first batch of high-tech enterprises in the country, but also the earliest enterprise with post-doctoral workstations in the field of LED packaging. During 2010-2012, Wenrun Optoelectronics also established the Lighting Device Research Center, the Backlight Research Center and the Automotive Lighting Research Center. The establishment of these three research centers has further clarified the company's research and development direction, attracting a large number of talents and technical strength. Further enhancements have been made. At present, Wenrun has 12 invention patents and 17 utility model patents. Mastering some of the core technologies is an important part of the stable market strategy and one of the core competitiveness of the company.
In terms of quality control, Wenrun Optoelectronics adheres to the concept of continuous and innovative quality control, so that the quality of products can meet the requirements of meeting or even exceeding customer needs. At present, the company has passed ISO9001:2008, TS16949:2009, ISO14001:2004, QC080000 and other system certification, and is certified by the authoritative certification body SGS. At the same time, the company is also a participating unit in the national standard development of the LED industry.
In terms of internal management, the company continued to optimize and standardize its management systems and processes, and continuously carried out a series of management innovations such as process reengineering, system optimization, and information construction to meet the rapid development needs of enterprises.