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According to Manager Li, Crawford's market in the first half of the year was slightly worse than that in 2011. At present, except for the high profit of several major packaging products, the gross profit margin of other products is very low, and the overall gross profit margin of the company is around 10%. Manager Li believes that other SMEs face the same problem of falling gross profit margins. For the second half of the market, Manager Li is optimistic.
Currently in China, especially in emerging industries, new industries have higher profitability at the start, and investment has swarmed in emerging industries, but only a small number of them are interested in long-term development in the industry.
"Now the LED industry is that people are pushing their own people to the road." Manager Li believes that this is not a benign way of doing business. For example, in the United States, some people have seen gas stations make money, but they do not invest directly in gas stations, but operate convenience stores or small supermarkets next to gas stations. China's investment approach should be appropriately changed. If an industry makes money, follow-up investors should consider more balanced development with the industry, and seeking a win-win situation in a balanced development is a benign business.
Excessive expansion of enterprises will eventually lead to price wars, gross profit margins will fall, SMEs will not survive, and then the industry will be reshuffled. After the market tends to stabilize, the final industry will be highly concentrated, with few companies remaining.
Gaogong LED Industry Research Institute believes that: In 2012, the gross profit margin of the LED packaging industry market dropped significantly. According to the survey of the High-tech LED Industry Research Institute, in 2012, more than 95% of LED packaging companies saw a significant decline in gross profit margin. Survival is already a challenge for SMEs. The LED packaging industry has not yet entered a fierce competition elimination process. The price wars and channel wars of LED companies will intensify in the next 2-3 years. It is not easy for SMEs to not be shuffled. How to find the right position and grasp your true core competitiveness will be a difficult and painful process.
Introduction to Crawford Optoelectronics:
Shenzhen Crawford Photoelectric Co., Ltd. is a professional enterprise engaged in R&D, production, sales and service of LED packaging products. Its parent company, Cansheng Industrial, has strong financial strength. It mainly produces SMD LED series products, which are mainly used in LED electronic display, traffic signal, lighting, automotive lighting, urban lighting and other fields. The company has a high-standard dust-free purification production workshop, and introduces a series of fully automatic LED production lines including ASM and AD860.
GLII: Talking about the way of business through Crawford Optoelectronics
On September 11, 2012, Gao Liang LED Industry Research Institute (GLII) researcher visited Shenzhen Crawford Optoelectronics Technology Co., Ltd. to discuss the current situation of Crawford Optoelectronics and the development trend of LED industry with Crawford Li Mingzhi. In-depth discussion.