Following the liquor, potted flowers, catering and performance industries, the lamps have become another industry in the central festival. At the time of the full office of the Central Office and the State Council's “Prohibition of New Buildings and Hallsâ€, many lighting industry officials admitted in an interview that many government orders have been lost.
Some companies have tried to get rid of "government dependence" by expanding emerging markets such as South America, and some industry people are counting on "there are policies and countermeasures." A person from a building decoration association said that the building can not be built but can be renovated. A building can be renovated about ten times. This is also an opportunity for the lighting industry.
"Darkness Chen Cang" still exists
"In July and August, when the business was the weakest, we could achieve three or four hundred thousand yuan (turnover) every month. This year will not work." Yan Songsheng, the head of a lighting company in Changzhou, Jiangsu, shook his head with a sigh.
At the China Light Industry Summit held recently in the ancient town of Zhongshan, Guangdong, similar complaints were not rare. In the forum of the day, a lighting manufacturer from Jiangsu told reporters that according to her understanding, 60% of the sales of lighting companies this year are declining, about 20% of enterprises maintain a balance, and only 10% of the company's sales are rising.
A number of lighting industry insiders told reporters that the sales of lighting companies generally fell by 20% to 30% this year. The reasons behind this include the overall policy of stopping the new party and government organs and the cold weather in the real estate market.
At the end of July, the Central Committee issued the "Notice on the Party and Government Organs Stopping the Building of New Buildings and Houses and Cleaning Up Office Spaces" (hereinafter referred to as the "Notice"). It is clear that within five years, party and government organs at all levels shall not be newly built in any form or by reason. The building of the hall is strictly controlled for the maintenance and renovation of office buildings, and luxury decoration is strictly forbidden.
Huang Pinhua, general manager of a lighting company in Shenzhen, told reporters that they had previously focused on government projects, and this year the business from the government fell by more than half. On the one hand, there are no such large-scale events as the Olympic Games and the Asian Games, and on the other hand, they are affected by macroeconomic policies and the economic situation.
The decline in sales is also reflected in logistics to some extent. A logistics businessman in the ancient town of Zhongshan said that this year's business volume has dropped by about 20%.
The person in charge of a local lighting factory said that compared with home lighting companies, the cooling of the building of the building has a greater impact on the enterprises that mainly operate the commercial lighting business.
A government official from Guangzhou revealed to reporters that some functional departments of the Guangzhou Municipal Government planned to relocate to the new office building this year. Even the specific “moving†date has been confirmed, but it was terminated due to the issuance of the Notice.
The government official said that in the process of promoting urban-rural integration, a county town in the middle of the country originally wanted to build a new office building in the new district to drive the land price and supporting development of the new district. Similarly, the central government issued the above notice "Farewell to the new building."
The government said that similarly, the new development of the government office building to promote the development of a certain area, abound in the third- and fourth-tier cities, the above "Notice" changed the situation.
The building can not be newly built but can be renovated. The "optimism" of the above-mentioned decoration associations is not a case. The person in charge of a lighting factory in Zhongshan Guzhen said that 30% of the company's business comes from government orders, and this year's business is still stable. The person in charge bluntly stated that despite the "Notice", local governments can still make great use of other names. The lighting factory spares no effort in maintaining government relations, so even if the cake gets smaller, they can still get a piece.
This month, Xinhua News Agency and other central media continued to expose the practice of some local governments secretly Chen Cang, saying that some localities and departments have built office space in various names such as “business centerâ€, “comprehensive business building†and “civil service center†in order to pass the examination and approval. Evade supervision.
What is the way out?
Under the contrarian trend, the lighting manufacturers have shown their way out.
Huang Pinhua said that many of the counterparts who have done the lighting have shifted their focus from government engineering to the mass consumer market. "The government has a limited amount of engineering and is greatly affected by the policy."
Shi Yan, general manager of a lighting company in Shanghai, told reporters that emerging markets are their "secret." The company's export sales accounted for 70% of the total business. This year, it has signed a large order of 100 million yuan with Venezuelan customers. Another government purchase order with similar amount from South Africa has been negotiated successfully. The company's turnover this year rose 30%.
A closer integration of lighting and the home décor industry is also a way out. The person in charge of another Zhongshan Guzhen Lighting Factory said that the future plan is to expand the sales channels into the home store. "The integration of furniture and home appliances is the future direction."
Hua Jingyou, secretary-general of the Electrical Committee of the China Building Decoration Association, said that the current output value of lighting products accounts for 8% of the output value of the entire home decoration industry, while the output value of the Chinese architectural decoration industry has grown at a double-digit rate every year for the past decade.
In 2012, the total production value of the town of Zhongshan Guzhen was 9.8 billion yuan. It is worth noting that the total output value of the local lighting industry reached 15.81 billion yuan, accounting for more than 60% of the national market share.
“In my hometown of Henan, every 10,000 to 20,000 people build a living quarter, and the house rises.†He said that this is an opportunity for the entire building decoration industry, including the lighting industry.
Many traditional lighting companies have turned their attention to the emerging LED industry. At the above-mentioned lamp industry summit, the relevant person in charge of China Lighting Association said that in 2012, the output value of LED lighting appliances in the whole industry was 400 billion yuan, of which one third was electric light source and two thirds were lamps. The daily updated Taobao Index of Zhongshan Guzhen (according to the daily operation data of Taobao and Tmall website) shows that the turnover index of LED lamps in the last 30 days increased by 7.9% from the previous month and increased by 247.3% compared with the same period of last year. The provinces that purchase the most LED lamps are Guangdong (accounting for 18.85%), and the second is Jiangsu (accounting for 7.86%).
Despite this, due to increased competition and increased transparency in the industry, the profit of LED lights is also shrinking. The Ali Index (calculated from the basic data of Alibaba's daily operations) shows that the price of LED lamps has been falling all the way this year, while the supply index has been climbing.
It should not be overlooked that in this industry that still relies heavily on government subsidies, the troubles of growth have already appeared. Last week, some Dongguan LED company executives told reporters that the production capacity of this industry has been seriously oversupplied. In the harsh market competition, a large number of enterprises in Dongguan and Shenzhen have closed down. They believe that the reason why the LED industry has come to today is partly that it is spoiled by excessively favorable policies.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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Some companies have tried to get rid of "government dependence" by expanding emerging markets such as South America, and some industry people are counting on "there are policies and countermeasures." A person from a building decoration association said that the building can not be built but can be renovated. A building can be renovated about ten times. This is also an opportunity for the lighting industry.
"Darkness Chen Cang" still exists
"In July and August, when the business was the weakest, we could achieve three or four hundred thousand yuan (turnover) every month. This year will not work." Yan Songsheng, the head of a lighting company in Changzhou, Jiangsu, shook his head with a sigh.
At the China Light Industry Summit held recently in the ancient town of Zhongshan, Guangdong, similar complaints were not rare. In the forum of the day, a lighting manufacturer from Jiangsu told reporters that according to her understanding, 60% of the sales of lighting companies this year are declining, about 20% of enterprises maintain a balance, and only 10% of the company's sales are rising.
A number of lighting industry insiders told reporters that the sales of lighting companies generally fell by 20% to 30% this year. The reasons behind this include the overall policy of stopping the new party and government organs and the cold weather in the real estate market.
At the end of July, the Central Committee issued the "Notice on the Party and Government Organs Stopping the Building of New Buildings and Houses and Cleaning Up Office Spaces" (hereinafter referred to as the "Notice"). It is clear that within five years, party and government organs at all levels shall not be newly built in any form or by reason. The building of the hall is strictly controlled for the maintenance and renovation of office buildings, and luxury decoration is strictly forbidden.
Huang Pinhua, general manager of a lighting company in Shenzhen, told reporters that they had previously focused on government projects, and this year the business from the government fell by more than half. On the one hand, there are no such large-scale events as the Olympic Games and the Asian Games, and on the other hand, they are affected by macroeconomic policies and the economic situation.
The decline in sales is also reflected in logistics to some extent. A logistics businessman in the ancient town of Zhongshan said that this year's business volume has dropped by about 20%.
The person in charge of a local lighting factory said that compared with home lighting companies, the cooling of the building of the building has a greater impact on the enterprises that mainly operate the commercial lighting business.
A government official from Guangzhou revealed to reporters that some functional departments of the Guangzhou Municipal Government planned to relocate to the new office building this year. Even the specific “moving†date has been confirmed, but it was terminated due to the issuance of the Notice.
The government official said that in the process of promoting urban-rural integration, a county town in the middle of the country originally wanted to build a new office building in the new district to drive the land price and supporting development of the new district. Similarly, the central government issued the above notice "Farewell to the new building."
The government said that similarly, the new development of the government office building to promote the development of a certain area, abound in the third- and fourth-tier cities, the above "Notice" changed the situation.
The building can not be newly built but can be renovated. The "optimism" of the above-mentioned decoration associations is not a case. The person in charge of a lighting factory in Zhongshan Guzhen said that 30% of the company's business comes from government orders, and this year's business is still stable. The person in charge bluntly stated that despite the "Notice", local governments can still make great use of other names. The lighting factory spares no effort in maintaining government relations, so even if the cake gets smaller, they can still get a piece.
This month, Xinhua News Agency and other central media continued to expose the practice of some local governments secretly Chen Cang, saying that some localities and departments have built office space in various names such as “business centerâ€, “comprehensive business building†and “civil service center†in order to pass the examination and approval. Evade supervision.
What is the way out?
Under the contrarian trend, the lighting manufacturers have shown their way out.
Huang Pinhua said that many of the counterparts who have done the lighting have shifted their focus from government engineering to the mass consumer market. "The government has a limited amount of engineering and is greatly affected by the policy."
Shi Yan, general manager of a lighting company in Shanghai, told reporters that emerging markets are their "secret." The company's export sales accounted for 70% of the total business. This year, it has signed a large order of 100 million yuan with Venezuelan customers. Another government purchase order with similar amount from South Africa has been negotiated successfully. The company's turnover this year rose 30%.
A closer integration of lighting and the home décor industry is also a way out. The person in charge of another Zhongshan Guzhen Lighting Factory said that the future plan is to expand the sales channels into the home store. "The integration of furniture and home appliances is the future direction."
Hua Jingyou, secretary-general of the Electrical Committee of the China Building Decoration Association, said that the current output value of lighting products accounts for 8% of the output value of the entire home decoration industry, while the output value of the Chinese architectural decoration industry has grown at a double-digit rate every year for the past decade.
In 2012, the total production value of the town of Zhongshan Guzhen was 9.8 billion yuan. It is worth noting that the total output value of the local lighting industry reached 15.81 billion yuan, accounting for more than 60% of the national market share.
“In my hometown of Henan, every 10,000 to 20,000 people build a living quarter, and the house rises.†He said that this is an opportunity for the entire building decoration industry, including the lighting industry.
Many traditional lighting companies have turned their attention to the emerging LED industry. At the above-mentioned lamp industry summit, the relevant person in charge of China Lighting Association said that in 2012, the output value of LED lighting appliances in the whole industry was 400 billion yuan, of which one third was electric light source and two thirds were lamps. The daily updated Taobao Index of Zhongshan Guzhen (according to the daily operation data of Taobao and Tmall website) shows that the turnover index of LED lamps in the last 30 days increased by 7.9% from the previous month and increased by 247.3% compared with the same period of last year. The provinces that purchase the most LED lamps are Guangdong (accounting for 18.85%), and the second is Jiangsu (accounting for 7.86%).
Despite this, due to increased competition and increased transparency in the industry, the profit of LED lights is also shrinking. The Ali Index (calculated from the basic data of Alibaba's daily operations) shows that the price of LED lamps has been falling all the way this year, while the supply index has been climbing.
It should not be overlooked that in this industry that still relies heavily on government subsidies, the troubles of growth have already appeared. Last week, some Dongguan LED company executives told reporters that the production capacity of this industry has been seriously oversupplied. In the harsh market competition, a large number of enterprises in Dongguan and Shenzhen have closed down. They believe that the reason why the LED industry has come to today is partly that it is spoiled by excessively favorable policies.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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