LED companies rely on the government to rely on themselves


Wang Donglei, chairman of Dehao Runda, once said that although government subsidies continue, the intensity and intensity of subsidies are decreasing. If there is no government subsidy, there will be an impact on the profitability of the enterprise. However, if the enterprise is to develop healthily, it can rely on government subsidies. In the initial stage, it will have little meaning for the long-term operation of the enterprise. The enterprise will ultimately have to be self-reliant.
In 2013, government subsidies were definitely a hot topic for the lighting industry. Sanan Optoelectronics, Dehao Runda, Huacan Optoelectronics, Wanrun Technology, etc., which have benefited from government subsidies to varying degrees, such as the crossing of the river, among them, Sanan Optoelectronics has been subsidized by the provincial, municipal, county and other governments for three years. More than $3 billion was set aside.
At the beginning of 2014, many companies have announced information on financial subsidies and funding from governments at all levels. For example, on January 29, Sanan Optoelectronics Xiamen Subsidiary received MOCVD equipment from Xiamen Siming District Government, including 4 four-chamber connected machines 30 subsidies of 24 million yuan; Ruifeng Optoelectronics announced on the evening of February 12, the company Received 4.95 million yuan from the Shenzhen Municipal Finance Committee; Xinhaiyi Holdings, a subsidiary of Xinhaiyi Holdings, received 30 million yuan of technology development funds from the Suzhou Industrial Park Science and Technology Bureau and the Finance Bureau on February 13.
From 2013 to 2014, the subsidy policies introduced by the government have caused controversy. Some insiders believe that at this stage, the key period for domestic LED lighting to cope with market innovation is that the state has introduced relevant support policies for LED lighting industry and subsidized part of subsidized funds, which can effectively help enterprises tide over difficulties and help them develop rapidly. Some lighting people have proposed that government subsidies have stimulated the rapid development of the LED industry. However, excessive subsidy support has caused enterprises to lose market sharpness and affect orderly market competition. On the other hand, it has also caused the phenomenon of deviating from the actual situation. And breed a scam. In addition, government subsidies favor large enterprises and leading enterprises, and it is difficult for SMEs to get a share.
Government subsidies appropriately weaken the market to play a greater role. In the early days of LED lighting development, the role of government subsidies in guiding and supporting the upstream chip industry has been achieved. Now that chip technology has matured and costs have reached a point of explosion, related companies should turn government support into productivity. If the government subsidized funds can't become the self-profit ability of the enterprise, but continue to seek government subsidies or capital market money, such enterprises are already in jeopardy, and how can they gain the trust of customers? How can enterprises achieve long-term development?
For the application market, appropriate government subsidies are also conducive to the development of enterprises, but compared to the previous energy-saving lamps, the operation is much more difficult: on the one hand, the cost of LED products changes greatly, taking engineering lighting as an example: from bidding to The implementation of the project will take a long period of time. The result may be that the price at the time of bidding is not so attractive when it comes to product procurement. On the other hand, the biggest change in LED application products is the integration of light source lamps. This greatly increases the types of products, and the inconsistent product specifications produced by each company, making the technical standards for bidding difficult to unify and variety, and the difficulty of bidding is greatly increased.
In general, the LED lighting industry has overcapacity, the role of government subsidies should be weakened, and the market should play a greater role at this stage. In this way, enterprises can be more confident and energetic, and the lighting industry can show a more positive upward trend.
Relying on the government to supplement blood is not as good as its own blood. Government subsidies are very beneficial for a growing enterprise, especially small and medium-sized enterprises. As the company has just begun to enter the development track, if the government can give certain financial support, the development of the enterprise can be described as a charity. However, such small and medium-sized enterprises must have certain advantages or patents, so it is relatively easy to apply for government subsidies.
In fact, government subsidies are a double-edged sword. Government subsidies are generally given financial support. The key is how companies allocate this subsidy. Some enterprises use unfair means to defraud government subsidies for their immediate interests, but they refuse to focus on how to strengthen their corporate strength. Although such enterprises can get one or two government subsidies, they will not develop very much in the end. Ok, even it will be abandoned by the market. Therefore, if enterprises want long-term development, they cannot rely on blood supplements, but they must make blood. Only with strong hematopoietic function can they make great progress.
A company that wants to grow bigger and stronger should rely on the company's precise positioning, high-quality products, and good consumer reputation. At the same time, it is also necessary to comply with the needs of consumers for production, and to achieve a win-win situation with the merchants.

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