Shenzhen LED industry export scale ranks first in Guangdong
According to the report released by Nanfang Daily in February 2015, Guangdong LED industry continued an uptrend, taking the lead in domestic LED industry. The LED products manufactured by Guangdong enterprises remained an increasing penetration ratio in global lighting products market, showing a prospective export tendency.
As one of the developed cities of LED industry in Guangdong, Shenzhen has seen a rapid development of the LED industry for recent ten years. Since 2009, the Shenzhen government has given strong support to the city’s LED industry in the aspects of policy, finance, technology investment, and other fields, stimulating around 50 billion RMB of investment fund on the LED industry, as well as bringing in over ten listed LED companies and driving Shenzhen’s LED industry to achieve breakthrough of annual output value of 50 billion RMB.
Guangdong’s LED industry scale ranked first in China in 2014
According to statistics, Guangdong LED industry’s gross output value reached 346.006 billion RMB, seeing a year-on-year increase of 23.09%; the industry scale ranked the first in China.
From the composition of gross output value, the output value of LED lightings reached 77.241 billion RMB, representing the biggest industry scale, followed by LED accessories and materials with an output value of 62.525 billion RMB; the LED encapsulation components ranked third with 51.293 billion RMB of output value.
According to analysis of a specialist of a strategy consulting company, along with the expanding development of the LED industry, the LED production service industry brought in a total output value of 25.916 billion RMB, ranking sixth in the industry scale, but the YOY growth rate was up to 46.97%. The LED industry development also brought a prominent acceleration to relevant businesses like wholesales, logistics, finance, business service, science research, and technology service, etc.
As reported, Guangdong LED accessories and LED lightings saw a steady development last year, respectively holding a growth rate of 7.55% and 6.87%. An insider said: “The growth rate of Guangdong LED lightings is slightly below the average of the national level. The LED lightings are mainly manufactured by manpower. Currently few LED manufacturers have factory production. Restricted by high labor cost, Guangdong LED lightings manufacturing, therefore, is gradually transferring from Guangdong to other provinces and cities, where have lower labor cost.”
Guangdong LED industry saw a favorable prospect of export
According to statistics, in 2014, Guangdong LED products in major regions reached an export volume of 93.875 billion RMB, up by 35.16% comparing to the same period of 2013, accounting for 35.53% of the nation’s LED products export. The export volume of LED products in Pearl River Delta areas accounted for 91.15%. Among these areas, Shenzhen LED export volume was the number one in Guangdong, followed by Zhongshan and Dongguan respectively. Moreover, Guangdong’s LED display screens were mainly from Shenzhen and Zhongshan. Shenzhen occupied the biggest market share. In conclusion, Guangdong’s LED export volume ranked the first in China, possessing a commanding lead among other provinces and cities.
As for the export markets, Asia, Europe and North America still dominate the export markets of Guangdong LED products, accounting for around 90% of Guangdong’s LED products export volume. Asian market reached the biggest export volume of 36.839 billion RMB, increased by 52.20% comparing to 2013; the European and North American markets were also active with a quicker growth. Although the African market is relatively small, the market in African countries still reached growth rate of 83.15%. Thus, the increasing market demand in Africa should not be overlooked.
In addition, Singapore, India, the Czech Republic, Nigeria, Pakistan, Slovenia, Vietnam, Bangladesh, and other countries alike showed their potentials with quick growth of export volume. Although these countries are currently behind the US, Germany and the UK in export volume, as the emerging markets, these countries will have huge profit possibility with their increasing demands for China’s LED products,
Future development tendency of China’s LED enterprises
According to the report, in future, China’s LED enterprises will be split into two types: one type is the technology-driven enterprises led by capitals. These enterprises will primarily manufacture intermediate products or semi-finished products. To these companies, “Cost plus technology” will become their competitive edge. The other type is the downstream LED enterprises of “Innovation application”. These companies will hold their competition advantage with market differentiation.
About BLC:
Best Link Communication (BLC for short) is a personal workshop, which specializes in four service sectors: marketing and communication, English-Chinese translation, publicity outsourcing, and information providing. BLC is self-employed but offers you company-level service with high quality and reliability.
