With led high bay technologies getting more transparent, the value of technology has relatively reduced. The LED Lights industry has entered a low price and scale oriented age. In the led capsulation there is even a “one billion line” which means if the LED capsulation enterprise failed to make one billion yuan in 3 years, the enterprise will be on the line. Therefore, the capacity expansion in LED Lighting encapsulation enterprise is the most astonishing in LED industry.
Now the concept of making money in this society has changed. Entrepreneurs are now earning money from investors rather than from customers. They attract customers with low prices and cashback to earn market share, and thus they can persuade investors to invest with their large market valuation. This concept has also affected LED industry. Moreover, if LEDlamps enterprises have acquired a market share large enough, they are more likely to gain subsidies and rewards from local governments.
LED enterprises are experiencing both glory and helplessness. Although the demand has always surpassed supply, the revenue hasn’t really increased accordingly.