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Founded in 2004, Ford Lighting has successfully applied LED technology to create a series of innovative and environmentally friendly LED energy-saving light sources. Its sales network covers more than 90 countries and regions in Europe, Asia Pacific, Middle East, Africa, North America and South America. In 2013, Ford's single-chip SMD light bar to the current full range of high-end LED home products this year, the LED lighting industry has ushered in a chill: Fortis lighting legal representative Wang Gongjie released the Ford's bankruptcy liquidation statement Ford has become the first bankrupt LED lighting company in 2017. Twelve years of old LED lighting collapsed. Ford Lighting was founded in 2004. It successfully applied LED technology to create a series of innovative and environmentally friendly LED energy-saving light sources. The sales network is spread throughout Europe, Asia Pacific, Middle East, Africa, North America and South America. In more than 90 countries and regions around the world, in 2013, Ford has successfully completed the transformation and upgrading of its products from the original single-strip light bar to the current full range of high-end LED home products. It is a well-known environmental protection and energy-saving lighting product designer. , manufacturer and distributor. At the peak of the period, Ford has increased tens of millions of shares to carry out share reform and brand upgrade, and invited Hong Kong film star Liu Qingyun to do Fortes spokesperson to direct advertising to the most influential CCTV in China. However, the situation has turned sharply since 2014. At that time, due to the lack of judgment on the economic situation, the company had a short-term cash flow problem. In 2015, in order to obtain the road, Fords expanded to four major operation centers in China, and the products went deep into the operation center. In the region and the national third- and fourth-tier markets, more than 10 provincial-level agents have been developed, and more than 500 Ford dealers have been developed. Although many efforts have been made, Ford Lighting has not been able to survive. On January 4, 2017, Ford's lighting legal representative Wang Gongjie issued a Ford's bankruptcy liquidation statement, and the 12-year-old lighting company collapsed. The bankruptcy of Fors Lighting reflects many of the problems of LED lighting companies today, and we analyze them one by one. The triangular debt problem caused the capital chain to break. The most direct reason for the bankruptcy of Forts was that the triangular debt problem caused the capital chain to break. In fact, orders have been in full condition before the announcement of bankruptcy. However, most of the money was owed and even became a bad debt. The raw materials continued to skyrocket and the price of the products did not increase. The profits continued to dilute, which eventually led to the break of the capital chain and the inability to pay the supplier's payment in time. The supplier therefore refuses to supply raw materials. Under such circumstances, even if Ford was unable to produce the order, the payment was owed, and he had to default on the supplier's money, which was insolvent, which formed a vicious circle and eventually the company went bankrupt. The so-called triangular debt refers to the common name of delinquent payment between enterprises that has been paid through the collection of the commitment period or the agreed payment period, and is the chain debt relationship formed by the default between the enterprises. It is reflected in the LED lighting industry, that is, the customer defaults on the payment of the application manufacturer. The application manufacturer defaults on the payment of the packaging factory, and the packaging manufacturer then defaults on the payment of the upstream chip and the auxiliary material factory. The original normal industrial chain has become a risky debt chain. The triangular debt problem will be more serious in the LED industry because of the current overcapacity of LED production capacity, and the market competition is extremely fierce. In order to pull customers, the company has begun to fight for service, fight for the payment cycle, fight the price, and fight the lowest profit because the profit is very low. Therefore, there are not many funds that can be turned over on the books, which may lead to the break of the company's capital chain, which will cause the company to fall into a ruin. Lack of core brands can't cope with raw material price increases The price increase of raw materials in 2016 also aggravated the closure of Ford Lighting. Looking back at the price increase of LED lighting industry, since March 2016, some LED chips have been rising by about 10% under the leadership of Jingdian and Sanan. Then Mulinsen, Cinda Optoelectronics, and Guoxing Optoelectronics will increase the price of RGB lamp beads for display by 5% to 10%. At the same time, this price hike has also rapidly spread to raw materials, substrates, and the price of precious metals such as gold and silver continue to rise, resulting in higher costs for the core components of gold and silver stents. At the same time, labor costs continue. increase. Nowadays, aluminum alloys have skyrocketed since October 2016 after the supply and demand of copper foils have driven the price of aluminum substrates. According to industry insiders, aluminum has risen by about 40%, steel has risen by 20%, and aluminum substrates have risen by 40%. The rise in aluminum prices has directly affected the price of aluminum parts, such as aluminum substrates, lamp housings and radiators. The price of some products has increased by 20%. For example, the price of aluminum casings for LED drive power has risen, and the cost of power accessories has risen by 0.2-0.3 yuan. According to the information on the official website of Fortes, the main products of Fortes are: LED light strip, LED bulb, LED light cup, flat light, flood light and other product series. These products are strictly in the sphere of influence of professional foundry factories. These public model products have formed a relatively complete professional foundry system in the industry. The price is almost transparent, the pursuit of cost performance, is cost competitiveness. The rising price of raw materials is undoubtedly a fatal blow to Ford's unbranded foundry, because it does not have the core competitiveness of the products, and can only rely on the price to make money, once the raw materials rise, but The price of the product cannot rise, and finally the company cannot be profitable and can only be eliminated. The failure of OEM to turn to the brand may be a realization that Ford needs to build its own exclusive brand. Since 13 years, Fortes has been seeking to transform the brand from OEM, and has begun to invest heavily in advertising, even inviting Hong Kong film star Liu Qingyun to endorse CCTV broadcasts, etc., and expanded to four major operation centers in China. The products have penetrated into the regional and national third- and fourth-level markets of the operation center, and more than 10 provincial-level agents have been developed, and more than 500 Ford dealers have been developed. However, this is obviously a slant of the sword. A large amount of advertising investment cannot save the shortcomings of the serious homogenization of Fors products. The lack of investment in product differentiation and personalization makes it impossible for Ford to change the essential problem. Xie Zhengwu of Yunzhiguang Lighting Micro-Classroom believes that brand promotion will not bring more bonus effects to Ford's OEM products, and may even be excluded from the generation of large enterprises because of its own brand effect. Outside of the scope of consideration, no one is willing to train their future competitors. Xie Zhengwu said that Ford is determined to build a popular home lighting brand, and it is necessary to adjust the product line on the basis of the original production line, and vigorously expand the featured products that match its own brand positioning. For example, expand the complete and complete household LED spotlights and LED ceiling lamps to meet the needs of dealers in different regions and different styles. Continuously carry out the perfect upgrade of the standard product series, create products that meet the characteristics of its own brand, and cooperate with the brand to build momentum, in order to retain the dealer after the investment. Four major revelations As the LED lighting industry becomes more and more mature, more and more ills are revealed: high product homogeneity, fierce price wars, low market, low profits, rising labor and raw material prices, etc., especially Since 2016, the soaring prices of raw materials, the state's environmental supervision, and the implementation of the producer responsibility extension system have made some of the less competitive LED lighting companies face the crisis of being eliminated. The era of profiteering in the LED lighting industry has passed. Today A Ford has fallen, and more Fortes will fall in the future. The bankruptcy of Ford has exposed the problems of many LED lighting companies, and we have to be alert to how the LED lighting industry should go in the future. First, choose quality partners and be wary of triangular debts. LED lighting companies should carefully select partners and customers, and choose a friendly company with high credibility as one of the important measures to avoid falling into the triangle. In addition, the first payment system is also worth learning for LED lighting companies. Nowadays, more and more factories have adopted the first type of goods: the payment to the delivery can allow the customer to carefully consider the quantity and quantity of the goods when they purchase the goods, and do not randomly purchase the goods, such as the arrears may have random purchases; The goods can allow customers to sell products more carefully; in addition, the delivery can make the relationship between the cooperative companies better, because the cash customers must be the most cherished customers, the company will return the greatest preferential strength. Second, differentiated and personalized development. All along, the serious homogenization of LED lighting products has led to a fierce price war, which has led to the continuous fall of countless small and medium-sized LED lighting companies. Nowadays, the competitive market environment of simple competition prices has gradually become more technical and reliable. Sexual transfer, the development of products with independent characteristics is the key to whether enterprises can maintain their market position. The differentiation and individualization of LED lighting products can help enterprises to create brands, increase market recognition and win the market. Chen Xuesong, founder and CEO of Chengdu Yuchuang Technology, said that the products of major domestic manufacturers tend to be homogenized, resulting in a meager profit for the company, and the winner of the price war can not obtain more profits. Particularly important. Third, create a brand effect and respond to rising prices of raw materials. It turns out that only doing OEM work, the road without independent brands will only make the company lose its market initiative, and it is very passive. Del Cheng, general manager of Delcheng Technology, said: Today, the electronics industry is unpredictable. The layman does not understand the technical content of the products. Generally, the brand will be selected to ensure the quality. The products of the same technical content will also have a reputation. Branded. Fourth, enter the high-tech field. For lighting companies with capital, technology and channels, we can consider actively entering the high-end lighting fields such as plant lighting and automotive lighting. At the same time, the intelligent lighting that has been fired is also a recognized place in the industry. According to the prediction of the Chinese Academy of Agricultural Sciences, the demand for agricultural LED lighting and its control equipment will reach several billion yuan in the next five years, and will reach 10 billion in 10 years, with an annual growth rate of 20% to 50%; The total size of the semiconductor lighting industry is over 100 billion yuan. According to the data, the market value of LED lighting for interior lighting reached 605 million US dollars in 2015, and is expected to decline to 586 million US dollars in 2020. LEDs for exterior lighting show a state of rapid rise. The market value of LED lighting for exterior lighting reached 1.21 billion US dollars in 2015. It is expected to grow to 2.13 billion US dollars by 2020 and a compound growth rate of 12% from 2015 to 2020. According to the data analysis, by 2020, the overall market for intelligent lighting is expected to reach 8.14 billion US dollars, and the annual compound annual growth rate from 2015 to 2020 is 22.07%.