On December 14, 2012, Liu Erzhuang, general manager of CREE China, an international LED chip giant, was very happy.
Because Cree beat the competition in the 2012 High-tech Golden Globe Awards and the annual LED Good Product Selection event, it won the Golden Globe Award for the world's best LE D high-power device (white light) supplier. The most important thing is that the award was selected by nearly 300 lighting manufacturers.
Leading the transformation of L ED lighting is the mission of Cree. At present, the LED industry is facing the dilemma of overcapacity. But Liu Erzhuang believes that overcapacity is only a phased one. "The penetration rate of LED lighting has not reached 10%. At present, there is a surplus of LED industry in China, which is only a stage of overcapacity." Liu Erzhuang said in an exclusive interview with "New Industry" that although the staged overcapacity in the industry will form a fierce price war, But it will also promote innovation and progress in the LED industry.
Benefiting from the growth of the mainland LED market, Cree's performance has rapidly increased, and the mainland has become the largest market for Career. From the proportion of revenue in the past five years, the mainland market accounted for more than 30% of Cree's total global revenue.
"New Industry": Due to the overcapacity of China's LEDs, the performance of many LED listed companies in mainland China is not satisfactory. In the first quarter of fiscal 2013 (July-September 2012), the income of the tax was 3.158 billion US dollars, a year-on-year increase of 17%, and the gross profit margin level increased slightly. May I ask how Curry is going against the market?
Liu Erzhuang: Customers always choose products with higher cost performance. Cree has been reducing product costs through technological innovation.
The LED chip light efficiency was only 22 lumens per watt in 2004. Now, the chip light efficiency level of Cree's mass production has reached 200 lumens per watt, and the experimental value has reached 254 lumens per watt. In 8 years, the light efficiency has increased by 9 times.
At the same time, the average price of LEDs of the same wattage has fallen by a factor of three. Therefore, from the overall price/performance ratio of LED lighting products, it has increased by 27 times in 8 years. The above data also confirms that "science and technology are the primary productive forces."
"New Industry": But many LED lighting application manufacturers still think that Cree's LED chips are more expensive.
Liu Erzhuang: We need to comprehensively and completely measure the cost of LED lighting. For example, in the field of street lamps, LED street lamps have more initial investment than traditional street lamps. However, through the savings of electricity tariffs, the cost can be recovered in about two years, so LED street lamps are very competitive.
With Cree products, you can achieve higher lighting performance and high reliability, users can use a smaller number of LED devices to reduce system cost and achieve multiplier value. Cree products have high reliability and save customers a lot of money in post-maintenance. At the same time, the brand value and technical patents of Cree products help customers to obtain greater value-added products and intellectual property protection, and expand sales and influence in domestic and foreign markets.
"New Industry": Now the industry is discussing the overcapacity problem in the LED industry. There are even opinions that the LED industry may follow the footsteps of the photovoltaic industry. Excuse me, how do you view the overcapacity problem in the industry?
Liu Erzhuang: I don't think there is overcapacity in the LED industry. Because the penetration rate of LED lighting products is less than 10%, 90% of the market is still to be developed. Therefore, the current overcapacity is only a staged problem. The staged production capacity has increased rapidly, and the market has not yet fully digested.
Staged overcapacity is a normal thing in the early stages of an industry's development. Staged overcapacity can cause price chaos, but it also promotes technological innovation and progress in the industry. If the market is competitive, the price of the product will fall.
If you look back 5 years later, the price of the product has not dropped, I believe this industry must not be healthy.
Unfinished:
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