LED lighting SMEs "internal and external troubles" The next failure is?

Recently, a friend on Weibo broke the news that Sylhe (Foshan) Lighting Co., Ltd. (hereinafter referred to as Syler) has closed down and employees have gone their separate ways. For a time, it has aroused the attention and verification of many industry people. Netizens said that Syler is also considered a high-quality and high-priced engineering lighting first-line brand in China. If the news is true, it will bring another round of chill to the lighting industry.

Syler (Foshan) Lighting Co., Ltd. was founded in 1993 by the Hong Kong Berkin Group and has been in the field of high-quality architectural landscape lighting for 17 years. What is the reason for the closure of Syler? According to a trader, the company is not facing bankruptcy, but the Foshan government said that the location of the factory is in conflict with the construction of the subway. It needs Sylhe to relocate the factory and initially decided to move to Huizhou. Some staff members have not yet decided, and specific news needs further verification.

In fact, this kind of bankruptcy has been repeated in the country, and the reasons for the closure are similar. The previous days of the stagnation, the Brent, and the vision of the collapse of the light, the entire lighting industry is heart-wrenching. From a macroscopic perspective, it is still possible to reflect the current domestic and international economic downturn and continue to explore. From the micro-level analysis, it reflects that the difficult situation of China's SMEs has not improved.

The impact of RMB appreciation
Most lighting companies in the eastern coastal areas are export-oriented enterprises with high dependence on foreign countries. Exports are denominated in US dollars. In the past year or two, the US dollar has depreciated and the RMB has appreciated. Most of the SMEs’ ​​products have low added value, and their profits are very thin. The part of the appreciation of the RMB has been deducted. In fact, the export of physical quantities is negative.

Increase in labor costs
With the rapid growth of China's economy for several consecutive years, the income and treatment of employees in all walks of life have been improved to a certain extent, and the wages and treatment of workers have accordingly increased. Conducted to the corporate level, which is followed by a significant increase in cost pressure. Therefore, the original low-cost strategy of SMEs has been broken.

Rising raw material prices
Since 2008, the prices of coal, electricity, oil and other raw materials and transportation industries have soared, which has increased the operating costs of SMEs. SMEs have become unprofitable, and some even operate in debt, so they have to switch production or stop production. Many lighting companies have begun to consider moving production bases to provinces and cities with lower labor costs in the west.

Lack of technological innovation
According to the reporter's understanding, the entire "light drought" of the lighting industry is serious, and small and medium-sized lighting enterprises are more difficult to attract the talents needed for innovation than large enterprises, resulting in weak technological development capabilities and old-fashioned management models for small and medium-sized lighting enterprises. Therefore, the success rate of technological innovation is low. Many small and medium-sized lighting companies are attached to large-scale enterprises and provide services for large-scale lighting enterprises. Therefore, they are more passively adapted in terms of technology development and product development. Together with the lack of innovative talents and funds, they make their own economic strength and technology. The strength is weak, so it is difficult to attract universities and research institutes to cooperate with them.

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