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Moving Is Not Solving the Fundamental Problem of LED Area Light Companies

If an led area light company is already earning less, even if it moves to Dongguan or other remote inland cities to reduce cost, it’s still hard for it to survive. Why is it? In the LED Lighting market, if a company is getting weaker, it’s not the fundamental solution for it to reduce labor cost and rent. While in the aspect of the development of the whole LED Lights manufacturing structure, some companies in Shenzhen have become global enterprises. There have been LED lights manufacturers with their “production, operation and R&D” departments distributing in different regions (even countries). Now some LED lamp s enterprises are headquartered in Shenzhen and moving their sales terminals or production to nearby cities. It can also be regarded as a way of industry chain restructuring.

Except for leading enterprises, recently more than 15000 enterprises are also moving out of Shenzhen, which has reflected a series of problem in city development. The money spent in research and development in Shenzhen is 4% of the total GDP and it will continue to grow. http://www.elitesemicon.com/newsone.asp?t1=1001