How Many Chinese Lighting Companies Will Escape In The End of 2010?

Mining Lights It is an indisputable fact that the development of Chinese lighting industry is not booming this year. In the background of macroeconomic policy, the real estate market cooled rapidly from the first heat, consumers kept wait-and-see attitude and accordingly it cooled suddenly. As household lighting industry, it maintains absolutely close contact with real estate industry, consumers don't buy houses or real estate speculators idle their houses, naturally, not to mention home decoration, it makes furniture, lighting and other industries suffer erosion by the cold air in different degrees. Coupled with the weak market consumption and the declining purchasing power that caused by the financial crisis after-effects, the RMB appreciation also has weakened the foreign trade market competitive power of lighting products in different degrees, in the inflationary Mining Lights, the social economy also has made consumers' enthusiasm weaken. So since the second half of 2010, many lighting companies expressed in varying degrees that their sales performance have appeared greater decline, and the sales profit also has shrunk. For those small and medium enterprises with weak anti-risk ability, they are lack of strain capacity and measures adjustment in adverse market environment, they are in the wandering state just like have suffered hurricane-ridden, and even bankruptcies.
Of course, we can not rule out some malicious escape phenomenon, because in lighting industry it is common, many non-performing companies default supplier's payment for goods in excuse of the quantity of low-end products is large, or overstock supplier's payment for goods with paying each one month, two months or three months; or produce a lot of junk products, then put on the market quickly and cash out for their escape. From the beginning of this year, there are a lot of escaping enterprises or rumors in lighting industry, especially after the Shunda Escape incident, during the few months some rumors that lighting enterprises bankrupt or escape have been come out in succession. Recently, it is said that a lighting company with some scale has closed up, it once known as the enterprise with a hundred million yuan annual sales and it also has escaped, so we really do not know who will follow its footstep next!

For the escape phenomenon in lighting enterprises, the upstream suppliers and related supporting service providers bear the brunt of suffering the greatest harm. Especially those small-scale suppliers, they have to accept manufacturers' unequal conditions for their survival and development, such as paying each one month, two months and so on, the loan also is in the form of promissory notes. It has laid mines for production and management, if their service customers escape, by that time, all will suffer great drag jointly. In fact this escape phenomenon will not only hurt those associated supporting service businesses, it is also harm for the whole industry's image and reputation.
From the common escape phenomenon in lighting industry, we can easily see that the industry also exist many root cause of trouble, and it is in sub-health industrial environment state. Many enterprises have a weak basis generally in their development process, they lack adequate immunity and naturally lack anti-risk ability. However, under the overall situation, many corporate executives are mostly the type of carrying coals to Newcastle, their business management is led by so-called experience-style management, but lack scientific and advanced management knowledge and system, as well as process control mode, they easily get in self mud and the deviation of direction in operation and management.
Although from the normal social economic life, the failure or mismanagement is the enterprise's own behavior, but the rise and fall has some specific reasons. However, if such escape phenomenon often happens in an industry, what it reflects is not only the problem of individual enterprise's rise and fall, it also involves the destruction of the entire industry's integrity system, furthermore it is pure fraud. Actually, as for the prevention of lighting enterprises' escape phenomenon, some upstream support services enterprises can be easy to find it supposedly, if they can operate according to scientific process financial system strictly, collect more dynamic customer information, adjust the payment settlement and related warning mechanism with customers in time, they will naturally avoid the risks that brought by the escape phenomenon.