LED theory "small" to sell! It’s just talking about it...

[Text / Gaogong LED Xu Chaopeng] As early as two years ago, when people talked about an anecdote about the "LED bulbs on the LED market" in Zhongshan market, perhaps it was just a smile. The Zhongshan market is famous for its low price, let alone only It’s just a matter of example.

However, time came to 2015, when Philips began to "sell" their own products, when the domestic T8 lamp price fights bloody battle again and again, the LED industry is in full swing, who can still live?

According to relevant research, in 2015, the price of LED bulbs equivalent to 40W incandescent lamps in China was reduced from 4.9 US dollars to 4 US dollars, a decrease of 16.67%; the price of LED bulbs equivalent to 60W incandescent lamps fell from 9.4 US dollars to 9.4 US dollars, down 32.37 %. In contrast, the price of LED bulbs equivalent to 40W incandescent lamps dropped from 12.1 US dollars to 10.6 US dollars, a decrease of 12.4%; the price of LED bulbs equivalent to 60W incandescent lamps decreased from 16.1 US dollars to 14.5 US dollars, down 9.94%. .

"As can be seen from the data, although China's regional and global market prices have declined to varying degrees, China's regional price decline is relatively large, and relatively small worldwide, and this has become the current pattern of LED global market. Li Shengfa, senior analyst of Gaogong LED Industry Research Institute, said.

Indeed, starting in 2015, perhaps the LED industry people feel what is the real fast price war. At the same time, along with the series of bankruptcy tides, mergers and acquisitions tides, shuffling, and fixed patterns, it is true that if we follow this trend, the LED theory "sells" to sell, but it is just talking about it!

"Analysis of this price war, I think the first to be blamed should be the expansion of the chip companies. Domestic expansion of Sanan Optoelectronics, Aoyang Shunchang and other companies, however, in the global economic downturn, the LED industry is gradually saturated At the same time, production capacity has also begun to be excessively released, and it is not surprising that price cuts are naturally impossible," said a well-known person in a certain industry.

Secondly, another reason is the promotion of international giants. The giants have followed the "China's national conditions" and began to capture the Chinese market with low-cost strategies. In this process, the most worthy of the people of the country is that domestic companies such as Op Lighting, Mulinsen, Foshan Lighting, etc. are not serious. They used this price war to make a good brand marketing, which played a role in icing on the sales of their products, and it worked well from the current situation.

"I think that to some extent, this price war is actually beneficial. It will help eliminate those companies that do not pay attention to quality, so as to establish industry standards and make the LED industry develop healthily. At the same time, low The reshuffle of the industry, which is born with the price, is also an important step in the development of the industry. What we should also see is that the current industry mergers and acquisitions and integration are not just a single corporate behavior, but an industry, capital and As a result of market linkage, this will have far-reaching impact on the good development of the lighting industry in the future.” Chen Bin, chairman of Mingcheng Technology, mentioned.

“Looking forward to 2016, the price decline trend of the LED industry will continue, but compared with 2015, the decline will not be too obvious. Under this trend, what our LED companies should do is to weigh the market demand, On the basis of R&D costs, material costs and manufacturing costs, it is not blindly reducing prices for the occupation of the market,” said Lin Yan, deputy general manager of Sanxiong Aurora. “At the same time, companies should also learn to use effective means to avoid unnecessary prices. In the war, we will look for opportunities for synergy and continuously strengthen our comprehensive strength to gradually increase the market value of the company. This is the most suitable role we play in an era of competition and cooperation."

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