"The chip manufacturers in the upstream of China's LED lighting industry will usher in a fierce reshuffle period in 2013. The downstream lighting application companies are caught in the price war, and the profit margin is greatly squeezed." On January 10, China Lighting Association Chen Yansheng, chairman and secretary-general and senior engineer, said.
LED penetration into home lighting
"According to the previous statistics, there are 8,000 lighting manufacturers in the country, but with the rise of LEDs in recent years, there are more than 10,000 domestic lighting manufacturers." Chen Yansheng listed this set of data, intended to show LED lighting. The prosperity of the market.
With its advantages of high brightness, low heat, long life, non-toxicity, and recyclability, LED is known as the most promising green lighting source in the 21st century. In recent years, China has vigorously promoted green lighting, and on October 1, 2011, it issued the “Government Announcement and Roadmap for Eliminating Incandescent Lampsâ€. In July 2012, the “12th Five-Year Plan for Semiconductor Lighting Technology Development†issued by the Ministry of Science and Technology clearly stated that by 2015, a number of pilot demonstration cities and characteristic industrialization bases will be built to form an internationally competitive The overall goal of the semiconductor lighting industry. Today, LED lighting is rapidly spreading in the field of public facility lighting, and is gradually infiltrating into the commercial lighting, office lighting, and home lighting markets.
Industry has not yet reached maturity
"As early as 2001, it was suggested that with the improvement of luminous efficiency, LED lighting will have a revolutionary impact on the global lighting industry, but LED lighting is not a mature industry at present." Chen Yansheng pointed out.
In Chen Yansheng's view, companies in the LED lighting industry chain are not doing well. The upstream manufacturers of LED chips that rely on technology to survive lack technical advantages. "If the technology is divided into three levels, then the European and American countries that currently master the core technology and Japan are at the first level, South Korea's Samsung, LG, etc. belong to the second echelon, while the Chinese enterprises are still in the third level." The number of packaging companies is large and the scale is small.
In 2012, compared with 2011, the LED lighting market increased “output, but sales did not increase, and profits also fell sharply.†The lighting application companies in the downstream are more competitive. "There is no such thing as a manufacturer in China that has LED lighting." Chen Yansheng said, "The upstream technology requirements are high, the capital investment is large, and the middle reaches do not make money. So they all think of downstream cups; on the other hand, traditional lighting. In order not to be eliminated by the market, the company has also begun to actively switch to the LED lighting market. In addition, many well-funded enterprises have seen the future of LED lighting, and they have also set foot in it."
How to break free from the price war
Enterprises have entered the market and brought unprecedented prosperity to the industry, which has also brought endless troubles to enterprises. Dongguan Youmei Power Equipment Co., Ltd. encountered this problem. Zhang Yafei, the general manager of the Beijing branch of the company, said: "Some dealers are very strict with the price control, and even propose to reduce the quality to reduce costs." In a dilemma, "If you cater to the requirements of consumers, doing low-end products will undermine the brand image of the company; if you do not reduce costs, the profits of the company cannot be guaranteed. In this case, what should we do?" There are so many small factories and workshops with only a few dozens of people. The products produced can sell for ten or even a few dollars."
However, such products cannot be guaranteed in terms of quality. In the long run, the overall reputation of the LED lighting market will be destroyed. What should we do in this case? ""what should we do? "This is actually a question that most LED lighting companies are thinking hard. Chen Yansheng's suggestion is: "The LED lighting industry is time to return to rationality, and then there will be some mergers and acquisitions. At this time, relying on price wars and lowering quality is to dig graves, fight technology, and fight innovation to gain a long-term foothold. In the next few years, traditional energy-saving products and LED lighting products coexist. The luminous efficiency of traditional energy-saving bulbs is about 60 lumens per watt, and LEDs gradually reach 130 lumens per watt, which is the opportunity for LED lighting to replace traditional energy-saving bulbs. For LED lighting companies, the luminosity of LED lighting products is far greater than 130 lumens per watt, perhaps just to find the survival chip.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
LED penetration into home lighting
"According to the previous statistics, there are 8,000 lighting manufacturers in the country, but with the rise of LEDs in recent years, there are more than 10,000 domestic lighting manufacturers." Chen Yansheng listed this set of data, intended to show LED lighting. The prosperity of the market.
With its advantages of high brightness, low heat, long life, non-toxicity, and recyclability, LED is known as the most promising green lighting source in the 21st century. In recent years, China has vigorously promoted green lighting, and on October 1, 2011, it issued the “Government Announcement and Roadmap for Eliminating Incandescent Lampsâ€. In July 2012, the “12th Five-Year Plan for Semiconductor Lighting Technology Development†issued by the Ministry of Science and Technology clearly stated that by 2015, a number of pilot demonstration cities and characteristic industrialization bases will be built to form an internationally competitive The overall goal of the semiconductor lighting industry. Today, LED lighting is rapidly spreading in the field of public facility lighting, and is gradually infiltrating into the commercial lighting, office lighting, and home lighting markets.
Industry has not yet reached maturity
"As early as 2001, it was suggested that with the improvement of luminous efficiency, LED lighting will have a revolutionary impact on the global lighting industry, but LED lighting is not a mature industry at present." Chen Yansheng pointed out.
In Chen Yansheng's view, companies in the LED lighting industry chain are not doing well. The upstream manufacturers of LED chips that rely on technology to survive lack technical advantages. "If the technology is divided into three levels, then the European and American countries that currently master the core technology and Japan are at the first level, South Korea's Samsung, LG, etc. belong to the second echelon, while the Chinese enterprises are still in the third level." The number of packaging companies is large and the scale is small.
In 2012, compared with 2011, the LED lighting market increased “output, but sales did not increase, and profits also fell sharply.†The lighting application companies in the downstream are more competitive. "There is no such thing as a manufacturer in China that has LED lighting." Chen Yansheng said, "The upstream technology requirements are high, the capital investment is large, and the middle reaches do not make money. So they all think of downstream cups; on the other hand, traditional lighting. In order not to be eliminated by the market, the company has also begun to actively switch to the LED lighting market. In addition, many well-funded enterprises have seen the future of LED lighting, and they have also set foot in it."
How to break free from the price war
Enterprises have entered the market and brought unprecedented prosperity to the industry, which has also brought endless troubles to enterprises. Dongguan Youmei Power Equipment Co., Ltd. encountered this problem. Zhang Yafei, the general manager of the Beijing branch of the company, said: "Some dealers are very strict with the price control, and even propose to reduce the quality to reduce costs." In a dilemma, "If you cater to the requirements of consumers, doing low-end products will undermine the brand image of the company; if you do not reduce costs, the profits of the company cannot be guaranteed. In this case, what should we do?" There are so many small factories and workshops with only a few dozens of people. The products produced can sell for ten or even a few dollars."
However, such products cannot be guaranteed in terms of quality. In the long run, the overall reputation of the LED lighting market will be destroyed. What should we do in this case? ""what should we do? "This is actually a question that most LED lighting companies are thinking hard. Chen Yansheng's suggestion is: "The LED lighting industry is time to return to rationality, and then there will be some mergers and acquisitions. At this time, relying on price wars and lowering quality is to dig graves, fight technology, and fight innovation to gain a long-term foothold. In the next few years, traditional energy-saving products and LED lighting products coexist. The luminous efficiency of traditional energy-saving bulbs is about 60 lumens per watt, and LEDs gradually reach 130 lumens per watt, which is the opportunity for LED lighting to replace traditional energy-saving bulbs. For LED lighting companies, the luminosity of LED lighting products is far greater than 130 lumens per watt, perhaps just to find the survival chip.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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