LED lighting needs to jump out of the price war quagmire

On January 10, at the 74th China New Energy Salon organized by the All-China New Energy Chamber of Commerce, Chen Yansheng, deputy chairman and secretary general of the China Illuminating Engineering Association and senior engineer, said: "The chip manufacturers in the upper reaches of China's LED lighting industry will be In 2013, the tragic reshuffle period ushered in. The lighting application companies in the downstream were plunged into a price war and the profit margins were greatly squeezed. “In a short sentence, the green lighting industry is in the best position.

LED penetration into home lighting "According to previous statistical data, there are 8,000 lighting production companies in the country, but with the rise of LED in recent years, there are more than 10,000 domestic lighting production companies." Chen Yansheng listed this group of data, It is intended to demonstrate the prosperity of the LED lighting market.

With the advantages of high brightness, low heat, long life, non-toxic, recyclable, etc., LED is known as the most promising green lighting source in the 21st century. In recent years, China has vigorously promoted green lighting and issued the “Government Notice and Road Map for Phase-out of Incandescent Lamps” on October 1, 2011. In July 2012, the "Twelfth Five-Year Plan for the Development of Semiconductor Lighting Technology" issued by the Ministry of Science and Technology clearly stated that by 2015, a batch 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 gaining popularity in the field of public facilities lighting, and has gradually infiltrated the commercial lighting, office lighting and home lighting markets.

Industry has not yet reached maturity, "as early as 2001, some people proposed that with the improvement of luminous efficiency, LED lighting will have a revolutionary impact on the global lighting industry, but at present LED lighting is not a mature industry." Chen Yansheng pointed out.

In Chen Yansheng's view, the days of business in the LED lighting industry chain are not very good. The technology-based LED chip upstream manufacturers lack technical advantages. "If the technology is divided into three levels, the European and American countries currently mastering the core technology and Japan are at the first level, South Korea's Samsung, LG, etc. are in the second tier, and our enterprises are still in the third tier." There are many packaging companies and they are small in size.

In 2012, compared with 2011, the LED lighting market has “increased output, but sales have not increased, and profits have also dropped significantly.” The competition for lighting application companies in the downstream is even fiercer. "There is no such thing in the world as China, so there are so many companies doing LED lighting." Chen Yansheng said, "the upper reaches of the technical requirements of high capital investment, the middle reaches do not make money, so they all thought of the downstream split cups; the other hand, the traditional lighting In order not to be eliminated by the market, enterprises have also begun to actively switch to the LED lighting market. Coupled with many well-funded companies to see the promising future of LED lighting, they also have to get involved.”

How to get rid of price war quagmire companies get together and bring unprecedented prosperity of the industry, but also to the company has brought endless troubles. Dongguan Youmei Power Equipment Co., Ltd. encountered this problem. Zhang Yafei, general manager of the company’s Beijing branch, said: “Some distributors have strict control over prices, and even offered to reduce quality to reduce costs.” This traps companies In a dilemma, "if we cater to consumers' requirements, doing a low-end product will undermine the brand image of the company; if we do not reduce costs, the profits of the enterprise cannot be guaranteed. In this case, what should we do?" There are so many people in the industry that there are only a few dozen small workshops, and the products produced can sell for ten dollars or even a few dollars.

However, such products cannot be guaranteed in terms of quality. In the long run, the damage will be the overall reputation of the LED lighting market. What should we do in this situation? ""what should we do? "This is actually a problem that most LED lighting companies are pondering over. Chen Yansheng's proposal is:" LED lighting industry is the time to return to rationality, and then there will be some mergers and acquisitions, integration. At this time, relying on price wars and reducing quality are self-digging graves, spelling technology and fighting innovation can be based on a long-term basis. "In the next few years, traditional energy-saving products and LED lighting products coexist. The traditional light-emitting efficiency of energy-saving light bulbs is about 60 lumens per watt, LED has gradually reached 130 lumens per watt, which is the opportunity for LED lighting to replace the traditional energy-saving light bulbs. For LED lighting companies, the luminous rate of LED lighting products is far greater than 130 lumens per watt. Perhaps it is the time to find a survival chip.