International Lighting giant Chinese withdrawal LED market is too strong or is going to collapse?
Source: Date:2018-03-28

Chinese role of the world's largest LED production base, its increasingly prominent role, while at the same time, the increasingly fierce competition. In 2014, Samsung announced LED lighting business outside of Korea, now GE also announced the withdrawal of China market. While PHILPS and OSRAM, also after the integration and merger rounds, will be part of the business sector to split out and sell China enterprises. On the one hand, is the business giants continue to integrate and close to the high margin, China market pays more attention to the characteristics of the application side is clearly unable to meet the demand of the giant transformation; on the other hand, with the China local LED companies began to rise, the impact on the formation of giant in the middle and lower reaches. Although the withdrawal of Chinese giant enterprises, have more space for development, but it also reflects the local enterprises excessive attention to the channel competition of research and development and ignore the upstream, stay in a simple product sales stage, and the local enterprises in transition, basically also is transferred from one product to another product a superficial reform. Sales model to upgrade the LED lighting industry now signs of recovery for the lighting industry and perceived pain recently, in an interview with a store executives, his word is very interesting, "lighting products out not in accordance with the sub category, if the dealer store in the sub category of similar position, they can't live. Because they are few, have their own characteristics and competitiveness." At present, many lighting companies, businesses that Home Furnishing experience, however, light experience can bring much consumer purchasing power, or insiders scrutiny of the proposition. For this type of lighting brand channel brand, the lack of non mass brand influence limitation, originality, or many lighting companies mishap. How to sell products, sell the brand? The first half of 2016 LED lighting many enterprises have achieved relatively good results, how to get out of a world of their own lighting stores, stores, but the way is long. The raw material prices rising, caused by Domino effect of LED industry? Tracy: price surge is downstream of the lamp manufacturer industry reshuffle Prelude? This year continue to spread the news of price hikes, chip packaging, lighting a lot of people happy, seems to be the price war of the Red Sea whirlpool is going to stop, also seems to LED industry boom is rising. It is understood that this round of price hikes is mainly due to raw materials and labor costs rising. But insiders say last year the chip price decline is too large, the price will be the only low prices pulled back to the normal level. But for the downstream lighting manufacturers this round of price surge in the upstream of both challenges and opportunities. The upper layers of price rise, the user of the product of low demand, labor cost rising, lighting manufacturers bear the pressure? Perhaps lost large number of clients; the same? Profits cannot survive in a dilemma, so most manufacturers have not dare raise prices demand. It will be the prelude to a major reshuffle for the downstream manufacturers, or merger integration, or expand the scale of production to reduce production costs, or optimization of innovative products indirect price rise, or the transformation of the new blue ocean. For this round of shuffling down the strong ability of enterprises, it is an opportunity for the industry to return to rational, rival violence reduction.

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