Analysis of the project of financial subsidies for LED lighting products

In August 24th, Chinese Electronics Import and Export Corporation released 2012/2013 annual financial subsidies to promote the semiconductor lighting products (indoor lighting products -LED lamp, reflective self ballasted LED lamp () and outdoor lighting products, -LED lights, LED tunnel lights) winning finalists results.

LEDinside after the analysis of the results of the bid that the successful finalists of enterprises and products as a whole can reflect the mainstream of China's LED lighting industry standards.

The average price per unit fell significantly, the subsidy effect appears

From the price point of view, the outdoor lighting street lights and tunnel lights, the average cost per watt has reached 11 yuan, compared to LEDinside's research has learned that the market price of 15-18 yuan /W has been significantly reduced. 30% financial subsidies because of direct supply enterprises, although the look is offset sales revenue, but because this part of the revenue is a direct supply of enterprises, do not need a variety of amortization cost of sales, so can be regarded as direct reducing operating costs, and to the general lighting in 20-40% to calculate the gross profit level, operating costs fell far more than 30%. Enterprises only need to maintain the original gross margin will be able to significantly reduce the sales price. The bid price is significantly lower than the market price reflects the effectiveness of direct financial subsidies.

The indoor lighting cost is down to 7 yuan /W level, this value is close to the critical point of the indoor lighting market forecast by the LEDinside start, in the promotion of financial subsidies, consumer prices will decline further to 5 yuan /W, is expected to have a relatively ideal market receiving degree.

After the tender, the market price will be more standardized and transparent, will limit the number of lighting businesses use consumer price quotations and do not understand the high commercial rebate behavior, the objective to enhance consumer understanding of LED lamps, price level, increase the products of the LED light of faith.

[table 1] price and cost analysis of successful enterprises and products

Data source: Chinese Electronics Import and Export Corporation LEDinside finishing

Manufacturers offer more rational, more reflect the power cost

And quotation, because this tender relative to the last to do more restrictions, such as the requirement of universal interface module and the factors included in the score, to reduce the complexity of the product; at the same time, the establishment of the minimum annual production requirements, to ensure high productivity of successful enterprises. Therefore, the finalists are relatively much more reasonable price, the price of the product is not too high or too low to the incredible. Relative to the price of the factors, the lamp power plays a major role. In general, the greater the power of the lamp means a higher cost of the light source and the cost of the drive circuit and the heat dissipation design, so the size of the power directly affects the cost of the lamp.

[table 2] financial subsidies to promote the project of semiconductor lighting products

Source: Chinese Electronics Import and Export Corporation LEDinside finishing

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