Chinese arrives home appliance manufacturers of small LED lighting factory to survive

Including SKYWORTH, Konka, TCL and Chinese traditional home appliance manufacturers, recently to foot light emitting diode (LED) lighting market, and on the basis of strong capital, strong brand marketing and vertical integration layout, market strategy, quickly lead to LED lighting, Chinese attack cities and capture territories, increasing market competition, the supply chain of LED industry in small scale who will face a great test of survival.

LED lighting terminal price is still higher than the traditional bulbs and energy-saving lamps, the price has been the key to expand market acceptance.

The topology Research Institute of Shanghai subsidiary of Asia research advisory information researcher Xie Yijun said, the United States, Konka, TCL, China appliance maker LED lighting field after the massive onslaught, will make the original operating environment is extremely severe, Chinese LED market becomes more competitive.

To grasp the key elements of LED TV, SKYWORTH, TCL, Konka China, home appliance manufacturers have a stake in LED chip and packaging enterprises, in addition to acquire stable supply, more conducive to extend the operation angle to LED upstream and lighting field, increase the revenue contribution of more sources, such as the June 2011 TCL and Taiwan Hong Qi joint venture LED packaging factory; SKYWORTH and EPISTAR delta jointly invest $600 million to set up the LED chip production base; REFOND optoelectronics packaging factory Konka Yi also inject gold shares in July listed on the OTC, Chinese fu.

China, home TV factory with large scale enterprises, brand channel and grasp the upstream key components into the LED lighting market advantage, put up a pageantry, the rapid compression of medium and small LED chip, package and LED lighting business of living space. In particular, China previously LED chip factory actively expanding production capacity, has caused the dilemma of the LED pile up in excess of requirement, chip prices continued to fall, dropping under gross margin, compared to the financial strength of small and medium-sized home appliance manufacturers, LED chip and packaging factory pockets deep enough will eventually be unable to support, facing the fate of being eliminated.

Not only that, China's LED lighting consumption is not enough, but also to the relevant supply chain industry is facing great challenges. Xie Yijun analysis, Chinese, consumers still can not afford the price in the short term LED lighting high, resulting in LED lighting, led by the government to Chinese LED outdoor demonstration application, which belongs to the niche market; in addition, the imminent implementation of the policy is to replace the incandescent lamp, energy saving lamp is lighting, LED is difficult to benefit, will make LED supply chain manufacturers face the challenge of survival.