Development of LED, home lighting market to be overcome

Entrepreneurs engaged in the LED industry are aware that LED home market is an important market for future earnings, but they have been unable to overcome the domestic lighting in this field, for many reasons.

First of all, the target market of LED enterprises mainly concentrated in government procurement, hotels and other professional market, high profits, but after a limited number, the market in the supply situation.

Secondly, the current domestic LED companies involved in the civilian market is not much, mainly in the field of outdoor lighting, commercial lighting layout. Relative LED home lighting, these areas in terms of price acceptance easier for LED companies to profit.

LED light selling is not good, because the LED price and energy-saving lamps, incandescent gap. For example, the price of 20 yuan LED 3W lights, 7W will be $90, while the energy saving lamp as long as 10 yuan, incandescent lamp just $1. In the field of home, LED lights are basically no market reputation".

National Development and Reform Commission has formally issued a document 5 years after China will basically eliminate incandescent". According to industry estimates, the formation of incandescent lamp after the market scale will reach hundreds of billions of yuan, as the best substitute, LED lighting industry in five years is expected to quadruple.

LED business street lights, advertising lights and other outdoor lighting products are orders, customers generally have personalized needs. Even in the same city, two street lights in the brightness, color, appearance is not the same.

So, how to enter the domestic lighting of the vast market? First of all to understand the LED home lighting is one of the important reasons for the delay in the price of lamps is expensive. The main reason for the high cost of LED is the high cost of the chip, chip LED lamp cost at least more than 1/3. However, two years ago, 1W's LED chip price is about $3, but now has dropped to less than $1. With the decline in chip prices, LED high prices are expected to be resolved in the next five years.

Reduce costs to account for market opportunities. So, what to rely on to reduce costs, some experts pointed out that if it is to do their own research and development, does require a lot of investment, for small businesses can not afford. In order to reduce costs and make products with high technical content, you can choose to cooperate with scientific research institutions.