LED industry blowout price war imminent

Benefit from the enthusiasm of the channel for LED lighting products, LED commercial and civilian market this year showing a blowout.

However, along with the market blowout is fierce price war and channel war. The industry believes that the next three to five years, the LED industry will be rapid development, and the duel will be more intense.

Full production orders

"At the moment, our machines are running at full capacity, and there is also a case of customers waiting in line. Wang Lianghai, vice president of the same side of the shares of LED upstream enterprises, 12, told Yangcheng Evening News reporter. The media had previously reported that last year, 50% of the machines are idle state. The same situation in the middle and lower reaches. "We have a good order in April and May. "The middle enterprise honglitronic chairman Li Guoping told reporters. While engaged in lighting applications KingSun deputy general manager Zhu Bingzhong said: "this year, orders have been discharged after two months. "

Outdoor lighting and commercial lighting has become the biggest driving force for this year's LED industry. Guangzhou International Lighting Fair founder Pan Wenbo believes that in the major trend of energy conservation, public lighting across the country will take the lead in the field of universal LED climax. Lv Weidong, general manager of Huizhou Hui Hui's bright brand of light, said China's rapid growth in the field of commercial lighting led this round of LED industry blowout.

For the afternoon, most of the LED industry optimistic. Ruifeng photoelectric chairman Gong Weibin is expected this year, the industry growth rate will reach 15% in 2014 will reach even 40%.

Fierce price war

But it is worth noting that more orders, but prices are also rapidly declining. According to the survey data show that the current price of LED lamps is only less than 1/3 in 2011, the light from 1 to May this year, a decrease of more than 30%. There are even some LED product prices lower than the price of energy-saving lamps. Behind the price decline is the fight for orders. Gyled lighting Limited by Share Ltd technical director Xu Min said, "the bloody killing price in the bidding process". And a marketing department of a LED company in Shenzhen, said: the boss in order to grab orders, in April suddenly decided to abandon the high-end products and low-end products. "

OPTILED China area general manager Lv Weidong said in an interview with reporters: "OPTILED products have strong competitiveness in the United States, the European market, but the domestic market price to focus on technology and quality, so it will be more difficult to open up the international market. "Although some enterprises said that the price has been reduced to LED to lower the point, but Lv Weidong believes that there is a further decline in the price of LED product space. However, excessive price war will lead to decline in the quality of enterprise products, slowly losing the market.

The next two or three years to meet the decisive period

In fact, in the past two years the trend of LED industry reshuffle has been very obvious. Lv Weidong said that the domestic LED industry has numerous manufacturers, but did not really a brand, the industry reshuffle is inevitable. Operating in Jiangsu, a lamp city of Xiao Xiaowen: from the point of view of the channel, the so-called brand is to have the amount, no amount can not be called brand. "

The majority of LED companies are generally trapped in the channel is not complete, can not completely peatlands. Therefore, the channel is also increasingly fierce competition. Lv Weidong told reporters that in the LED industry, dealers rarely a special agent brand, and therefore will cause dissatisfaction LED companies. The day before, the NVC will ordered its dealers to prohibit the sale of a billion light LED enterprise products. But also has a strong channel of three male Aurora chairman Zhang Yutao also hinted that its LED product dealer agent not with the company's products have a competitive relationship.

Industry experts believe that the war shows that LED companies have really started to fight in the market.