LED lighting is full of variables in traditional lighting enterprises dilemma

The day before, a clear deployment of the national development and Reform Commission of phasing out the incandescent lamp, so that more and more traditional lighting companies started thinking of the transformation of the way. But where is the road of transition? LED lighting industry had a hot hand, as more and more manufacturers flocking, market competition, industry chain product prices continued to decline, and the rise in the cost of compression margin problems have become increasingly prominent, and the downstream demand remains weak, which makes a lot of originally planned transition to LED the traditional lighting lighting industry enterprises in a nice hobble.

Affected by the cost of demand, LED lighting profits plummeted

Originally, ED lighting industry is the transformation target many of the traditional lighting industry, now the industry has variable -- less than the market expected earnings growth, a substantial increase in production costs and the price storm make snap making this year the domestic LED lighting industry has some uncertainty.

Industry insiders said that in 2011 the gross margin of LED companies compared to the same period last year fell more obvious, mainly due to lower prices of LED products and raw material prices. Plus the first half of this year LED backlight market demand as expected, the factory will have shifted the focus of the LED lighting market, the increase in supply, if sustained development of this situation, the price in the next period of time is still likely to continue to decline, but also there will be "industry reshuffle" and "price competition".

From the end of last year the LED listed companies have released the 2011 semi annual report can be seen: the majority of Companies in the first half of the net interest rates decline, the semi annual report of some enterprises also showed that although its operating income increased, but the decline in net profit reached two to 30%. A large domestic LED packaging enterprises annual report, the company's main business gross profit margin was 22.80%, down 9.82 percentage points over the same period last year, the main reason is: to expand the product market share, the company take the initiative to reduce the price of products, a substantial increase in sales, gross margin fell 15.4 percentage points. In addition, some export enterprises, the appreciation of the renminbi has also affected the gross margin of export products.

Below market expectations of growth performance and make snap the price storm this year, the domestic LED packaging industry has some "atmosphere" of the cold. Moreover, in addition to domestic enterprises reshuffle, foreign companies are also accelerating the deployment of the domestic market. Since 2010, including Samsung, LG, CREE, OSRAM and other multinational companies in the domestic layout of the LED packaging base, the market competition is more likely to further exacerbate.

Traditional lighting enterprises dilemma

LED lighting variables, but also to make plans to transform the traditional lighting companies thinking. A traditional lighting company official said the company is considering the transformation of energy-saving lamps or LED lighting products, but it is still difficult to make up their minds. Because the level of LED is not clear, in the past two years, a large number of domestic investment has caused this industry overcapacity consequences. And the price of LED lighting is still higher than the traditional bulbs and energy-saving lamps, the price has been the key to expand market acceptance. Energy saving lamp market is not clear. If you turn to the production of energy-saving lamps, on the one hand, the market is fierce competition in the sales price continues to decline; on the other hand, these two years, the rise in the price of rare earth boost the cost of the rise, the greater the cost of transformation.

The China traditional lighting industry, FSL chairman Zhong Xincai said that the current market is very chaotic, the country has more than 1000 lighting companies, many do not meet the national standards of products in the market circulation, so he thinks the lighting industry is in the integration and Chinese and series, leaving only a dozen reforming future lighting enterprises through enough. "The future for a long time, the traditional lighting is still not out of the market. "International global express price quotes for that," for the traditional enterprise, more is a combination of LED and traditional lighting, and even the traditional industry and e-commerce together, their development in the integration opportunity. "