LED market "flood" seriously restricting the development of LED lighting industry

Water can carry a boat, can also capsize, the "water" as the LED market, the "boat" is like LED in the enterprise; government subsidy policy induced profit driven by the same market, the number of LED companies suddenly soared, serious excess capacity, which will inevitably lead to market volatility, resulting in vicious spiral competition to the market. Which is not conducive to the development of LED lighting industry.

Recently, although the Chinese market is good, but the problem of excess capacity still exists. At present, the lower threshold of the LED lighting industry, coupled with the government's high subsidies and preferential tax policies, making a large number of enterprises to enter, leading to serious excess capacity of low-end products. LED overcapacity is mainly due to excessive enterprise. Domestic optical registration of LED companies up to more than 7 thousand, coupled with a number of small workshops did not register and some people hiding in the back of the registered company 3-5 small working group, engaged in the LED lighting industry enterprises can be described as numerous.

The existence of many small and medium enterprises and small workshops, so that a serious excess capacity of low-end products, resulting in vicious price competition. It is understood that, LED lighting products in just two years, the price of the product has experienced a roller coaster, the market price from the original 180 yuan has been as low as 20-30 yuan. At the same time, there are still a large number of low-priced products in the market price of 10-15 yuan.

Analysis of the reasons for LED lighting industry:

Product quality problems are frequent market share of many?

The quality problems, technical problems, research and development and patent issues of LED lamps are the first major problems encountered by small businesses. Product homogeneity, quality, but had to compete at a low price, a large number of low prices caused by the phenomenon of serious return, at the same time, the company can not guarantee after-sales service, which is a common feature of China's LED small businesses. Two years ago, LED small business days are not sad now, the market price of cheap LED lamps for small businesses to get a huge living space, many small businesses have become medium-sized enterprises. Lighting market is not standardized, the existence of this problem is also quite a long time. Lighting market atmosphere is not very good, shoddy results, consumers of LED lamps greatly impressed. Low price war, which has lasted for several years in the lighting market. In recent years, in the relevant government departments, the media, public opinion, many companies stationed, but also a lot of small businesses to withdraw from the stage.

Into the lighting industry after the traditional off-season, small businesses more difficult. Itself there are a lot of product quality problems, the subsequent development of the first half of the increase in sales is facing more and more returns, customers no longer single. This is mainly caused by quality problems. Medium-sized enterprises like this, not to mention the small business?

LED small and medium-sized enterprises accounted for a larger market size

Technology R & D investment is not enough, most of them are drawn from other people's formula production, there is no proprietary intellectual property rights, product performance is also a big gap compared to foreign companies.

It is understood that in the current global energy shortage worries increased again in the background, energy conservation is an important problem facing the future of our country, in the field of lighting, LED light-emitting products are attracting the world's attention, LED as a new type of green lighting products, is the future trend of development, twenty-first Century will enter the new lighting the light era represented by LED.

Although China is already the world's largest producer of LED lighting, but so far in the field led by China's pricing power, patents are still very small, seriously restricting the development of China's LED lighting industry. At present, China's LED lighting industry is still large and not strong. The above points eventually lead to China LED lighting has been in the low-end market, high-end LED domestic lighting market are foreign brands occupy LED lighting, domestic enterprises can not.

At the same time low price competition, due to the relatively low threshold of entry into the LED lighting industry, the industry has been in excess capacity. At the same time, the sharp decline in home appliances and other terminal markets, leading to the operation of domestic LED companies, suffered unprecedented problems.

Standard missing LED industry into the Warring States period"

The biggest obstacle to the development of LED industry is the lack of standards. Because of the domestic LED lighting industry standard is missing, the hundreds of billions of dollars in huge market suffers from chaotic competition problems, the further development of the industry become a stumbling block. The standard is not unified, has brought fierce competition to the industry, the low-end price can be more popular, some customers are willing to choose LED lighting products in low price while ignoring the product itself, coupled with the lack of unified certification standards, product prices are also increasingly fierce competition uneven in quality, and the domestic LED lighting industry to enter the "Warring States period" it can hardly be avoided.

Price war is the key or weapon?

In order to occupy more market share, many enterprises are still entangled in the LED lighting brutal price war in 2011, due to the rising prices of raw materials, product prices, resulting in LED lighting enterprise profit decline, not only the domestic LED lighting company, part of the foreign LED lighting brand also joined the price war, in order to occupy the market, LED vendors at the price war of "enclosure movement", to seize market share, it is followed by a decline in profits. In the price war, the profit of the manufacturer is obviously decreased, which makes it difficult for the enterprise to make use of the profit. But do not participate in the price war, LED manufacturers and fear of losing a favorable position in the market, the future development of unfavorable.

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