LED subsidies ready to dive in advance prices

With the State Council decided to arrange 2 billion 200 million yuan of financial subsidies to support the promotion of energy-saving lamps and LED lighting. Nandu reporters found that 2 billion 200 million yuan has not yet officially allocated, the market price war has started early LED lamps. Currently part of the brand LED lamp price is only about 50% of the same period last year. Falling prices for the local LED industry to bring development opportunities, but also make some of the strength of the enterprise is not a challenge. )

LED into a price war

Since the lighting companies get together to enter the field of LED, the first one or two years after LED has been a number of price wars, LED products have gradually declined. However, the price of LED products is still high, 7W's LED lamp is still tens of dollars, while the energy-saving lamp 10 yuan or so, as long as the price of incandescent light around $1. )

For this reason, the State Council recently decided to arrange 2 billion 200 million yuan of financial subsidies to support the promotion of energy-saving lamps and LED lighting. Zhongshan Luo Tianshun, general manager of the company is expected to treasure, 2 billion 200 million of the subsidies will reduce the price of LED lights, a decline of up to 15% - 20%.

Subsidy rules have not yet been implemented, the market price of LED lamps have been diving ahead of schedule. A 7W LED bulbs, last year can sell 40 yuan to $50, only a few dollars to sell this year, some small brand products as much as ten yuan. This decline is far more than the industry expected 15% - 20% decline.

In this regard, businesses, this is mainly because of the huge market potential of civil LED lamp gradually highlight the town four photoelectric general manager Cao Detian said, originally L E D domestic market share of less than 5%, is now at the speed of 200% per year increase, so many production enterprises to advance the price to grab the market. In addition, since the beginning of this year, many LED companies to reduce export orders, foreign customers deliberately to keep the prices down, leading to declining profitability of the industry. To this end, businesses have to compete for the domestic market price.

Enterprise steering parts production

Since the LED product get together to fight the price, the competition is tragic, so some companies choose to avoid the finished product competition, steering parts production.

Luo Tianshun said, LED finished product is thin and large competition, the scale of the enterprise can not compete with large enterprises, so its business has turned to specialize in 2010 E D L power supply.

"In the past two years, the rapid rise in labor costs, and raw materials prices, resulting in increased production costs, on the other hand, due to fierce competition, had to lower the price of products. "Zhongshan City Science Park electronic engineer Li Xinrong believes that since last year, sales began to decline, has yet to rise up. He believes that the current price of the market environment, the enterprise in addition to procurement and other aspects of cost savings, or to continue to adhere to the brand road. )

The market expectations for the future, the enterprise is not too optimistic, Zhongshan City Blue River Lighting Co. Ltd. sales director Liu Yong said that last year the L E D industry reshuffle closed down some enterprises, the current market is still confusion, "the second half of this year there will be a reshuffle. "