Price war? Channel? LED how the future development

LED is one of the hottest stars in the lighting industry in recent years. Whether it is technological innovation by leaps and bounds, or the people of this energy artifact more and more common understanding of how the future development of LED, stirring all the nerves. According to the NBA finals to analyze how LED is in the policy, price war, channel war, the integration of the war in the lighting industry to win the championship?

LED policy battle first victory

Announced the implementation of China's green lighting energy-saving demonstration project from the ', to the "national basic public service system of" 12th Five-Year "plan" introduced, determined to promote the consumption of energy-saving appliances and other products from the development and Reform Commission issued a formal policy; China phasing out incandescent roadmap, and then to the five steps to gradually ban the import and sale of incandescent the lights have been implemented.

Until recently, the general office of the Guangdong provincial government issued "on further intensify its efforts to ensure the completion of the notice" to promote the use of LED lighting products task put forward, adhere to promote the use of LED lighting to ensure the target task, completed before the end of 2014, the province's popular public lighting LED lighting task. Among them, the Pearl River Delta region must be completed before the end of 2013 to complete the task. At present, the LED industry is in a period of vigorous development, despite the serious excess capacity, but in the era of warlords separatist hard to fight the world, the brutal competition, but the huge temptation of the future market.

Price war intensified demand release significantly

We maintain the basic judgment for the LED industry is good, and to determine the price of LED bulbs will be further down. End product prices, which is conducive to accelerating the release of demand, but for manufacturers on the industrial chain, it may mean that further pressure on profitability. Firm profitability will begin to differentiate, some occupy the dominant position in the industry chain manufacturers may by virtue of the size effect and other advantages to resolve the price pressures, but will be eliminated during the process of falling prices, some manufacturers in the fierce competition in the.

From the April global LED bulb price situation, prices fall further, the competition between manufacturers is gradually warming, some of the original price fell to 10 euros in the following high mainstream international lighting products manufacturers (replace 40W incandescent lamp products).

40W and 60W incandescent bulbs to replace the lowest price of LED bulbs have come to $4.1 and $5.7, respectively, the average price of $16.1 and $23.8.

In Europe, the price of a larger decline. Britain and Germany to replace 40W products were 5.3% and 13.2% decline, replacing 60W products fell by 4.8% and 7.3%, respectively.

China to replace the 40W product prices fell by 9%, the lowest in the world.

The Eight Immortals Crossing the Sea Gexianshentong channel war

Experienced in 2012 to explore the feelings of stones across the river, to 2013, the domestic and foreign brands have begun to enter the LED lighting market, LED lighting channel war also kicked off. In May last year, Guangdong Province issued the "Guangdong province to promote the use of LED lighting products plan" implementation in July, the State Ministry of science and technology of semiconductor lighting technology development "issued" 12th Five-Year "special plan" and the "20122013 annual financial subsidies to promote products of semiconductor lighting project to start bidding, the national development and Reform Commission announced in February" semiconductor lighting industry planning "policy driven by the government, LED lighting project channel presents fiery state, but because LED lighting is an emerging industry, the price is too high, the market still is not called a terminal.

Many funds and enterprises into the LED lighting industry, LED lighting production capacity is relatively surplus, so that the entire LED lighting industry in the development process encountered bottlenecks. How to develop LED lighting market has become one of the important tasks of LED. At present, LED lighting industry as a main channel engineering channels, network channels, the traditional sales model, distribution agents, joined the cooperative terminal sales model, enterprises themselves invest in the terminal market of regional stores, store experience etc..

The four channels have their own advantages and disadvantages: the channel of high demand, high profit margins, but the high cost of project coordination, decentralized, long-term capital returns, is not conducive to enterprises to expand production network; pre investment channels of low cost, simple operation, but the competition is fierce, decentralized and uncertain delivery, customer service and service is difficult to follow up; distribution channels can quickly layout, and the rapid expansion of marketing network, but the dealer profitability and loyalty to control; direct channel high controllability, good planning, brand and service to customer service difficult to follow, but the large initial investment, enterprise operation and management of the reserve funds have higher requirements.

Restructuring and integration is the trend

With the further development of the LED industry, the competition becomes increasingly fierce, LED lighting industry reshuffle and integration period, however there is still in the middle and lower reaches of horizontal integration, vertical integration, mergers and acquisitions both sides received first understand their intentions and goals: patent, talent, market, channels, technology? And then in accordance with the expected goal, to go further.

The integration of the largest, is to have the advantages of chip Elec-Tech, Elec-Tech with LED application products NVC integrated channel advantage, was once rumored as a combination of media. Elec-Tech chairman Wang Donglei said on the "new industry", for the middle packaging enterprises lack in the LED industry chain, the company intends to through the acquisition of the packaging company to make up for the loss of the industrial chain.

In addition, from near sunshine