Price wars continued LED lighting giants how to deal with

"Today's China, we live in the world's most expensive house, but with the world's cheapest lighting products. This is OSRAM (China) lighting vice president of North Asia Marketing Jin Xin view, it seems to describe the current Chinese lighting market.

In May 21, 2015, the news media reported that more than April Shanxi LED lamp prices fell 30%, Chongqing is about 20%, while the Henan part of the region fell by more than 50%. Entered in 2015, LED lighting products prices have become the norm in China's lighting industry.

The past two years, the rise of China's local enterprises, as well as the continued decline in the price of lighting products, to break the muscles of the foreign companies have brought more unfavorable situation. Previously, Taiwan lighting brand Edison Greater China business director Chen Junkai does not mince words in the interview, pointed out that because of the impact of price (lighting products) led to Edison although sales increased but the decline in the value of.

So, LED product prices continue to decline, foreign companies in China LED market development, is the scenery or embarrassment?

Three lighting giants to deal with different

According to LEDinside estimates, in 2015 the global LED lighting market size will reach $25 billion 700 million, of which the Chinese market accounted for 21% of the market share of the market, the scale is expected to reach $5 billion 397 million.

This is PHILPS, OSRAM, CREE and other foreign companies fancy Chinese LED market reasons.

LED lighting industry is the most interesting thing is how to find their own customers. In the face of China's LED market chaos, a foreign executives said. At present, facing the changing market competition, no matter how large the amount of lighting giant, no matter how deep rooted China market, in a thoughtful and Chinese strain LED market changes.

"PHILPS China actually and any Chinese local enterprises have no difference, in 80s, PHILPS entered the China, now more than 95% of our employees are local employees, we are a very strong China enterprise. PHILPS lighting Greater China president and chief Innovation Officer of PHILPS lighting Qiu Ronghong said. And in 2013, PHILPS launched HUE smart lights, since then, the smart lighting route has become the latest business model PHILPS development in china. "(Intelligent interconnect) such a new performance will bring new profit point. PHILPS lighting CEO Hong Anli said.

OSRAM entered China in 1995, and now has four production bases in china. Enhance brand power, OSRAM is the focus of the development of China's channel construction strategy. We have to do a lot of investment in the channel strategy, the future we will do more brand image stores in China, to further enhance the brand image of OSRAM. "OSRAM (China) Lighting Co., Ltd. CEO Ai Xiaoming said.

M & A is often the quickest way to get involved in the industry. In mid September 2014, China grounded LED lighting market in seven years CREE and Lin Yang lighting signed a strategic cooperation agreement, both sides to further enhance the cooperation inherent in outdoor lighting; Shanghai CREE and Zhongshan in 2014 December, lighting products signed a comprehensive strategic cooperation agreement, the two sides jointly announced that it will give full play to their leading edge solutions and devices in LED package LED lighting, the depth of cooperation in commercial lighting, hotel lighting, lighting and other fields Home Furnishing high-end lighting market.

And in the near future, PHILPS lighting business equity merger settled, OSRAM split lighting business, CREE intends to spin off power and RF LED lighting products business the main message let the industry know foreign lighting giant attention to the adjustment and changes in the lighting field. Foreign media comments, with the rise of the Asian LED lighting manufacturers, low-cost Asian manufacturers to become the dominant force in most European and American traditional lighting manufacturers should respond to changes in the lighting market.

Enter the Chinese mainland: how to walk?

Billion light is a large manufacturer of packaging LED Taiwan, a wholly-owned subsidiary of billion light in 2013, the official layout of the Chinese mainland lighting market. Billion light in the development of China's mainland, when China's LED lighting market from blue ocean to the fierce competition in the red sea. In July 2014, Li Jiannan lighting billion Yishuai, replaced Wu Zhengzhe as general manager of Yiguang lighting, the lighting industry to allow more foreign companies to enter the mainland market China: torture, what is the flow or contrarian?

In spite of Ferdinand storm, billion light foreign drying out transcripts is still gratifying. In 2013, the overall turnover is about 70 million or so, then this year (2014), we estimate that in about 120 million, in the year plan is to achieve the goal of about $360 million in 2015. By the end of 2014, Li Jiannan, general manager of 100 million light to answer the interview. 2014 results doubled in 2015 is expected to quadruple, billion light for the mainland lighting market confidence.

It is undeniable that the pace of billion light into China is not smooth. In May 2013, China leading lighting factory NVC dealer sales prohibited billion light its LED products, otherwise it will cancel the original product distribution rights and stop disposal of goods. NVC ban billion light ", let the billion light encounter in mainland China channel layout block, exposed tip of the iceberg, but also for many to see the local lighting industry awareness Chinese enterprises and foreign brand competition.

On the one hand, LED product prices; on the other hand, China local enterprises strong competitors, camouflage Fengeng lighting market. This light to enter the Chinese mainland market is smooth, adding more uncertainties