The price war started early in Fuzhou local enterprises quite LED

Recently, 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. The reporter learned yesterday, 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 lighting price surges ahead

The traditional incandescent lamp, energy-saving lamp life is short; the current state subsidies, but Mercury will produce pollution; LED lamp energy saving lamp efficiency ratio higher than 70%, energy saving and environmental protection, the developed countries of Britain and the United States, Japan and Canada are accelerating application. Said He Wenming, chief engineer of the Fujian branch of State Science and technology.

Although the LED lamp product is so good, but the price is still hindered its promotion. The first one or two years because of the large scale of production after the decline in prices, 7W's LED lamp is still dozens of dollars, while the energy-saving lamps as long as about 10 yuan, 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. Reporters learned from the Fuzhou LED lighting companies, 2 billion 200 million of the subsidies will reduce the price of LED lights, a decline of up to 15%~20%.

To reporters surprise, the 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 is expected to decline 15%~20%.

Why is there such a big change in price? Reporter yesterday learned that after consulting businesses, this is mainly because of the huge market potential of civil LED lamp gradually highlight, Topstar stakeholders told reporters that the original LED civilian market share of less than 5%, is now an annual rate of 200% increments, so many manufacturers to grab the market price in advance. For example, the price of the fuse is the first to take the lead in the province's LED companies, and its products across the board price reduction of more than 25%.

In addition, the original LED lamps are mostly exported, but since the beginning of this year, many LED companies to reduce export orders, foreign customers deliberately to keep the prices down, leading to the gradual decline in the profitability of the industry. To this end, businesses have to compete for the domestic market price. At present, the local market can buy all kinds of LED lamp brand nearly a hundred, compared to two years ago, this figure increased by nearly 4 times.

Local LED companies face challenges

The state allocated subsidies and the market continues to expand, look LED lighting market situation is excellent, but the industry said, of Fuzhou LED enterprises, the situation became somewhat grim. "The end of the month subsidy rules is expected to be introduced early next month, the primary beneficiaries of state subsidies will be those of large competitive enterprises LED. China semiconductor lighting LED Industry Alliance Secretary General Guan Baiyu told reporters.

Fuzhou in the LED product research and development started earlier, in April 2009, Fuzhou ranks among the National Ten City million semiconductor lighting application engineering, one of the 21 pilot cities. At present, Fuzhou has been engaged in LED lighting technology and product research, development, production and application of dozens of enterprises, a variety of LED lamps can reach tens of millions of years. In addition, Fuzhou also seize the opportunity of the transfer of the LED industry in Taiwan, attracting a large number of enterprises in Taiwan settled in the banyan, Fuzhou investment and construction of Fujian Taiwan joint venture LED industrial base of a total investment of 3 billion yuan. At present, with the cooperation of local enterprises and Chinese Academy of Sciences, Taiwan LED industry to deepen, the competitiveness of enterprises in Fuzhou more and more strong LED. For example, at present, a company in Fuzhou R & D LED lamp most indicators to achieve international advanced, the leading domestic level, while the production cost is the lowest.

However, with the increasing competition in the LED market, the majority of enterprises, the profit margins may also be reduced, some companies may be eliminated.

Guan Baiyu said that the current domestic LED companies about 8000, in a small and scattered state, from the beginning of last year, some companies began to collapse. Investigate its reason, on the one hand is due to the serious excess capacity; on the other hand is due to the LED new product production cycle of about 3 months to 6 months, lack of funds, the lack of core technology of small and medium enterprises. At present, some of the local LED companies are mainly engaged in packaging, application and other downstream links, rarely involved in the upstream link. While the upper part of the tourism sector accounted for 70% of the industry's profits, downstream accounted for only about $30%. Therefore, to seize the critical period of two or three years, focusing on supporting and nurturing a number of state-level LED large enterprises, to create a brand, a place in the international market, is the key to the development of the local LED industry.