Why do LED exhibitors feel better this year?

Domestic policy support, foreign economic recovery

With the global "ban white" effect brought about by the potential demand for LED lighting market, the development of domestic LED companies into a high growth period, coupled with the recovery of the European economy, the industry appears a little warmth. However, a number of lighting companies in the Canton Fair exhibitors told the new express reporter, policies to support the development of LED lighting or lead to a vicious price war between the industry, as well as the loss of exchange rate fluctuations is also a problem.

Europe and the United States orders growth

The past two years, Europe and the United States market economy downturn, making overseas markets dominated by China's LED lighting industry fell into the trough, a sharp decline in export orders. 2012, the European and American markets and improve the implementation of the new LED energy efficiency standards, but also to allow enterprises to export higher threshold and risk.

"We were LED orders for nearly half of the decline, the general manager of Ningbo jeiwei trading company Mao Jianjun told reporters," in 2012 about the loss of exports to Europe and the United States is particularly large, but it is difficult to meet the product standards of Europe and the United States market conditions, to give up the European market later, to the Southeast Asia and South America etc.. "

This situation also occurred in Guangdong Province, Foshan high speed Lighting Co., ltd.. But now the lighting enterprises are at the fair feel European market recovery, gaoxun lighting overseas sales center manager Qiu Jianlong told reporters: "two years ago, the Canton Fair, booth consulting to customers in Europe and the US is not much, this year was more than in previous years, a part of the old customer orders also increased. On the first quarter sales point of view, an increase of 10% over last year. "

Ningbo sunrise Lighting Co., Ltd. specializes in the Christmas market in Europe and the United States, its deputy general manager Lou Song told reporters that the current volume of orders increased by 20%.

Policy support or lead to price war intensified

Although the European market upturn for lighting companies hit a shot in the arm, but companies are still worried about policy changes and exchange rate losses.

According to the relevant national planning, October 1, 2014, incandescent lamp will complete the historical mission to exit the stage lighting, energy-saving lamps have also been included in the environmental protection to list, LED lights with excellent characteristics of energy saving and environmental protection will replace the traditional light source. Some institutions are expected in 2014 the global LED lighting market will grow by 90%, China as the world's main production base of LED lighting, will usher in explosive growth.

Qiu Jianlong told reporters: state support for the LED industry is good for the enterprise, but if the same as the support of photovoltaic enterprises to support excessive, can not avoid the price war between peers, may lead to vicious competition. "

In addition, foreign exchange fluctuations affect the development of the industry. Mao Jianjun brought in foreign currency fluctuations on eating out, he gave reporters calculations: with customer quotation, the exchange rate of RMB to dollar exchange rate is 6.3 yuan, but with the customer at the end of May to 6.2, the appreciation of the renminbi, making $1 million business losses of 100 thousand yuan. Devaluation in the first quarter of this year, there will be a rebound in profits. In order to maximize the risk to circumvent this, Mao Jianjun and Qiu Jianlong, where the company chose to buy the cycle exchange rate.

For this year's sales situation, many LED exhibitors said the foreign market situation improved, will be much better than in previous years, but the product profit is too low, the company is also investing in R & D of new products to improve market profits.