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LED Lighting Manufacturers How To Breakthrough In The Price War To Fight?

- Aug 23, 2016 -

Industry competition will be increasingly fierce

In the past nearly 10 years, China LED lighting industry show explosive growth, the growth rate of continuous stay above 30%. Due to the wide prospect of market, market admittance threshold is low, the increasingly fierce competition.

, according to data released China industry information network in 2015, LED lighting industry to participate in market competition, the enterprise has more than twenty thousand, the domestic lighting industry sales of 560 billion yuan, up 8% from a year earlier, the market growth for the first time down to single digits. Because the number too much, lighting industry overcapacity, supply exceeds demand. To cope with the fierce market competition, the domestic enterprise mainly by expanding the production scale to diluted the production cost, reduce the price of LED lighting products.

Last year, as the world economy and China's economic downturn, the LED lighting market demand growth is slowing, plus some LED manufacturers cling to subsidy policy further release of production capacity, the deterioration of overcapacity. International giant launched LED ball steep light at a low price war, various enterprises leading followed suit, most companies in "income not ZengLi" dilemma.

Global LED output in 2015 for the first time presents the negative growth, the whole production - 3% of the recession, the main reason is that the entire industry supply exceeds demand, LED price has plummeted. See chip part above all, the price is down about 40% - 40%,

Some even as high as 6. Encapsulation component parts, the price drop is not big, Mobile field, Mobile phone in the field of backlight, many manufacturers have cut prices decline; Lighting application part was also hit hard.

From the point of growth of each link in the first half of 2016, aggregate as the market competition is intense, the overall growth rate to be down from last year. Lighting products exports to $8.5 billion in the first quarter, compared with the same period last year dropped 14.8%, the grim situation.

In 2016, according to the personage inside course of study analysis of lighting industry overall demand steadily rising trend, but the increase is relatively flat, the outbreak of a few years ago will not happen again in our growth. Along with the market demand are gradually, the market competition increasingly brutal. This year, "price war" is still intense, between various enterprises profit is weak, the LED lighting industry will enter the small profit era.

However, under the high fever of industrial investment and the industry competition, LED industry formally entered the stage of structural adjustment, drive the new one

Round of m&a integration, market competition is everywhere. LED the industry in 2016 is the fight of "value", the enterprise will be turned their attention from price competition to create new value, beneficial to have the technology, brand, quality and service as the core of the comprehensive competitive advantage of enterprises, with the stable customer and bargaining power, to further strengthen the control of the industry.

Transformation, cross-border integration, or "normal"

After years of rapid development, LED slowly from the first profitable business back on track, the LED lighting industry profiteering era is gone forever. To this, many listed companies have turned its attention to the profitable business.

Frequently on the photoelectric transformation toward education. This year at a shareholder meeting on May 16, frequently on the photoelectric Chen Yonghong chairman, said the semiconductor lighting industry "red sea" pattern has been formed, in order to safeguard the general shareholders' interests, make the company sustained profitability, the company is actively promoting industrial transformation and upgrading industry consolidation, proposed by issuing shares and pay cash, buy guangzhou yong man education technology co., LTD. 100% stake.

To cross-border or more radical transformation, some enterprises completely abandoned the "photoelectric", "light" word. Lehman photoelectric transformation need to fit, simply renamed lehman shares; Oblong, remove the illumination two characters, into a rectangular group; Hon optoelec renamed "hong" god remit.

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