Enterprise orders are full, LED market price war is fierce

On June 10, the reporter learned from an interview in Guangzhou that benefiting from the channel's enthusiasm for LED lighting products, the LED commercial and civilian market showed a blowout market this year.

However, along with the market blowout is a fierce price war and channel war. The industry believes that in the next three to five years, the LED industry will develop rapidly, and the company's showdown will be more intense.

Production company orders are full

"At present, our machines are running at full capacity, and there are cases of chips waiting for customers to queue up." Wang Lianghai, vice president of LED upstream company Tongfang Group, told reporters yesterday. The media has previously reported that 50% of the upstream machines were idle in the past year. The same situation is seen in the middle and downstream. "We have a good order in April and May." Li Guoping, chairman of the middle-end enterprise Hongli Optoelectronics, also told reporters. Zhu Bingzhong, deputy general manager of Qinshang Optoelectronics, who is engaged in lighting applications, said: "This year's order has been placed two months later."

The reporter learned that outdoor lighting and commercial lighting have become the biggest driving force for the LED industry to turn over this year. The industry believes that under the general trend of energy conservation and emission reduction, the public lighting field across the country will take the lead in popularizing the climax of popularizing LED.

Lu Weidong, general manager of China's brand of Huizhou Yuanhui Optoelectronics, said that the rapid growth of commercial lighting has led to this round of LED industry blowout. Zhang Xiaofei, director of the High-tech LED Industry Research Institute, believes that due to the rapid decline in the price of LED products, channel manufacturers have shown great enthusiasm for LED products, which has caused the orders of production enterprises to be full.

For the market outlook, the LED industry people interviewed by reporters expressed optimism. Gong Weibin, chairman of Ruifeng Optoelectronics, expects the industry growth rate to reach 15% this year and even 40% in 2014. Zhang Xiaofei believes that the good days of the LED market have just begun, and should not be too worried about the market in three to five years.

The price war is fierce

But it's worth noting that there are more orders, but prices are also falling rapidly. According to the research data of the High-tech LED Industry Research Institute (GLII), the current price of LED lamps is only less than 1/3 of that in 2011, and it has dropped by more than 30% from January to May this year. Even some LED products are cheaper than energy-saving lamps. Behind the price decline is the competition for orders.

Xu Min, technical director of Guangyu Semiconductor Lighting Co., Ltd., said that the price was “bloody” during the bidding process. The market department of a LED company in Shenzhen told reporters: "In order to grab the order, the boss suddenly decided to abandon the high-end products in April and produce low-end products."

Lu Weidong, general manager of Austrian Bright China, said in an interview: "Ao's bright products are highly competitive in the US and European markets, but the domestic market pays more attention to price than technology and quality, so the difficulty of development is greater than international. Market." Although some companies said that LED prices have dropped to the point where they can no longer fall, but Lu Weidong believes that LED product prices have room for further decline.

For the price war, Zhang Xiaofei said that this is the normal killing of the industry. However, Lu Weidong said that excessive price wars will lead to a decline in the quality of corporate products and slowly lose market.

The next two or three years will be held

In fact, the trend of LED industry shuffling in the past two years has been very obvious. Lu Weidong said that there are countless manufacturers in the domestic LED industry, but none of them really can be called a brand. Industry reshuffle is inevitable. Xiao Xiaowen, who runs a lighting city in Jiangsu, told reporters: "From the perspective of channels, the so-called brand is to have quantity, and no quantity can not be called a brand."

Most LED companies are generally trapped in incomplete channels and cannot be fully scaled. As a result, channel competition is also becoming more and more intense. Lu Weidong told reporters that in the LED industry, dealers rarely specialize in a brand, and this will cause dissatisfaction among LED companies. A few days ago, NVC ordered its dealers to ban the sale of a product called LED company. Zhang Yutao, chairman of Sanxiong Aurora, who also has a strong channel, also hinted that the LED products represented by its distributors cannot compete with the company's products.

Industry experts believe that the war of channel dealers indicates that LED companies have really begun to stifle in the market.

( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )

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