The LED lighting industry has stepped into the photovoltaic dust transition to save itself
2018-05-18 Company News

      Due to the overcapacity of LEDs, the price war in today’s mixed battles has resulted in mixed prices, and distributors and traders are fluctuating between price and quality. How to avoid LED lighting step into the photovoltaic? Can industry transformation really save itself? This year may be a relatively dynamic year for the domestic LED lighting industry. There have been many incidents, such as NVC Lighting, Foshan Lighting's disputes over control rights, disclosure of violations, etc., which have been pushed to the top of the industry. A wave of companies into the LED industry did not make money or even shut down the phenomenon from time to time, resulting in a wave of bankruptcy. The prospect is extremely optimistic about the LED lighting industry in all walks of life. Its vitality is so fragile?

      Merkel Lighting believes that there are many reasons for the problems, which are summed up. It is nothing more than that with the increase in the cost of labor and raw materials, LED is facing a significant cost pressure; again, the domestic lighting industry, especially the LED industry, has been structurally Investment overcapacity, supply is far greater than demand, so there is no core advantage of LED lighting companies, the collapse is inevitable. Below we analyze these two types of issues in detail:

      Increased cost pressures, poor competition with homogeneous reserve prices

      At present, in some countries, the price of LED fluorescent tubes as a substitute for 40-watt incandescent lamps has fallen below the limit of US$10.00. At the same time, data shows that the 1.2-meter LED fluorescent tube lamp exported last year was priced at about 180 yuan, and the foreign price was only 100 yuan this year, and the gross profit of the company was also maintained at around 20%-30%. These SMEs that do not have the advantages of LED lighting products such as LED track lighting and their core technologies and sales capabilities undoubtedly bring huge cost pressures and pressures for survival.

      Overcapacity, consumer market has not yet fully pulled up

      According to the survey, the total investment in five provincial-level LED industry bases in Huizhou, Dongguan, Jiangmen, Nanhai, and Zengcheng in Guangdong Province exceeded 50 billion yuan. Among them, the investment of a batch of heavyweight industrial investment projects such as Huizhou Carey, Zhoulei Technology, Zhongjing LED chip project, Guangzhou Zengcheng LED epitaxial chip project and so on has exceeded 20 billion yuan. This production is undoubtedly huge, but now the economic crisis, domestic and foreign demand for LED is limited, which led to LED industry overcapacity, while LED supply far exceeds demand.

      ARISE believes that LED lighting companies do not have to worry too much. This is the transition period for the LED industry. Of course, we only have to strictly control product quality, promote innovation in business models, expand the consumer market, and increase industrial concentration, technological innovation, and regional branding. Only then can the LED lighting industry survive this period. In order to expand the brand's influence in the golden era of LED lighting.

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