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LED market town status: Enterprise multi-price competition, professional store is perfect

Published:2013.10.17 News source:Danyang Hailu Lamps Co., Ltd. Views:

The end of 2012 , the Guangdong Provincial Quality and Technical Supervision of LED lighting products for the sampling, sample of Guangzhou, Shenzhen, Zhongshan and other seven cities 21 production of self-ballasted LED lighting products, sampling results show that the passing rate of less than 30 % . In the town, the same quality as the soft underbelly of LEC industry sustainable development .

Part of the price war bogged down in the quagmire of LED enterprises

Light St. Semiconductor Technology, Inc. executive vice president Xia Zhenghao that town lighting industry is characterized by comprehensive information moves fast . 2010 , Saint-technology company founded in the town just when the big companies in other cities did not how to do basically led, the only town to do a lot of people relying led earn a pot of gold. Although the town to seize the development opportunities of the LED , but in fact , the town is a lot of LED enterprises specializing in low-end products . These enterprises thinking " cheap enough to sell ," so they deliberately in order to pursue sales and low prices do , in total disregard of the quality of products and brands.

In Xiazheng Hao customer circle inside, popular with the phrase -LED must not do low end. Why ? "Because to do low-end products , perhaps in the first year will make money , but the second year , third year will certainly lose money. Loss of , then you can only run away , do not go on foot ."

Type of vicious competition lower prices led many companies are now developing LED bottlenecks encountered , serious and even bankruptcy. For example, in July this year, the closure of town Hung Kee lighting, it is because " rubbish " product resulting from its own funds strand breaks.

Hung Kee is the town , one of the few scale of billions of dollars , and it is also very typical low-end products to make a case. Hung Kee to reduce the price of LED lighting products to the extreme , before the collapse of its LED bulbs and other minimum has been reduced to 1 yuan / watt . It is understood that Hung Kee had hoped to pass the low-end products expand the scale of the company , and through its own sales network pushed up high-end products , but the customer did not approval, the product return rate is very high.

LED business failures occur not only in the town . According to incomplete statistics , since July this year , only Zhongshan and Shenzhen , there are five LED business failures , Shenzhen billion Micron Technology, Inc. has been discovered for debt , the boss on foot detained news .

LED facing reshuffle quality and brand is king

Insiders said , a number of LED enterprises have closed down is accelerating domestic LED industry into the shuffle stage performance. In Xiazheng Hao opinion, Hung Kee 's collapse , is not accidental , but inevitable . With the relatively high number of self-demanding large enterprises involved in the LED field, bad business will eventually be eliminated, this elimination is benign , will make the future more and more standardized LED industry town .

Town by the letter of the Secretary Huang Zhitong put Hung Kee collapse described as "Ebb Tide ." He said that a few years ago , a more qualified LED bulb prices to hundreds of dollars, and now , as long as qualified LED bulbs 20,30 dollars. This shows that the cost of LED is reduced, but it does not mean that companies will be able to make a few bucks LED bulbs.

" Economic competition in the LED market , companies must have a long-term vision , you must also take into account the bigger and stronger, to rely on the quality and brand building long-term customer trust ." Huangzhi Tong told reporters that the town in the LED product 's goal is to improve product grade and quality , able to participate in the advanced Western countries, the level of technology . " A light , why people can sell so expensive ? Difference is not in the design style , but in the manufacturing process and the LED lamp life and reliability and we now can not only make a rough product , we need to do to be more precise , to achieve the ultimate , like Swiss watches as well. "

Town needs to make high-quality products, LED enterprises, such as located in Haizhou District Aru Flamini lighting company . "It's very good to do LED commercial lighting products are mainly exported to European and American countries . Products, technical process to improve the added value of products will come out ." Huangzhi Tong said.

LED overcapacity town how to deal with

Currently , the town there are thousands of companies directly or indirectly engaged in LED lighting, so much the number of enterprises engaged in LED, but also makes the town formed a relatively complete LED industry chain.

However , the town's business is concentrated in the LED industry chain downstream . Town there are hundreds of packaging companies and packaging are industrial chain in the middle, between them, have been killing is incredibly hard bargain . And to the downstream competition is brutal . Because the downstream industry chain, relatively low-tech , corporate entry threshold is very low, a screwdriver , a few screwdrivers can be combined production , so competition is fierce. While the upstream areas of the chip due to the high technical requirements , so the relatively small number of companies , but competition is not so intense.

Xia Zhenghao where Saint-technology company focused on the field of high-end semiconductor lighting product development . In July and August of this year , when the chip is difficult to buy the company encountered problems . "Upstream industry chain in the chip market supply, our company has a lot of orders , but that is because of lack of the chip , and can not work overtime ."

For in the middle of packaging enterprises, Xiazheng Hao believes that product development and cost are important. Packaging companies need a good service, "Do not always think of their own money , but also consider allowing customers the products produced in the market competitive ."

Do LED industry chain which end is the town government has been considering. Huang Zhitong quite optimistic about LED light applications. He said that in the future , the town or on the direction of the development of LED packaging and lighting applications, and also guide enterprises to the upstream industry chain development .

"We established the direction is consistent with our actual situation ." Huangzhi Tong said. In view of the LED industry is now faced with the most upstream core technology patents mastered by foreign manufacturers , technology controlled by others, as well as supporting other aspects of town in the talent is still lacking , so the town still adhere to packaging and temporary lighting applications. "We want to sort out their own development ideas , do not let people guide us ."

Professional LED stores are filling the gap

It is reported that in the Light Town , there are dozens of large and small stores , but the size, grade , management uneven. And although the town has numerous LED business , and industrial chain are perfect , but the whole town has not really called LED products professional store .

Times Square lights , Bai Sheng Lighting Plaza , Silver Spring Lighting Square are the traditional lighting of the LED lighting and little stores inclusions , the so-called LED with one or two stores in the town , but small, not on the grade .

For example, in 2010 , known as the largest trading center of town has been in operation LED , recruit some specialized sellers selling LED products . But in the eyes Huangzhi Tong , the center is claimed to LED trading center, in fact , strictly counted, does not meet the standard LED professional store .

And as the town 's most high-end brands intensive Lighting Plaza Star Alliance , is more worthy of the name . Its positioning is the " center of the world's top brand lighting & LED lighting luminous efficiency of international museum experience ." It is reported that "Star Alliance " a total construction area of ​​nearly 360,000 square meters , a dedicated three halls: hall international top brand lighting , LED luminous efficiency of international museum and Chinese high-end brand lighting shop.

In addition, companies are Reye town to build a LED procurement centers , we hope to provide a town store format development ideas , the development of the town lighting industry can play a facilitating role.

Undoubtedly, the town should have to do their own channels to expand the LED industry . "To combine LED technology and sales , to attract domestic and foreign trade zone in the town some brands hatch , we support big business in. NVC and Osram come in town, they have the strength, we welcome them to do ." Huangzhi Tong further said .

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