LED industry market blowout price war is on the verge

Benefiting from the enthusiasm of channel distributors for LED lighting products, LED commercial and civilian markets showed a blowout market this year.

However, the market blowout was accompanied by fierce price wars and channel wars. The industry believes that the LED industry will develop rapidly in the next three to five years, and the enterprise's duel will be more intense.

Production enterprise orders are full

"At present, our machines are running at full capacity, and there are also cases of customers queuing and other chips." Wang Lianghai, vice president of Tongfang Group, an upstream LED company, told the Yangcheng Evening News reporter on the 12th. The media previously reported that 50% of upstream machines were idle last year. The same situation is manifested in the middle and downstream. "Our orders in April and May are all good." Li Guoping, chairman of Hongli Optoelectronics, a midstream company, also told reporters. And Zhu Bingzhong, deputy general manager of Qinshang Optoelectronics, which is engaged in lighting applications, revealed: "This year's order has been arranged for two months."

Outdoor lighting and commercial lighting became the biggest driving force for the LED industry to turn over this year. Pan Wenbo, the founder of Guangzhou International Lighting Exhibition, believes that under the general trend of energy saving and emission reduction, the public lighting field across the country will take the lead in setting off the climax of popularizing LED. Lu Weidong, general manager of Bright China, a brand of Huizhou Yuanhui Optoelectronics, said that the rapid growth in the field of commercial lighting has led this round of LED industry blowouts.

For the market outlook, most people in the LED industry expressed optimism. Gong Weibin, chairman of Ruifeng Optoelectronics, expects that the industry growth rate will reach 15% this year, and even 40% in 2014.

The price war is fierce

But it is worth noting that there are more orders, but prices are also falling rapidly. According to the survey data, 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. Some LED products are even cheaper than energy-saving lamps. Behind the price drop is the competition for orders. Xu Min, technical director of Coslight Semiconductor Lighting Co., Ltd., said that the price was "bloody" during the bidding process. A person in the marketing department of an LED company in Shenzhen said: "In order to grab orders, the boss suddenly decided in April that the company gave up mid- to high-end products and produced low-end products."

Lu Weidong, general manager of Aoliang China, said in an interview: "Aoliang products are highly competitive in the US and European markets, but the domestic market focuses on price rather than technology and quality, so it is more difficult to develop than international The market. "Although some companies said that LED prices have fallen to the point where they can no longer fall, Lu Weidong believes that there is room for further declines in LED product prices. But excessive price wars will lead to a decline in the quality of the company's products and slowly lose the market.

The next two or three years

In fact, the trend of shuffling the LED industry in the past two years has been very obvious. Lv Weidong said that there are countless manufacturers in the domestic LED industry, but none of them can really be called a brand, and industry reshuffle is inevitable. Xiao Xiaowen, who runs a lamp city in Jiangsu, said: "From the channel point of view, the so-called brand is to have a quantity, and no quantity can't be called a brand."

And most LED companies are generally trapped in incomplete channels, unable to fully maximize. As a result, the channel competition is becoming more and more fierce. Lu Weidong told reporters that in the LED industry, distributors rarely specialize in a brand, which will cause dissatisfaction of LED companies. A few days ago, NVC ordered its distributors to ban the sale of products from an LED company named Everlight. And Zhang Yutao, chairman of Sanxiong Aurora, who also has strong channels, also hinted that its distributors' LED products cannot compete with the company's products.

Experts in the industry believe that the war of channel vendors shows that LED companies have really started fighting in the market.

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