LED lighting industry opportunities and challenges coexist

August 22, 2020

LED lighting industry opportunities and challenges coexist

Since 2013, the LED lighting market has entered the war era of warlords. Whether it is the old lighting companies or the emerging companies, they are sharpening their attention to the big LED cakes. Various means of rushing to the market are also emerging, including price wars. It is one of the most effective and respected strategies, and the price war is not only involved in online transactions, but offline transactions are even more rampant.

It is indeed a good idea that the price war is right or wrong at the right time.

Carefully thought about, LED lighting product prices back to implementation as expected. From the aspect of cost, with the maturity of technologies such as chips and packaging, the price of the products will naturally be more pro-infants. From the perspective of consumers, the prices of LED lamps, especially the prices of LED lamps in the previous two years are indeed too high. Many buyers were daunted and led to the embarrassing situation of the LED lighting market "new but not prosperous." Even the manufacturer Sanxiong Aurora Linyan said at a summit that he would not be willing to pay such a "high price" to buy a trip. Lamps. Facts have proved that even if the product is the best, the price is too high for consumers to accept. Therefore, the price reduction of LED lighting products is also in line with the actual situation in the market.

Many industry insiders predict that the price war will continue in 2014 and even in the next few years. This is the inevitable process for the market to take advantage of the inferior and reshuffle. The price war is neither right nor wrong, and it is appropriate to moderately reduce the amount of corporate profits in a short period of time. However, it is a good way to promote consumption and stimulate consumer purchases. However, as long as the company is doing its own positioning, checks and improves technology and quality, and develops products with high quality and low price and high performance-to-price ratio, and enriches soft power and hard power, the market is not favored.

Policy favorable LED lighting industry

Air pollution, noise pollution, and light pollution are several killers that threaten human health in recent years. In the two sessions, Premier Li Keqiang listed many concrete measures for environmental protection in the energy and industrial sectors in the "Government Work Report." The author believes that this shows the Chinese government's determination to control pollution as a whole and that the government pays attention to balancing the economic development model. , to make structural adjustments. We can see that China will further carry out reforms, achieve more focused, greener economic growth and wage war on pollution.

LED as a new industry of environmental protection energy naturally also receives higher attention. Furthermore, the effectiveness of local government's promotion of the LED industry in recent years, such as road lighting renovation and contract energy management, has provided strong evidence for the development of China's LED industry.

In terms of environmental pollution, such as toxic and harmful substances or elements, LED lighting has a great advantage over traditional lighting products. The environmental protection use period of energy-saving lamps is 10 years. The environmental protection use period of LED lamps is 30 years. The use period of LED lamps is 3 times that of energy-saving lamps, and the pollution to the environment is also smaller. It is the choice of green lighting. The effect of LED lights in terms of energy saving is very obvious. Compared with energy-saving lamps, there are also better energy utilization effects. The longer the lighting time, the more obvious the energy saving effect.

LED lighting enters rural market opportunities and challenges coexist

During the two sessions, Li Keqiang once proposed to accelerate the development and application of energy-saving environmental protection technologies and products, and turn the energy-saving and environmental protection industries into a thriving sunrise industry. The implementation of energy efficiency improvement of buildings, energy-saving products to benefit the people project, the development of cleaner production, green low-carbon technology and recycling economy, improve the ability to respond to climate change.

As an important product for energy conservation and environmental protection, LED lighting has continued to gain popularity and penetrate into the rural market. As the living standards of rural residents have gradually increased, their level of demand for emerging products is also rising. As you can imagine, this is a big cake for emerging industries.

The government attaches great importance to the use of products properly. This is good news. However, according to the reporter's visit, it is understood that there are still many drawbacks in the use of LEDs in the rural market. Overemphasis on energy conservation benefits, do not hesitate to spend a lot of money in accordance with solar LED lights; product quality, but off, there is a serious phenomenon of lights; after-sales maintenance can not keep up, after experiencing the test of the natural environment, there is no timely maintenance, causing huge waste.

In addition, in the civilian market, the price of LED lights is still high, some people can accept new things, but often choose the products with low quality and low quality, making the life of the lamps too short, it is also a blow to the user, can not be formed Persistent. Low prices and brands are difficult to balance. With a good brand, if the price is not attractive, it cannot be profitable. This requires the opening of a price war. Regardless of price or brand, this is where LED companies need to try their best to balance.

"Superman Li Ka-shing" personally "play lights" LED market "point stone into gold"

"Lee Chao-man" personally "played lights", making investors look at the LED light concept stocks, and triggered the "spot to gold" effect of the Hong Kong stock market - the stock prices of many LED lighting concepts stocks soared, even "Superman" himself The TOM Group's share price has also been driven by a super high 10%.

LED industry is in the ascendant, and the focus of competition is still on the large circulation products. The future development will consolidate the development track of circulation products and maximize the opening up of the civilian LED market. In addition, the application market for LED products is even wider. LED technology has a lot of room for innovation. This is one of the objective factors for Li Ka-shing's bullishness in the LED industry.

In addition, this year, LED lighting products are now falling prices, LED prices for this year's LED industry a significant development characteristics. The result of price fluctuation is that LED products are closer to people's lives, and the application ratio of LED products in the civilian market will increase earlier, especially for large circulation products. With the gradual and obvious characteristics of this trend, the number of global LED bulbs in 2014 will also increase by more than 80% over the previous year. LED lighting products will become more popular and the market share will continue to expand. This is one of the factors that Li Ka-shing is optimistic about the LED industry.

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