LED lighting products subsidies or will expand the two-level differentiation of the industry
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It is understood that these two categories of products are relatively mature products in the Chinese market, but the price is higher. Under the support of the Chinese government, the streetlights in outdoor traffic lighting have the “Ten Cities and Ten Thousand Miles†project as an industrial support, while the sales of indoor commercial lighting in the mainland market are not ideal. The consumption power of the Chinese market is also limited, which has led many manufacturers to export such products to Europe and the Middle East.
The agency believes that due to the relatively high price of these two types of products, engineering projects have higher requirements for product quality and brand and supplier selection. As a result, many manufacturers in mainland China have no way to break through in this section. This has led to big manufacturers in this "spring breeze" skyrocketing, and small companies are difficult to capture such opportunities.
If the subsidies are implemented from the upstream industries of LEDs, the enterprises listed in mainland China are all LED middle and upper reaches. With the listing of these enterprises one by one, the LED upstream and upstream industries will have sufficient funds to expand capacity, and in view of the downstream product market. The capacity will not be expanded accordingly, which will lead to bottlenecks in terminal sales and large inventory in the middle and upper reaches.
If the subsidy action is implemented from the LED downstream industry, the output of the LED industry chain is applied downstream. If the terminal market is open, it is obvious that the end market performance will directly drive the sales of the upstream and upstream products. 