LED market difficulties: serious homogeneity

In February this year, the National Development and Reform Commission issued the “Semiconductor Lighting Energy-Saving Industry Plan” to reduce the 2015 LED lighting output value from 500 billion yuan in the “Twelfth Five-year Plan” to 450 billion yuan, and determine the development goal: In 2015, the LED lighting industry structure will be further optimized to form 10 to 15 leading enterprises that possess core technologies, possess more independent intellectual property rights and well-known brands, and have strong quality competitiveness. LED lighting industry adjustment and upgrading is approaching.

With the development of the LED lighting market and the promotion of the national energy subsidies policy, the LED lighting industry has ushered in new opportunities for development. How can the lighting industry become more and more serious and the civil market development rate is not high? LED lighting Business must face the problem.

Homogeneity leads to disorderly industry competition

"China's LED lighting industry needs to change the disorderly competition, production of low-end products, rely on the status quo of the country, otherwise it will be possible to repeat the old road of excess capacity, prosperity will become a short-lived." Recently, China Lighting Association Vice President and Secretary Chen Yansheng said in an interview with reporters.

At present, there are more than 5,000 companies that produce LED lighting fixtures in China, of which about 20% are above-scale enterprises. The enterprises are generally small-scale and have low industrial concentration. As the core technology of the LED lighting industry --- the chip is mainly in the hands of foreign companies, China's LED lighting companies mainly produce low-end products, low value-added products. Because of the similarity of various products, disorderly competition is evident.

The LED lighting industry started late in China, but due to its broad prospects and in line with future energy development requirements, since 2009, various localities have seized market opportunities to start from the interests of the region and provide local LED lighting companies with many benefits. With low barriers to entry and a good development environment, the LED lighting industry that grows out of the “greenhouse” lacks core competitiveness and strong homogeneity, and is dependent on the country without exception. Many companies do not even have the technology to produce LED lighting products, just to enjoy various subsidies for state subsidies, tax reductions, and cheap industrial land. For a long time, state subsidies have occupied a considerable portion of the profits of LED companies. Even the leading company Sanan Optoelectronics had a profit of 668 million yuan in the third quarter of 2012, and government subsidies also accounted for 328 million yuan.

At the same time, lack of innovation and rampant industry abuses have inevitably caused the entire industry to suffer from the decline in gross profit. Director of marketing of the Marketing Center of Zhejiang Sunshine Lighting Group Co., Ltd., Hu Wei, said in an interview with reporters that in today's highly homogenized market, identifying its own position is particularly important for the development of the company.

Civilian market temptation and embarrassment <br> <br> Some experts believe that, LED lighting civilian market is China LED lighting highlight of this year, many domestic commercial lighting LED lighting business to focus on developing the market as an object.

The domestic LED lighting production enterprises entering the LED lighting civil market will first encounter the problem of competing with the traditional lighting channel distributors, traditional lighting dealers are not skilled in the operation of the LED lighting market, they will LED lighting and traditional lighting for a comprehensive comparison, in order to make decisions Secondly, the price of LED lamps is higher than the price of fluorescent lamps. From the specific occasions of civil lighting, there is a certain gap between the lighting effects of LED lighting and traditional fluorescent lamps.

At the same time, the professionals who know how to repair LED lighting in the market are relatively rare, and there are many consumers on the third and fourth line markets. The awareness of LED lighting is low. If a brand is operated in one area, the integrity of the product variety is equally important.

In the field of civil lighting, the consumption cycle is an important factor for manufacturers to consider. LED lighting products have the advantage of long service life. When the market coverage of LED lighting products reaches a certain level, it will enter a period of relatively slow development. With the declining prices of LED luminaires, technological advancement, and increased awareness, the market will show a rising trend, and the post-market will be in a fallback period. This will be a long process.

For this issue, Huahong Optoelectronics Technology Co., Ltd. General Manager Fu Xiaohui said: "If 2010 is still the seller's market, then it will be entirely a buyer's market. With the price approaching consumer acceptance, the market is also In the gradual increase, but at the same time the entire industry is also facing huge challenges."