China LED Market: price war is an unavoidable fact

Introduction: in recent years, Chinese LED companies have achieved good results in overseas markets, and overseas markets has been one of the main channels of Chinese LED companies.

After several rounds of shuffling, LED industry China Xinxin better, with the macro policy and industry gradually to the downstream end of Chinese offset, LED industry ushered in the golden period of development. As the world's largest LED industry base, China's LED market changes significantly affect the pattern of the world's LED industry. In recent years, Chinese LED companies have achieved good results in overseas markets, and the overseas market has been one of the main channels of LED companies in china. Data show that in 2013 China's import and export of LED devices are still in the balance, the number of imports of 75 billion 900 million, the amount of imports of more than $5 billion 300 million, the export volume of 60 billion 500 million, the export amount of $2 billion 800 million.

Import and export data from three consecutive years has been China devices, LED devices imports higher than exports, there is a big deficit, but improved in 2013 this form, showing the import and export trade deficit gradually narrowing trend. In addition, in 2013 the average unit price of imports and exports of LED devices were 7 cents and 4.6 cents, to some extent, reflecting the export of LED devices in China is mainly in the low-end products. 2013 China LED lighting exports doubled in 2012 to reach 410 million, the number of exports accounted for about 50% of total output, exports also grew by more than $71% in 2012, reaching $5 billion 500 million.

China LED Market: price war is an unavoidable fact

The bulb export volume accounted for nearly 48%, but accounted for more than 15% spotlights, with China for LED lighting related macroeconomic policies, many export China fought in the local market, which caused the intense attention of overseas institutions. DOE pointed out in the report, Chinese is the core of Asia LED industry, through the China national semiconductor lighting engineering research and Industry Association (CSA) statistical analysis of SSL industry China data can be seen, the rapid growth of semiconductor lighting applications in China; China 2013 LED lighting penetration rate reached 8.9%, and is still growing rapidly; at the same time policy support and financial support center Chinese government, also LED industry from the previous fixed equipment investment is gradually turning to the LED lighting products purchase subsidies.

In the future, the Chinese market will have a more dazzling performance, but the market competition is still very fierce. With a new round of capacity expansion, China LED industry will usher in greater pressure on the stock, along with the continuous integration of acquisitions in the industry, let the whole industry chain, efficient use of resources, resulting in the price further down, not the size of the LED enterprises will face great pressure to survive. With the traditional lighting companies have transformed LED lighting, and many LED giants compete for sales channels in the meeting, and then start the contest. The traditional lighting companies have channel advantages, while LED enterprises expand the continuous integration of industrial chain resources, fight the scale effect, reduce the cost, the price as a weapon "won" market. But at this stage of Chinese lack of industry standards, resulting in the low-end products "spoiler" market, so many consumers lose confidence in the LED. The price war is unavoidable fact, but as the technology matures, the market inferior products fish phenomenon is expected to ease.