In 2010, LED lighting market will evolve into the cost of the war

LED lighting penetration rapidly expanding, the market price war is brewing in 2010. However, the concern is that due to subvert the traditional lamp and LED lighting separate light source sales model, coupled with the high degree of customization, LED lighting manufacturers cost pressures under tight pockets, if not deep enough, will not be able to both product quality and price competitiveness, and fear of falling or eliminated mergers and acquisitions market.

Industrial group general manager Zheng Jianwen believes that the 2010 LED lighting market will evolve into the cost of the war, especially the main lighting field, the product performance and the feudal lords vying for the throne, the price will be the key to success in the market, a copy is not available.

Due to the development of the supply chain of the LED industry is mature, the threshold is not high, and therefore attract a lot of manufacturers flocked to form a small factory stand. However, different from the traditional lamp specifications have been standardized, can reduce the manufacturing cost of LED lighting, a high degree of customization, leading to low utilization rate of production capacity; in addition, the point source characteristics of LED, resulting in LED lighting and lighting should be integrated to sell, heightening cost risk LED lamps. On the other hand, the traditional lighting brand PHILPS (Philips), OSRAM (OSRAM) and GE also cater to the market situation, has long been competing through vertical integration or strategic alliance layout, and actively occupy the main lighting market LED. Whether it is the gross margin after layers of exploitation or potential enemies, small factory all escape the fate of living space squeeze.

Zheng Jianwen pointed out that the LED lighting industry supply chain is more complex than traditional lamps and a large number of lamps, the most downstream suppliers have to pay will increase, regardless of lighting design or price are similar, so the master and the cost difference between the products LED manufacturers have a chance to win. He also stressed that the traditional brand lighting manufacturers lay a pathway and diversified product line advantage, LED lighting industry is new or smaller are difficult to surpass, once the lighting manufacturers large and strong style price war, small plants will not survive.