LED lighting price war baptism downstream industry maturity is not far away

Abstract: at present, the global LED industry is in the law of the jungle, princes dispute "war era", but the expansion of market scale has become an inevitable trend.

2013 has become the past, the new enterprise had by virtue of a cavity blood into the LED industry will gradually found that blindly rely on improve the quality of the products in the LED industry share is not easy, the price war has been the development of the following products. All along, users want cheap, visible price advantage is still one of the key factors to win the share of the enterprise, of course, the brand is still the industry development shackles.

Price war baptism upstream and downstream

Industry maturity is not far away

According to statistics, 2010~2012 years in 3 years, LED chip production capacity expansion of more than 10 times; directly associated with the capacity of the big bang, a sharp decline in the price of LED chips, LED chip, the cumulative decline over the same period more than 50%, which makes the industry experienced a period of winter. However, in the downstream lighting applications market demand pull, 2013 MOCVD capacity utilization rose to 52%, the boot rate rose to about 70%, some companies even to achieve full production. Still, there are companies that say the feedback is still conservative, and they believe that chip prices may slow down. In the downstream of LED, because the enterprise between each other in each other's territory, industry competition pattern of zigzag, fight hand to hand with. Coupled with the outbreak of the LED lighting industry, many listed companies have cut in this area, as a traditional enterprise more reluctant to hand over the market to give the opponent, they resorted to price butcher's knife, in order to maintain their relative advantages in the LED lighting industry.

LED lighting price war baptism downstream industry maturity is not far away

But when the industry experienced the baptism of a price war, industry began to erupt again slowly from development to mature, the number of competitors will become less, because people will be eliminated in the process of "killing", is a profit or even a loss, only the industrial development to mature will there is a relatively stable profit.

Channel war intensified

Industry brands have to shuffle

However, although the number of orders on the hands of the enterprise, but the fierce price war almost runs through the whole industry chain downstream. The industry believes that, in the present and future market competition, if the company can not build their own brands, it may be in the meager profits, was submerged in the big market competition in price competition. At present, both the LED new enterprises or traditional lighting transformation enterprises, are facing a major opportunity to rewrite the market structure, enhance the remodeling brand.

Compared with the traditional lighting industry and products, LED lighting has obvious differences, the new market trading tools and environment for the promotion of innovation model provides the possibility and space. At present, the traditional channel system is not the main sales channel of most LED lighting enterprises, and the enterprises are exploring a variety of new market models to realize the two-way communication of the market.