LED lighting replacement market to enter the 100 meter sprint stage price war or "song"

The new round of industrial adjustment, represented by technological innovation, quality improvement and resource integration, has gradually entered the "deep water zone" by eliminating backward production capacity by market competition. The latest data from LED Production Research Institute (GGII) showed that the output value of China's LED lighting market was 212 billion 700 million yuan in the first half of the year, and is expected to reach 457 billion 600 million in 2016, up 15.35% from the same year. LED lighting permeability rapid promotion, traditional lighting factory LED revenue accounted for more than 50%. GGII predicts that by 2018, the permeability of LED will be close to 90%, and the LED whole industry chain pattern will also be basically settled. It means that from this year to 2018, the LED replacement lighting market will enter the last 100 meter sprint stage. Under this background, the LED lighting replacement market will enter a new round of growth peak. The market size of the substitute light source represented by the bulb lamp and the lamp tube will show a rapid growth trend. The United States Department of energy (DOE) releases the latest edition of the general lighting application of the solid-state lighting energy saving biennial forecast. The report focuses on the general lighting market in the United States. It is expected that in 2035, North American LED lamps and lamps are expected to account for 86% of the installation of lamps and lanterns, compared with only 6% in 2015. After a few years of price war, the first half of the LED industry ushered in the middle and upper reaches of the tide, at the same time, faced with the increase of artificial costs and other peripheral factors, the most competitive price competition of the LED replacement light market is taking place some subtle changes. "The price war had to be hit, who did not fight the price war last year?" Lin Jiliang, the executive general manager Lin Jiliang, talked about the price storm that was set off last year in the LED industry. "But last year you didn't fight the price war, you would go directly out, even the market share was gone." He confessed that the price war was aimed at consolidating the market, increasing R & D investment for technical reserves and expanding capacity to have a strong production base. And the effects of these strategic layout may be confirmed in the next few years. Price decline space narrowed into 2016, the market reversal, the LED industry "price rise" from this year in May this year, the global LED chip products up, to the end of August, China's LED chips and packaging enterprises have been up 5%-15%. Behind the overall market market, the cost space of each link of the industrial chain is almost close to the "life and death line". Starting with the birth of the LED lamp, it is accompanied by a drop of 30% per year. The decline in the price of the replacement light source for the past two years is mainly the decline in the cost of chip light efficiency and the rapid growth of supply. "After the cost of the chip, because of the continuous innovation of the process, heat dissipation materials and processing costs have triggered a decline in price again, this year, the decline in space is almost very small." Sunshine lighting (600261) Chen Yiping, general manager of China District, said. Behind the cost reduction space is almost zero, and the price of raw materials has risen in an all-round way. In addition to the price callback of core components such as chips and devices, some raw materials, including aluminum substrates, have also been rising in price. Industry insiders revealed that the price of raw material suppliers for PCB has begun to rise in June, and up to 3 rounds up to now, up to 10% - 30%. At present, the application of PCB in the LED industry is mainly packaging, power supply, lighting and other fields, especially the rapid growth of the demand for the LED display since this year. The growth of the package market scale such as COB is accelerating the growth of the demand of the PCB market. The price of plate will not affect the downstream lighting enterprise too much, because the proportion of plate cost in the whole lighting product is not too large, probably between 5%-8%. "As the lighting manufacturer, we will not follow the price increase as the plate price rises, we will make reasonable control of the cost according to our own situation," said Lin Yan, deputy general manager of the three male aurora. But for small businesses, the rising price of the upstream raw materials will undoubtedly have little impact. "This price rise to the LED industry shuffle has a certain role in promoting. This is like a catalyst, but it does not have a special effect. " Lin Yan said. For the future, there is still room to reduce, Chen Yiping said, "if the enterprise itself can reasonably control the efficiency of labor, logistics and other efficiency costs, through the differentiation route, the price reduction is possible." "The only way out of scale production" is that the only way to go down is to reduce manufacturing costs through large-scale production and minimize unnecessary costs. " The person in charge of Lida stressed that. LED Research Institute (GGII) of high industry and Research Institute (LED) showed that the revenue of the traditional lighting companies such as sunshine lighting, OPPLE lighting (603515), FSL (000541), NVC and other traditional lighting companies increased more than 30% in the same period of the previous year, and the gross interest rate has also been generally higher than that of the same period of last year. At the same time, in the LED revenue growth, in the second half of the industry, the listed companies mentioned in the semi annual report of the automatic transformation and upgrading of the production line and trial production, to improve production efficiency, save human resources and improve the quality of products. From the current industry feedback situation, the second half of the year, these large lighting plants will gradually promote the mature automation reform program, and the automation of more production lines will be reformed. Sunshine lighting in the semi annual report mentioned that the expansion of production capacity is not a simple increase in the number of people, sunshine lighting in order to enhance the guidance of the increase in per capita output value, and the introduction of the implementation of automation in many kinds of products and various process links. A moderate replication of mature automation schemes has been made to enhance cost control and contribute to the improvement of the overall gross margin of the company. "Automation is helpful to reduce the risk of employment, improve efficiency and improve quality. It is also the core productivity of a manufacturing enterprise." The general manager of sunshine lighting said that, for lighting enterprises, the automation production line has high demand for talent and technology both for producers and users. In addition, it also needs product design and technical foresight. In the first half of the year, the State Ministry of industry and information announced the list of "demonstration projects for intelligent manufacturing in 2016". The "LED lighting intelligent manufacturing pilot demonstration", which was declared by Lida Photoelectronic Technology Co., Ltd., became the only enterprise in the lighting industry in 2016. As one of the largest enterprises in LED lighting in China, there are 40 automatic lines of LED bulbs, two automatic production lines for tube lights, and two automatic production lines. For the automation equipment manufacturing enterprises, the change of downstream demand is not only reflected in the increase in the acceptance of equipment prices, but also in the continuous technological upgrading of the equipment enterprises. The responsible person in charge of optoelectronic said, "at present we have developed two automatic production lines, one is the previous bulb lamp, and the two is the present LED tube (with two kinds of materials, plastic and glass)." At present, the first ten enterprises of domestic LED lighting products export, such as Lida, sunshine lighting and so on, 7 enterprises are using the intelligent production line of LED lamps and lanterns. Whether the Future Ltd will increase the automation line of other lamps and lanterns, in the photoelectric disclosure, "mainly to see the market feedback (downstream lighting enterprises demand), relayout." The development, production and sales of all kinds of lamps and lanterns are generally concentrated in the hands of large scale enterprises, and the market competition between enterprises will return to reason. For small and medium-sized enterprises, they will face cost and demand. Bi-directional pressure. For equipment manufacturers, it is necessary to prepare their own technical reserves and be ready to deal with the ever-changing market. According to the industry, "in order to survive, or have a strong capital, or have a unique technology, otherwise it will be eliminated." "Large enterprises have a large amount of raw materials, and there will be some bargaining chips." Small businesses have no opportunity to talk, we say how much rise will rise, otherwise, we will not supply. As a result, the cost of small businesses in the lower reaches will be improved, it will certainly be difficult to survive, and will accelerate mergers and acquisitions, integration, and shuffle. The head of a LED raw material manufacturer said. In fact, the price rise will cause a new round of shuffling, without brand advantage, the small and medium sized enterprises without purchasing power are difficult to survive. Although the LED industry still has a good opportunity for development, the transformation of the enterprise itself must be accelerated, otherwise it will face many difficulties. "Without a large scale, the price has no advantage, and the order will naturally fall, because the price rise does not increase the demand for the market." The people mentioned it. At the end of the competition, the LED general lighting market is bound to form an oligarchy, which is a few big companies playing. So, where is the way out for small and medium-sized enterprises? Dr. Xiao Guowei, President of electronics, said: "the future LED lighting market is to give full play to the advantages and strengths of LED lighting." This trend will become more and more obvious. " When scale brand enterprises focus on replacing market share, small and medium-sized enterprises need to make use of this window period to adjust products and market positioning strategies as soon as possible, and find their own niche market.