Price pressure surge LED power companies how to break?

As we all know, LED lighting industry has entered the era of meager profit. Due to the high end of the market value of the market, the downstream application of the concept of the manufacturers will penetrate into all aspects of the supply chain, more willing to choose lower prices of power products. Therefore, the power supply is also unable to escape the vortex of price competition, industry profits showed a rapid decline in the trend.

For a time, the integration of mergers and acquisitions in the power industry intensified, while its market is also subject to the power of the impact of the product, the industry continued to intensify competition. In the future, how will the transformation of power companies break through the Red Sea dilemma? How to highlight the price competition, to seek more market share and profit?

Price pressure surge

2015 was a tough year for most LED operators. TrendForce's green energy division LEDinside research associate Chu Chao said in, although LED lighting demand continues to rise, and replace the traditional lighting applications, but the average price decline of LED pile up in excess of requirement of 30~40% range, manufacturers face losses, even gradually withdraw from the market.

Low end of the market to kill a certain extent, led to a decline in the price of power driven products. The first three quarters of 2015, the overall market price of the domestic power supply fell by more than the same period in 2014 fell by about 25%, the annual decline of about 30%. KEGU power general manager Li Jinhong said, customers have made it clear that they need to be able to achieve the ultimate price of product suppliers, because lighting manufacturers thinking mode has turned to pricing according to the market demand, and make the shopping market ready.

As one of the core components of LED products, the driving power supply has occupied a large proportion in the cost of LED lamps. According to the relevant data show that the current power supply accessories in the proportion of the cost of generic lamps has been raised to 10% - 20%, non - Generic lamp cost accounting is as high as - 30%.

With the gradual decline of LED lamp and lamp price, high cost phenomenon of power supply was further enlarged, many enterprises have chosen LED application in power supply scheme cheaper prices under pressure. In the face of changing market direction, power supply manufacturers only to rely on power supply scheme of low cost in exchange for a price advantage, to attract customers purchasing.

As the technology continues to progress and the market matures, the price of natural LED power supply is declining, basically 20% per year in the level of decline, now reached the level of $0.5 /W. In such a market environment, if a power supply to achieve greater sales, in fact, there is a lot of pressure on the cost.

In order to reduce costs, power companies can rack their brains, or by reducing the number of components in the way, or the introduction of double-sided board to modify the form of a single panel, etc.. If it is simply to reduce costs, the quality can be guaranteed, in most cases, the decline in product prices and product quality control to form a vicious circle, prompting the plight of the industry continue to highlight.

Meanwhile, LED drive power market demand growth is slowing. The research shows that in 2015 the LED indoor driving power market size of 14 billion 590 million yuan, an increase of 39% compared to 2014, but the growth rate in 2014 fell by 15 percentage points; outdoor LED power supply, in 2015 the annual market size reached 1 billion 450 million yuan, an increase of 22% compared to 2014, the growth rate in 2014 fell 10 percentage points. To some extent, this makes the LED power market competition more intense.

Liao Yuzhu, general manager of the collar crown bluntly, in addition to a number of brands, in 2015 more than 90% of the power companies should be very suffering. Meanwell power vice president Jeky China sales that change by the commercial power supply market to civilian use, so that the cost of further compression, power supply products as the main parts, but also had to face the pressure of cost. At the same time, the layout of intelligent power market and low-cost design of overseas power suppliers, forcing domestic power companies have to deal with this shift. Today, the majority of domestic enterprises with a price to seize the market, the industry generally lack of brand effect, the lack of core competitive advantage.

High cost performance and differentiation

Today, LED lighting has become a trend to turn the low price, lighting manufacturers will continue to look for lower cost solutions, in addition to LED light source, power supply and other components to reduce the overall cost of the system. With the lighting market to further focus on leading enterprises, high cost performance will become the driving force of LED based enterprises.

High cost performance, LED power supply to ensure the quality of the first, only the quality of stability in order to obtain a stable market. Insiders said that in the future there are only two companies can survive, one is a strong financial support of the enterprise, and the other is to have the technology to do quality control of enterprises.

To reduce the cost of power supply, enterprises must optimize the power supply structure, the best power supply configuration. Reduce costs on the one hand, from the technical process, optimize the structural design; on the other hand can also be purchased from raw materials, the use of cost-effective suppliers.

Under the premise of guaranteeing the quality, scale will become the power to improve the price of the only proper course to take LED. Vice President Zhang Huajian said: "in the electronic automation applications, the scale of standardized production, can not only guarantee the quality and reduce the cost. "

Automation is the premise of standardization. This is why the LED power supply industry has been hoping to solve the problem of standardization in order to enhance market share and enhance product competitiveness. However, in addition to ball bubble lamp, lamp, etc.,