Semi annual gross profit shrink LED scale war open

As of 25, LED listed companies have been disclosed in the report of the year 23, we have been in the analysis of net profit, revenue. This year, China LED network for the most recent hot price war associated data gross margin to sort out, hoping to change the gross margin of the LED industry, in order to dispel doubts about the LED price war.

(source: China News Network LED ranking statistics: in accordance with the industrial chain chip, packaging and terminal applications)

(source: China News Network LED Statistics)

The gross profit margin is shown in the "chip" package "lighting" curve

Through the 23 gross margin China LED network statistics, we can see that the chip companies in addition to Guangdong Silan, Gan Hua, the overall gross margin is higher than the industry average. According to incomplete statistics can be seen in the first half of 2015, the entire LED industry gross margin show "chip package > > lighting" curve, visible future chips and let the space, or this will be another battlefield next price war.

LED chip industry has the characteristics of density and density. Its profit level in the LED industry chain in a higher position. In recent years, due to the rapid development of domestic LED technology, industry competition is more intense, LED chip by foreign giants and Taiwan enterprises gradually led to the mainland market. With the reduction of foreign and domestic technology gap, LED chip gross profit will decline. For packaging, lighting, due to the relatively low threshold, the gross margin of mature products has gradually come to the ground, and many companies can maintain at a high gross margin, that is, to expand its emerging areas of.

Also worth mentioning is that for having dabbled in midstream packaging but also studied the application of the LED downstream enterprises, in addition to the application of Linsen, gross profit margin is lower than the end of the country star packaging business, Mason, rectangular and Lehman's gross margin is higher than that of the application package business. On the application side of low gross margins and Linsen country star, the main reason is largely in the downstream distribution channels and the development of the brand, and rectangular, Lehman and allring technology application of gross margin is high, we can see that the development focus of the Future Ltd and the basic trend.

(source: China News Network LED Statistics)

Large scale expansion of New Blue Ocean battlefield or outlet

LED packaging mainstream product gross margin decline in 2015 appears more obvious. According to the success of marketing director Zhang Luhua said, for the market mainstream 2835 beads, although large shipments, but what almost no profit, just a lot of customer service.

For the current status of the LED industry gross margin, from the statistical data of 23 listed companies can be seen as the packaging field, nationstar Siu Chi shares of LED are lower than the average gross margin of the whole industry value, while honglitronic gross profit is high due to its high margin in the field of automotive lighting.

This also confirms the first major determinants of the gross profit margin market competition. The so-called rare, this kind of product LED companies to force the automotive lighting is very few, honglitronic regardless of quality or function value advantage, so the price of the product is the natural price strategy, if the LED lighting products business of the road, because the market competition is more intense, you can only rely on the scale of victory, this point is the best proof rawlinson.

How to compete for market share price and sales volume balance?

When the gross margin of the LED industry has gradually declined, which means that the industry is gradually moving towards a mature stage, then the scale may be the best price cuts weapons. LED enterprises in order to expand market share, the basic will be taken to lower the price to open the market, the market needs to stabilize the market and then re adjust the pricing strategy.

One of the most obvious performance in the field of LED lighting. The first foreign big coffee PHILPS 6.5W LED bulb to kill more than 30 percent off, GE launched a $10 to buy a BrightStik LED and CREE BR30LED 9W floodlight price $15 and OSRAM T8 lamp three hop etc.. Later, more domestic lighting, OPPLE lighting, FSL, brother, and Qin Linsen have entered the war. ".

As for the emerging field of LED, the enterprise is at a higher price to the market, and then gradually penetrate to the Taiwan LED enterprise with more obvious, because mainland enterprises were forced to suppress prices, the development of new blue ocean market automotive lighting, infrared and UV market.

In short, the market of mature LED products are usually implemented above a small amount of small price in return, how to balance between price and sales, in order to achieve the profit maximization, LED enterprises must be faced with marketing planning, an important issue can not be avoided. (text / China LED network Skavy)

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