LED lighting industry entered the game stage of price and quality

With the gradual implementation of government support measures and increasing support efforts, the LED lighting industry is moving from the "barbaric growth" stage to the game stage of price and quality. Experts pointed out that a LED lighting product company docking and promotion meeting held recently pointed out that the price of LED products is declining at a rate of about 20% per year, and the focus of future industrial competition will shift to product quality and service.

Policy Leverage Incitement of Industrial Expansion The "Financial Subsidy Promotion Project for Semiconductor Lighting Products" implemented by the United Nations Development and Reform Commission and the Ministry of Science and Technology of the Ministry of Finance completed the open tender last week. This is the second round of subsidy project bids released after the last year. At the Jinya Electronics 3E-LED Products Business Matchmaking and Promotion Conference held on Friday, a number of industry insiders stated that the government plays a crucial role in promoting LED products.

In addition to the central government, local government support for the LED industry can also be spared. Taking the Binhai New Area as an example, the "Binhai New Area Promotion of New Energy Industry Development Measures" released in 2011 proposes to support semiconductor lighting (LED) key equipment and materials and common key technology research and development projects; support LED campus, LED in the implementation area For green lighting demonstration projects such as communities, LED industrial parks, and LED transportation, each project will, in principle, give a subsidy or funding subsidy of up to RMB 500,000.

Huang Xiaode, senior vice president of Tianjin Jinya Electronics Co., Ltd., told reporters that with the support of the government's subsidy policy, our main customers are currently business procurement. “Our current partners include dozens of companies such as Motorola and Novo Nordisk, as well as some commercial buildings, and energy-saving products in many parts of the New District.”

"The LED manufacturing and purchasing companies have subsidized the policies, which will play an important role in reducing the price of the products. An industrial shop with 24 hours of uninterrupted lighting, as long as 3 years, the energy cost savings can cover the purchase of LED lighting. Cost,” said Yu Ning, director and senior engineer of the Tianjin Electric Energy Technology Center.

It is predicted that thanks to a number of government support, the LED lighting product market will continue to maintain rapid growth this year. Taking LED street lighting products as an example, the output value of China's LED street lamps will increase by more than 60% year-on-year and the output value will reach 4.7 billion yuan this year.

Quality and service to enhance competitiveness "The continuous expansion of the market size of LED products is making the price of LED products fall by 20% per year." Yu Ning told reporters that three years ago, an LED lamp more than 400 yuan, the price has now More than 50% off.

According to relevant statistics, due to the upgrading of upstream chip technology and the rapid decline in prices, the cost performance of downstream LED lighting products is rapidly increasing, and the LED industry is moving in a direction that is reasonable and stable. Last year, China's LED indoor lighting output increased by 75% year-on-year, and product prices fell by 22% year-on-year. The output value reached 18.6 billion yuan, an increase of 38% year-on-year.

According to forecasts from related agencies, benefiting from government support and price reduction, China's LED indoor lighting output will reach 30.6 billion yuan this year, an increase of 64% year-on-year; in 2015 it will reach 99.3 billion yuan, and the scale of indoor lighting output will increase at a compound annual growth rate in the next 4 years. More than 50%, reaching 52%.

With the continuous decline in prices, the competition in the LED industry is becoming increasingly fierce. In the face of the same price of the product, the company began to seek more energy-saving and more durable lighting products. “Having often appeared in the lighting market, the number of low-cost LED product brands is becoming less and less.” An industry source told reporters that a few years ago, SMEs selling LED lighting products became increasingly untenable. "Since SMEs do not have packaging capabilities, their products are 'out of the box' and quality cannot be guaranteed, not to mention after-sales service."

“After years of training, the domestic market for energy-saving products is becoming more rational, and as the price of products declines, the focus of customers will shift to quality and service. Now, more and more customers are aware that they are not only There are products and services." Industry sources told reporters.

Today, LED lighting companies in the New District are also catering to industry trends and are working harder in product quality improvement and service areas. “In addition to the traditional after-sales service, we can also provide customers with more targeted overall solutions. For some expensive LED products, we can also provide product rental services.” Huang Yude told reporters.

Zhang Yanlin, research director of China Investment Consulting Co., Ltd. pointed out that LED companies must improve their service quality in a balanced quality and price environment and further subdivide their technologies and services before they become more suitable for the development of the industry and become more competitive.