LED industry is still very realistic

Many research institutions believe that with the improvement of people’s awareness of energy conservation and environmental protection, the decline in product prices, and technological advances, the era of LED replacement for traditional light sources has arrived. As the main production base of global LED lighting, China will usher in explosive growth.

In this regard, the industry sources said that under the influence of many favorable policies, it is expected that the domestic and international markets will continue to expand, and the future of the LED industry will be promising in the next few years. However, domestic homogeneity competition is fierce, excess production capacity is serious, and domestic brands are recognized in the international market. Problems such as low knowledge still exist. In the future, LED companies in China will have to work hard to establish their own brands and update their technologies in order to gain a firm foothold in the domestic market and further develop the international market.

The outlook is promising

"In the first quarter of this year, our sales increased by 150% to 200% compared to the same period of last year." Talking about sales this year, Yang Zhilin, manager of Xiamen Haotai Electronics Co., Ltd., is hard to hide.

Dan Hengyi, an outdoor sales manager of Ningbo Cixi Hengrun Electric Co., Ltd., said that his company is an export-oriented company and its products are mainly exported to the European market. Due to the fact that the product is in line with Europe's emphasis on outdoor life, the company's turnover has increased by more than 20% every year in the past two years.

The United States has completely banned the production and import of incandescent lamps since January 1, 2014. The EU has completely banned incandescent lamps since 2012, and Japan and South Korea have also completely banned incandescent lamps since 2012 and 2013 respectively. "The LED market has great potential for development. More than half of China's LED products are exported overseas. Because LED lighting has a short manufacturing process and technology is relatively easy to grasp, China has a cost advantage in the LED lighting segment. In recent years, China The share of enterprises in the international market is also expanding, and Chinese companies have been able to meet the needs of the international market with mature technology and low prices. It is believed that in the next few years, China's LED industry will usher in a big growth.” Just from Frankfurt A person in charge of the China Lighting Association who came back at the International Lighting Fair said.

Not easy

While welcoming favorable and ready opportunities, many companies and industry insiders have also found that many funds and companies are flooding into the LED lighting industry, LED lighting production capacity is relatively surplus, low brand awareness and other issues still plagued the entire LED lighting industry. It is not easy for companies to achieve explosive growth. “Although the number of Chinese LED companies’ exports has been increasing every year and the market share has been continuously expanding, most companies are OEM. This is detrimental to the long-term development of the industry's health.” said the person in charge of the China Lighting Association mentioned above. .

Relevant sources said that the plagiarism of domestic products is prevalent, which in the short term can bring considerable profits to enterprises, but its sustainable development ability is not strong.

Yang Zhilin also reflected: “In order to compete for the market, some domestic companies have been willing to sacrifice product quality and keep depressing prices, leading us to be very passive.”

In addition, Shan Hengyi said that because of the continuous introduction of encouragement policies in the past two years, his company is also actively exploring the domestic market, such as the recent cooperation with Carrefour, Century Lianhua and other large supermarkets. However, policies have been introduced and it will take time for them to be implemented. In addition, the domestic market is still not open enough, some bidding process is not transparent, coupled with the domestic consumer acceptance of LED lighting has yet to be cultivated, the market can not open up yet to be observed.

For these issues, the above-mentioned person in charge of China Lighting Association recommends that we must first accelerate the brand building and increase the awareness of domestic independent brands in the international market. In this regard, we can learn from the practices of some companies, such as acquiring and acquiring some local brands, and using the brand effect of local products to enhance the influence of our products on the local market. Secondly, intelligent lighting must be a direction for the future development of the lighting industry. How to break through some of the obstacles that exist in smart lighting, such as technology and price, has become an urgent issue for the industry.

Relevant persons said that multiple benefits from policies are both opportunities and challenges. While welcoming good corporate profits, companies should also pay attention to production standardization and process modularization, continuously improve research and development capabilities and expand sales channels; when competing with foreign companies, product quality and technology It needs further improvement; moreover, the most important thing is innovation.