Low price can not be a long-term development of the LED business strategy

2013 is about gone, look back at this year, the development of the electronics industry, can be described as ill-fated, especially the development of the LED industry, It is very frightened, many enterprises in perpetuity like forward.

LED as a green industry first, the increasingly serious energy crisis and environmental crisis, the concept of energy saving much national policy support, especially at the beginning of the year, according to the Governments planning, high energy-consuming incandescent will be in the next decade to exit the stage of history, governments around the world are actively promoting energy-efficient lighting products. Developed countries incandescent disable exit timetable, according to the schedule of major countries will prohibit the use of incandescent between 2012-2013. learn more about rgb led wall washer

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In addition, the country to support the development of semiconductor lighting industry, industry development plan mapped out three phases. Phase I: to 2009, more than 20 pilot cities, Application 1,000,000 municipal LED lighting. Second stage: in 2012, in the whole ofChina, completed 50 semiconductor lighting demonstration urban construction work, the application of two million LED municipal lighting. The third stage: in 2015, the chip localization rate of over 70% of white LED10 / thousand lumens, lamp 40/1000 lumens, replace incandescent, halogen and other inefficient lighting products, semiconductor lighting into 30% of the general lighting market. learn more about 2g11 led light

Good market prospects, leading to the “heroes” of the LED market, and energy-saving lamps and LED lights to compete for the battle of the lighting products market officially opened. Cost reasons, however, lead to the cost of the new LED lighting than traditional lighting products, higher prices relative to domestic consumers, foreign consumer prices higher affordability early LED enterprises market position in a foreign country market, statistics show that 80% of China LED companies rely on exports, affected by the recent market downturn in Europe and America as well as foreign clients continue to keep the prices down, and other factors affect the sharp decline in orders and profits of the domestic LED enterprises. LED domestic terminal application market is not fully open, constantly under attack in the domestic and international markets, many companies seem to bail out the most direct and effective means to quickly capture the market by low-cost.

But cheap grab City “this move is not wise Insiders pointed out that the LED is a typical labor-intensive manufacturing, even if many businesses do not understand the technology, but also can rely on the assembly of LED components in the market place. “Many enterprises are concentrated at the low end of the market, not quality LED products more and more weight, probably 90% of the enterprises are in the price war.”

The related reported that “efforts to enhance corporate profits” or reduce the price of increased competition situation will continue to be the main theme in the market “robust” development under the premise. Of competition in the market in 2013, the price war will continue in the homogenization of serious context, the market competition is more than just a simple competition between enterprises; competition in the industry, the ecological chain is also prominent. learn more about led downlight

For businesses, the most important at this time or good products, product quality and technology but the difference is still the core level, at the same time the rhythm of the life cycle of the product to keep up, because of the changes in the market soon, the product cycle to accelerate the pace.Enterprisethe benign operators must start from cost control and product differentiation. Only have competitive products in the market, in order to grasp the pricing, in order to ensure a reliable profit margins in order to achieve the enterprise industry chain development cycle. 

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