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Home > Articles > English > LED News > 4 reasons Hinder the LED lighting industry forward

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4 reasons Hinder the LED lighting industry forward
From: The Site Author: LIGHTUP LED DateTime: 2013-8-29

4 reasons Hinder the LED lighting industry forward 


 
        Recently, despite the Chinese market in good condition, but the overcapacity problem still exists. Low threshold current LED lighting industry , coupled with high government subsidies and preferential tax policies , making a large number of enterprises to enter , causing serious overcapacity low-end products . LED overcapacity mainly because of corporate excess . LED light domestic companies registered as many as 7,000 , plus some unregistered small workshop and a number of registered companies hiding behind 3-5 small working groups , engaged in the LED lighting industry enterprises numerous.
 
Many small and medium enterprises and small workshops The existence of low-end products of serious excess capacity , resulting in a vicious price competition. It is understood that , LED lighting products in just two years time, product prices experienced a roller coaster , the market price of 180 yuan from the original has been as low as 20-30 yuan. Meanwhile, there is a lot on the market price of 10-15 yuan cheap low-quality products exist.
 
 

1. Product quality problems are frequent


 
LED lighting quality problems, technical content issues , R & D and patent issues for small businesses suffered the first heavy door . Product homogeneity, low quality , had to compete with low prices , resulting in a large number of low-cost shipping Returns serious, same time, enterprises can not be guaranteed after-sales service , which is China LED small businesses generally in common. Two years ago , LED small businesses not now sad day , the market expensive LED lamps allow small businesses to get a huge living space , many small businesses become medium-sized enterprises . Lighting market is not standardized, this problem is quite long period of time . Lighting market trend is not good, the result of shoddy , consumer LED lamps paramour . Cheap war , which in the lighting market has been going on for several years . In recent years, government departments , the media, public opinion, advocate , many companies stationed , but also there are many small businesses out on this stage .
 
Into the lighting industry's traditional low season , a small business more tough it. Own products there is a big quality problems , first half sales increased subsequent development is the face of a growing number of returns, customers no longer continued alone . This is mainly due to quality problems . Medium-sized enterprises like this, not to mention the small businesses ?
 

2. R & D investment power is not enough


 
R & D investment power is not enough , most of the production is to learn from others formulations , without its own intellectual property rights, product performance is also compared with foreign enterprises have a big gap .
 
It is understood that in the current global energy shortage concerns in the context of increased again , energy conservation is an important issue facing the future of our country , in the lighting field , LED light-emitting products are attracting the world's attention , LED as a new type of green light product, is the future trend of development , twenty-first century will enter the LED lighting as the representative of the new era.
 
Although China is already the world's superpower LED lighting production , but so far in the field led by the Chinese industry pricing, patent also very small , has seriously hampered the development of China's LED lighting industry . Currently, China's LED lighting industry is still big but not strong . The above points eventually leading Chinese LED lighting has been in the low end of the market , the domestic high-end LED lighting market are foreign brands occupy LED lighting , domestic enterprises catch up.
 
While price competition, due to LED lighting industry into the reasons for the relatively low threshold , the industry has been in a situation of overcapacity . Meanwhile, home appliances and other end markets declined significantly, resulting in domestic LED business operations, facing an unprecedented challenge.
 

3. Lack of standards . LED industry into the " Warring States Period "


 
" Hinder the development of LED industry, the greatest difficulty is the lack of standards due to lack of domestic LED lighting industry standards , several hundred billion dollars of this market is still suffering from a huge competitive chaos plagued the industry for further development of this stumbling block . Standards are not unified, to industry has brought fierce competition, the more capable the more popular low-end prices , some foreign customers are willing to choose low price of LED lighting products to the neglect of the product itself , coupled with the lack of a unified national certification standards , mixed products , price competition has become increasingly fierce , the domestic LED lighting industry into the " Warring States era" in the offing .
 

4. Low Price war


 
In order to occupy more market share , number of LED lighting companies are still entangled in a brutal price war , since 2011 rising raw material prices , lower prices , leading to lower profits LED lighting companies , not just domestic LED lighting companies , some foreign LED lighting brand also joined the price war in order to dominate the market , LED manufacturers at the price war for "enclosure movement" , to seize market share, followed by is lower profits. Price war in the firm profit decreased significantly, which makes the development of enterprises in the future is difficult to use profits for development. But do not participate in price wars , LED manufacturers also fear losing an advantageous position in the market , the negative development in the future .

 


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