Recently, the National Development and Reform Commission formally issued a document saying that "China will basically phase out incandescent lamps after 5 years." It is estimated that the market scale formed by replacing incandescent lamps will reach several hundred billion yuan. As the best alternative, the LED lighting industry is expected to quadruple within five years.
It is understood that there are two or three hundred LED companies in Quanzhou, and only several companies, such as Chunguang and Dahua, are involved in civilian lighting. The rest of the enterprises are concentrated in government procurement, hotels, offices, and process lamps. "However, entering home lighting is a trend," said Huang Shuiqiao, director of the Quanzhou LED Industry Technology Innovation Strategic Alliance.
Civil product can be scaled
Talking about the cruelty of the current LED industry competition, Quanzhou business owners have great concerns: the shrinking of the export market, the difficulty of opening up the domestic market. At present, professional markets such as government procurement and hotels are concentrated in enterprises. Although profits are high, but after all, the number is limited, the market is in a situation where there is a lot of shortages. The more unfavorable news is that foreign-funded companies that are dominating the technological monopoly are accelerating their efforts to catch up on the domestic market. In Philips alone, nearly 500 commercial lighting centers have been deployed in the Chinese market.
“Outdoor lighting like street lights and advertising lights operated by LED companies in Quanzhou belongs to order-oriented products, and customers generally have individualized demands. Even in the same city, street lights on two roads are in terms of brightness, color appearance, and appearance. It is not the same, so it can only be produced according to the order. The civil lighting products are different, one of the biggest features is the standardization, versatility, and more suitable for large-scale production.†Secretary-General of LED Industry Technology Innovation Strategic Alliance of Quanzhou, Pan Yiming, general manager of Spring Lighting Technology Co., Ltd. believes that this is where the LED industry is desperate to capture.
In fact, this company, which originally specialized in the manufacture of LED street lamps, had expanded from outdoor lighting to indoor lighting one month ago.
The price is the biggest "blocker"
It is understood that there are not many domestic LED companies involved in the civilian market, mainly in the field of outdoor lighting, commercial lighting layout.
"Compared with LED home lighting, these areas are more likely to make LED companies profitable in terms of price acceptance." Huang Shuiqiao said that the biggest obstacle to LED lighting products entering the civilian market is the excessive price.
This can also be seen from the sales terminal. "The LED lights are not very good, because LED prices and energy-saving lamps, incandescent light gap is larger. For example, 3W LED lights sell for 20 yuan, 7W will be 90 yuan, and energy-saving lamps as long as 10 yuan, incandescent Just 1 yuan." A lamp shop in the city of Baozhou Road, the person in charge told reporters that in the home area, LED lights are currently the basic "a word-of-mouth market."
"The main reason for the high price of LED is that the cost of the chip is higher, and the chip accounts for at least 1/3 of the cost of the LED lamp." industry sources said. However, the price of a 1W LED chip was about 3 US dollars two years ago, but now it has fallen below 1 US dollar. With the drop in chip prices, the problem of excessive LED prices is expected to be resolved in the next five years.
Reduce costs to take the lead
It is understood that Spring Lighting has just introduced LED energy-saving lamps (3W) used as indoor lighting, the brightness is more than twice the power of energy-saving lamps, life can reach 30,000 hours, is 6 times that of ordinary energy-saving lamps, but only need to spend 1.5 times the price of ordinary energy-saving lamps can be purchased, cost-effective and extremely competitive.
So, rely on what to reduce costs? "You can consider making full use of the resources around you." Pan Yiming told reporters that if you do research and development, you really need a lot of investment, and you can't afford it for small businesses. In order to reduce costs, and at the same time make the product have a higher technical content, you can choose to cooperate with scientific research institutions.
“In terms of R&D and manufacturing of midstream and downstream products, alliance members can carry out their efforts. In terms of upstream chip manufacturing, Sanan Optoelectronics has already settled in Quanzhou. It can be said that Quanzhou LED companies have advantages in the civilian sector,†said Huang Shuiqiao.
It is understood that there are two or three hundred LED companies in Quanzhou, and only several companies, such as Chunguang and Dahua, are involved in civilian lighting. The rest of the enterprises are concentrated in government procurement, hotels, offices, and process lamps. "However, entering home lighting is a trend," said Huang Shuiqiao, director of the Quanzhou LED Industry Technology Innovation Strategic Alliance.
Civil product can be scaled
Talking about the cruelty of the current LED industry competition, Quanzhou business owners have great concerns: the shrinking of the export market, the difficulty of opening up the domestic market. At present, professional markets such as government procurement and hotels are concentrated in enterprises. Although profits are high, but after all, the number is limited, the market is in a situation where there is a lot of shortages. The more unfavorable news is that foreign-funded companies that are dominating the technological monopoly are accelerating their efforts to catch up on the domestic market. In Philips alone, nearly 500 commercial lighting centers have been deployed in the Chinese market.
“Outdoor lighting like street lights and advertising lights operated by LED companies in Quanzhou belongs to order-oriented products, and customers generally have individualized demands. Even in the same city, street lights on two roads are in terms of brightness, color appearance, and appearance. It is not the same, so it can only be produced according to the order. The civil lighting products are different, one of the biggest features is the standardization, versatility, and more suitable for large-scale production.†Secretary-General of LED Industry Technology Innovation Strategic Alliance of Quanzhou, Pan Yiming, general manager of Spring Lighting Technology Co., Ltd. believes that this is where the LED industry is desperate to capture.
In fact, this company, which originally specialized in the manufacture of LED street lamps, had expanded from outdoor lighting to indoor lighting one month ago.
The price is the biggest "blocker"
It is understood that there are not many domestic LED companies involved in the civilian market, mainly in the field of outdoor lighting, commercial lighting layout.
"Compared with LED home lighting, these areas are more likely to make LED companies profitable in terms of price acceptance." Huang Shuiqiao said that the biggest obstacle to LED lighting products entering the civilian market is the excessive price.
This can also be seen from the sales terminal. "The LED lights are not very good, because LED prices and energy-saving lamps, incandescent light gap is larger. For example, 3W LED lights sell for 20 yuan, 7W will be 90 yuan, and energy-saving lamps as long as 10 yuan, incandescent Just 1 yuan." A lamp shop in the city of Baozhou Road, the person in charge told reporters that in the home area, LED lights are currently the basic "a word-of-mouth market."
"The main reason for the high price of LED is that the cost of the chip is higher, and the chip accounts for at least 1/3 of the cost of the LED lamp." industry sources said. However, the price of a 1W LED chip was about 3 US dollars two years ago, but now it has fallen below 1 US dollar. With the drop in chip prices, the problem of excessive LED prices is expected to be resolved in the next five years.
Reduce costs to take the lead
It is understood that Spring Lighting has just introduced LED energy-saving lamps (3W) used as indoor lighting, the brightness is more than twice the power of energy-saving lamps, life can reach 30,000 hours, is 6 times that of ordinary energy-saving lamps, but only need to spend 1.5 times the price of ordinary energy-saving lamps can be purchased, cost-effective and extremely competitive.
So, rely on what to reduce costs? "You can consider making full use of the resources around you." Pan Yiming told reporters that if you do research and development, you really need a lot of investment, and you can't afford it for small businesses. In order to reduce costs, and at the same time make the product have a higher technical content, you can choose to cooperate with scientific research institutions.
“In terms of R&D and manufacturing of midstream and downstream products, alliance members can carry out their efforts. In terms of upstream chip manufacturing, Sanan Optoelectronics has already settled in Quanzhou. It can be said that Quanzhou LED companies have advantages in the civilian sector,†said Huang Shuiqiao.
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