Excessive investment in the industry has led to confusion in the current LED price market


Recently, the second meeting of the second G20-LED Summit was held in Shenzhen. More than 300 LED CEOs at home and abroad, including G20 summit members, discussed the LED industry development, corporate strategy, market strategy and industry chain cooperation strategy. . According to industry insiders, oversupply is the main reason for the price war of LED products.
Zheng Tiemin, general manager of Shandong Inspur Huaguang Co., Ltd. believes that many enterprises are expected to oversize the LED market and flock to the LED industry. The oversupply is the cause of price wars. He believes that the price war will go through the process of production restriction, production suspension, conversion and bankruptcy, mergers and acquisitions, and integration. The remaining enterprises will gradually move toward the normal development path. As the performance of products increases, the price of LED products will tend to be reasonable.
In the future, the LED industry will shift from a technology-intensive industry to a labor-intensive industry. Wang Lianghai, vice president of Tongfang Co., Ltd., said that in recent years, the price of LED upstream chips has dropped to 30 in 2010. The price of products in the packaging field has dropped by 40 compared with 2010, and the price of terminal application products has also dropped. The product is consistent with the basic performance of the current 300 yuan LED products.
Traditional retail channels are burning money, and brands, products and services are not yet ready, but the investment in e-commerce channels is implicit and the cost is relatively low. There is still greater feasibility in the future. Zhang Ming, chairman of Sichuan Xinli Light Source Co., Ltd. believes that due to the high price and large investment in domestic retail channels, it will take some time for the home lighting retail channel to arrive, but the e-commerce platform is a very good new channel.
He believes that LED lighting can only form a real development momentum if it is market-oriented, and its marketization must return to the real needs of customers and implement differentiated innovation to explore the potential of the market.

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