Being "scarred" by the price, LED industry turned to fight "after sales"

With the gradual implementation of government support measures and increasing support efforts, the LED lighting industry is moving from the "barbaric growth" stage to the game stage of price and quality. Experts at the LED lighting product company docking and promotion conference held recently pointed out that the price of LED products is declining at a rate of about 20% per year, and the focus of future industrial competition will shift to product quality and service.

Policy Leverage Incited Industrial Expansion The "Semiconductor Lighting Product Financial Subsidy Promotion Project" implemented by the Ministry of Finance's Joint Development and Reform Commission and the Ministry of Science and Technology completed an open tender last week. This is the second round of subsidy project tender issued by the mainland after last year. At the Jinya Electronics 3E-LED Products Business Matchmaking and Promotion Conference held on Friday, a number of industry insiders stated that the government plays a crucial role in promoting LED products.

In addition to the central government, local government support for the LED industry can also be spared. Taking the Binhai New Area as an example, the “Binhai New Area Promotion of New Energy Industry Development Measures” released in 2011 proposes to support semiconductor lighting (LED) key equipment and materials and common key technology research and development projects; support LED campus, LED in the implementation area For green lighting demonstration projects such as communities, LED industrial parks, and LED transportation, each project will in principle give a subsidy or fund subsidy up to RMB 500,000 (hereinafter referred to as RMB).

"LED manufacturing and purchasing companies have given subsidies for their policies, which will play an important role in reducing product prices. A 24-hour uninterrupted lighting industrial shop, as long as 3 years, the energy cost savings can cover the purchase of LED lighting The cost," said Yu Ning, director and senior engineer of the Tianjin Electric Energy Technology Center.

According to statistics, thanks to a number of government support, this year's LED lighting product market will continue to maintain rapid growth. Taking LED street lighting products as an example, the output value of Chinese LED street lamps will increase by more than 60% year-on-year and the output value will reach 4.7 billion yuan this year.

Quality and service to enhance competitiveness "The continuous expansion of the market size of LED products is making the price of LED products drop by 20% per year." Yu Ning said that three years ago an LED lamp was more than 400 yuan, and now the price has been More than 50% off.

According to relevant statistics, due to the upgrading of upstream chip technology and the rapid decline in prices, the cost performance of downstream LED lighting products is rapidly increasing, and the LED industry is moving in a direction that is reasonable and stable. Last year, China's LED indoor lighting product output increased by 75% year-on-year, and product prices fell by 22% year-on-year; the output value reached 18.6 billion yuan, an increase of 38% year-on-year.

According to statistics, due to government support and price reduction, China's LED indoor lighting output will reach 30.6 billion yuan this year, an increase of 64% year-on-year; in 2015 it will reach 99.3 billion yuan, and the compound growth rate of indoor lighting output in the next 4 years will exceed 50%. Up to 52%.

With the continuous decline in prices, the competition in the LED industry is becoming increasingly fierce. In the face of the same price of the product, the company began to seek more energy-saving and more durable lighting products. “Having often appeared in the lighting market, the number of low-cost LED products has become less and less.” An industry source said that a few years ago, SMEs selling LED lighting products became increasingly untenable. "Since SMEs do not have packaging capabilities, their products are 'out of the box' and quality cannot be guaranteed, let alone after-sales service."

“After several years of training, the development of the mainland energy-saving product market is becoming more rational, and as the price of products declines, the customer’s focus will shift to quality and service areas. Now more and more customers are aware that they’re not only There are products and services," said an industry source.

Today, LED lighting companies are also catering to industry trends, and are working harder in product quality improvement and service areas. "In addition to the traditional after-sales service, we can also provide customers with more targeted overall solutions. For some expensive LED products, we can also provide product leasing services." Huang Yude said.

The price of LED lighting is “scarred”, and most companies are unable to stop at the stage when the industry tends to be stable. In the general environment in which patents are not standardized and where homogeneity prevails, brands are particularly important. Brands are the most critical factor in establishing a company's trust, and the source of trust is quality service quality. LED companies must improve their service quality in a balanced quality and price environment, and further subdivide their technologies and services before they become more suitable for the development of the industry and become more competitive.