LED lighting industry planning to break the traditional channel business model

Whether it is speculation or practical application, LED has not only become the most concerned section in the lighting lighting industry, but also has become the most favored product area in the capital market. However, the construction of channels is far behind the R&D and production of products. For consumers, the distance between LEDs and them is still far away. One of the key reasons for this problem is that LED companies' channel construction is still in urgent need of improvement. Where is the difficulty of channel construction?

In 2008, it was a watershed for the development of China's LED industry. This year, LED was widely used in the construction of venues for the Beijing Olympic Games. The dreamy visual feast is still vivid. In recent years, the domestic LED industry has ushered in the spring of development. Under the impact of the global financial crisis, all walks of life were affected more or less. However, the LED lighting industry has not only not been affected, but has shown a linear upward trend under the strong investment of 4 trillion yuan in the country. According to the preliminary estimation of the relevant departments, in 2010, the output value of China's LED lighting industry has exceeded 150 billion yuan, double compared to 2008. LED lighting industry development is so fast, mainly due to the following three factors: First, the market demand to promote rapid technological advances, production costs dropped significantly, LED applications in the lighting market is huge, unlimited business opportunities. In 2009, all countries in the world are promoting LED lighting. At present, LED lighting has been fully applied and promoted in the field of automotive lighting, street lighting, and corridor lighting.

With the attraction and promotion of the market, the progress of LED technology is accelerating. The cost-effectiveness of products is increasing year by year, and the production cost is declining by 30% per year. This greatly shortens the cycle of replacing LED lamps with traditional lamps. Second, global industries have accelerated their shift to emerging countries and regions. With the continuous development of the LED market, the number of LED companies has rapidly increased, and the pressure on companies to compete has increased. In order to enhance its own competitiveness, the global LED industry has seen a new trend. At the high end of the industrial chain, Japan, the United States, Europe, and the Chinese Taiwan region and South Korea in the middle and lower reaches of the industrial chain gradually transfer the relevant industrial chain links to the mainland of China and Malaysia, which provides new opportunities for China to develop the LED industry. What is most worth mentioning is that the country’s continued support for the LED industry has become the biggest driving force for the development of the LED lighting industry. As early as 2003, the National Semiconductor Lighting Engineering Coordination Leading Group was established, marking the official launch of the National Semiconductor Lighting Project. On March 22, 2004, the National Semiconductor Lighting Coordination Leading Group was established. In 2009, China has expanded its "Ten Thousand Cities" program to promote LED street lamp demonstration lighting. At the same time, in the “Electronic Information Industry Adjustment and Revitalization Plan” issued in 2009, semiconductor lighting was placed at a relatively high position.

In order to further promote the green lighting project and promote the healthy and orderly development of China's LED lighting energy-saving industry, in November 2010, the National Development and Reform Commission, the Ministry of Housing and Urban-Rural Development, and the Ministry of Transport jointly organized the bidding for the application of semiconductor lighting products demonstration projects. , 28 companies such as Zhejiang Sunshine, Shifu Lighting and NVC Lighting were selected. The promotion of the three major factors mentioned above is of course important, but for LED lighting industry to achieve sustained rapid development, companies must make bigger articles on channels.

The good development opportunities in the LED industry in China are in sharp contrast to the slow speed of the channel construction of LED companies.