International Lighting giant out of China's LED enterprises, with what residual king?
Date: 2016-07-04 14:15:13 Hits: 340

According to statistics show that in 2015 the global LED lighting penetration reached 30%, and maintained an upward trend, is expected by 2017 will reach 40% penetration. From the market size, in 2015 the global LED lighting market reached 24 billion 300 million U. s.dollars, an increase of 17.53%. It is estimated that by 2017, the global LED lighting market will reach 30 billion 300 million US dollars, with a CAGR of about 16-17 over the past 11.61% years.

although the rise of LED lighting market, but with LED, manufacturers continue to expand production, LED product prices continued to decline, resulting in decreased product gross margin. According to the latest data from an industry organization, in 2015, the global LED (including visible and invisible light LED) showed its first decline in industrial output, reaching $14 billion 325 million, an annual decline of 3% (YoY-3%). As the supply and demand relationship has not yet been balanced, the pressure of price competition on LED products still exists in 2016, and the industry situation is still not optimistic.

price war led to decline in gross

a few years ago, in the national energy conservation policies, the rapid development of LED lighting industry. However, as the LED lighting market continues to heat up, the new entrants surge, resulting in the industry more fierce price war, many companies make money cry.

with LED industry “ ” increasingly fierce price war, LED product prices fell sharply, the industry has bid farewell to the era of ” “ like a swarm of bees profits, enterprise's net profit also fell, industry seemed less fame. It is understood that in 2012, a light pipe price of about 200 yuan, but now at around 10 yuan. Since 2015 LED product prices continued to decline, especially in the upstream to LED package, LED lighting applications, its price is almost close to cost price. Thus affecting the performance of LED enterprises, most enterprises appear to increase income without increasing profits.

in this industry background, LED lighting margins are compressed so that manufacturers suffocation, small enterprises more difficult to survive, many enterprises are forced to withdraw from the market, and survive in the market most of the enterprises in barely support, therefore, 2015 is known as the LED “ ” the most cold lighting for a year.

someone said, the industry is too chaotic, disorderly competition price. However, the price war must be unreasonable? When an emerging industry returns to stable development, price reduction is inevitable.

first, the price is decided by value, even if the occasional deviation, also because of value or value and return to a reasonable price range. Second, from the point of view of supply and demand, any one thing will be cheaper, and less expensive. With the improvement of LED technology and equipment, the production capacity continues to increase, but consumption growth is still slow and sustained. At this rate, a serious oversupply is bound to be the downward trend in prices.

price war is not equal to the price competition, companies do well will insist on consumer value maximization, reasonable price and profit normalization, which is the cornerstone of enterprise long-term and stable development. For the industry as a whole, perhaps consumers will get more affordable products. For enterprises, continuous innovation is needed, and a breakthrough is needed while stabilizing the inherent product.

profit, left for the king of the

LED lighting market fierce price war accelerated the market reshuffle situation. Enterprises will face a brutal knockout, and finally this industry will be “ residual, ” is king. With the release of listed companies and large-scale enterprises expanding production capacity, the traditional LED products will enter the era of meager profit. And small enterprises large-scale production and technical capacity is limited, it is difficult to compete with large enterprises, without increasing income, not increasing profits in the plight of small enterprises to further deepen.

in recent years, the rapid rise of the LED lighting industry chain enterprises Chinese, intensified competition in LED industry, LED lighting industry profits decline. As a result, PHILPS, Samsung, OSRAM and other international lighting giant to sell or spin off LED lighting business, and Chinese enterprises to make differentiated competition. These

International Lighting giant exit for China LED enterprises, both opportunities and challenges. At present, the domestic lighting enterprises technology fight but the foreign lighting giant, but if they withdraw from the field of manufacturing, and domestic enterprises to participate in the acquisition, then the future of LED lighting manufacturing certainly all in China Chinese, as long as the manufacturing role fully and towards high-end manufacturing, the future is the only country in the world to master the field of high-end lighting manufacturing.

leading enterprises in the survival of the fittest, mighty wave crashing on a sandy shore, the rise of the living space of small and medium sized LED enterprises by extrusion, this is a good thing for the healthy development of the industry. With the sustained and rapid development of LED lighting market, the merger and acquisition of enterprises will be normalized and diversified in a fairly long period of time.

international companies declined, the mainland manufacturers

rise in recent years, LED technology continues to progress and the standardization process continues to accelerate in the background, China LED mainland enterprises with government subsidies, special funds, such as economies of scale advantages, seize the international lighting giant to lower the cost of market share. The pattern in the global lighting market have the whole world in view, the biggest potential market Chinese LED mainland enterprises are highly cost-effective products with its rapid development, become a new force can not be ignored, gallop world lighting on the battlefield. The rise of LED Chinese mainland enterprises

for International Lighting giant was forced to adjust market strategy. In the past, the international manufacturers, products corresponding to the market mainly in Europe and America and other developed areas, with technology, brands and patents and other advantages, in the high-end market has a higher market share. But now, with the development of China's LED industry, the advantages are becoming less obvious. The rise of mainland Chinese enterprises has led to the international pattern of fission, such as PHILPS, OSRAM split its lighting company, Samsung opt out of LED lighting business, focusing on the field of devices.

from the current LED industry in the global distribution of market share China LED industry increased from 5% in 2009 to 25% in 2015, growth is very rapid. The market share of Japanese and Korean manufacturers declined gradually, and the market share of Japanese manufacturers dropped from 33% in 2009 to 24% in 2015. The market share of Korean companies dropped from 19% in 2009 to 15% in 2015. PHILPS and OSRAM are gradually LED lighting business sale or stripping, Samsung Electronics will also be downgraded to LED business department working group, LG also adjust the LED division, into the LED chip and package is liquidating its cause.

from the supply side, the international companies decline, manufacturers of influence is gradually increasing, international companies exit or compression will provide a better competitive environment to survive competition. From the demand side, LED lighting penetration is still on the rise stage, while some segments of the rapid growth of the market driven by the demand for LED. Outlook 2016~2020, the overall LED market demand continues to grow, “ big rival ” industry logic will make the relevant enterprises benefit.




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