Analysis of the Four Major Factors Affecting Domestic Lighting Industry in 2010

The first factor: the real estate market

Influencing the development space of the lighting industry

Compared with the same period in 2009, the real estate market this year is undoubtedly more enthusiastic. According to statistics, in the first half of this year, the cumulative supply of residential land in 100 cities across China was 203.358 million square meters, an increase of 100% year-on-year. In the first half of this year, the transaction volume of the property market in Hangzhou, Shenzhen, and Tianjin increased by 180.4%, 148.9%, and 115.5%, respectively, over the same period of last year. Cities such as Suzhou, Chongqing, and Qingdao also exceeded or approached 100%. In the first half of the year, commercial housing sales reached 1.98 trillion yuan, a year-on-year increase of 25.4%. Among them, the sales of commercial residential buildings increased by 20.3%, and the office buildings and commercial business buildings increased by 91.5% and 57.1% respectively. The sales price of homes continued to rise year-on-year, but the increase slowed down. The sales prices of homes in 70 large and medium-sized cities across the country rose by 11.4% year-on-year.

The above data is obtained under the circumstances that the state has increased control over the real estate market. This shows that the Chinese real estate market is crazy. No matter whether it is the “National Tactics” or the control measures that have been continuously introduced in various places, the real estate market has not completely “cooled down”. Correspondingly, the lighting lighting industry in China, which is closely related to the real estate market, has also experienced a lot of fluctuations. The market competition has become increasingly fierce, showing a situation in which stronger and weaker people are eliminated.

2nd factor: "energy saving and emission reduction" policy

Influence the development mode of the lighting industry

Since August of this year, in some places such as Shandong, Henan, and Jiangsu, there have been acts of “power cuts and restrictions” on industrial enterprises. The reason behind this is that local governments have failed to control energy in the first half of the year in order to achieve energy saving. The goal of "discharging" and completing the "energy-saving and emission-reduction" tasks explained by the superiors are assaulting "energy-saving". This behavior not only hurts local businesses but also has a great impact on the lives of some residents. Soon, this behavior was criticized and corrected by the central government.

Through this incident, we can see that although "energy saving and emission reduction" is deeply rooted in people's minds, the "energy saving and emission reduction" policy is a great good news for the Chinese lighting industry, but how to correctly implement "energy saving and emission reduction" is still lacking. Education and norms. "Energy-saving and emission reduction" is a long way to go. If Chinese lighting companies want to seize this business opportunity, they must also develop more energy-saving products and find a better sales model so that "energy-saving lighting" can play a greater role.

The third factor: raw material price fluctuations

Influencing lighting industry production costs

On the morning of July 15, 2010, the National Bureau of Statistics announced China's economic data for the first half of 2010. Data show that in the first half of 2010, the domestic CPI (consumer price index) rose by 2.6% year-on-year, and the PPI (producer price index) rose by 6.0% year-on-year. In the context of rising prices of overall production materials, the prices of raw materials that are closely related to the lighting industry in China are no exception. The price of copper, iron, aluminum and other metal materials has increased in certain fluctuations. Rare-earth products related to energy-saving lighting are strictly controlled by the state, and price increases have become inevitable. It is reported that in 2010, rare earth has become the object of the competent department's "care", the Ministry of Land and Development has issued a series of documents concerning the control of mining volume and the suspension of new mining applications. The Ministry of Industry and Information Technology issued the "Notice on the Public Opinions on Accessing the Rare Earth Industry for Access." ” aims to improve access thresholds. As a result, the existing 100 rare earth enterprises in China will become the targets of supervision for the industry's entry barriers and environmental protection standards. In this situation, the rising cost of production of lighting companies has become established.

In addition to fluctuations in the prices of raw materials, fluctuations in other related expenses also affect the operation of lighting companies. According to Wu Guoling, general manager of Foshan Geoneng Lighting, the average monthly wage of factory workers has now reached 1,800 yuan, an increase of about 20% compared with last year. In addition, there are also certain increases in operating expenses such as factory rents, transportation costs, and office expenses. This has also led to increasing pressure on companies in operating costs.

The fourth factor: RMB appreciation

Influencing lighting industry competition

For the Chinese lighting industry, the vast majority of companies are still in a labor-intensive stage. "High-quality, low-cost" has become a lot of relying on export sales to support lighting lighting companies to compete in foreign markets "killer." However, in 2010, affected by the appreciation of the renminbi, these export companies began to face a new round of predicament.

According to reports, since the central bank initiated the reform of the exchange rate mechanism in June this year, the exchange rate of the renminbi against the US dollar has changed from 6.82 to 6.68, and the cumulative appreciation has exceeded 2%. Since 2005, the appreciation of the renminbi has been as high as 20%. Once the renminbi appreciates, in order to maintain the same renminbi price bottom line, the prices of export products marked with foreign currencies will increase, which will weaken the price competitiveness of Chinese enterprises; if the foreign currency prices of export products remain unchanged, they will inevitably squeeze exports. The profitability of enterprises is bound to have an impact on export companies, especially labor-intensive ones. Lighting companies are no exception.

Under the influence of the export market, some of the export companies have fought in the domestic market, bringing greater impact and more fierce market competition to the domestic lighting lighting industry. Of course, the survival of the fittest is the only law. Ultimately, which companies can stand out, it remains to be seen.