Enterprises blindly transform LED industry supply exceeds demand to cause LED price war

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. (600475) Co., Ltd. believes that many enterprises are expected to be too large for the LED market, swarming, blindly transforming the LED industry, and 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 (600100) Co., Ltd., said that in recent years, the price of LED upstream chips has dropped to 30% in 2010, in the field of packaging. The price of the product has dropped by 40% compared with 2010, and the price of the terminal application product is also falling. The original product of 200 yuan is consistent with the basic performance of the current 300 yuan LED product.

“Traditional retail channels are burning money. Brands, products and services are not yet ready, but the investment in e-commerce channels is hidden and the cost is relatively low. There is still greater feasibility in the future.” Sichuan Xinli Light Source Co., Ltd. Zhang Ming, chairman of the company, believes that due to the high price, the domestic retail channel cost is relatively large, and it will take some time for the home lighting retail channel to arrive. However, 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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