Say goodbye to price wars, LED companies need to return to quality to improve gross profit margin

In the coming year, every holiday promotion, in order to compete for customers, every household business wants to compete with the peers for a fight, and the jokes that have evolved into a sigh of anger are everywhere. However, after two years of tempering, the current LED lighting industry has gradually bid farewell to the market competition of a price war in the past, and the company has returned to focus on the construction of fundamentals such as product quality and service, and better cultivate the market to improve hair. interest rate.

The situation of excessive competition has eased

Since 2015, the argument for the winter of the LED industry market has been endless, but from the overall data of LED lighting in the first half of this year, LED production has increased significantly year-on-year. From January to June 2016, the national light-emitting diode (LED) industry completed a total output of 296.292 billion, an increase of 19.21%. Among them, the output in June was 60.197 billion, an increase of 26.12%.

Nowadays, the LED industry's mid-year report has been disclosed one after another, which seems to confirm the market's recovery. According to incomplete statistics, there are 22 listed companies including LED chips, packaging, lighting, display and supporting, and 22 companies have achieved double growth in revenue and net profit, and many companies have eye-catching net profit performance.

In the industry is advocating that the LED industry is about to bottom out and rebound in real time. The news that many well-known enterprises such as Pinyi Lighting and Zhongzhou Optoelectronics closed down was like a cold water splashing over. At the same time, according to the data of China Lighting Association, as of June 2016, the total export value of lighting industry was 17.65 billion US dollars, which was basically the same as that of the same period of 2014, which was 14.1% lower than that of the same period of last year. This is the first negative growth in the industry in the past 5 years. .

The export of lighting products also showed a significant decline, in which the export value of movable lamps fell by more than 40%, and the export value of fixed lamps fell by more than 15%. In terms of the number of exports, the export of various types of LED lighting products under the 94054090 tax number has an average monthly increase of 10%, but the export value does not rise and fall, which fully reflects the further squeeze of the profit margin of LED lighting products.

On the 10th of the month, UPS released the “Excellent China Made Enterprise White Paper 2016” research report, showing that the overall economic assessment of Chinese export manufacturing enterprises is less optimistic than the previous year. Chinese export manufacturing companies face challenges on both sides of supply and demand. The two most frequently mentioned challenges are the fierce competition between domestic companies and the declining demand of domestic customers. In contrast, the LED lighting industry faces a different situation. On the one hand, overseas market demand is still in a growth cycle, especially in North America, Southeast Asia and Europe. On the other hand, price wars have spread from domestic to overseas.

Obviously, in the process of popularization and integration of the LED lighting industry, the situation of excessive competition has eased, and the situation of the leading enterprise strong Hengqiang has become more apparent, and more and more SMEs lacking advantages will disappear.

Move to market segments and popularize them

In the future, the market will be more mature and specialized, and will be concentrated in large enterprises. At present, the middle and lower reaches of LED market have long formed a market structure dominated by listed companies. In 2016, the concentration of China's LED packaging industry increased rapidly, and the turnover of more than 1 billion yuan became the symbol of packaging and leading enterprises.

As a listed company, it acquires a large market share through price competition and acquires certain market discourse rights. When product prices fall to a certain extent and accelerate the reshuffle of the industry, leading companies can improve products by launching new products and strengthening brands. price. At the same time, in order to improve or optimize the company's profits, large companies with dominant power will focus on transforming and upgrading or opening up new markets, and they will not be competitive in price.

Therefore, the price in the LED industry competition is becoming more and more rational. The LED price decline has narrowed this year, and the overall situation is relatively flat. In this respect, the price of LED lighting products has fallen to freezing point, and it is increasingly transparent. On the other hand, users' purchasing behavior is also more rational and personalized, from blind pursuit of low prices to high cost performance. Basic functional products will gradually be weakened, and products that are more intelligent, more decorative or worthy will be more popular in the market.

In addition, in order to avoid blind competition in terms of price, many companies have turned to market segments and popularized them. Taiwan LED companies are particularly prominent in this regard, speeding up the transformation speed, the company collectively shifts its focus to special lighting fields such as four-element LED, automotive electronics, plant lighting, medical lighting, etc., to avoid the red sea competition of blue LED.

From PPP mode and second-tier cities

The year is the first year of the “Thirteenth Five-Year Plan”, and relevant plans are being implemented in all parts of the country. Lighting companies want to escape the "pain" of transformation, but also need to find business opportunities from the trend changes, to achieve rapid development of the enterprise.

Recently, the Office of the PPP Work Leading Group of the Ministry of Finance, in conjunction with the relevant departments and bureaus of 20 industry ministries and commissions, convened the third batch of PPP demonstration project work coordination meeting, notified the application of the third batch of demonstration projects and the review work plan, and deployed the next step of review.

Lighting companies actively participated in the PPP project, in which Shenzhen Jinda Lighting Co., Ltd., a wholly-owned subsidiary of Liard, was recognized as the winning bidder of the “Chifeng New District Night Lighting Renovation and Upgrade PPP Project”, with a total bid price of 256 million yuan; The Group has taken its PPP model lighting energy-saving project of its wholly-owned subsidiary Shenzhen Qianhai Changfang Financial Holdings Co., Ltd. into its arms.

With the intensive introduction of a series of policy documents by the State Council and relevant ministries and commissions, the government and social capital cooperation model were vigorously promoted, and local governments actively followed up and launched PPP projects for various infrastructure and public services. This will bring more business opportunities to LED lighting and display companies.

In addition to PPP projects, real estate is an important sales channel for lighting companies. Since 2016, the boom in real estate has spread rapidly from first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen to second-tier cities such as Xiamen, Nanjing, Hefei and Changsha. Although in August, core data such as real estate investment, sales, and housing prices peaked after falling to the peak, it still drove the demand of the lighting market to a large extent.

All in all, in order to successfully eat a piece of market cake, the future LED lighting enterprises must have sufficient market competitiveness and a unique industry perspective to seize every opportunity to “overtake the curve” and achieve rapid rise.

120V DC Power Supply

APM 120V smps power supply is widely used in automatic testing sector. The average conversion efficiency is 90%, the load regulation is low, which ensure stable output when the load is changing constantly. The programmable power supply supports standard SCPI communication protocol, which is convenient for user`s secondary development.

Some features of the adjustable power supply as below:


  • Ultrafast respond time and high efficiency.
  • Accurate voltage and current measurement capability
  • Constant Power and wide range of voltage and current output
  • Equips with LIST waveform editing function
  • Support RS232/RS485/LAN/USB (standard) ,GPIB (optional)
  • Master/Slave parallel and series operation mode for up to 10 units
  • Built-in standard automobile electrical testing curves
  • Full protection: OVP/OCP/OPP/OTP/SCP
  • Voltage drop compensation by remote sense line.
  • Have obtained CE,UL,CSA,FCC.ROHS


120V DC Power Supply,Lab DC Power Supply,DC Regulated Power Supply,High Voltage Power Supply

APM Technologies Ltd , https://www.apmpowersupply.com