Price warfare deadly killer LED small business

“Now many owners with factories prefer to suspend work and lease the factory to others, which is more cost-effective.” Recently, industry insiders have reported that as business becomes more and more difficult, the phenomenon of suspension of the lease of the factory to others is increasing. The more common.

According to the relevant information and the trend of the world economy and China's economy, the era of high-profit lighting has become a thing of the past. Low-profit has become the norm. Coupled with the decline of the real estate industry, the lighting industry is bound to have a major impact, and the industry growth rate will be significantly lower than last year. The LED lighting products whose price index has continued to decline in recent years may face a more serious price war this year.

Commercial lighting product prices started to fall this year

The latest trend of the wholesale price index of Zhongshan Guzhen lighting shows that in the first few weeks of this year, with the exception of the commercial lighting series index, which fell 7.28%, the LED application series index, lighting series index, Outdoor Lighting series index and light source series index all rose slightly.

Some market participants said that in 2011 the lighting industry experienced a period of recession, the market generally reflects the peak season is not prosperous, the off-season is even lighter, the ancient town lighting price index out of a twisting line in the atmosphere of no prosperity, but overall, still Better than 2010, the annual lighting wholesale price index rose by 19%.

From the index point of view, outdoor lighting series index volatility in the most recent six months, the beginning of this year is still unstable, the first week index was 91.8, the third week fell to 81.1, currently rose to 88.4, or 5.62%, is a rise in several indicators biggest. The index of the light source series has risen overall in the past six months, but it has fluctuate greatly since the beginning of this year. The index for the second week of this year was 115.7, but it dropped by more than 10 points in the second and third weeks.

In addition to the price index that reflects the instability of prices of many lighting products this year, according to customs statistics on lighting export products, it can also be found that exports of such products are weak. According to statistics, Zhongshan's lamps, lighting fixtures and similar products exported 870 million U.S. dollars in 2011, a year-on-year drop of 0.6%. In January of this year, Zhongshan lamps, lighting devices and similar products exported 70 million U.S. dollars, a significant decrease of 24.1% year-on-year.

According to industry analysts, in 2012, the lighting industry will face the pressure of high raw materials, slower growth of internal and external demand, and increased competition in the industry. In 2012, the Guzhen Lighting Price Index will continue to show the traditional ups and downs and the ups and downs throughout the year. There was a rise, but the increase was slightly slower than in 2011.

LED lighting is the most popular field in the lighting lighting industry. It is also the highlight of Zhongshan Lighting Exports in the past year. However, with the fierce fighting in the past two years, LED lighting product technology continues to reduce driving costs, but it is also inevitable. The industry has set off an ever-increasing price promotion campaign.

It is understood that, under the support of government policies, LED has become the direction of transformation and upgrading of large and small lighting lighting companies. Whether it is chips, epitaxial wafers, or packaging, applications, both in an explosive growth in the number. The LED application series index shows that, although in recent months due to the high cost of raw materials and other factors, the price reduction has slowed down, but overall, the industry has shown that prices continue to decline.

Property market downturn and lighting industry

Summing up the lighting conditions in 2011, the rise in raw material prices, labor costs, and logistics costs has plagued business development. According to the company's calculation, the production cost will increase by 20% to 30%. Another major pressure comes from the deepening of real estate policy control, and the weak growth in terminal demand for lighting products.

“Before the wholesalers entered the store, they would actively ask about the latest styles. When they encountered the style of the Italian style, they would order more. However, from the second half of last year, many wholesalers entered the store, looking east and west. "It is not to place orders." Ms. Liu, who operates a retail outlet in a Street Lighting street in the town, introduced that her clients are mainly from the northeast, but most of them have come to see the market. Due to the downturn in the housing market, these wholesalers do not move and are not willing to spend too much money. Press on the purchase price.

With the continuous upgrading of the consumption structure, people began to pay attention to the decoration of home lighting. The demand of Chinese residents for housing will continue to flourish in the coming period, and the market demand for outdoor lighting lighting industry should not be subject to large fluctuations in the next few years. In particular, the Indoor Lighting industry will continue to maintain the momentum of sustained growth. The more high-end home furnishings need to be designed to reflect the aesthetic lighting to show the proper design results. The development of the real estate industry will be an important factor affecting the home improvement lighting market. factor.

In recent years, the rapid development of the real estate industry has led to the prosperous lighting of the same industrial chain. However, since 2008, the growth momentum of the local real estate industry has generally slowed or even declined, causing a certain impact on the lighting fixture industry.

In addition, a number of lamp company officials said that real estate control policies have a direct impact on the lighting industry. Some industry insiders predict that from the perspective of national policies and the macroeconomic operating environment, the regulation and control of the mainland real estate industry in 2012 will not be relaxed, which means that the relevant lighting industry in 2012 still faces greater marketing resistance.

The main factor that caused the price war to intensify is that, compared with the stable base of the market expansion, the sharp increase in production capacity makes the market difficult to digest. With the continuous listing of a number of LED companies in the first quarter of this year, market pressure will be more closely demonstrated in June this year. The housing prices issued by the Chinese government will cause the house trading volume to be in a period of sluggishness for a long time. LEDinside believes that despite the LED furniture lighting technology to increase prices, but because of the demand for LED lighting market accompanied by fluctuations in the real estate industry, LED lighting industry can not be overly optimistic this year.

The price war is a fatal killer for the enterprise. In 2012, the entire LED industry was still in a high-risk period, but the production capacity gradually stabilized and the market capacity gradually expanded. It is recommended that enterprises do enough research and development. The price war is an important manifestation of the fuzzy environment in product grades. LEDinside predicts that the LED industry competition in the next two to three years will be more reflected in technology, quality and service!

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Shenzhen Isource lighting Co., Ltd ,