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LED caught in price war
As lighting companies get together into the LED field, LEDs have gone through many price wars in the past year or two, and LED products have gradually declined. However, the price of LED products is still high, 7W LED lights still need to be tens of dollars, while energy-saving lamps are about 10 yuan, and cheap incandescent lamps are only about 1 yuan.
For this reason, the State Council recently decided to arrange a financial subsidy of 2.2 billion yuan to support the promotion of energy-saving lamps and LED lighting. Luo Tianshun, general manager of Zhongshan Yuanbao Company, expects that the subsidy of 2.2 billion will reduce the price of LED lights, which may reach 15%-20%.
The subsidy rules have not yet been implemented, and the price of LED lamps on the market has already dived in advance. A 7W LED bulb can be sold for 40 yuan to 50 yuan last year. This year it only sells for 20 yuan. Some small brand products even cost more than ten yuan. This decline far exceeds the industry's expected 15%-20% decline.
In this regard, the introduction of the business, this is mainly because the huge market potential of LED residential lamps has gradually become prominent. According to Cao Detian, general manager of Guzheng Four-Star Optoelectronics, the original LED consumer market share is less than 5%, and now it is increasing at a rate of 200% per year. Therefore, many manufacturers have cut prices in advance to grab the market. In addition, since the beginning of this year, many LED companies have reduced their export orders, and foreign customers have deliberately lowered prices, resulting in a gradual decline in the industry's profit margin. For this reason, merchants have to go all out to compete for the domestic market.
Enterprise steering parts production
Due to the price of LED products piled up and the competition is fierce, some companies choose to avoid the competition of finished products and turn to the production of accessories.
Luo Tianshun said that LED products are thin and competitive, and the scale of the company cannot compete with large enterprises. Therefore, its company has turned to LED power supply in 2010.
"In the past two years, labor costs have risen rapidly, and raw materials have also increased in price, which has led to an increase in production costs. On the other hand, due to fierce competition, it has to lower the price of products." Li Xinrong, chief engineer of Zhongshan Liyuan Electronic Technology, believes that " Since last year, the sales volume has started to decline, and it has not yet risen up. He believes that in the current market environment of price fights, in addition to cost savings in procurement, companies must continue to follow the "branding" road.
For the future market expectations, the company is not too optimistic, Liu Yong, sales director of Zhongshan Lanhe Lighting Co., Ltd. said that after the LED industry shuffled some enterprises last year, the market is still chaotic. "There will be more in the second half of this year. Shuffle the cards once." 
LED price advances diving enterprises turn to parts production to avoid finished product competition
With the decision of the State Council to arrange financial subsidies of 2.2 billion yuan to support the promotion of energy-saving lamps and LED lighting. The reporter found that 2.2 billion yuan has not been officially allocated, and the price war on LED lights in the market has started in advance. At present, the price of some brand LED lamps is only about 50% of the same period last year. The decline in prices has brought development opportunities to the local LED industry, and it has also made some companies with weak strengths face challenges.