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Policy leverage spurs industrial expansion
The "Television Subsidy Promotion Project for Semiconductor Lighting Products" implemented by the Ministry of Finance's Joint Development and Reform Commission and the Ministry of Science and Technology has completed the public bidding. This is the second round of subsidy project tenders issued by the mainland after last year. A number of industry insiders at the Zia's 3E-LED product docking and promotion conference held in April said that the government plays a vital role in promoting LED products.
In addition to the central government, local governments have spared no effort in supporting the LED industry. Taking Binhai New Area as an example, the “Measures for Promoting the Development of New Energy Industry in Binhai New Area†issued in 2011 proposed to support the research and development of key equipment and materials and common key technologies for semiconductor lighting (LED); support the implementation of LED campus and LED in the district. In the community, LED industrial park, LED traffic and other green lighting demonstration projects, each project in principle is given a discount or financial subsidy of up to 500,000 yuan (hereinafter referred to as the yuan).
"LED manufacturing and purchasing companies, the policy has given subsidies, which will play an important role in reducing product prices. A 24-hour non-stop lighting industrial workshop, as long as 3 years, saving energy costs can cover the purchase of LED lighting The cost," said Yu Ning, director and senior engineer of Tianjin Electric Energy Technology Center.
According to statistics, thanks to the government's support, the LED lighting products market will continue to grow rapidly this year. Taking LED street lamp products as an example, the output value of LED street lamps in China will increase by more than 60% year-on-year and the output value will reach 4.7 billion yuan.
Quality and service to enhance competitiveness
"The ever-expanding market size of LED products is causing the price of LED products to drop by 20% per year." Yu Ning said that an LED tube of more than 400 yuan three years ago has now hit a price of more than 50%.
According to relevant statistics, due to the improvement of upstream chip technology and rapid price decline, the cost performance of downstream LED lighting products is rapidly increasing, and the LED industry is moving forward in a reasonable and stable direction. Last year, the output of China's LED indoor lighting products increased by 75% year-on-year, and the price of products dropped by 22% year-on-year; the output value reached 18.6 billion yuan, a year-on-year increase of 38%.
According to the data, thanks to government support and price decline, the output value of LED indoor lighting in China will reach 30.6 billion yuan this year, up 64% year-on-year; in 2015, it will reach 99.3 billion yuan, and the compound growth rate of indoor lighting output value will exceed 50% in the next 4 years. , reaching 52%.
As prices continue to fall, the competition in the LED industry is becoming increasingly fierce. In the face of products of the same price, companies began to look for more energy-efficient and durable lighting products. “There are fewer and fewer low-priced LED product brands in the lighting market.†An industry insider said that a few years ago, small and medium-sized enterprises selling LED lighting products were more and more unable to stand up. “Small and medium-sized enterprises do not have the packaging capability, their products are 'æ”’', the quality can not be guaranteed, not to mention the after-sales service.â€
“After several years of training, the development of the mainland energy-saving products market is becoming more rational. As the price of products declines, the focus of customers will shift to quality and service. Now more and more customers are aware that they are buying Products and services," said the industry.
Nowadays, LED lighting companies are also catering to industry trends, and are making greater efforts in product quality improvement and service areas. “In addition to the traditional after-sales service, we can also provide customers with more targeted overall solutions. For some expensive LED products, we can also provide product rental services.†Huang Yude said.
LED lighting is "broken" in price, and most companies can't keep up, it is the time when the industry tends to be stable. Brands are particularly important in a large environment where patents are not standardized and homogenization is widespread. Brand is the most important factor to establish corporate trust, and the source of trust is quality service. In order to improve service quality and further subdivide technology and services, LED enterprises should be more suitable for industrial development and more competitive in the environment of quality and price balance.
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The price of LED products is declining year by year, or the future competition
With the gradual implementation of government support measures and the increasing support, the LED lighting industry is entering the game stage of price and quality from the “savage growth†stage. Experts pointed out that the price of LED products is decreasing at a rate of about 20% per year, and the focus of future industry competition will shift to product quality and service.