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Direct attack on "price war" in LED lamp Market
Category: Media Coverage
Date: 2015-09-12
Click: 1230
Author: Tachi ligh
Direct attack on "price war" in LED lamp Market


Since 2015, the price reduction of LED lighting products has become the industry norm. Many brand enterprises have adapted to the situation, reduced their prices and joined the "price war". Four regional markets of Shaanxi Province, Henan Province, Chongqing city and Hubei Province are selected to investigate the market of 1.2m ledt8 (16W) lamp.


The price of LED lamps has dropped by more than 30%

According to the survey, in April 2015, compared with the same period last year, the price of ledt8 lamps in Shaanxi regional market decreased by more than 30%. In view of this phenomenon, many businesses said that led lighting technology continues to mature, the cost of raw materials and sales continue to increase, which correspondingly reduces the cost and the price of products.

Yuan Zeshan, general manager of Yiguang LED lighting Shaanxi operation center, said that in 2015, the price of LED lamps will drop slightly, and the market competition will intensify, which will cause many manufacturers to lower their profits in order to win the market. In addition, the further maturity of LED products, the price of related accessories will continue to decline. Wu Jianjun, general manager of mulinson Shaanxi operation center, said that nowadays, from famous brands in traditional lighting era to new brands in LED era, LED lamp brand enterprises are digging deep into channels and seizing market share, among which "advertising and publicity" and "team work" have become hot topics in the industry.

It is understood that the current LED lighting market competition is particularly chaotic. There are products in the price range of more than 80 yuan / piece to 10 yuan / piece, and the product price difference is too large. However, it is difficult for ordinary consumers to identify the price performance differences between products. In the face of the continuous decline in the price of light tubes, many businesses reflect that they should properly stock up, meet the daily sales demand, and choose brand product agents to reduce business risks.


The price of LED lamp will continue to decline

In recent years, the prices of LED lighting products have declined to varying degrees in various parts of China. In Chongqing, the price drop phenomenon is more prominent. In this regard, the major brand lighting enterprises have also made corresponding strategies. One of the main reasons for the "price war" is the fierce competition in the domestic terminal market.

In Chongqing market, in the past year, the market price of LED lighting products has decreased by about 20%. According to Zhu Mingzhi, sales director of Chongqing Jinbang building materials Co., Ltd., there are two main reasons: first, the raw materials of the products are updated too fast, and the prices of raw materials are falling; second, the product technology is gradually mature, and the market acceptance of LED lighting products is getting higher and higher.

In the survey, the author found that for the price changes of LED lamps in 2015 and after, most businesses frankly said that the price would keep a downward trend, and with the gradual maturity of LED technology, this may lead to a new round of competition in the market.

Zhu Mingzhi, the sales director of Chongqing Jinbang building materials Co., Ltd., said frankly that he hoped that enterprises, dealers or comprehensive sales platform would set a good, healthy and unified goal. Only by developing healthily, would there be a real win-win situation, thus driving the whole market to develop in a more healthy direction.


The price of some LED lamps dropped by more than 50%

Compared with the same period in 2014, in April 2015, the prices of several brands of LED lamps in Henan regional market dropped more, some of which fell by more than 50%. Through the investigation and analysis of Henan regional market for the whole platform of large lighting, on the one hand, in order to seize the market share, the manufacturers use the most suitable LED lamps as the "sharp knife" products to market; on the other hand, the production cost of LED lamps is reduced.

Zhang Jiangong, general manager of OSRAM lighting Henan operation center, said that in 2015, the price of LED lamps will drop slightly, but it will not be as obvious as before. The main reason is that the price of LED lamps is close to the limit. For the current LED lamp market, Zhang Jiangong said frankly, in the context of the industry downturn, the vast rural market has released a huge market space, making many powerful enterprises regard the rural market as the main strategic market. At present, the LED lamp market is in the "Warring States period", many powerful brands join the ranks of price war, on the one hand, it accelerates the speed of industry shuffle, on the other hand, it makes the price of ledt8 lamp tube lower and lower.

In the face of a sharp drop in the price of light tubes, Yan Rui, the person in charge of Qingyi Shenglong Jintai store, said that businesses should strictly control the inventory and purchase according to customers' orders as much as possible in the sales process; for the goods that customers need especially urgently, businesses can even deliver goods by express delivery, so as to reduce the risk of large amount of spare inventory.


Manufacturers are competing and businesses are also competing

Recently, Hubei lighting market, a number of brands of LED lamp prices and terminal sales were investigated in detail. In the survey, it is found that at present, the regional market in Hubei is relatively cold and the sales volume of LED products has declined in general.

According to the survey data, there is a certain gap in the sales prices of LED lamps of major brands in Hubei market. For example, the price of LED lamps of new first-line brands in China ranges from 13-25 yuan / piece, while the price of traditional first-line brands in China is about 19-30 yuan / piece, of which the price has dropped significantly compared with 2014. In this regard, local businesses analyze that, on the one hand, the production technology and scale of upstream enterprises are gradually increasing, and the supply chain is gradually mature; on the other hand, leading enterprises "baptism" the market to achieve market standardization, which intensifies the market competition atmosphere. Businesses said that today, LED lighting industry T8 lamp prices overall decline, competition between manufacturers, businesses are also in competition, in the future, LED lamp product prices will certainly continue to fall. In this regard, businesses can only follow the market.

Xiaobian has something to say

Led price reduction is not a bad thing

In the face of the falling price of LED lighting products, it is not a "bad thing" for the whole industry: on the one hand, the product price is the performance of product technology and industry development becoming mature, which will promote the competitiveness of enterprises; on the other hand, the price reduction of products, to a certain extent, further stimulates the market vitality. Therefore, businesses should actively face the market and innovate their business mode.

First of all, manufacturers should coordinate well. Product price changes greatly, which may lead to a significant reduction in the profits of businesses. Therefore, in the face of a sharp decline in product prices, both sides of the manufacturer should do a good job of coordination to ensure the smooth flow of inventory; secondly, select brand products. Highly competitive products are "chess pieces" in the hands of businesses. In the low price competition, products with brand advantages are more likely to win the favor of consumers.

Finally, enhance their own value. For manufacturers, in addition to competitive products, the market should also enhance the value of their products and businesses, such as building a good brand image in the local market.

However, low price competition is not the final result of healthy market after all, but the market after low price competition may have more vitality. If businesses can stand out in the fierce market competition, the rainbow after the rain will eventually belong to the "winning" businesses.

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