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Joint Peace Lighting Co., Limited

ADD:No.4, Lane9, Tongpai East,Tianan Park Bantian,Longgang District,Shenzhen China 518129.

Contact:Annie (Sales Director)




The Newest Situation About Domestic LED Lighting

There is an indisputable fact is that LED lighting industry will to promote the upgrading of the industrial structure. And the newest news about Beijing commercial daily reports: each big enterprises of LED industry start to accelerate upgrading transformation since the spring of this year. Some experts point out, there is a problem existing the domestic LED industry, with a pattern of “upstream industry always follow the downstream industry ", so for the development under this pattern, fierce price war force some enterprises to have a transformation of upstream.

We learned from the comparison of revenue and net profit that the LED light supplier still continues the price war since last year. And the industry structure upgrading and shuffling are accelerating. With the worsen turnover, most enterprises generally attributed to the irrational competition of LED products prices. Some insiders said, in terms of LED chips, the first quarter prices competition is still intense, and the product unit price has been falling, which caused a situation that the revenue and net profit remain to fall with the sales rise growth.

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In fact, LED industry overcapacity is tangible. As early as the LED development period, due to heavy government subsidies, the whole industry had already appeared a tendency of excess capacity. In addition, in recent years, the investment growth over than market growth is further exacerbated the overcapacity problem. For the problem of the relationship of the upstream and downstream, LED industry upstream epitaxial chips, chip products basically need to import, also as the equipment for producing products, and the domestic enterprises focus on the downstream packaging and application products field.

The speed of LED lighting development is unprecedented in our country. Industry development too fast also made LED products upgrading and structural adjustment, and the fast pace of changing also made some LED bulb light manufacturer bankrupt. According to statistics, at the end of 2016, the LED lighting product pass rate is only 51%. In this case, if the enterprises do not pay more attention to the quality of products and research and development of products, the companies are bound to be eliminated by market.