LED companies scrambling to "retreat" industry

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Good news and bad news coexisted at Guangzhou International Lighting Fair. At present, the commercial market of the LED industry is being slashed, but giants such as Philips and OSRAM are absent from the exhibition. The absence of giants reflects the crux of the domestic LED market – less innovative products and fierce price inflation. However, this did not allow the world's largest lighting show to show the slightest color, the site still brings together 2698 exhibitors. The LED market will follow two extremes. Lamps with only the lighting function will be drawn more and more cheaply due to price wars, and innovative products with other functions will be more and more expensive.

Market Expansion Run Capacity

From the Guangzhou International Lighting Fair, it was learned that Philips, OSRAM, NVC, GE and many other domestic and foreign giants were collectively absent. The sources close to the aforementioned senior figures of the lighting giant revealed to reporters from Nandu that these well-known brands have combined their experience in the first six or seven years of exhibition that the input-output ratio of well-known brands is too low; second, there are too few innovative products that can be exhibited in the field of lighting. Third, China's LED industry is too chaotic and the price competition is fierce. No matter what new products they introduce at the show, they can see similar products with lower prices.

However, the good news is that this piece of cake in the LED lighting market is still fermenting in 2015, and from the exhibition, it can be seen that the mature commercial LED lighting market has a clear segmentation phenomenon.

As the market expands, the upstream light source companies feel the most. At the beginning, everyone was testing the water. Now that the market has accepted the LED, it will rise even higher in the next two years. The expansion of the market brought about the subdivision of the commercial lighting market. Nandu reporters saw at the exhibition site that a number of “fresh bulbs” used in supermarket lighting were placed in the booths, and some were even fine-tuned to specifically treat bread and apples. , vegetables, meat and so on.

However, the LED lighting market is extremely fragmented, and no matter how the cake is fermented, it can't win arrogant productivity. Liu Jun, director of the Guangya Lighting Research Institute, told reporters that the current LED market demand growth rate between 40% -50%, the company's production capacity is difficult to statistics, but faster than market growth. Wu Yulin said, "Big companies use scale effect to continuously reduce profit margins and there will be a large number of SMEs closed down."

Innovative products or export for price war

In the thousands of exhibition booths at the exhibition site, truly innovative lighting products are rare. Most of the products focus on display modeling and lighting effects. A few eye-catching new products are mainly related to visible light communication and intelligent control technologies.

Op Lighting's intelligent lighting series with "sensing technology" is a highlight of the show, such as adaptive fresh lights and touch control lights. "Adaptive Fresh Light" can "grab" the color of the object and automatically adjust the light to make the object more full-color. Wu Yulin's analysis believes that “the fresh light that is added to the sensor will be more than 3 times more expensive than a common fresh light.” Visible light communication (also known as LiFi), that is, additional communication functions based on LED lighting. At the Puri Optoelectronics booth, three COB light sources (LED core devices) tailored for visible light communication are displayed, which is to put light into the communication network and use visible light communication to push information to users. At present, this technology has been applied in the United States Green Apple Bookstore. Aaron, director of marketing at Puri Optoelectronics, predicts that visible light communications will be available to China in 2016.

However, visible light communication needs to cross a complicated threshold to enter the Chinese market. Domestic smart lighting systems are not yet mature, and partners including software partners, communication partners, technology developers and lighting designers must be found together to complete the transformation of the entire lighting system.