Brand LED need to "compromise" the price?

Currently, the development of LED lighting is showing a booming trend. The trend of LED lighting as the future is naturally not false, and this consensus has long existed in the industry. However, as the saying goes, “The future is bright and the road is twisty.” At present, there are still a few roads in front of the LED. Price is one of them. Especially for the branded LED products, the high price has become the biggest restraint for the market.

Lighting industry analysis: brand LED need to "compromise" the price?

Low price "victim"

Compared with traditional lighting, branded LED is really expensive. According to a survey by the reporter, the price of mid-to-high-end T5 28W energy-saving lamps is about 30 yuan, while the corresponding price of LED light strips is about 80 yuan; the price of traditional 8 downlights is only 200 yuan, corresponding to LED downlights. But more than 400; buy a traditional table lamp market price, but dozens of blocks, and like Philips, Op and other first-line brands of LED lamps are a minimum of two to three hundred dollars.

If technological innovation brings about a multiplication of product prices, consumers are certainly not willing to buy it, which management has repeatedly boasted about how good LED energy efficiency is.

Compared to the distress of the brand LED, ordinary low-end products are another world. Zhang Yitong also admitted to reporters that after several price cuts for LEDs, the price of low-end and mid-range LED products is not much more expensive than conventional lighting, and some products can even be sold at lower prices than traditional lighting products.

According to him, the LED products that he represents are mainly from domestic brands in the ancient town. The prices are relatively low and the customer acceptance is strong. "Customers are most concerned about the price level, quality is not the most important. Besides, LED is nothing more than that a few electronic components, technology is relatively mature, the brand LED Ye Hao, ordinary LED Ye Hao, no one who is better than quality How much better."

The brand LED involved in the high cost of materials costs, promotional costs and channel construction, and other aspects, has always been difficult to let go of the price on the product, resulting in low cost, which was the middle and low-end LED products drilled and seized Most of the LED market. The profit-oriented strategy of the brand LED is difficult to effectively develop in the domestic market where “cheap is the king”.

Engineering "dependence"

Although the brand LED is not very satisfactory in the terminal channel, but fortunately it has another magic weapon - engineering channels. LED products are not sensitive to the price, focus on brand and quality of engineering customers become the first choice for brand LED companies.

At present, relatively large demand is for government utility projects and large commercial establishments. The government is not bad, the boss is not bad and will not care about the product prices, but they pay special attention to product quality; moreover, their demand for energy saving is more urgent. It is hoped that the cost of energy consumption will be reduced through LED lighting, and investment will be recovered in the short term.

“At present, the detection methods of LED products are flawed, and product quality largely depends on the protection of the brand. In addition, these big brands such as Philips do have their advantages in terms of shipping stability. Therefore, combining these factors makes the engineering customer to international The brand's LED products have a strong tendency to choose, and they will not consider too much as to the effect of the selection, said Shi Zhaoyang, deputy director of the National Semiconductor Lighting Product Quality Supervision and Inspection Center.

Under the current status of domestic LED terminal market is immature, the engineering application field can indeed be used as the mainstream direction of branded LED product sales. The project is like a threshold, can block those low-end LED products are outside the door.

"The project is just a stepping stone for the brand LED to enter the market, not a way out." Shi Chaoyang gave the industry a wake-up call.

Compromising on price

The lighting field has never been a high-tech "holy land." Popularization and civilianization are its true colors. For manufacturers, relying on technology to knock on the market is just a gimmick. Price is the king of the market.

In terms of objective conditions, as more and more traditional lighting transitions join the LED camp, the survival competition in the LED industry will become even fiercer in 2013. In addition, the product homogeneity of the LED lighting terminal market is serious and the price is confusing. Brand LED companies need to lower product prices, reposition product prices, and reshape the price system to increase price advantage.

The wave of price cuts from upstream chips has brought good news for end-use products. According to GLII statistics, the average price of white LED low-power chips in China fell by 31% in 2012, the average price of high-power chips decreased by 33%, and the average price of medium-power chips dropped by 40%.

In addition to the expected drop in the cost of materials in the upper and middle reaches, the brand LED companies should also make great efforts to achieve the advantage of large-scale production capacity, optimize the distribution channels and other aspects, so that "open source and reduce expenditure", reduce costs and increase productivity.

The price should be the advantage of the entire LED industry, not the "killer" of low-end and inferior products challenging the branded products.