With the permeability increase of LED lighting, LED products prices are falling, in order to strive for more profit, LED companies are expanding production line, aimed at stimulating demand, to achieve a high-volume, low-margin business. Especially in the LED downstream of the low-end market, become a major disaster area of excess capacity. As a sunrise industry in the LED industry, why appear this kind of dilemma? (LED bulb)
In 2015, the overall market economy recession, LED products prices falling, accelerate the industry reshuffle, medium and small business failures, then appear ” Top-heavy” industry pattern. Falling prices accelerated the LED capacity utilization, become the civilian products that can be accepted by consumers, increases the market penetration of the leds. LED lights not only famous for its energy saving but also for its long service life, in the advancing of the light source replacement in the future, there may be a large number of enterprises to exit, permeability also means that the degree of cruel competition, it will be more intense in the future. (LED tube)
There is a famous ” Haitz’sLaw ” in LED field: the price of the LED lamps every 10 years will be the original 1/10, lumen output increased 20 times from earlier years. Europe and the United States, Japan and South Korea to follow the laws of Haitz, technological progress in China in order to lower costs to contribute, but since 2014, when after the Cree announced the technology of 303 lumens, Europe and the United States, Japan and South Korea companies have little voice, China is still at the expense of profits, performance and life of irrational bargain competition to “stick to” Haitz’sLaw. There is no doubt that the mainland transformation and upgrading of enterprises need to optimize the structure of its profit, to break the dilemma.