LED lighting will set off a new round of price cuts?

[Source: "High-tech LED - Lighting Market" June issue Zhang Wei / Zhou Jianhua]

LED terminal price depends on rent and personnel costs

Huang Boyu, Director of Shenzhen Guangyi Lighting Market Operations

Whether the LED price in the terminal market can be reduced depends on the decline in the rent of the terminal merchants and the cost of personnel, and does not depend on the price reduction of the upstream enterprise products.

The domestic LED industry is dominated by the government and has strong support. In addition, LED is a new type of industry, and has always been replacing traditional lighting. The future market is huge. This has caused people from all walks of life to flood into the LED industry, resulting in a serious overcapacity in the sunrise industry since last year.

At present, there is no LED industry production technology standard in China. Many enterprises are producing LED products according to their own standards. In addition to the domestic and international economic downturn in the past two years, enterprises have to reduce profits and fight price wars. The end result is that more and more LED companies have been eliminated, and the price of LED applications has been declining.

But for us, we have been selling small profits but quick turnover, but also to withstand the fierce competition of Huaqiang North. In addition to the chip, there is no room for other components to fall, the price of the upstream chip should be reduced, such as Puri, the chip should be reduced by 1-2 cents, but the decline is not large, the significance of our terminal market Not big, a small amount of LED products of about 90 yuan does not make much sense.

In order to make the price of terminal LED lighting products drop drastically, it is necessary to reduce the cost of water and electricity, rent, and staff costs. At present, for each building materials store, the rent and personnel costs have risen year by year. No matter how much the upstream LED products have dropped, entering the terminal dealers level has been offset by the increase in rents and personnel costs.

Price reduction can promote the penetration rate of LED civil field

Huaqiang North LED product decline is its own cause

The price war started early in the ancient town


For more information, please refer to "High-tech LED - Lighting Market" magazine June issue

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