Since 2015, the price reduction of LED lighting products has become the norm in the industry. Many brand companies have followed the situation, lowered their prices, and joined the “price war.” Four regional markets in Shaanxi Province, Henan Province, Chongqing City and Hubei Province were selected to conduct market research on 1.2-meter LEDT8 (16W) lamps.

Shaanxi

LED lamp prices fell by more than 30%

According to the survey, in April 2015, the price of LEDT8 lamps in Shaanxi's regional market was more than 30% lower than the same period of last year. In response to this phenomenon, many businesses have stated that LED lighting technology continues to mature, raw material costs decline and sales volume continues to increase, accordingly reducing costs, product prices will also decline.

Yuan Zeshan, general manager of Yiguang LED Lighting Shaanxi Operation Center, stated that the price of LED lamps will decline slightly in 2015, and the market competition will intensify, causing many manufacturers to lower profits in order to win the market. In addition, the LED products are further matured, and the related accessories are reduced in price, all of which will make LED lamp prices continue to decline. Wu Jianjun, general manager of Mulinsen Shaanxi Operation Center, said that from now on, from the well-known brands in the traditional lighting era to the new brands in the LED era, LED lamp brand companies are deepening their channels and seizing market share, including “advertising” and “teamwork”. "It has become a hot topic in the industry.

It is understood that the current LED lighting market competition is particularly confusing, 80 yuan / support to 10 yuan / support price range products, product price differences are too large, but ordinary consumers are difficult to identify the difference between the price difference between products. In the face of declining lamp prices, many businesses report that they should be appropriately stocked, meet daily sales demands, and choose branded product agents to reduce business risks.

Chongqing

LED lamp prices may continue to decline

In recent years, the prices of LED lighting products in various parts of the country have declined to different degrees. In Chongqing, the price decline has also become more prominent. In this regard, major brand lighting companies have also made corresponding strategies. The reason why the "price war" was conducted was one of the main reasons for the fierce competition in the domestic terminal market.

In the Chongqing market, in the past year, the overall price of LED lighting products has dropped by about 20%. The reason is explained by Zhu Mingzhi, Sales Director of Chongqing Jinbang Building Materials Co., Ltd. There are two main reasons: first, the raw materials of the products are updated too quickly and the price of raw materials keeps declining; secondly, the product technology gradually matures, and the market for LED lighting The acceptance of products is getting higher and higher.

In the survey, the author found that for 2015 and later LED lamp price changes, most businesses admitted that prices will continue to decline, and as LED technology gradually matures, this may lead to a new round of market competition.

Zhu Mingzhi, sales director of Chongqing Jinbang Building Materials Co., Ltd., frankly stated that he hopes that companies, distributors, or integrated sales platforms can establish a good, healthy, and unified goal. Only when they develop healthily, will there be a true win-win situation, which will lead to a win-win situation. The entire market is moving in a healthier direction.

Henan

Some LED lamp prices drop by more than 50%

Compared with the same period in 2014, in April 2015, the prices of LED lamps for many brands in the regional market in Henan decreased more, with some decreasing by more than 50%. The large-scale lighting platform through the Henan regional market research and finishing that: On the one hand, because of the intensified market competition, manufacturers in order to seize the market share, the most suitable for large circulation channels of LED lamps as a "dagger" products to hit the market; the other hand, LED lamp production costs have dropped.

Zhang Jiangong, general manager of OSRAM Lighting's Henan Operation Center, stated that in 2015, the price of LED tubes will decline slightly, but it will not be as obvious as before, mainly because the price of LED tubes has reached the limit. For the current LED lamp market, Zhang Jiangong said frankly that in the sluggish environment of the industry, the vast rural market has released a huge market space, making many powerful companies regard the rural market as the main strategic market. At present, the LED lamp market is in the “Warring States Period”, and many powerful brands have joined the ranks of price wars. On the one hand, they have accelerated the industry's reshuffle speed, and on the other hand, they have made the prices of LEDT8 lamps increasingly lower.

Faced with a sharp drop in the price of lamps, Qing Yan, chief of Yanlong Jintai Store, Yan Rui, frankly stated that merchants should strictly control inventory, and in the sales process, purchase goods in accordance with customer orders as much as possible; , Merchants can even use the express delivery method to reduce the risk of a large number of stockpiling.

Hubei

Manufacturers are also competing in competitive businesses

Recently, the Hubei lighting market conducted detailed investigations on the prices and terminal sales of LED lamps of various brands. In the survey, it was found that at present, the regional market in Hubei is relatively deserted, and the sales of LED products have generally declined.

According to the survey data, there is a certain gap between the sales prices of LED lamps of major brands in Hubei market, such as the price of domestic first-line brand LED lamps ranging from RMB 13-25/line, and the prices of domestic first-line brands are at 19 -30 yuan/branch, of which prices have fallen significantly compared to 2014. In this regard, local business analysts said that on the one hand, upstream companies have gradually increased their production technology and scale, and the supply chain has gradually matured; on the other hand, leading companies have achieved market standardization in order to “baptize” the market, which has exacerbated the market competition atmosphere. Businessmen said that today, LED lighting industry T8 lamp prices as a whole decline in the competition among manufacturers, businesses are also competing, in the future, LED lamp products prices will certainly continue to fall. In this regard, businesses can only follow the market conditions.

Xiaobian has something to say

LED price reduction is not a "bad thing"

Facing the declining prices of LED lighting products, it is not a “bad thing” for the entire industry: On the one hand, product prices are the performance of product technology and the industry’s growing maturity, which will promote enterprises to enhance their competitiveness; on the other hand, product price reduction To some extent, it further stimulated the vitality of the market. Therefore, businesses should actively face the market and innovate in business methods.

First of all, manufacturers do a good job of coordination. Product prices have changed greatly, which may lead to a significant reduction in business profits. Therefore, in the face of a sharp drop in product prices, manufacturers should coordinate their efforts to ensure that the business inventory flow smoothly; Second, select brand products. The highly competitive products are the “chess pieces” in the hands of merchants. In the low-price competition, products with brand advantages are more likely to win consumers' favorite.

Finally, improve your own value. For manufacturers, in addition to having products that are competitive, the market must also increase the value of its products and businesses, such as building a good brand image in the local market.

However, low-price competition is not ultimately the end result of the health market, but markets that have experienced low-price competition may be more viable. If the business can stand out in the fierce market competition, this rainbow will eventually belong to the "winning" business.