Rising tide of rare earth price will inevitably affect the brand pattern Re-shuffle the energy-saving lamp industry

As the general manager of the energy-saving light source brand Renming Lighting, which has been selling well in Europe, America and Hong Kong for ten years, the general manager of the company said that the reason why China's lighting industry is large and not strong lies in the lack of core technologies for independent innovation. In the 30 years of reform and opening up, China has become the world’s largest producer and exporter of lighting appliances. There are thousands of brands in the industry. At present, China has more than 3,000 energy-saving lamps and related companies, with an annual output of more than 3 billion energy-saving lamps. According to statistics, 80% of the world's energy-saving lamps are produced in China. China is a truly global manufacturing center for energy-saving lamps. However, most of these brands are hovering in the low-end market, while foreign brands such as GE and Philips are high-end brands. This time, domestic rare earth prices will inevitably bring about brand changes.

Rare earth price surge brings turmoil to the energy-saving lamp industry

It seems that in the spring of each year, the lighting industry is facing a new round of rising prices: In 2011, raw materials such as copper, aluminum, and glass tubes, and labor costs, utilities, and land rents have all increased. It is understood that since the beginning of March 2011, three-color phosphors have been priced for one day, currently breaking 550 yuan per kilogram, compared with only about 350 yuan a few months ago. The increase is as high as 50%, and it is still rising. Rare earth is the main raw material of trichromatic phosphors in the capillary tube, and the proportion can even be as high as 75%. The unusual rise in rare earth prices has brought tremendous "turmoil" to the field of capillary tubes and energy-saving lamps. According to analysis by Wan Wanchuan, general manager of Wanneng Lighting, who has 10 years of experience in exporting to Europe and the United States, the prices of raw materials for energy-saving lamps such as rare earths and plastics continue to rise, and the country will vigorously implement new three-color rare-earth lamps for use on May 1. Standards, energy-saving lamp industry reshuffle is inevitable. In the next two or three years, mergers and acquisitions and consolidation will become a hot topic in the energy-saving lamp industry.

Transition from "manufacturing" to "creating" to increase product added value

The brand enterprises with strong capital will vertically integrate the upstream and downstream resources of the industrial chain through mergers and acquisitions to further strengthen their competitive advantages. The small and medium-sized energy-saving lamps and related supporting companies are either committed to becoming a brand company's manufacturing plant, or they can only switch to Other lighting products or exit the lighting industry. It is understood that a long time, a large number of market share of light products by Philips, Osram and other overseas brands occupied, the domestic light source companies rely mainly on the export market, another part of the company's small scale, lack of market operations and product quality, affecting consumer confidence. Energy-saving light source lighting enterprises must realize the strategic adjustment from "manufacture" to "creation" as soon as possible, strengthen independent research and development, and increase the company's core competitiveness and product added value.

Export strength brand advantage

According to the author's analysis, an export-oriented energy-saving light source that has its own core R&D strength and strong profit support for export markets will be able to “hang Yunfan economy and the sea” in this wave of fashion. For example, the United States, TCP, Dong Lin Electronics, Zhejiang Sunshine, everyone bright lighting. In summary, these energy-saving lamps, LED and other energy-saving light source export strength brand advantage has the following five points:

(1) Advantages of own brand and independent sales. Unlike most domestic companies, the export is mainly based on OEM-based practices. For example, everyone can use the resources of upstream and downstream lighting for their own purposes. Without relying on external forces, they can respond most quickly to the market.

(2) The unique advantages of the spiral light of the classic product. For example, the United States, TCP, is the world’s first company to launch spiral lights. Its spiral lamps have the characteristics of high luminous efficiency, small size, long life, and low pollution. The leader’s position allows TCP to control the main channels of the US circulation market. And mastered a large number of market data and information, fully understand the overall trend of the market and maintain competitive advantage.

(3) Excellent quality and survival by quality. The highest quality of products is to make the world's best energy-saving lamps as their responsibility. Through technology upgrades, equipment upgrades, and management system upgrades to ensure product quality.

(4) product innovation, innovation and development. The enrichment of product lines has greatly increased the competitiveness and profitability points.

(5) The strong manufacturing capability guarantees the stability of the supply. Both have large-scale production bases. The company has independently completed the production of lead-free glass tubes from raw materials and the production of capillary tubes and rectifiers.

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Huerler Lighting Equipment Co., Ltd , http://www.sz-ledlights.com