Analysis the led lighting market etentry point

Since October 1th  2012, our Country will gradually ban the import and sale of general lighting incandescent as power size phased . The incandescent eliminated route into the implementation phase, new lighting, especially LED lighting industry will continue to get the support of policy, led lighting warmly welcome the good opportunity.

Analysis the led lighting market etentry point

LED lighting market development is getting hot from the market point of view at present,the LED lighting industry will usher in a period of rapid industry development soon. First promotion area is also two item 2,3 from Foreign Country.But foreigners are cautious for LED street lights . So the boss of doing  blindly LED streetlights is likely to become a revolutionary pioneer.While the other two markets will train “leader” forces of many industry.

LED Street light is the hottest in the mainland at present.Under the promotion of  Ministry of Science and Technology of ten thousand ten cities ,many people headlong into this market at  the amazing enthusiasm in promoting. It seems the first field of lighting. At present there are 21 pilot cities in our country. We estimated that have one million.The Ministry of Science and Technology plans approved 50 cities next year. Estimated two million. This is Chinese characteristics! Also is to create the China Speed! But the overall product maturity is worried by people; maybe the  lighting field is the first to be made of a rotten market.Having repeating the initial suspicion of LED guardrail lamps, whether bubbles is more serious? Although very prosperous, very lively, it is foreseeable that the Government take the money, Eventually  will trained a number of good LED photoelectric technology company after 2-3 years.Maybe this is the ultimate goal of the government.

LED T8 tube light applications, there are close to commercial product launch from the current market product solutions to see.This  is a market of the first mature promote. Can do such as car parks, shopping malls, advertising back-light market. It is close to commercial application near the point (150) about present price and cost . Good product, in terms of optics, heat, and power handling are more mature program. The products are also closest to commercialization. Of course, the current market there are still have a large number of low-quality products. This is the biggest challenge. With the introduction of the U.S. Energy Star and EU standards, I believe that the  problems above will  have greatly improvement.That means the promotion of T8-LED Panel Light commercialization will begin.

The current view of the level of industry development, led lighting market is also not enough to break the traditional lighting concept and is still in the replacement type route. LED lighting must also rely on the government policy guidelines in replace type route inside. In other words, although some receive LED lighting developed to a sufficient degree of maturity in some areas
.But relative to the entire market, which is still in an initial stage of the prototype level.

“Say goodbye to incandescent bulbs, led lightings green living” Government action theme campaign was held in Beijing.

October 17, 2012, “Farewell to incandescent bulbs, light green living” action was held jointly by the National Development and Reform Commission, the Ministry of Commerce, General Administration of Customs, State Administration for Industry and Commerce, State Home of the General Administration of Quality Supervision, Inspection and Quarantine, the Government Offices Administration of the State Council. The theme is to accelerate the use of energy-saving bulbs. Activities were held at the Chinese Academy of Engineering. More than 100 delegates to participate in the activities, they are from government departments, industry associations, research institutions, enterprises, media, etc.

"Say goodbye to incandescent bulbs, led lightings green living" Government action theme campaign was held in Beijing.

Xie Zhenhua, deputy director, in his speech, pointed out that the led lightings energy saving is a significant action around the world to promote energy conservation, to address climate change.

There are more than a dozen countries and regions in the international releasing out incandescent roadmap as well as push wide green lighting plan of action. Research report, global lighting electricity accounts for 19% of the total electricity consumption. State electricity for led lightings accounts for about 13% of the electricity consumption in the whole society. If our country with 1.4 billion incandescent replace to energy-saving lamps, the annual saving 48 billion, equivalent to reducing carbon dioxide emissions of 48 million tons, potential energy-saving reduction. In order to improve energy efficiency and protect the environment, and actively respond to global climate change, from Nov. 11st, 2011, the National Development and Reform Commission, the Ministry of Commerce, General Administration of Customs, State Administration for Industry and Commerce, the State General Administration of Quality Supervision, Inspection and Quarantine associated co-published “China phased out incandescent roadmap”, which gives a clear goal. From October 1, 2012, we should ban the import and sale of general lighting incandescent to ensure the realization of the “second five” emission reduction targets of any

service and actively respond to global climate change and a positive step.

“Farewell incandescent light bulb · light green living” is a series of promotional activities, including government action, urban row, animals and rural areas in the field of action, Internet and posters propaganda. Since the start in September this year, activities has been gradually carried out throughout the country. In Hangzhou, Zhejiang, Guangdong Heshan, people organized field cities in Action – Green Little Angel’s Painting activities; With Film countryside, in the whole

Play “say goodbye to the incandescent light bulb. led lightings green living” promo over 2100 villages of the country’s four provinces; in Beijing East Mall, Wal-Mart, Suning Tesco electricity supplier sites and stores carry “Farewell incandescent bulbs voluntary commitment and energy-saving LED Panel Light  lamps” green living promotional publicity columns; opened in more than 30 websites in Sina, 150 Send Topic micro-blogging forwarded views over five million people, which make great influence on the society.

The next step to carry out the led lighting industry work of the Union’s proposal

National Semiconductor Lighting Project R & D Industry Alliance, the sixth conference of members of the General Assembly is to discuss how to get closer to the theme, to meet business needs, to get closer to the industrial development. In the preparatory work, the Union has an extensive collection of the views of the member companies, and make discussions of the utmost concern from the enterprises, which reaches the goal of serving led lighting industry and LED Panel Light enterprises. Thanks to all the members proposed their suggestions on this assembly.

The next step to carry out the led lighting industry work of the Union's proposal

1, the establishment of an early warning mechanism

Union has a macro character, so it should establish an early warning mechanism, to give insurance tips and warn on the research and development of semiconductor lighting market conditions.

2. To lead the industry development by figures

Organize technical seminars on a regular basis, looking for experts in the led lighting industry for data analysis and interpretation, to explore the technical development trends and master the development of more advanced technology, and provides direction for the enterprise, reduce detours. LED emerging market and do some feasibility studies, provide data analysis for enterprises, especially for small and medium-sized enterprises.

3, Playing the full role of the State Key Laboratory

Making full play in the State Key Laboratory of semiconductor lighting joint innovation, the first level is in technological innovation. Increase basic researches, common key issues to promote the standardization of interfaces; in the aspect of patent, discuss a mutually beneficial mechanism; in the aspect of organizational structure, it is recommended to increase investment, and the establishment of some branches.

4, Establishment of credibility mechanism to promote business cooperation

The Union shall establish integrity mechanisms. Through this mechanism, enterprises can enter the Union. When there are large projects, enterprises can work together and have a joint construction. The LED Market is miscellaneous. If companies choose to cooperate, rather than competitions, may be able to enhance their competitiveness, to grab more market share, but in many cases, enterprises are longing for cooperation, however, they cannot give a correct assessment to future partners.

5, A standard market with long-term development

Strengthen communication with the government, and it was recommended that the government should increase its efforts to support the led lighting industry, and these supports can give effective to promote to the healthy and orderly development of the market, rather than a problem for the market, such as to standardize the tender subsidy, to control actions of low prices to get bid, which is harm to industry.

Channel breakthrough LED wishing to enter the rural led lighting market

LED, how to breakthrough price and channel is a realistic question for a lighting enterprises. Reporter found in rural areas recently, two or three line market becomes the LED enterprise in the channels for the development of new territories. How to let LED Panel Light enter into a ” high quality and inexpensive ” products and to successfully enter into the two or three line market, perhaps LED enterprises urgently need to solve that problem.

Channel breakthrough LED wishing to enter the rural led lighting market

Channel breakthrough: LED eager to ” illuminate” the rural LED lighting market

Since last year, with Europe and the United States market downturn, the domestic market has gradually become a large enterprise brand in one of the main battlefield. ” high price, high quality ” for the characteristics of the LED lighting, with its scale, industrialization of application, the price also is reduced greatly, and the exploitation of rural market is possible, it is understood that many LED enterprises regard the rural market as a future attack way.

Rural market attractive prospects also received industry recognition. A survey shows that: at present, China’s rural family is commonly used in incandescent lamp, the power consumption is 8 times of LED lighting, and two times of fluorescent lamp. With the energy crisis growing, energy saving has become a global consensus, and LED lighting does not contain mercury, and not easily broken, if wasted, it also can be recycled, so it becomes the world the preferred model of green lighting products.

Almost all businesses including LED businesses are of the view that China ‘s agriculture of LED lighting market within two years will see the benefits. From now on, vast rural area will become the largest market for LED lighting. ” Liu Zhu said, in foreign markets confronted freeze, the domestic real estate market downturn, line one two three city led lamp market impacted much.

With the rapid development of rural economy, the improvement of people’s living standards, farmers on the life quality of lighting requirements are improved. But comparatively, rural consumption is still insufficient, if LED prices are too high, even though the energy is also difficult to promote. Therefore, how to maintain the advantage in price is the key for LED enterprises to participate in market competition.

all lighting competing inside and outside, huge market how to change?

According to the forecast data, in 2012 the global LED lighting penetration will reach 13%; 33% in 2015, Following the LED Panel Light  commercial market expanding, global LED lighting civilian market has started, the size is five times than the commercial market. China all lighting is the world’s largest market, accounting for 17% of the global lighting market share.

all lighting competing inside and outside, huge market how to change

 

In recent years, the rapid development of the domestic LED industry, the state has issued a series of policies to support related projects, and recently decided to arrange 22 billion financial subsidies to promote the development of energy-saving lamps and LED lighting industry. Such a large market space and support efforts attract a number of domestic lighting manufacturers to join the LED lighting industry, but because of the industrial chain deformity and dislocation of production. From the second half of 2011, many companies closed down one after another, the entire LED all lighting industry faced with a large area of ​​the shuffle.

At the same time, huge market temptation also stimulated a number of Europe and the United States, Japan and other foreign and Taiwan-funded enterprises, subordinate to the domestic market. On May, OSRAM signed with Wuxi, to plant new assembly line in the local. At the end of 2013 completed and put into production, the main LED chip GE lighting package casing; Chengdu innovation center is formal operation, on July, Xi’an innovation center will also be established; Panasonic at the beginning of this year in the Chinese market sales of LED lamps, August, September will also cut the Chinese LED light source market.

Facing the huge market place, how to seize the opportunity to attack from both inside and outside of talent showing itself. And to share a cup of a thick soup from inviting market becomes a major problem as many domestic LED lighting enterprises are facing.

In order to better meet the 2012 domestic semiconductor lighting industry pattern changes and market demand, and guide the industry chain downstream and domestic and foreign counterparts between benign competition, the organizers of the exhibition layout planning, site will be launched four theme exhibition — ” materials and manufacturing equipment. “, ” commercial lighting, outdoor lighting. ” ” area” and “Ten City show ” pilot city results display area, concentrated display of semiconductor all lighting industry in the areas of the latest products and technologies.

Impetuous is the natural enemy of independent innovation of the street light

The global promotion of low-carbon life, so LED becomes a new generation of environmentally friendly light source. At present, China has named semiconductor LED lighting included in the medium-and long-term technology development plan, which has been initially formed wafer production, chip preparation, encapsulated integrated LED application industry chain. In addition, our national focus on the promotion of LED Panel Light industry. In mid-October, the nation’s first LED theme park settled in Guangdong Science Center, the “Guangdong, Hong Kong and Taiwan LED industry Design Forum held at the same time.

Impetuous is the natural enemy of independent innovation of the street light

Imitate and simple-build substitution is the bane of the LED street lamp

At present, LED applications and R & D is just to have simple replacement from LED and traditional light source. Almost all LED manufacturers follow the traditional street lamp design ideas, the pursuit of tens of watts, more than 100 watts of power LED street lamp with HPS lamps shape, installed the same way or compatible LED the street light and installed almost all HPS light source suitable for the “snake-heads (Tablet snakeheads) lamps as the standard design and manufacturing, rather than as a starting point for research and development to the law of the street light.

Second is invalid illumination problems. Currently, the majority of the public space, such as corridors, foot ladder, parking, bathrooms, elevator, across the street. Generally rely on the pass with a long time lighting, where is sometimes empty, so the energy is consumed. Therefore the most energy efficient technology is not on the wattage of the lights, but how to make the lights become more intelligent, more humane. When nobody used, it can enter a “sleep” state, and some people emerged, it will slowly wake up.

In addition, there is the visibility problem. The zebra crossing effects and serious air pollution, rain foggy weather environment caused the lights not bright enough on the ground, therefore, to reduce energy consumption, and not influence the ultimate goal of the street light visibility, the most important main direction is to strive to improve lighting uniformity. Good illumination uniformity can be appropriately reduced the average brightness of the lighting, which can achieve the same recognition to identify objects of visual effects, while at the same time to achieve the purpose of energy saving.

Market competition in Japan LED lighting bulbs

As the technology matures and falling prices, LED ( light emitting diode ) lights in Japanese market is in short supply because it enjoys a long life span and small power consumption, but also attract the Japanese well-known major motor manufacturers have entered the field, which led the market competition turning to a hot topic today.

Market competition in Japan LED lighting bulbs

It is reported there is LED lighting bulbs as early as about 10 years ago in Japan , but the technology is not very mature. The bulb brightness is not enough, which can only be used for emergency indication etc.. Thereafter, due to technological advances, the Japanese manufacturers develop brightness to replace incandescent lamp Since then, LED bulb gradually recognized by consumers, also accelerated the commercialization process.

At present, the Japanese market LED lamp service life is about 40000 hours, which is as 40 times comparing to the equivalent incandescent lamp bulb and 6 times to fluorescent lamp. The power consumption is only about 1/8. obviously, it can save energy . In addition, LED bulb prices is going down to,just as half of the original price, only 4000 yen (1 dollar closes around 88 yen ).
Brightness increases, price fall ,so that’s why it attracts people’s attention. It has the first sales peak in this summer. Many large electronics store are out of stock because of the low price .LED lighting bulbs manufacturers can not keep up the order and pour out one’s endless grievances.

Not only the manufacturers intensify efforts to develop production, also attracted many electrical manufacturers to enter this field.
Toshiba Co of Japan is the first R & D LED Panel Light bulb manufacturers, and put the products on the market firstly in 2007. the company announced further strengthen the LED light bulb business this year and plans to invest 100 billion yen for the equipment investment, reach 3500 billion yen in 2015, and the overseas market share increased to more than 30%. The company can adjust brightness of LED lamp.

Panasonic Corp of Japan in September of this year decided to enter the home LED lighting market in late October and planned to launch 10 ” EVERLEDS ” series LED bulb. The company said, the series of LED bulb enjoys energy saving and high performance. For normal family use, annual charge of electricity is only 300 yen, which is less than 2000 yen comparing with incandescent lamps . The company will also introduce unique small LED light bulb.

In addition, sharp, Mitsubishi Motors as well as NEC and other large motor company also entered the LED lighting bulbs market, it is expected that the future market competition will be more intense.
Environmental protection and energy conservation has become the main topic, all countries are making great efforts to promote environmental protection and energy saving products, many countries have formulated the plan to stop production of incandescent lamp. Japan’s major motor manufacturers are at large participation and strengthen LED bulb business, mainly to see the new lighting equipment market and its prospect.

Unique advantages of LED lighting technology

As the new 4th generation light source, LED lighting technology started to take place of traditional light sources, causing huge revolutions in the lighting industry. This new light source is constantly upgrading as a result of innovations in drivers. From incandescent lights to energy-saving lights, from halogen lamps to LED lamps, light sources have been not only improved in the energy-saving aspect, but also enhanced comfort. As the representative of green light sources, LED lighting technology has potentials to dominate the market. Compared with other mature traditional light sources, what makes LED more advanced?

 

As the new 4th generation light source, LED lighting technology started to take place of traditional light sources, causing huge revolutions in the lighting industry.

 

In 1923, American scientists Rosoff (O.W.Lossew) discovered that silicon PN junctions have properties of electrical conductivity and luminescence. In 1955, R.J.Haynes published a research report about properties of gemanium PN junctions. And meanwhile, G. A. Wolff shared his study on the luminous phenomenon of GaP (gallium phoshpide). In 1968, Monsanto Company and HP produced a red LED for the first time, enabling LED Panel Light become a kind of electronic products to enter the market.

 

Energy saving: LED spectrum almost all concentrated in the visible range. The luminous efficiency can reach up to 80%-90%. Compared with incandescent bulbs, spiral energy-saving lamps and T5 trichromatic fluorescent tubes: the luminous efficiency of incandescent lights is around 12lm/W, can work for 2000 hours; the luminous efficiency of spiral energy-saving lamps is 60lm/W, and can work for 8000 hours; T5 fluorescent tubes have a relatively high luminous efficiency: 96lm/W, and can work for 10,000 hours; The luminous efficiency of LED tubes with diameters of 5mm is within the range of 20-28lm/W, but can work for more than 100,000 hours. Someone even predicted that the maximum LED lifetime in the future will be infinite.

 

It is believed that energy-saving lamps saving 4/5 energy is a great invention. LED can save 1/4 more energy than energy-saving lamp does. In addition, LED lighting technology has other advantages: pure light spectrum/good-quality rays, free of radiations, environmental friendly, reliable, durable, very low cost on maintenance and replacement, etc.. Thank you for the above advantages, it is estimated that LED lighting applications will dominate the market within 10 years.

 

LED usually operate under low voltage input, 1.4V-3V; normal working current is 10mA. During the production process, LED needs no mercury and inflation, good at impact resistance and shock resistance, easy to transport, safe and very environmental friendly.

Brand war and price war in the LED lighting industry, which one is more important?

Until now, the world still immersed in the sad atmosphere of economy crises and euro crises. Under such circumstance, many industries slowed down their path of development, except for LED lighting industry. Instead of falling into recession, domestic LED lighting industry is now in a state of prosperity. Regardless of scale, product quality, market reputation, LED Panel Light companies large and small swarmed in this market, causing surging waves. At the same time, the price war has once again become the sharpest sword in this battlefield.

 

Brand war and price war in the LED lighting industry, which one is more important?

 

However, can the price war really be a sword that enables LED lighting companies dominated the market? Throughout the history of other domestic industries, the price strategy has been widely used by a lot of companies. Usually, the consequence of doing so is not only harms the interests of the market but also harm the interests of companies. The price war is a double-edge sword.

 

As an emerging market, LED is in the process of replacing traditional lighting technologies. There must be a stage of sharp prices dropping, which is inevitable. But the decline in prices should be established on the basis of mature technologies and scales instead of no-bottom-line prices dropping at the cost of reduction of products’ qualities. Seizing the market by this way will only lead to the end of this company. Companies lacking of core technologies will not survive in the along developing river.

 

Ultimately, the price war can never rise to the strategic height in any market, which only can be used as a temporary tactic. The core strategy of LED manufactures must return to the concept of building brand values, firmly seizing the bottom line of product quality, stably developing the core technology. Only LED companies that followed such sustainable developing steps can achieve a long-term development in the LED lighting market.

 

Presently, the consuming concept of the mainstream customer group has changed. Cheap products usually mean low-quality products. And customers started to recognize and accept the premium caused by the brand effect. There are so many domestic enterprises tasted the pain of this. When a company’s products are marked with low-price low-quality label, it is almost impossible for them to re-establish their brand. It is the brand war that LED lighting industry needed desperately rather than the price war.

To crack three developing constrains in the LED lighting market

LED lighting applications have many advantages: environmental friendly, high light efficiency and save more energy, long service life. With the dual stimulation of the government support policies and market interests, the domestic LED lighting industry is developing rapidly. A lot of companies and organizations tried to swarm into his field, including professional LED Panel Light manufacturers, traditional lighting companies and overseas capital. However, different from the hot upstream industry, LED still faces many challenges in the terminal market as a result of expensive selling prices, different qualities and limited recognition among ordinary consumers, which have been considered as three major constrains in the LED lighting market.

 

To crack three developing constrains in the LED lighting market

 

1)       Expensive selling prices: compared with incandescent lamps, energy-saving lamps, selling prices of LED lights can be 10 times/ Dozens of times higher. The expensive prices dramatically hindered the development of LED sales in the market.

2)       Different product qualities: vicious competitions and different product qualities roiled the market, undermining the confidence of consumers.

3)       limited recognition among ordinary consumers; As a new green lighting source, currently, many consumers has not really understood its advantages. Lacking of recognition crack the confidence of dealers.

 

In order to expend the LED residential lighting market, LED makers should drop prices (through technological innovations), improve qualities and strengthen propagating.

1)       With the improvement of LED technology and continuous reduction of production cost, selling prices of LED lighting products constantly dropped recently. This may overcome the first hurdle for the popularization of LED lighting applications.

2)       Improving LED manufacturing technologies maybe the most effective solutions for the various-quality problem. Which are LED manufacturing technologies? LED chip is undoubtedly the core technology of LED lamps. Within the entire production cost of one LED light, LED chips occupied more than 50%. Besides, cooling section, drivers, are also fairly important. High-quality, more cost effective products has become the urgent needs of the LED lighting market.

3)       Strengthen publicity and promote the LED literacy

The government plays an important role in the promotion of the LED literacy. LED Expo, LED support policies, large LED lighting projects and media reports can widely spread LED concept. All these staff should be under the help of government. Besides, LED companies can also give a hand on this part by Increasing advertising. They actually kill two birds with one stone: enhance the product reputation and meanwhile strength the publicity of LED lighting products.