For the development of LED lighting business in China, experts indicated that LED light growing so fast in China that hard to be digested by market. The number of enterprises entered into this field sharply increased, leading to the confusion in the market. Many LED lighting applications applied to commercial purpose. Most of the ordinary family cannot afford these due to their exorbitant prices, which restricted their popularity among mass consumers. “If the price can be reduced more than 30% on the existing basis, LED lights will take much more occupations than now.” said Sunyi zhang, a market analyst from Shanghai Jinghua lighting technique Co., Ltd. Thus how to improve LED lighting technology, increase products qualities, reduce cost of production, became the key to the prosperous of a LED enterprises. However, LED light growing too fast to let these be realized.
Nowadays, abnormal developments have appeared in LED lighting business. Disconnections frequently turned up within the entire industry chain. Merchants for raw materials tended to stock up their products, raise prices and create monopolies. This leaded to a rather bad situation that LED manufacturers had to increase prices of their own LED lighting products or even worse reduce the cost of production by decreasing products’ qualities. However, a lot of business men were blinded by the illusory profit of LED lighting industry. More and more LED manufacturers cannot wait to jump into this fire. The immediate consequence is that they have to further drop their cost of production, producing products with very poor qualities. Too fast LED light growing will let this embarrassing situation keep on going for a long time. Blind investments coming from downstream have greatly compressed the profit margins of LED lighting market. The more fierce of competitions, the more narrow of the market profit margins. Price battle impact a bad effect on an emerging market, like LED lighting market. It will weak the international competitiveness of a company to some degrees, and disrupt the entire market at the mean while.
At present, the global LED lighting industry has been carved up by three regions: the United States, Europe and Asia. Japan, Korea and China are three main competitors in Asia. How to improve the international competiveness is much more important than how to occupy domestic market in an unscientific way. We do not want to see that in near future China LED street light would lose its competiveness in Asia and also in the world.