LED lighting business pressure is growing

The impact of fierce price war in LED industry spreads to LED lighting business. Coupled with more than half of the current Chinese lighting companies, they have a difficult point: the industry chain in the downstream, who is difficult to grasp the chip technology. The consequences of this situation is that the downstream enterprises had to pay high costs to the upstream enterprises, and constrained on the people in the technical standards in order to obtain chips.

LED lighting business pressure is growing

On the one hand the LED industry is deep in the price whirlpool; on the other hand, enterprise technology patent costs and other issues are difficult to effectively solve, so that even many large enterprises are no profit at all, let alone the small and medium enterprises, which are in more difficult situation, and easy to fall into the capital chain break dilemma. Experienced tide ups and downs of the industrial changes, the entire industry chain has been caught in the Red Sea flame, many companies have been hit or even lead to survival crisis, and even fall into a state of collapse. Domestic LED lighting enterprises gradually changed into intelligent lighting, automotive lighting, plant lighting, industrial lighting, medical lighting, visible light communications, LED apparel and other segments.

At present, the world's major lighting companies began to divest the lighting of a single product business. Their focus shifted to higher profits of professional lighting market segments, such as Philips in the sale of lighting equipment business as focus on medical and health lighting; general electric to intelligent lighting and car lighting as the main direction of development.

If want to do a good lighting project channels, you need to have a good product and brand. Design should first cut into, equipped with professional lighting designers to strengthen cooperation and improve the technical content, in order to achieve market price protection, do not fight bad price war. From the development of intelligent lighting control industry, with more and more participants to enter, too much single market strategy will soon be submerged in many new brands. Lighting companies should also be based on market changes, adjust the company strategy. Multinational giants today in China's LED lighting field "contraction front",  which is a great opportunity for the rise of Chinese enterprises.


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