LED lighting products less profit margin

Due to the influence of excess production capacity in China, the market leader, Philips (Philips) leds will reduce profit margins.As the economic scale, the product price advantage no longer exists.The overall competitive pressures greatly affected the market.To this end, philips will sell its lighting business.It is reported, the Dutch electronics group, philips has attracted several private equity group, the main part of the bid its lighting devices business, once has the high profits can sell.

Philips, Osram and Samsung are actively exploring silicon GaN technology. Changes in the market for a new competitor to enter the market to provide a starting point. They created great opportunities for other market participants, in order to rapidly increase market share. As suppliers continue to shift to the upstream industry chain, market share is expected to change, the return on investment will increase.

Therefore, suppliers will provide more LED lights. They hope in this way to control the profits. Based on product performance and luminous efficiency, light quality, increase lumen output, reliability, etc., will take place between the LED lighting supplier competition. Product cost and product quality will always be within an acceptable range the focus of competition.

In addition, the LED supplier consistently seek low cost and high quality LED lighting products.And wide range of products to sell.Therefore, extensive product range of suppliers have access to a strong retail channels.Channel strategy is affected by the OEM relationship further.Differentiated product design method, the proprietary technology and deep understanding of lighting application will help to improve the competitiveness of the suppliers in the LED lighting market.