The LED industry fights model innovation

At the time when 2013 is about to pass, new companies that have entered the LED industry with their own blood will begin to find that upgrading product quality is still one of the industry's problems. Duplicate aspects and lack of certain aspects of the standards are still the development of the industry.

Price war leads to micro profit, low quality

At present, although the global LED industry is in the “era of war” with strong competition and princely disputes, the expansion of market size has become an inevitable trend. According to the latest reports from relevant US research institutions, the LED lighting market will grow at a rate of 45% per year from this year to 2019, and is expected to grow from 4.8 billion U.S. dollars in 2012 to 42 billion U.S. dollars in 2019. “At present, there are many related bidding and tendering projects in the country, and more and more LED lighting products have been certified by the company. Therefore, the booming momentum of the industry can be foreseen.” Xie Zhijun, Lighting Department of China Quality Certification Center, accepts the China Economic Herald An interview with reporters said.

However, despite the sudden increase in orders from companies, the fierce price war runs through the entire industry chain.

“In the current and future market competition, if companies cannot establish their own brands, they may be submerged in the tide of price competition under a meager profit margin.” Jia Qiang told the China Economic Herald reporter without hesitation.

In response, many experts are quite frank, thinking that when the industry slowly starts to break out and then matures, the entire number of competitors will become less, because people in the middle will be eliminated, in this "killing" process, It must be a meager profit or even a loss. Only when the industry develops to a relatively mature time will there be relatively stable profits.

Multiple sets of standards are difficult to support upstream and downstream

Standardization is a necessary process for the development and expansion of major industries, and it is also a hard condition for participation in global market competition. As an emerging industry that dominates the lighting market in the future, LEDs need to improve standards to guide the industry's steady development.

However, the current LED lighting application market is gradually opening up, showing a good situation, but the standard is still the industry's "constrained."

In this regard, Jia Qiang told China Economic Herald reporter that the standard should be unique, but the LED industry has emerged a number of standards and systems, companies are not keen on the use of standards, the current LED lighting product components are mostly in non-standardized form . The lack of standards leads to product design without legal basis. The chaotic product technology leads to difficulties in upstream and downstream facilities, hindering the large-scale application of products and industrial development.

The domestic authoritative organization predicts that LED will become the main lighting product by 2020, which puts higher requirements on the standardization construction of semiconductor lighting to a certain extent. It is necessary to find out the reasons for the existence of the standard problem, so as to solve the problem with the right medicine.

Fortunately, both the government and industry organizations and enterprises are aware of the issue of standards and have carried out some useful innovations and attempts. The National Standards Committee has also deployed LED standards from the national level.

“The standards of any product may be missing. The current national standards for the LED industry are certainly not complete, but this is not a separate phenomenon.” Xie Zhijun told reporters candidly.

"LED is a new industry, product standards are just starting from the international point of view, the improvement of the standard needs process, and due to the rapid development of semiconductor lighting technology, the development process of the national standard will be longer, there will be standards just released to lag behind the industry demand Or, it may be out of step with the standard work. Therefore, on the one hand, it is necessary to speed up the formulation of standards, and on the other hand, we must also innovate the mechanism for the introduction of standards, so that the standards can be required for product performance and can be quickly updated with technological development." Xie Zhijun said, "The pace of standard follow-up has been a lot faster than it was a few years ago."

Channel brand development effort <br> <br> most critical current quality, whether it is business or budding LED lighting transformation of traditional businesses, are facing rewrite the market structure and enhance significant opportunity to reshape the brand.

Compared with traditional lighting industry and products, LED lighting has obvious differences. The new market trading methods and environment also provide the possibility and space for the promotion of the innovation model.

Currently, the traditional channel system using specialty stores is not the main sales channel for most LED lighting companies. Enterprises are exploring a variety of new market models to achieve two-way communication in the market.

According to the reporter of the China Economic Herald, the current Qinshang Photoelectric Co., Ltd. has set up corresponding “light experience centers” in major cities, hoping to use this format to achieve the goal of civilian products for LED products, and to make efforts in the channels of designers and distributors. Traditional lighting companies such as NVC and Geotech have also explored the light experience center.

“In the future, LED upstream and downstream should be strengthened and interaction is very optimistic. NVC Lighting and BDO Runda's innovative cooperation model.” Jia Qiang said.

Others mentioned that if there is a platform that integrates multi-resources such as stores and agents, the functions of creative experience, brand promotion, and product sales can be realized together. Once companies enter the company, they can enjoy multi-resource support from the government and the capital. "Then this channel platform will certainly be the channel carrier that many companies have been looking for, and it is also the best choice."

It is understood that domestic companies have begun to plan this "thematic industry + comprehensive market + service functions," the industry integrated services.

In short, the "systematic" turn of the LED lighting market has begun. "Needless to say, no matter what the direction of force, any channel requires companies to invest a lot of time, energy and manpower." Jia Qiang said.