LED Lighting Channel War, "The Official Told Us," Is The Key Share

With the continuous advances in LED upstream technology, the cost price of the

LED lighting

product is also declining. 2014 is the industry known as the lighting industry channels to compete for the most critical year for manufacturers so, the dealer is also true that the current market can be extremely confusing, while facing strong opportunities.

LED current is moving from the initial public lighting to commercial lighting, industrial lighting, home lighting direction, the industry is generally optimistic about the future prospects of LED lighting. Traditional lighting market is declining, LED lighting market continues to expand capacity, and the brightest LED brand manufacturers have begun making determined efforts to participate in the battle for the channel.

Under The New Era of Change in The Pattern of Dark Life

Reporters at the 2014 Beijing Lighting Fair learned in the semiconductor lighting era, the current relationship between dealers and brands, compared with the traditional lighting of the times have changed.

Ng Zhe, general manager billion light response, the industry was known as LED lighting marketing "devil" believes that the industry chain to join the competition, making the LED industry competition format change. Add to industry competition these strategic elements of the chain, making the industry competitive formats have a profound impact.

LED industry from the perspective of traditional lighting products more competitive product categories is done quickly and efficiently go from product distribution to dealers, completed a transition from product to process the full value of the goods.

"Currently, the dealer is the brightest in the eyes of the manufacturers official told us, deities demons, whether anyone want to eat a reseller. Currently, there are errors in the selection of dealers LED brand manufacturers, dealers in the era of LED lighting should grasp live opportunity to adjust its strategic positioning. "Ng Zhe says.

In addition, the semiconductor lighting industry,the era of rapid technological advances, companies and distributors are difficult to judge their anticipation force, it is difficult to make the right layout for the industry.

LED is currently the world's universal joint favored few industries, the power that capital, technology and other disciplines are added, gathered a breakthrough technology innovation gathered may cross multiple industries fusion gene mutation. Resulting in the rapid development of LED industry product price changes are beyond people predict, life cycle and price structure of the traditional lighting of the switch much faster, a lot of dealers operating mechanisms, habits and pace are likely to have formed during the traditional lighting LED lighting era structure to be able to convert and adapt. If the dealer's attitudes and behavior conform to the changing times, it will lead to changes in the business model.

Therefore, the vertical chain competition is on the middle and lower reaches of the enterprise features stand out, upstream technology and industry changes will affect the pattern of midstream, midstream changes will greatly affect downstream, and now everyone thinks competition focus on channels, products, the focus of competition is actually part of the package because the package's stability will have a huge impact downstream manufacturing, which is not previously met to.

From the perspective of the end application manufacturers, companies can not find too good on the middle reaches of the supply chain, strategic partners, strategically matching companies it is difficult to win this battle. Also, both the allocation of resources in the future stability of the manufacturers may not be able to win this battle, because the manufacturers can not put the final "last mile" to finish the competition in this industry chain will not have a good outcome. So, to solve the "last mile" problem or the dealer, the dealer chain chiefs can become the most powerful nodes to help the industry chain competitiveness and competition results released key.

Select The Priority Distribution Portal Occupy

Channel end competition in the industrial chain links, dealers positioned itself clearly, is the problem the dealer and brand manufacturers to choose their own mutual, dealers can choose quality brands, many big brands in the LED era can really rest, most will ten is not necessarily the other brand will coexist.

Lighting industry has more than 30,000 enterprises do lighting, there will be a large number of lighting manufacturers, including manufacturers have a lot of molecules, which might form a world of difference. Dealers, too, local dealers may be many, is not in the local molecules, how many molecules, in which you can in the end be able to play what role. If you look for the brand, with its own resources to develop sales channels, it could become a distributor chiefs, on the contrary will be just one molecule.

Semiconductor lighting era, from its industries and segments of the few internationally speaking, is impossible dispersion strategic planning, semiconductor lighting industry will move towards more market segments, prices, multilateral diverse, mainstream markets and mainstream channels will be bigger and wider. Then, multilateral customization and innovation will create some space, the mainstream channels must be very simple and in line with laws of social development.

Now as a choice between the manufacturers and merchants each other dealers if made local sales portal, the competition between the big brands will be more intense, it will control the quality of the channel resources. Like Op will have the next file in the national distribution channels are not allowed to NVC products if sales agent NVC products will be banned Op furniture agent eligibility. But for local projects channels, distribution services, retail channels are the largest channel portal level, it is not brand manufacturers in selecting dealers, but dealers in the choice of brand service providers. But the dealer channel in order to better survive, will try to butt other premium brands service providers.

"Price War" Is Not The Only Factor to Win Market LED

LED chip

2013 has become the past, had by virtue of new blood into the LED industry enterprises will gradually found a cavity: blindly rely on improving product quality and cup soup is not easy in the LED industry, the price war has been the product is to follow the product development process. All along, the users want cheap, we can see the price advantage is still one of the key factor to win share in the enterprise, of course, it is still the industry brand shackles.

Price War Baptism Maturity Far Upstream And Downstream Industries

Currently, the global LED industry, although in the jungle, princes disputes "war era", but expansion of the market has become an inevitable trend. According to statistics show that from 2010 to 2012, just three years, LED chip capacity expansion over 10 times; and capacity big bang directly accompanied by, a sharp decline in LED chip prices, the cumulative decline over the same period of the LED chip is more than 50%, which makes industry has gone through a winter.

However, the downstream demand lighting applications market pull, 2013 MOCVD capacity utilization rose to 52% operating rate rose to about 70%, and some companies even achieve full production. Despite this, but there are companies said the feedback is still conservative, they think the price may have to slowly chip to fall.

In the LED downstream, because each foot between enterprise sites to each other, interlocking industry competition, close combat. Coupled with the outbreak of LED lighting industry, many listed companies have cut into this area, but as a traditional enterprise market will be more reluctant to hand over to the opponent, they resorted to the price of the knife to maintain their comparative advantage in the LED lighting industry.

But when the industry experienced a baptism of the price war, industry slowly began to erupt from the further development to maturity, the entire number of competitors will be less, because the middle someone will be eliminated in this "killing" in the process, it must be profit or even a loss, only to the more mature industrial development time will appear relatively stable profits.
Channel war intensified industry brand also reshuffle

However, although the surge in corporate orders on hand, but the fierce price war almost throughout the whole industry chain downstream. The industry believes that, in the current and future competition in the market, if companies can not build their own brand, will probably in the meager profits, price competition has been submerged in the large market tide.

Currently, both the LED lighting coming transformation of traditional business or businesses, are facing rewritten market pattern, enhance the significant opportunities to reshape the brand.

Compared with the traditional lighting industry and products, LED lighting has a significant difference, the new means of market transactions and the environment but also for the promotion of innovation model provides the possibility and space.

The current follow the traditional store channel system is not the most main LED lighting business sales channels, exploring a variety of new enterprises in the market model to achieve two-way communication market.

It is understood that domestic enterprises have begun to plan this "theme Industries + + integrated marketing services," the industry body integrated services.

In short, LED lighting market "systemic" turn has begun. Needless to say, no matter what different force direction, any channel requires enterprises to invest a lot of time, energy and manpower.

LED Industry:The Beginning of A New Period of Rapid Growth

LED lighting will really started in 2014, entered a period of 2-3 years of rapid
upward cycle.

LED lighting

LED lighting will really started in 2014, entered a period of 2-3 years of rapid upward cycle. Demand mainly by lower prices start driving. The main factor in the chip maker's profitability in 2014 will be better maintained, light sources and lighting manufacturers downstream growth comes mainly from the growth in demand, the middle reaches of the larger package of changes, led to this change in technology and changes in the upstream and downstream extrusion. We believe that LED industry, especially the integration of upstream and midstream will further accelerate, light sources and luminaires downstream market may diversified pattern. Channels and patterns of changes in the growth of the LED lighting industry to become a new element, whether it is electricity supplier or other patterns are likely to be cured of terminal manufacturers to break the traditional way of lighting channels. We recommend investors to "heavy ends in the middle merit", which focused on the subject and lighting configuration chip in the package section focus on risk and selective investments.

Flowers are not afraid late. We believe LED lighting industry in 2014 will begin a new growth cycle. The main factors driving the growth of the lighting that prices fell. Bulb prices LEDinside observation shows that in the past 12 months, prices fell terminal light bulbs more than 20%, and our research shows channel, 3.5W-5W bulb has been with more than a dozen W CFL is very close to the Chinese market.

LEDinside forecast 2014 output of LED lighting will reach $ 17.8 billion, the overall number of LED lighting products shipments reached 1.32 billion, an increase of 68%.

Diversification of sources and lighting manufacturers. We judge the structure of the light source and lighting manufacturers will present diverse features. We believe that the price of the end product will still continue to fall, light sources and lighting manufacturers on the one hand the cost pressures transmitted to packaging manufacturers; hand in terms of product design to further enhance digestion and margin pressure to some extent brought lower prices.

Variables large packaging manufacturers. We believe that, due to the short factors affect product prices fell and industrial chain, packaging manufacturers vulnerable to the upstream and downstream margins squeezed. And looking to extend the industrial chain, to become a new growth breakthrough 2014 -2015 packaging manufacturers imperative. Mergers and acquisitions, integration of external expansion will also become frequent in this area.

LED high-end electronics manufacturing industry attributes crescendo. We believe that the properties of electronic manufacturing LED lighting industry is growing. On the one hand, advances in technology to drive the cost of the chip industry's declining downstream end; the other hand, as the market demand amplification, the effectiveness of capital investment, cost control, management capacity in the market competition the role played by the more be bigger.

In addition to traditional semiconductor manufacturers in terms of channels to compete with traditional lighting manufacturers, but also the increasing emphasis on traditional lighting manufacturers in terms of production cost advantage and process control advantages.

Capital expenditures listed companies the ability to support long-term growth. LED lighting industry as electronics manufacturing, capital strength is an important guarantee for expansion. Listed companies have a greater advantage in terms of financing and capital expenditures. We statistics, beginning in 2010 -2014 A-share listed companies in the major LED through the IPO and additional financing of 17.6 billion, 9.6 billion are currently carrying amounts of cash, compared to non-listed companies with a significant capital advantage.

Dual Favorable Market Policies Optimistic about The Mainland of Taiwan 's Largest LED Lighting Market Jumped

LED lighting

Provision for LED lighting products,policies and lighting profitable companiesactively promote, market demand for rapid growth , including mainland China to gradually ban the sale and import of incandescent lamps , but also to policies to promote LED lighting applications , so that the relevant companies generally better than the first quarter revenue expectations.

Legal believes that with the second quarter into the traditional peak LED products, the market demand for clear, not only the firms operating momentum continued to improve , the subject matter is also expected to make LED lighting groups , from the least busy now to 2015.

The Biggest Jump in Mainland China Market

Taiwan's Industrial Technology Research Institute (IEK) said that Western Europe is the largest LED lighting market , Japan is the fastest growing market penetration of a single country , China will still be the future manufacturing and consumption centers, LED lighting will be the fastest in 2016 replaced in Western Europe , the world's largest LED lighting market.

Topology Research Institute of Taiwan 's optoelectronics industry center believes that in 2014 the global LED lighting overall demand will be commercial lighting, public lighting and architectural lighting as the main growth momentum , which will reach 32% penetration of the general lighting , interior lighting is about 16 %.

On public lighting , the main momentum will come from the Chinese mainland government subsidies in emerging market countries, the new LED lights case , and the U.S. Energy Assistance program and other policies.

Morgan Emerging Technology Fund managers GONG Zhen Hua pointed out , LED industry after the first two years after the downturn , driven by global lighting demand, is expected to better and better. UBS Securities estimates , the global LED lighting demand will grow by 6 percent , is expected to drive the LED chip demand growth next year by 25% .

Moreover, with increasingly close trade and economic relations , the two sides are expected to integrate the LED industry , coupled with the Chinese mainland government efforts to subsidize policies to resolve the problem of excess production capacity previously , the market research firm LEDinside estimates that in 2014 China LED lighting market will be significantly growth of 86% , is expected to significantly lift Taiwan's LED industry .

Zhejiang Promotion of LED Street Lighting in 2015, Saving 1.7 Billion of The Province

LED street lighting

April 17 , Zhejiang road lighting retrofits green spot held in Tongxiang . Green lighting retrofits province roads , to a maximum number of Tongxiang and most obvious effect .

Zhejiang Electric Power Research Institute Energy Services Ltd. , general manager of publicity , said, " the way of high-pressure sodium street lights replaced with LED lighting effect is not affected in any way , the energy saving effect is very obvious ."

He figures do prove : Tongxiang current street reconstruction using 4427 LED lights , the annual electricity savings of 300 million degrees , the annual electricity savings of 270 million. Jiaxing area to implement energy-saving lights total 17,884 , but annual electricity over 10 million degrees.

According to reports , LED is a high efficiency , energy saving, environmental protection, the fourth generation light source technology , to ensure the same level of illumination premise , to achieve more than 50% energy saving rate , even ordinary spotlights energy savings up to 90 %.

According to the reporter , before Tongxiang city expressways and trunk roads used mainly street light 250W high pressure sodium , although the brightness is high, but a large amount of electricity , and the two -year period to be replaced , high maintenance and replacement costs ; but with LED lights replaced under the same circumstances brightness , energy-saving rate of more than 50%, and according to the existing design LED lamp life reaches 6-7 years , 3-5 years supply factory warranty , repair rate is very low.

The measure, although both obvious gap in the operating costs , but less on the maintenance workload , but also in saving electricity obvious advantages.

According to plan, Zhejiang Province, will be widely promoted in the field of road lighting project finance , public places , government agencies, state-owned or state-owned enterprises , such as the use of capital investment in the construction of LED lighting products, while speeding up the promotion of non- public areas of lighting , power twelve total electricity consumption and the use of control objectives during the five energy consumption.

Reporters learned that, through the application of energy-efficient lighting products in 2015 , and strive to promote the province's green lighting to achieve energy savings of 500,000 tons of standard coal , which is equivalent to saving about 17 million degrees , according to the ordinary urban household monthly consumption 200 calculation , enough for 700,000 equivalent to one year 's consumption.

Dialysis:The Status Quo of Chinese LED Technology R & D Investment

LED lighting

Chinese LED lighting companies have formed though a very large industrial scale,but in this one, really have the technical research and development capabilities of LED lighting companies are few in number, as the LED manufacturing country, the right to speak in LED patent is very small, then Where is the root cause of the lack of technological innovation in? our LED technology R & D model and corporate R & D investment if there is insufficient? current new perspective, Xiao Bian take you little exploration status quo of China's LED technology R & D investment in order to provide a reference for the industry. "

Our LED Technology R & D Investment of Embarrassment

The recently concluded Frankfurt Lighting Fair, to spread the two Chinese companies were found to have been revoked infringement booth events, in addition, the Chinese national brand business as "highly dangerous people", in addition to the identity of play allowed to take pictures, and more direct refusal Chinese visitors enter booth. It maps out the lack of development of Chinese enterprises and innovative technology, the lack of patent portfolio.

Professor Yang Yi Sun Yat-Sen believes that government money are two categories: basic and strategic research, such as support for the construction and use of national laboratories; Second, and related to the public interest, such as health care, energy security. If only applied R & D work in the economic field, the majority should be done by the enterprises themselves, adhere to market-oriented.

In the survey, we found that business investment in R & D is generally not more than 20%, while no case of all enterprises have carried out projects in collaboration with universities and institutions. Although few companies are not representative of the industry, but we can Glimpse one of two. Cree China Marketing Director Lin LED Network Rail to the new century, told reporters, Career global R & D investment in 2013 was $ 156 million, accounting for Cree year 12% of global revenues, in addition to the current global Cree has been 3100 a number of patents in the patent trial number 3400. Cree LED contrast as well as domestic business R & D investment, although almost the same proportion of R & D investment, according to Lin introduced iron core Cree is relentlessly innovate to promote its LED lighting products market penetration. Reporters believe that perhaps the problem is not corporate R & D investment.

Where drawbacks in?

Domestic scientific research units of the main research and development, business support scientific research units to do the project, "a combination of research" mode, once thought to be the development of a more effective transition mode. However, this model has exposed a lot of "Chinese characteristics" of the state. For example, excessive pursuit of personal interests, decentralized technology development efforts, technological achievements into difficulties and so on.

Insiders said: "Originally, the upstream LED industry has been grasped by foreign companies, mastered the core technology and China's LED chip products are mainly focused on the application of lighting products, but now the standards for these products, but also by foreign companies. seize the initiative, which is very conducive to the development of national industry. "

In recent years, the government fiscal year after year of substantial growth in research funding. National Bureau of Statistics data show that in 2012, funding for research and experimental development of society as a whole amounted to 1.02984 trillion yuan of total investment, up 18.5%, the total ranks third in the world, into a leading position in the emerging strength of developing countries.

However, research funding and output is not proportional to the low efficiency of the current situation is worrying research.

Where enterprises in difficulty?

Domestic LED technology research and development in recent years has also made gratifying achievements, technology has improved, the market share is gradually increasing. However, with the continuous expansion of China's LED business market share, we are worried intellectual property rights of foreign manufacturers raised the knife, it would be China's LED industry disaster.

Zhejiang Jiaxing Energy Saving over The Next Three Years Nearly 134,000 LED Lights

LED lights

Recently, Zhejiang Province, "the road of green lighting renovation project," held a spot in Tongxiang. It is understood that, in order to implement the "Zhejiang" five "work program for the control of total energy consumption," the pace of advance in Jiaxing City, green lighting retrofits, energy efficiency and accelerate the improvement of road lighting pace over the next three years, the roads in the city of Jiaxing City promotion of LED lighting lamps, transform nearly 134,000 streetlights.

In recent years, with the acceleration of urbanization, the public sphere, Jiaxing, lighting equipment building efforts has been significantly improved, and the public image of the city in the evening to get a lot of travel to optimize lighting and security. But understand that the main road street lights Jiaxing City high-pressure sodium, metal halide, the city of nearly 145,000 streetlights electricity costs and operation and maintenance costs become a heavy burden on the city and county governments and streetlight maintenance units. To this end, the municipal government, the power sector will be the earlier practice of energy-saving lamps, LED lights will be extended as an important energy saving initiatives.

Since 2012, with the active support of Zhejiang electric energy services company guidance and local government, Jiaxing City street reconstruction project to promote the smooth, by the end of 2013, a total of Jiaxing City, the transformation of streetlights 16,878 contracts, the actual street reconstruction 10845, annual saving 7,960,000 kwh, and achieved good economic and social benefits.

Since the beginning of this year, accelerating on road lighting energy services, Jiaxing City, the power sector and the City Commission by letter, Zhejiang electric energy service companies tripartite signed a "strategic cooperation memorandum of energy conservation," the three parties to work together to promote energy conservation, introduced the "Jiaxing embodiments of the city to promote the application of LED lighting products demonstration project "to further clarify the goals and schedule the next two years LED lighting demonstration project.

Sapphire Broke Out Two Boosters LED Lighting And Apple Phones

LED lighting

About sapphire industries we had already written an article discusses the basic logic is to see large outbreaks of LED lighting and Apple phones sapphire screen , the recent CICC Chen Qin meaning out copies depth report sapphire industry , it is still around these two large logical , this report is the most detailed depth analysis sapphire industry reports we have seen in the market , the data is complete, the process industry are talking about the principle of a thorough comparison , slightly unfortunately, always out of the CICC quality content depth reporting and data analysis can be , but the timing can be quite grasp , a strong push in the gold sector , investors must be careful obviously contrarian indicator , sapphire industry the opportunity to determine the long-term perspective , the short-term gold is such a push from a statistical point of view of history , but the probability of a big adjustment .


From the terminal application , the sapphire is divided into three major markets : first, the high-end markets, including the backlight , LED lighting , RF IC , etc. ; Second, the low-end market , including outdoor signs , watches, glass, etc. ; Third , the consumer market , such as the current iPhone5S already imported sapphire Home button , as well as market expectations iPhone6 ​​extremely sapphire glass cover. In 2011, the high-end market with low-end market accounted for approximately 97% of the total , with the rapid increase in consumer products , in 2013 this proportion had fallen to 93% , the current market share of the three pyramid -shaped sapphire market demand for LED-based , escalating consumer electronics market demand. Sapphire is still currently the largest application from the LED, LED lighting along with the 2014 outbreak , driven rebound in demand for sapphire substrates . Sapphire ingot prices in the recent term, such as 2 -inch product , last year's fourth quarter was approximately $ 4 , expected in the second quarter of this year will increase to $ 5.5 , mainly from the application of LED needs rather than on the phone . The LED chip , the 2013 global LED lighting sales of $ 1.1 billion chip , the 2017 is expected to reach $ 3.4 billion . And the LED chip demand is mainly from a backlight module , the transition to high growth lighting to focus on , 2014 will be the first time in more than a backlight illumination .

Taiwan LED Q1 Revenues Review: Q1 Is Not Short Off-Season, Optimistic about Q2

LED lighting

Taiwan's Q1 revenue up sharply increased month, March MoM substantial growth year on year, highlighting the industry continued to boom. Taiwan epitaxial silicon Q1 total revenues of NT $ 11.761 billion, with growth of 28.55%, 0.28% qoq, packaging applications total revenues of NT $ 14.311 billion, with growth of 19.87%, down 4.28% MoM. March epitaxial silicon revenues 4.439 billion, with growth of 26.24%, the chain increased 21.06%; packaging applications 5.303 billion, with growth of 17.04%, the chain increased 26.41 percent, totaling NT $ 9.743 billion, with growth of 21.06%, the chain increased 23.92%. 1,2014 years still seasonal fluctuations. From 2010-2013, quarterly data, the industry still has a strong seasonal lighting applications in 2013 Q4 as penetration acceleration, not short off-season, subject to the ban in 2014 Q1 and white TV backlight restocking affect the overall performance of super- than expected, verify that the industry boom continued upward (see text for more detailed data comparison chart 1-4). 2 wheel drive is still: backlight applications + lighting applications: in late February after the Spring Festival TV new listing, plus TV sales rebound began covering the stock, with backlight demand up; lighting, White started a new wave ban, catalytic lighting exports accelerated; policy catalysis, the world enters LED lights to replace the acceleration period.

Looking Q2, industry boom is expected to continue. Q2 backlight is expected to exceed expectations: Q2 with 51 promotion season, backlight demand is expected to continue; Furthermore, since the second half of the specification is expected to convert the backlight is expected to stimulate the influx of Q2 chain up the goods. Lighting: commercial lighting; United States ban the incandescent into 40W/60W stage, the EU, Japan, mainland China and other LED lighting has been gradually implementing the new standard amendments have greatly stimulated the rapid penetration of LED lighting needs and promotion to drive LED demand Up; addition terminal lighting prices will accelerate stimulus to promote LED lighting applications, 2014 more manufacturers, product type choose the sweet spot more products enter the market, stimulate penetration. Commercial lighting: With the approaching international events around the United States, Japan, harder, Thailand, Taiwan, mainland China and other regions significantly accelerate the replacement of LED lights, LED lighting project is expected to drive the acceleration.

Who is The Hind Legs Dragging LED Lighting Industry

LED lighting

" Wall Street Journal " article entitled "Who in the Chinese economy dragged thehind legs ? " The article pointed out that China has about 150,000 state-owned enterprises, which controls about 50% of the country 's industrial assets , absorbed about 20% of the national workforce.

Chinese state-owned enterprises contributed about one-third of the country 's economic value added . However, China's two stock exchanges in 1,500 companies , it may be only about 50 are truly private enterprises. State-owned enterprises have been strong government support , but still can not keep up the profitability of private enterprises . Will provide jobs , pay taxes and outputs , the private enterprises are much more important than state-owned enterprises . Private enterprises to provide about 80 percent of urban jobs , 90 percent of net new jobs , as well as two-thirds of investment in fixed assets . Article Conclusion: SOE drag on the Chinese economy.

Temporarily above the neutral point of talking about sex or biased . But it became evident that there must be some in the Chinese economy dragged the hind legs of factors exist , then the LED lighting industry , and what factors hinder it ?

First of LED Standards are Likely to Lag .

At present , China has LED lighting standards promulgated a total 111 levels , including a total of 36 LED national standards , has been approved and is being drafted by a total of eight LED national standards , national standards for the proposed project of LED 20 . LED industry standards that have been issued a total of 56 , LED local standards that have been issued a total of 19 .

But deep LED industry colleagues still clearly felt the standard lags behind the development of products, which is mainly due to the development of LED technology, rapid product replacement and product development from initial LED lighting alternative to manufacturing in line with the characteristics of the LED itself restructuring and other factors.

Overall, the international standardization organizations have developed many types of standard , reflecting the full attention of standardized situation, but some standards, norms duplication and contradictions , especially in traditional industries affected by some applications and standards technical focal bondage and blind spots caused by the presence of a technical standard scientific problems.

In addition , the industry standard is not standardized, industry, product quality is also likely to cause uneven .

With the improvement of people's sense of safety and environmental protection , in particular to strengthen the construction of ecological civilization , social security, environmental protection put forward higher requirements to be as energy-efficient LED almost synonymous with environmental protection , how to make people feel safe environmentally friendly products have become competitive an important indicator.

Therefore, rational planning of LED standardization work content and processes suitable for China to develop national standards for LED , so standardization work in close contact with the market to make LED industry standards are not dragging hind legs , so that product quality is not dragging the industry back.

Having A Standard LED ,Let us Talk about Innovation.

CPC Central Committee and State Council recently issued a "national new urbanization plan ( 2014-2020 ) " ( hereinafter referred to as the "Plan" ) . As a future period to guide the healthy development of urbanization in the country 's macro , strategic and basic planning , "plan" for including the LED industry, including many industry will have a positive effect.

Accelerate technological progress and industrial upgrading , after a sharp decline in costs , LED product applications continues to increase, the growing size of the market , three to five years , LED lighting needs scale compound growth rate of 30 % to 40 %. And policies to promote demand-driven , LED backlight applications from industry driving force applied to the lighting changes from 2013 to 2016 LED lighting penetration rate from 10 % to about 50 %.

Faced with such great prospects , business expansion is mustering the strength of the grip orders.

However, the current lack of industry innovation capacity problems which exist in many companies , market competitiveness and risk-resisting ability of these enterprises is not as strong as they inevitably sink like a stone in the LED lighting market competition.

Reflect The Current Lack of Innovation Capability in Three Areas:

First, inadequate investment in research and development , technological innovation capability is weak , the transformation rate is not high second , original innovation and integrated innovation capability is not strong , the field of science and technology of high-tech pilot weak, slow development of strategic new industries , high-end dependence on imported products . Third, innovation efficient allocation of resources and comprehensive integration capability is weak.

It seems that the market prospects , companies do have a trip from the city in innovation .

Led The Market will Be Sustained

Ping an securities research report industry believes that consumer electronics

LED lighting

major structural differentiation, the traditional Apple and other smart phones as the representative of the lack of innovation in consumer electronics, penetration has reached the limit, and the rise of new consumer electronics are mainly led,smart home, electronics wear, urban security and other fields.I think starting from the reality, these new consumer electronics in the field of intelligent wearable currently still in the concept stage, massive consumer demand may also need long-term training, urban security has been to explore in depth, but also a good point to intervene again no. At present there are practical significance is LED lighting and smart home field.

For LED lighting,a lot of people have a wrong perception,that this area is a bulb replacement. I did a preliminary materials, the analysis of the evolution over the course of lighting, has now entered the era of electronic lighting, light from the conversion of electrons and photons, which belongs to the third generation of the revolutionary light sources, the impact of this revolutionary semiconductor light source to humans can not be discounted, for example a few years ago, our flashlight or a combination of incandescent bulbs and batteries, and today has been completely eliminated, led and storage of new materials, completely changed the concept of the traditional flashlight, not help solve the chemical pollution of the battery. Past studies of how to deal with the needs of enterprise technology immediately dry completely destroy it. This is just a small example of the daily life.

The main living room is a smart home revolution, such as network television again, and led, and the other, such as automotive lighting, landscaping, and even the Internet network to be used in led. Of course, in the smart home, home service robot is having a more profound impact on innovation, but is still in the conceptual stage. But the future will certainly form a large industry. This is the next thing. The current consumer electronics, or to simply seize led the technological innovation, the industry needs a significant outbreak.

Market is very strange, although the industry's boom led recovery has been very obvious, but the market has been tepid, on the contrary, that concept maps are like fried cold water poured into the hot pan, I thought it was the market caused by short-sighted. Many people, including agencies, and did not recognize the significance led the revolution.

Led price revolution will occur, perhaps at present is only the beginning, we'll see.

Upstream - LED Chip Production Capacity Three Years to Expand 10 Times Improvement in Demand Does Not Change The Price Decline

LED chip

From 2010 to 2012 which just three years, LED chip capacity expansion over 10 times; directly with the big bang accompanied by capacity, and is LED chip prices have fallen sharply, the cumulative decline over the same period in excess of 50% of the LED chip, which allows enterprises miserable .

However, the downstream demand lighting applications market pull, 2013 MOCVD capacity utilization rose to 52% operating rate rose to about 70%, and some companies even achieve full production. Nevertheless, companies to the "Daily Economic News" feedback information is still conservative, believes chip prices may also go down slowly.

LED Industry Chain Performance Differentiation Midstream Package "Nice View"

With the LED industry listed companies have announced 2013 annual report, the

LED chip

entire LED industry chain in last year's operating conditions to be clearly presented. "Daily Economic News" reporter reporter learned statistics, in 2013 the entire LED industry sales volume, but the results diverged: upstream and downstream enterprises in trouble income does not increase profits, midstream packaging companies in revenue growth, profits will improve .

"2013 performance LED midstream companies really exceeded expectations," the LED industry Liyao Zheng Engineering Research Institute, said in an interview with reporters.

Chip Manufacturers Crazy Price War

"2013 was an exciting year, due to the rapid development of the lighting industry, driven by the downstream production can be fully exploited, but also to overcapacity slowed. 2013 but also for the industry who are very anxious of the year, although the order Many, revenue growth, but because of the price war of the reasons leading to increasingly low gross margin business. "Earlier this year, at an industry forum, Dean of Engineering LED Industry Institute Xiaofei said so.

LED industry price war, starting from the upstream chip. Institute of Engineering LED industry statistics show that in 2012 China LED chip prices fell more than 30% compared with the beginning of 2013, continued to decline about 20%.

"2012 chip price cuts on large, such as (individual types of chips) a dollar a year, to the end of the year only a hair five to two cents." BDO Runda stakeholders told the "Daily Economic News", for example Road.

Then, in the upstream capacity not yet fully digested the background, corporate re-expansion, will trigger a new round of crisis of overproduction?

LiYao Zheng believes that these new projects to be launched only after a few years of production, it will not cause a new short-term pressure on the chip market. He said that after the lessons of previous years, companies began to become more robust.

Liyao Zheng judgment, because last year most chips at a loss or breakeven corporate state, driven by downstream profitability this year is estimated to be gradually improved, as to how greatly improved, is still difficult to judge.

Midstream - LED Package Exclusive Triple-Double Advantage of Growth in Revenue And Profits

LED upstream and downstream, either by the pain of overcapacity, the market is facing a battle or suffering, in stark contrast, LED industry midstream, especially in packaging industry segments represented flies quite moist, Many companies realize the revenue and net profit growth of sync. LED packaging industry to trend growth, in addition to the lighting market due to lower growth in demand, but also to improve their competitiveness and business-related. And these favorable factors are expected to continue.

Needs,to Enhance The Competitiveness of The Double

"Downstream lighting, display backlighting and directly stimulating the growth of packaging companies." Zheng Liyao analysis pointed out.

Liyao Zheng also believes that as technology advances mainland enterprises, and improve the quality of products, market acceptance is gradually improving, mainland enterprises also grab some share of Taiwanese companies, which is an important reason for LED packaging company growth performance.

LED packaging companies also benefit from features where segments of the industry. Midstream enterprises are semi-finished products, not facing the end consumer, so we do not like that kind of large-scale construction of the downstream business brand and channel, lower selling expenses.

Intelligent LED Lighting System Layout will be Decisive Since 2017

LED lighting

LED lighting needs to see significant growth from last year , formally entered the double-digit penetration rate ( over 10% ) , indicating the replacement demand began to mobilize , when most LED plant in the sights on the gold industry in the next three years, growth, international plant has been preparing for the market after 2017 .

Epistar chairman Bingjie that wisdom lighting system will be key in 2017 after the battle of the market, the company many years of hard work virtual vertical integration model will see the real benefits on the development ; Philips is already stressed its system to provide lighting system solutions for service providers , smart card bit ahead of the lighting market .

Bingjie LED show on recently interviewed said that when the LED lighting penetration rate of 10% from the beginning of substantial growth , the market is quickly growing into the S-curve , starting from this year's estimated LED lighting industry will enter a golden harvest 3 long-term .

Bingjie believes that the key to drive penetration of LED lighting is replaced quickly pulled demand effect , but after 2017 ~ 2018 , near the end of the replacement demand , the market began to enter the segment after the S curve , the growth rate will be significantly slowed down, then wisdom the layout of the lighting system will be a key battle LED lighting market .

Lighting system from Philips introduced solutions of view , in addition to the LED light source, in fact, control , detection plays a very important role , and this will test the ability of the plant to integrate with the organization. Bingjie said the company is already preparing for the development of the market in 2017 after the work has long been a virtual vertical integration model will see the real benefits of this development , the future will combine the strength of Taiwanese companies in wireless technology , period hope to be able to form alliances in Taiwan, with the wisdom to enter the lighting market .

Ronda chairman Su, also said that the current growth momentum from the replacement LED lighting market demand, many restrictions on the traditional lamp shapes, such as the light bulb , lamp and other fields, but in 2012 a series of Lighting Fair observed there have been more and more integrated development of industry luminaries , want to break through the traditional lamp shape, seeking opportunities for higher prices of LED lighting , and from the beginning of this year , further observed that many industry began to turn into the home and architectural design combine to development of the lighting system , the future consumers will see the light but lighting the lamp , and the company is working toward this trend for development .

Inevitability LED Lighting Business for Sustainable Development

LED strip light

LED strip light and LED lighting industry came one after another enterprise " fail" message , although uncommon and surprising everyone , but alarm bells ringing , can take a lesson and avoid making the same mistakes , or have its positive effect. Some people say that happiness is a template , unfortunately there is their misfortune, resulting in LED business failures are equally diverse reasons , regardless of what the error through the middle of the development decisions and choices , the results are basically appear directly urging funding strand breaks embark on the road to ruin . And when companies embark on the road to ruin , business owners often choose to run away . Unimpeded capital chain is the largest enterprise to protect the long-term development. As the saying goes , " flow of goods " , originally interlocking chain of funds between the various joints , but also as a river of living water so as not to stink . Enterprise development path already need at every step, excluding the impact of the economic environment , the other hand the problem is caused by their own controllable factors , more worthy of attention.

Companies must follow the product from the market price of the law , and product quality of checks do work , in order to ensure the healthy development of enterprises to competition in the industry . Enterprises also need to avoid blind expansion incurred due to the triangular debt-ridden and other ills. In addition, business failures , foot rampant, is undoubtedly a social phenomenon extremely irresponsible behavior . Problems arise, as the responsible person should hesitate bear the relevant responsibility actively to solve them , rather than run away will be able to trouble. You can also make a comeback after bankruptcy , bankruptcy can be the credibility of hatred . The more chaotic the more the industry needs more positive energy , and the revitalization of the LED industry in this sunrise industry , as insiders are duty-bound. Regardless , " shopkeeper ", " salesmen " build channel money to see consumers " emotional intelligence" so-called shopkeeper sitting place of business to do business , and " salesmen " is to go out

LED flexible strip business, and the " shopkeeper " The biggest difference is that the " salesmen " with active business sense . So for LED lights , the sales problem is that "shopkeeper " or " salesmen " do? Good product if you do not have a viable ancillary channel model to promote sales, it's easy to go down the drain . Intense competition in the market , has given way to more and more enterprises to "channel " of the building in a more important special location. In fact , there are two LED lights , " employer" , one government energy saving obligations required works with lights , the other is the market 's God - the consumer. Selling LED lights, such as whether it is sitting in the shop while the cumulative consumer spending customers or go out to run the business , we always need to consider why consumers buy our lights , why accept us, otherwise can only sit and wait for the air , only run to reject others .

Now the channel LED industry , in engineering , there are dealers , as well as network and so on , say, the current electricity supplier channels, it is also the root cause of the rise of the edge due to the changes in consumer attitudes, so the ultimate goal of building enterprise channels all consumers. Whether stores , factories, or Lamps , lighting market are good , factors to consider when building channels not sit sell lights, or run a business , and so on the way , trying to make money , money comes from consumers , build channels to take into account their own consumer -oriented , consumer group "emotional intelligence ." Lighting becomes a fool export quality without committing all the hate bottom line in recent months across the country have quality supervision carried out spot checks on lighting products , many companies frequently "caught ." Quality of products falling instead of rising , the passing rate is not the lighting industry as early as a common problem , and this " disease" and even spread to foreign countries. From the EU in the near future

State the number of LED strip lighting products quality communications point of view, each country in Europe to monitor China 's lighting never soft. Some companies do not understand the law of family workshops , do not even know the existence of standards , this part of the business for the time being can " forgive ", but those who have been wallowing in the lighting industry over ten years of business still committed " heinous crimes " , it is pathetic. Of course, you can not wake up Zhuangshui who knowingly, without the bottom line incorrigible behavior will commit all the hate . Many domestic lighting companies for the quality of their products are " knowingly violate the law ," serious warning from the International Quality of Chinese lighting products can be seen , the quality of those companies even exported to other countries, it is difficult to guarantee the fixtures , so what ensure domestic product standards ? Therefore, export enterprises in establishing a sense of crisis , we should make full preparations for the prevention , understanding and accurate tracking of foreign standards, strict compliance with the provisions of the exporting country for the development of quality products , strict implementation of the testing requirements and procedures to enhance the competitiveness of their products in the fierce competition.

Dealers from selling gorgeous turn lights to the tree brand twenty -year-old battles Jinan Wenzhou Jin Qingwei northward , through their own efforts, from an initial sell facade lights people , and later six continued across the country, including Shenyang, Dalian , Qingdao, Tianjin, Wuxi and other places to build their own branches , his success comes from his efforts and opportunities. The single greatest key to his success , he sold light pattern into a tree brand. Jin Qingwei once their business model is defined as " brand chain stores ." Since this model has not yet lesson , he is currently still trying to explore. First-class brand companies do , second-rate companies do market three products to do business . One can imagine how important it is for a brand enterprise . Traditional single sales just let

LED soft light stays on product promotion enterprise level, and a good brand , but can bring a good reputation in the industry . Build brands that shape a company's image , and let this image deeply engraved in the minds of users . Once the deepening of competition or market growth bottlenecks, those who have been deeply authorized users , keep in mind the strong "brand " can be successfully achieved breakthrough in them.Like Qingwei Jin such dealers in the industry have, and when the branding , but also how companies continue to develop? This is many companies need to get to the bottom of the problem before continuing . LED lighting the traditional channels of dispute over the development of the industry seeking longing for change , driven lighting channels diversify marketing channels, becoming the protagonist , heroes ultimate PK, who is more came out on top ? Currently, the lighting industry more competitive to the more intense , sluggish growth of large companies , small companies performance decline, especially in the channel at the provincial level , each LED lighting brand competition, excess channel resources , building lighting sales channel diversification has become inevitable. How should enterprises to actively confront this trend? After entering the LED lighting market , traditional lighting with LED lighting distribution channels of distribution channels are positive contest , but as an industry rookie , the most important issue facing businesses is to establish multiple channels . On the other hand , with the Chinese LED lighting market suddenly heating up, the dealer turned the traditional lighting LED lighting, a large backlog of many traditional lighting , to put pressure on the channel . To solve the serious challenges faced by the LED lighting channels , companies strengthen their brand building and quality assurance at the same time , to seek a breakthrough and innovation, is imminent. According to prices for the moment , the channel seems to be quite important. Channel change issues go , the enterprise and channel LED flexible strip operators should have a clear understanding.

Standards should Eliminate Local Protection Safeguards LED quality is The Key

LED lighting

"In early January, the new formulation of the" Embedded LED lighting performance requirements "and other national standards released, is expected to be implemented this year in October. Learned that the standard is the introduction of national standards of China's first LED luminaire performance.

The advent of the current standard lighting industry and has played an active role in guiding norms. However, under the criteria of chaos phenomenon presents many new standard for the specification of the size of the role of the market remains to be seen.

Government Supports Guangdong LED Lighting Standard Optical Components Plan

LED lighting

Recently, the provincial CPPCC Guangdong Provincial Science and Education ,Health and Sports Committee and the Provincial Intellectual Property Office "strategic emerging industries related intellectual property coping strategies " Joint Task Force learned in the research , Guangdong Province, "LED lighting standard optical component plan " has achieved initial results , but still faces some problems , it is recommended to support the plan as an important part of the provincial Ministry of cooperation , the Ministry of Industry and provincial co-lead the advance .

Upstream Core Technology Controlled by Others

LED lighting industry is one of the strategic emerging industries in Guangdong province , after years of hard work , has become a new bright spot in Guangdong's economic growth in 2012 , the province's production value of 217 billion yuan , ranking first nationwide industrial scale , LED packaging production accounts for about 70%, 50 % of the world . It can be predicted , LED industry as a strategic emerging industries in Guangdong, "three position, the first two" goals in the process, will play an increasingly prominent role .

Task Force found that Guangdong LED industry is facing severe challenges. Although large-scale industry , but the key technologies, especially the kinds of upstream core technologies is quite conspicuous . Internationally , LED industry giant Osram , Philips , Panasonic, Toshiba equal early 2010 established a Cooperation Organization (Zhaga Union ) , the first step in LED standardization , through which a light source technology set technical barriers core intellectual property rights , control of the LED lighting industry the key link , and threatened with legal action by a combination of , charge exorbitant patent royalties to Chinese enterprises .

More Representative Coalition Formation

Task Force believes that , although the monopoly of foreign companies more LED epitaxial wafers upstream , midstream chip core technology, but Guangdong enterprises have their own strengths , downstream packaging and application aspects mastered a lot of patents.

To play to their strengths , together with foreign giants fight to promote the healthy development of LED industry in recent years, Guangdong proposed and implemented "LED lighting standard optical component plan" to integrate downstream LED industry has advanced technology and patents, part of the backbone companies formed a coalition optical component applications , research and development of LED lighting series of standard optical components products, develop product coding principles , mastered part of the core components of patented technologies and optical detection technologies with independent intellectual property rights , the successful launch of a series of technical specifications and local achievements standards. Since the establishment of the optical component applications Union and achieved certain results , increasing the bargaining chip with foreign giants in the patent application to the negotiating table sided situation has begun a turnaround . But currently facing two problems: First, companies are participating in the league Guangdong enterprises , domestic Jiangsu, Zhejiang and other provinces are also some large enterprise, but did not participate , which is obviously weakened participate in the negotiations as a whole strength ; Second, Guangdong the first to explore worked out some standards , but still local standards , if we can rise further as the national standard , it is not only good for the game with foreign giants , but also conducive to the healthy development of domestic enterprises .

To this end , the research group suggested that the support "LED lighting standard optical component plan " as an important part of the provincial Ministry of Cooperation , the Ministry of Industry and the Guangdong provincial government to promote the co-lead this program . Please support the Ministry and other departments to coordinate domestic large enterprises to join the alliance , the formation of a more powerful and representative of the union based on the original , collective response on behalf of China 's LED industry barriers to foreign competitors of patent negotiations and disputes, and strive for greater "international the right to speak . " Meanwhile, the support has been developed and relatively mature Guangdong local standards rose to national standards, enhance our position and influence in the LED field.