“The water can carry a ship can also upset it”, the “water” is like the LED market, “the boat” like LED enterprises; In government subsidy policy driven by the lure of the same market, LED the number sudden surge, excess capacity will be serious, is bound to cause market turmoil, which has caused the market vicious competition, which is unfavorable to the development of LED lighting industry.
Recently, although the Chinese market situation is good, but the problem of excess production capacity is still there. The threshold is low, the LED lighting industry and the government have high subsidies and preferential tax policy, makes a large number of enterprises to enter, resulting in overcapacity serious low-end products. LED the excess capacity is mainly because too much. Domestic light LED the company to register as many as more than 7000, plus some not registered small workshops and some hid behind a registered company of 3-5 small working group, engaged in LED lighting industry enterprise is countless.
The existence of many small and medium enterprises and small workshops, let low-end products serious excess capacity, which can lead to a vicious price competition. It is understood that the LED lighting products in just two years, product prices experienced a roller coaster, the market price from the original 180 yuan has been as low as 20-30 yuan. At the same time, there are a lot of price on the market in 10 to 15 yuan low-cost low-quality products.
Obstacles to advance the cause of the LED lighting industry analysis:
Product quality problems appear frequently have how much market share?