There are negative factors that can’t be ignored.
Although the market is growing with plenty of subsidies and support from the government, the prospect for LED and related enterprises is not so satisfying. The quality of LED lighting products in this market is various from different suppliers. Lots of enterprises have to bring down their price for more profits in this competitive market. Due to poor quality and low profits, some enterprises have come to the verge of being eliminated.
On the on hand, these enterprises that received government subsidies or successfully got investment have smoothly increased their sales revenue. On the other hand, some enterprises get no benefits. Most of insiders say that the winners and losers will be clear in the China LED lighting market in the coming one or two years.
Then, what are the key solutions for LED enterprises at home and aboard to survive? One important action is ‘standardization’.
There are low-quality products in Chinese LED lighting market. In order to be competitive in the market, some enterprises reduce their quality standards. Even there are cases where products are out of work after 3 days in use. Therefore, LED lighting products has not got the trust from consumers in the market. Now, how to improve this situation has become the first research topic for the government. It is re-recognized that setting standards for LED lighting products is very important.
LED market in China requires technique upgrade for better products of standardized quality and improved performance, which can adapt the environment easily as well as other new usages in agriculture. It is more important to prevent unhealthy price competition, and achieve sustainable development by cooperation and actions by the whole industry.