These two years, the entire LED industry competition pattern changes will occur. Current consumer consumption idea has gradually converted from price oriented to product quality, previously LED companies stay in scale competition, price competition fight, now would be more inclined to technology competition.
In 2012, as countries begin to disable incandescent lamp, then slowly replace with LED fluorescent lamp, coupled with the Chinese government strongly support of LED lighting, LED lighting application market ushered in the great development opportunities. At the same time, the LED for market competition between enterprises will be more intense.
For the Chinese market, in 2012 LED industry, small and medium-sized enterprises will face hard competition situation. Compared with abundant funds of large enterprises, small and medium-sized enterprises facing the market of the effects of weak demand is very big, bad environment increasingly fierce competition, money drained slowly, income also more and more low, into temporary also cannot fall down.
With LED products prices decline, the enterprise will be faced with the challenge of gross margin decline. But for some have technical strength of the enterprise, the product unit price decline does not mean that the decline in the gross profit margin, by promoting technology to reduce cost, and can also be realized in guarantee under the condition of invariable gross margin price decline. Therefore, in the fierce competition, the stronger, have technical content will have a better life, and the lack of technical accumulation of enterprises will be phased out.
Industry insiders suggest LED lighting enterprise in research and development on do kung fu. Price war is the important manifestation in a product class fuzzy environment, is the enterprise deadly killer. The entire LED industry in 2012 are still in a high risk period, but the capacity is stable, the market gradually expanded capacity, enterprises should do full time on research and development, the next two to three years of the LED industry competition will be more reflected in technology, quality and service.