Domestic LED prices fell and fell: live the most expensive house, use the cheapest bulb

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“Today's China, we live in the world's most expensive house, but use the world's cheapest lighting products.” This is the view of Jin Xin, vice president of the North Asia Marketing Region of OSRAM (China) Lighting, which also seems to describe The current Chinese lighting market.



On May 21, 2015, the net media reported that the price of LED tube in Shanxi fell by more than 30% in April, Chongqing was about 20%, and the decline in parts of Henan exceeded 50%. In 2015, the price reduction of LED lighting products has become the norm in the Chinese lighting market.



In the past two years, the rise of China's local light enterprises and the continuous decline in the prices of lighting products have brought more disadvantages to foreign companies. Previously, Chen Junyi, the director of the Taiwan lighting brand Edison Greater China, did not swear in the interview, pointing out that because of the impact of the price of (lighting products), Edison's sales increased, but the output value declined.

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Then, the price of LED products continues to decline, and the development of foreign companies in the Chinese LED market is a sight or a shackle?


The three major lighting giants deal with different

According to LEDinside estimates, the global LED lighting market will reach US$25.7 billion in 2015. Among them, the Chinese market has a market share of 21%, which is expected to reach US$5.397 billion.

This is the reason why foreign big companies such as Philips, Osram, and Cree are looking at the Chinese LED market.

“The most interesting part of the LED lighting industry is how to find a customer that suits you.” In the face of the chaotic Chinese LED market, a foreign company executive said this. Nowadays, in the face of the ever-changing competition in the commercial sea, no matter how large the mass of lighting giants, no matter how deep the Chinese market is, they are pondering and adapting to the huge changes in the Chinese LED market.

“Philips China is no different from any local Chinese company. In the 1980s, Philips entered China. Now more than 95% of our employees are local employees. We are a very strong Chinese company.” Philips Lighting Greater China Qiu Yihong, president of the district and chief innovation officer of Philips Lighting, said. In 2013, Philips launched the HUE smart light. Since then, the intelligent lighting route has become the latest business model developed by Philips in China. "A new performance like (Smart Connect) will bring new profit points," said Hong Yingli, CEO of Philips Lighting.


Osram entered China as early as 1995 and currently has four production bases in China. Enhancing brand power is a key development strategy for OSRAM outside China's channel construction. "We must make a lot of investment in the channel strategy. In the future, we will do more brand image stores in China and further enhance the brand image of Osram," said Ai Xiaoming, CEO of Osram (China) Lighting Co., Ltd.


Mergers and acquisitions are often the quickest way to enter the industry. In mid-September 2014, Kerui and Linyang Lighting, which have taken root in China's LED lighting market for seven years, signed a strategic cooperation agreement to further enhance the inherent cooperation between the two parties in outdoor lighting; in December 2014, Shanghai Cree and Zhongshan Pinshang Lighting signed The comprehensive strategic cooperation agreement, the two parties jointly announced that they will give full play to their leading advantages in LED lighting solutions and LED packaging devices, and achieve deep cooperation in the high-end lighting market in commercial lighting, hotel lighting, home lighting and other fields.


In the near future, the Philips lighting business equity acquisition case settled, OSRAM split lighting business, Cree plans to split the power supply and RF products business focused on LED lighting（Straight filament LED bulb supplier） and other news to let the industry know about the adjustment of foreign lighting giants in the field of lighting And great changes. Foreign media commented that with the rise of Asian LED lighting manufacturers, low prices have become the advantage of Asian manufacturers, forcing most European and American traditional lighting manufacturers to respond to changes in the lighting market.