China LED lighting manufacturing industry development trend

(1) The product is further popularized, cost and light quality are playing a leading role. Currently driven by the concept of global energy conservation and environmental protection, the new light source illumination represented by LED is causing a huge change in the lighting industry, which brings new choices to the lighting market. It also opened up new areas of lighting applications. This new light source lighting product is being continuously upgraded and driven by innovative technology. The product can be upgraded in terms of comfort while achieving energy saving and upgrading. Under the influence of a series of factors such as technological upgrading, the price of LED lighting products has continued to decline in recent years. In 2014, the price of domestic LED lighting products has dropped to an acceptable turning point in the market, and the highly anticipated civilian market has begun to open the gate. In the wake of the arrival of the LED era, its products will be further popularized. However, due to insufficient external demand, weak domestic demand and the maturity of the industry, LED manufacturers have poured into the civilian market, and the prices of lighting products have been continuously brushed down, and competition is in full swing. Enterprises face price wars and are forced to compress costs. Various measures have been taken from chip to application, such as adding red crystal powder and developing high-voltage LEDs to achieve more profit margins. However, some domestic LED lighting manufacturers have at the expense of product quality in exchange for low cost to quickly seize the market, resulting in product quality problems, so the cost reduction has also brought the market's attention to light quality, the most concerned factors for consumers. It has also shifted from focusing on brightness and price to energy saving and lighting quality. Although the luminosity rate is constantly improving at this stage, a new era of environmentally-friendly and energy-saving lighting industry will come ahead, so that the upstream cost of LEDs can be controlled under the same lighting intensity. However, in the current environment, cost and light quality play a leading role. How to correctly handle the relationship between the two companies to achieve high luminous efficiency, high current and high power in the market has become a new topic for domestic manufacturers.

China LED lighting manufacturing industry development trend

(2) Brands occupy market advantages, hard-power enterprises are easy to seize the opportunities. China's lighting enterprises are characterized by small scale and a large number of products. The competition in the low-end market is hot. Most manufacturers still have serious short-term behaviors, emulation, and light innovation. Self-developed and independent innovation, product differentiation and homogenization are serious. The low level of vicious competition among enterprises makes China a "manufacturing power" rather than a "manufacturing power." Brand as a representative of a company, but also the foundation of the enterprise, directly become the core competitiveness of the enterprise is different from other similar products, affecting the company's sales and the long-term development of the company. In the face of the impact of globalization and integration, the brand awareness of domestic enterprises is constantly improving. Most of them are no longer just satisfied with selling products, but more focused on conveying product culture and spiritual connotation to customers, and actively influencing consumers. The behavior of the company strengthens its loyalty to the corporate brand and makes the brand value under the current market economy pattern soar. Although well-known brands occupy the market advantage, LED companies with innovative technologies and unique products are easy to seize the opportunity, with their hard power and high-quality array of LED accessories suppliers to create a wider selection of lighting products. Carrying the spirit of the innovative brand, deep history, and cultural accumulation, consumers have a clear direction of purchase and demand, while the LED lighting industry will continue to mature. The next generation of LED lighting will also drive industry growth by leading-edge LED lighting companies that can see market trends and take advantage of the latest technology.

(3) The company seeks development, vertical integration or cutting

The world economy has entered a period of deep transition from the rapid development period before the financial crisis, and the low-speed growth will continue, and the aggregate demand of major economies remains weak. However, China has entered the new normal of economic growth and shifting, industrial structure adjustment, and development mode change. The LED lighting application scenario has the largest growth rate of the construction industry, the slowdown of engineering projects, the tightening of domestic projects, and other unfavorable factors. The LED lighting industry in the "expansion period" of the co-encirclement, together with the entry of more enterprises, dilutes the original profits of the products, making their quality uneven, greatly dampening market confidence and enthusiasm, the industry reshuffles, and the scale is small. Enterprises survive in the cracks, and even more, people fall into a quagmire of losses. Therefore, after experiencing the adverse consequences of the vicious price war, more and more lighting manufacturers are trying to survive and change their perspectives, focusing on the transformation and upgrading of enterprises, and trying to optimize the product structure and accelerate the cultivation of their own supply. Chain control internal power, as far as possible to achieve vertical integration and extension of business lines. Whether it is through shareholding, joint venture or strategic alliance, it will strengthen the competitiveness of its products and jointly develop the market, and there will be a strong trend of the big ones. Correspondingly, in some low-end lighting markets, small and medium-sized enterprises that lack cost competitive advantages or do not occupy niche markets will gradually withdraw from the stage.

About ENELTEC

ENELTEC care so much about the brand enfluences and also the satisfactory experience of our customers. So we always put alot of efforts on the products quality and after sales service. We emphasis on applying for the necessary certificates for our target market , controlling every step of the productions , testing before delivery and tracking each order after delivery.
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