Zhou Xuejun: LED bulb prices are gradually falling, LED lighting market is outbreak next year

The output value of the LED lighting market will accelerate. With the retail price of LED bulbs replacing 40-watt (W) incandescent lamps reaching a sweet spot of $10, the industry is optimistic that the overall LED lighting market will see a significant increase in output value next year, and relevant supply chain manufacturers will have the opportunity to shine.

Zhou Xuejun, director of marketing for Philips Lumileds Asia, pointed out that with the gradual decline in the price of LED bulbs and the help of national government policies, the LED lighting market is expected to accelerate in the next year. Zhou Xuejun said that the growth of the LED lighting industry next year will mainly include the three major kinetic energy factors such as the decline in the price of LED bulbs, the support of government policies and the continued prosperity of the green energy concept. Among them, the price of the people will be the most direct factor affecting the growth of the LED lighting market. The output value of the application market including general indoor replacement bulbs, outdoor street lamps and office lamps is expected to increase significantly.

Zhou Xuejun further pointed out that in addition to the replacement of 40W incandescent LED bulbs retail price has reached a sweet price, the price of LED bulbs replacing 60W incandescent lamps next year is also very good to reduce the price acceptable to the average consumer, and because of the high total illuminance, It is more suitable to play the role of indoor main lighting, so its shipments and market penetration are more expected by the industry.

However, although the price reduction of LED bulbs has accelerated the expansion of the market, it has also caused the related supply chain operators to shrink their gross profit. Therefore, how to compete for more orders to expand revenue growth has become the focus of the industry's breakthrough. Zhou Xuejun believes that taking the LED lighting industry as an example, it is bound to launch matching products in different application markets in order to meet customer expectations and needs. The strategy of small profits but quick turnover will first expand the overall market size and then further move towards high gross profit margin. The product is moving forward.

In order to grasp the business opportunities in different application markets, the characteristics of LED lighting products must also change. Zhou Xuejun explained that general indoor alternative LED bulbs mainly focus on affordable prices, outdoor street light LED bulbs require high reliability and high lumens per watt (lm/w), while office LED lamps pay more attention to energy saving, high performance color and Anti-glare. In order to meet the product characteristics requirements of the above application market, including LED chip, module and system integration, etc., it is necessary to further divide the product positioning to capture market opportunities.

On the other hand, the progress of LED streetlights in mainland China in the first half of 2012 was not as good as expected, mainly due to the unsatisfactory subsidy policy and the impact of the European debt crisis, which led to the heavy losses of Taiwanese LED lighting manufacturers. With the subsidy of the Chinese government subsidy, and the recent success of the political succession, it is expected that the LED lighting market opportunity in 2013 is expected to reach RMB 4 billion.

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