LED drive power industry how to break through the Red Sea predicament
LED lighting industry has entered the era of low-profit. As the terminal market respected cost-effective, downstream application vendors will penetrate this concept into all aspects of the supply chain, more willing to choose a lower price of power products. Therefore, the power supply products can not escape the vortex of price competition, industry profits showed a rapid downward trend.
For a time, the consolidation of mergers and acquisitions in the power industry intensified, while its market has also been "to power" the impact of products, industry competition continues to intensify. The future, power companies will be how to break through the difficulties of the Red Sea? How to highlight the price competition, to seek more market share and profits?
In 2015, the global demand for LED lighting rising, but oversupply led to LED average unit price fell by 30% -40%, manufacturers are facing a loss predicament, especially in the second half of the price war is more diving down. Terminal market, low-cost fight to some extent drive power products prices. The first three quarters of 2015, the overall domestic power supply market prices fell over the same period in 2014 to 25%, down about 30% throughout the year. Power Valley, general manager Li Jinhong said that customers have made it clear that they need to be able to achieve the ultimate price of the product supplier, because the lighting manufacturers thinking model has turned to pricing in accordance with market demand, and do a good job shopping market preparation.
LED products as one of the core components, drive power LED lamps in the cost structure has been occupying a large proportion. According to the relevant data, the current power accessories in general-purpose lamps have increased the cost of accounting for 10% -20%, non-universal lamp cost accounting for up to 20% -30%. With the LED lamp beads and the gradual decline in the price of the whole lamp, the power of the high cost phenomenon is further amplified, many LED application companies in the price pressure have chosen more low-cost power solutions. The face of market changes in wind direction, power manufacturers only see the wind rudder, relying on low-cost power solutions for the price advantage, to attract customers to purchase.
Because the technology continues to progress and the market matures, LED power supply prices are falling naturally, is basically a 20% annual decline in the level, and now reached 0.5 yuan / W level. In such a market environment, if a power supply to achieve greater sales, in fact, there is a great pressure on the cost. In order to reduce costs, power companies can rack their brains, or by reducing the number of components, or the introduction of double-panel to change the form of single-panel and so on. If only purely reduce costs, quality can be guaranteed can be imagined, in most cases, the decline in product prices and product quality control to form a vicious circle, prompting the industry continue to highlight the plight.
At the same time, LED drive power supply market demand growth has been slowing down. The research shows that in 2015 the LED indoor power supply market size of 14.59 billion yuan, representing a year-on-year growth of 39% in 2014, but the growth rate than in 2014 fell by 15 percentage points; outdoor LED drive power part of the year 2015 market size of 14.5 billion yuan, representing an increase of 22% in 2014, the growth rate than in 2014 fell 10 percentage points. To a certain extent, this makes LED power supply market competition is more intense.
Liao Yuzhu, general manager of the crown led the semiconductor bluntly, in addition to several brand enterprises, in 2015 more than 90% of the power companies should be very painful. Ming-wai power sales vice president of China Bin Li believes that the power market from commercial to civilian changes, the cost of further compression, power supply products as the main accessories, but also had to face cost pressures. At the same time, overseas power supply manufacturers of intelligent market layout and low-cost design, forcing domestic power companies have to deal with this change. Today, the majority of enterprises in the domestic market with a blindly lower prices to seize the market, the industry generally lack of brand, the lack of core business competitive advantage.
Today, LED lighting has become difficult to reverse the trend of low-cost lighting, lighting manufacturers will continue to look for lower-cost solutions, in addition to LED light source, the drive power and other components to reduce overall system cost. With the lighting market to further focus on leading enterprises, cost-effective will be LED drive power companies based on the road. Cost-effective, LED power supply first to ensure quality, only the quality and stability in order to obtain a stable market. Industry sources said the future only two companies can survive the last down, one is a strong financial support to the enterprise, the other is a technology can do a good job of quality control of the enterprise.
Reduce power costs, companies must optimize the power structure, the best power-driven configuration. Reduce costs on the one hand from the technical process to start, optimize the structural design; the other hand, can also start from the procurement of raw materials, selection of cost-effective suppliers. Under the premise of ensuring quality, large-scale LED power supply will become the only way to improve cost-effective. "Automation applications, the scale of standardized production, both to ensure quality and can effectively reduce costs," said Zhang Huajian, vice president of Infineon Electronics.
Automation is standardized. This is why the LED drive power industry has been hoping to solve the problem of standardization in order to enhance market share and enhance product competitiveness. However, in addition to bulb lamps, lamps and other flow of products, the downstream lighting factory have to take the differential route, the power requirements toward the personality and customization direction, so that power is difficult to achieve standardization. At the same time, continuous innovation and upgrading, but also allow products in the industry to maintain differentiation and long-term competitive advantage.
