Foshan LED: Selling LED lights like selling cabbage

LEDs are becoming more and more complete in the Foshan industrial chain, and for more than 200 companies engaged in LED assembly applications, seeking to improve in design and application has become an urgent task for them.

“Why do Chinese-made LED lights get re-designed and applied in Europe and the United States, and the price is 5 to 10 times higher than what we sell?” Wu Yulin, general manager of Foshan Kaixiou Lighting Design Co., Ltd., has a deep understanding. It is said that increasing the added value of LED design and application is a way for many downstream companies to avoid price wars.

Exhibition phenomenon

People open PARTY

We are like selling cabbage

Chip, epitaxy, preparation, packaging and design applications, in the entire LED industry chain, due to the lower technical barriers to entry, downstream design applications are the most concentrated part of China's LED companies, Foshan is no exception.

“As the LED industry heats up, more companies will join the downstream industry chain.” Wu Yulin said that Foshan currently has more than 200 lighting companies, many of which have switched from traditional lamps to LEDs, and LED assembly and export. Business.

In April of this year, Wu Yulin participated in the German International Lighting Exhibition with the lighting enterprise team of several hundred people in Foshan. Most of the world's corporate booths shined with LEDs. But what Wu Yulin felt the most was "When Chinese companies put their products on the stage and bargained by foreign businessmen, like the sale of Chinese cabbage, the exhibition halls of foreigners open PARTY, wine tasting under the lighting of various moods. Negotiate business."

Industry Status

No heavy design innovation, but also price war

Why is the same LED light, but it is much more expensive than domestic sales? This question has caused Wu Yulin to fall into thinking. For his company, the 80% of the lighting products are exported to Europe and the United States, but a German lighting design company redesigned his products to create a special artistic home lighting environment. The price has also increased by 5 to 10 times.

"This shows that the design and application of this link is still doing a lot of money, but now the domestic focus on design innovation, brand-oriented enterprises are still too few." Wu Yulin said that he is not low on the industry's LED downstream threshold, thin profit concept It is recognized that foreign lighting companies such as Philips and Osram have taken the lead in the field of LED design and application. The outstanding features of their products are artistic and intelligent.

Along with the lack of attention to design and application innovation is the price war between LED companies. "Which things are doing a lot in China, they started to fight price wars. This is a very bad phenomenon in the current industry." Ding Fanggui, general manager of Foshan Nanhai Ketai Industrial Lighting Co., Ltd. said that Ketai is mainly exporting. Some low-end products are flooding the export market, and it is an indisputable fact that domestic companies are pressing each other.

Coping

Improving the design level is the way out

Obviously, foreign LED companies can take advantage of the advantages of design, brand and service, and can also control the profit of the middle and lower reaches of the international industrial chain, while domestic enterprises play more of the role of “manufacturing”.

Fortunately, some companies in Foshan are aware of this problem and attach importance to design and development. “We have established Guangdong Zhaoxin Lighting Co., Ltd., which specializes in the overall engineering solution for LED lighting products.” Wan Xiaocheng, deputy general manager of Zhaoxin Group, said that the reason why foreign countries can sell better than domestic companies is that they can provide one abroad. The overall solution, a single LED product is cheap, but the overall application can enhance the value of a single product, Zhaoxin has cut into this field and achieved good results.

Wan Xiaocheng also mentioned that LED light distribution is very strong, and color temperature and light efficiency are controllable. If combined with information technology and intelligent technology, it will greatly meet the individualized needs of lighting. For example, Philips recently displayed the "Magic Lights with Bright Lights on the Home" LED display series in Shanghai. One of the floor lamps has a choice of 16 million light colors, which can change the color of the home anytime, anywhere.

Of course, improving the level of application design also requires the promotion of domestic market demand. “The decoration of foreign rooms is mostly professional, and the requirements for indoor lighting are also very high.” Ding Fanggui analyzed the gap between the design and application level of domestic and foreign enterprises, saying that the maturity of foreign markets is an important reason for foreign companies to pay attention to design and application. The general consumer's requirements for the lamp are limited to the lighting function. The most consideration is the price, and the current LED lighting cost is obviously higher than the general energy-saving lamp.

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