LED lighting channels are on the chord

Lighting as the largest blue ocean LED, upstream and downstream have been waiting for the right opportunity to break. As the downstream data continues to improve, the industry generally believes that the low-price era is coming. The LED lighting market has reached an outbreak period, and the new round of channel killing is also on the verge.

The low price era is coming

Counter-cyclical shipments, prices and incandescent lamps are getting closer and closer, and major research institutions have given high expectations for LED lighting. China's LED lighting products in 2014 are expected to increase by more than 80% year-on-year.

As the largest and shortest LED before, the field of lighting finally became a married woman in 2014. In the third quarter of 2013, China's LED industry's upstream production capacity began to shift to large companies. Take Sanan Optoelectronics as an example. Some small and medium-sized enterprises dragged down white flags due to price wars and transferred production data to Sanan Optoelectronics. Then the industry’s price war began to slow down. The ecology of the entire industry has begun to improve, and it is only at the stage when everything is ready for the east.

Lighting is the last and largest increase in the LED industry. The market has been paying high attention since 2009. However, the time of its outbreak has been unsatisfactory. The reasons are: First, the promotion of overseas markets is insufficient; second, it is also related to the fact that their prices are not enough for the people.

At present, North America's "white-ban" movement has started, the price of products has rapidly declined, and barriers to downstream promotion of LED lights are being eliminated. LEDinside analyst Wang Fei believes that observing the mainland China's recent retail price of LED bulbs is not difficult to find, the market sales of LED bulbs surged, the number of lumens per dollar distribution tends to converge, the value of the backbone down, LED lighting era has come low.

Channel War 2.0

Wang Fei told the China Securities Journal reporter that the most important trend of the LED lighting market in 2014 was that the lighting industry was shifted from the competition of brand economies of scale to the economies of scale of manufacturing plus the competition of economies of scale of the brand, which made the industry of LED lighting era Concentration will be higher than traditional lighting. Of course, looking at this from another dimension, LED lighting that has been channel-king for a long time will be even more fierce in 2014.

In the industry model, Philips, Foshan Lighting and other well-known traditional manufacturers have obvious advantages in terms of first-mover initiative. They choose to promote LED products in existing distributors, stores, and other channels; NVC, Sunshine, Ops, Sanxi, etc. The local lighting manufacturers have also stepped up their cooperation with distributors, and have also increased their investment in specialty stores to increase channel coverage and brand awareness; manufacturers from the LED package to the downstream applications, such as rectangular, Hongli, etc. As LED application products account for a relatively low proportion of their revenues, and for the sake of control costs, the investment in their own channels is relatively conservative, mostly based on the dealer model.

Another new channel that cannot be ignored is e-commerce. Data show that in the Tmall platform, this year's "Double 11" period, Op lighting, Ao Duo, Chau Ming Han source and other lighting brand product sales have exceeded 10 million mark, of which, Op lighting more to the official flag of Tmall The store’s sales volume of 57 million yuan is proud to occupy the top spot, ranking first in the category of building materials. In 2013, the newly-established Sai Ming Han Yuen brand at Taobao Mall exceeded RMB 3 million in product sales within the first hour of the “Double 11”.

China Merchants Securities Research Report believes that the sales of LED lighting in the e-commerce channels have great potential for outbreaks. In 2012, the total sales of LED lighting products on platforms such as Taobao and Jingdong were approximately RMB 3 billion, accounting for only 7% of the LED lighting market. It is expected that this proportion is expected to reach more than 20% by 2015.

"The new channels will become the focus of some latecomers." An industry source said that some LED downstream manufacturers have been considering buying some e-commerce brands in order to seek expansion of channels.