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led lighting fluorescent replacement fixtures companies should be alert to the price war the consequences

Recently, according to LED industry revealed that the international lighting giant Philips (Philips) LED bulb will be ex-factory price fell to 0.8 US dollars, or 2 percent. The LED product prices continue to decline, resulting in the upper reaches of LED components offer is close to the cost line, manufacturers suffered a severe test of profit, although the overall increase in LED bulb shipments, but does not help manufacturers to improve operating conditions, some competitors to be forced out of the market .

In the price war, some companies in order to compete for the market, seeking sales, to sacrifice the quality of products and services to deal with, they will use the cheapest program, the worst components to produce low-priced, poor quality products, which Products into the market will accelerate the deterioration of LED homogeneity of competition, the current consequences of these have begun to emerge.

Domestic: detection failure

February 22, Guangdong Province Quality and Technical Supervision in its official website announced in 2015 home appliances such as refrigeration equipment 13 kinds of product quality supervision and inspection of the quality of special status. Among them, sampling lamps and lighting products 194 batches, unqualified product discovery rate of 18.6%.

February 5, Shanxi Province Quality Supervision Bureau of Shanxi Province, the production and distribution unit of the 20 batches of LED lights quality supervision and inspection, qualified 17 batches, 3 batches of substandard products, the detection rate of substandard products 15%. The main quality problem is the LED lamp power failure. Lamp power determines the energy consumption of energy-saving lamps.

January 22, AQSIQ announced 2015 toys and other 34 kinds of product quality supervision and spot checks of the results. A total of 73 batches of self-ballasted LED lamps produced by 73 enterprises in 10 provinces and municipalities including Shanxi, Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, Jiangxi, Shandong, Hubei and Guangdong, LED lights and reflective self-ballasted LED lights two products, unqualified detection rate of 28.8%.

January 8, Anhui Provincial Quality Supervision Bureau in the province to carry out the lighting and lighting products at the provincial-level supervision and spot checks, the sampling in Anhui Province, a total of six regions extracted 19 sets of samples, of which 11 in Hefei 2 groups in Huangshan area, 2 groups in Lu’an area, 2 groups in Wuhu area, 1 group in Tongling area, 1 group in Bozhou area, and the samples were taken from the production enterprises. Test results: qualified 15 groups, the total pass rate of 79%, failed 4 groups, the failure rate of 21%.

January 5, Shandong Provincial Bureau of Quality and Technical Supervision in its official website announced in 2015 the third batch of Led lighting fluorescent replacement fixtures product quality supervision and spot checks, there is a business of a batch of products do not meet the relevant standards.

International: recalled

February 16, the European Commission non-food category Rapid Alert System (RAPEX) made in China made an ElectroGEAR downlight mandatory implementation of the recall, the case of the notified country for Finland. The notified product is a 6-watt downlight lamp with a diameter of 120 mm and comes with a power supply, the product bar code is 6438140414601, the light source model of the product is 41460, the power supply model LDE-6W350 belongs to the Organization for Economic Cooperation and Development For 78 million (electrical appliances). The recall was due to insufficient insulation of the transformer in the power supply, which does not comply with the requirements of the EU Low Voltage Directive and the relevant European standard EN60598. The product will be implemented in Europe to withdraw from the market and recall mandatory measures.

In February, the US Consumer Product Safety Commission (CPSC), the Canadian Ministry of Health and IKEA North American Service Co., Ltd. (IKEA) jointly announced the recall of Chinese-made ceiling lamps. The recall is due to IKEA companies received 224 complaints from consumers around the world, saying that the plastic shack plastic clip fracture, ceiling lamp shade drop, posing a threat to consumer safety. Of the 224 consumer complaints, 11 were reported as injuries to consumers.

In January, Lunera in the United States recalled about 60,000 lamps, (of which another 1,000 are sold to Canada), recall the product model is Lunera13wattHelenGX23LED industrial lighting. The United States said that in the case of surge voltage was found when the lamp will not be used. May cause the circuit board burns and so on the question. Lunera received a total of 11 overheating report this section of the lamp. However, no user injury occurred. Consumers should immediately stop using the lamp and contact Lunera for a full refund. The lamps are all made in China.


LED industry to be self-discipline

Led lighting fluorescent replacement fixtures industry confusion in the price war not only the existence of quality problems, serious points will lead to the risk of accidents. Launched a price war of the enterprises are often impetuous to say that the price is to help consumers, so that consumers are affordable. This is understandable. However, the price cut suddenly too large, even much lower than the overall cost of the industry level, it is inevitable that the suspicion of malicious competition.

Before the government departments have not yet suitable for administrative intervention, local industry organizations should play the role of self-discipline to maintain the normal order of competition. Enterprises should be the overall level of cost price under the premise of a reasonable price range, beyond the price range that is regarded as malicious competition, will be the industry and enterprise joint sanctions. In order to achieve the sanction, it is possible to make a deposit in advance for the contracting enterprise and establish an internal financing system for the trade organization so as to have sufficient financial resources to impose internal sanctions on the large enterprise. It prohibits suppliers from supplying production materials and prohibits dealers from representing their products.

Promoting the standardization of LED and standard optical components of the work is even more urgent. At present, the LED industry standard system is not mature and complete, the standard gap is large; standard technical indicators are backward, the standard implementation feedback is poor; LED industry has many kinds of technology, multi-disciplinary cross, fast technical update and other characteristics, making the standard-setting matching , Coordination is difficult to protect.

In addition, enterprises should actively fulfill their social obligations and responsibilities, establish and improve the active recall system. For products that have been sold, if there is a problem in the production process, the batch product may have quality problems, should be the first time the product to take the initiative to recall the product in order to eliminate the adverse impact on customers or reduce the degree of harm to customers , In particular, to avoid accidents.

Industrial development need to be adjusted

2016, the domestic LED industry, “price war” increasingly white-hot, LED industry, if healthy development, it is necessary to make some adjustments accordingly.

led lighting fluorescent replacement fixtures companies should be alert to the price war the consequences

Industrial development process is difficult to avoid excess capacity and out of old products, old equipment, the process of the old market. LED industry is also the case, the early rapid amplification of market demand, through imitation and low-cost way to really occupy part of the market, and even possible to create “bad money drive out good money” phenomenon.

And how to adjust the industry to promote the healthy development of the industry, OFweek Industry Research Center analyst Deng Kaimin said that this actually requires standards, industry standards, research and even consumer education and other aspects to achieve a breakthrough.

1. Industry standards need to follow the development of the industry, the need to constantly update the relevant technical indicators, to strengthen the safety norms of compulsory certification system and market access system;

2. The industry needs to strengthen the exchange of information to understand the development of the industry dynamics, to avoid the homogenization of low-quality products, blind investment, and guide capital and technology towards industrial upgrading and cross-border application of investment;

3. To strengthen exchanges with universities, research institutes, industry associations and other industries, to find new application development direction, such as: plant plants, visible light communication, to divert some of the excess production capacity.

to sum up:

The face of price war, a lot of LED business thinking is to cut prices to get a certain market share, but for consumers, the price is not the lowest, only lower, if only blindly cut prices, In a vicious cycle. The “disorderly” price competition, blindly playing the “vicious price war”, will inevitably bring about a lose-lose, not only for business development, but also the normal order of the market economy also caused some damage, is undoubtedly an inferior strategy.

Now Led lighting fluorescent replacement fixtures market is developing rapidly, the market space is very big, but the competition is also very intense, inevitably there will be some enterprises out, so LED enterprises must find out their own characteristics to develop, choose their own direction to develop.

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