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price war and coexistence of led lighting fluorescent replacement fixtures

Read: export unit price decline, so that deep-rooted competition, excess capacity plight of the LED industry to add more cold, a new round of price war quietly started.

This year the Canton Fair, the organizers deliberately scattered in the original building materials Museum of various types of LED business integration, set up a special Led lighting fluorescent replacement fixtures exhibition. However, the lighting area, crowded scene in previous years no longer appear, many booth desolate.

Foshan Zhaoxin Import and Export Co., Ltd. overseas sales manager Li Yi Zhao Li Li these days of records, on-site turnover is small. This year he received only a few sporadic Canton Fair Europe and the United States merchants, mostly in Southeast Asia market customers. He recalled last year’s exhibition, many customers, especially European and American customers will first ask the product’s technical parameters, quality indicators. And this year, one of the buyers on the opening to fierce price. “The price does not turn left.” Li Zhao said that the current LED product prices almost bottomed out, profit margins are very meager.

price war and coexistence of led lighting fluorescent replacement fixtures enterprises to expand the amount of emerging markets to win

Overseas Trade Department Huohai big star of the Ministry of Foreign Affairs, a lamp foreign trade prices fell three times in three years. “Sold $ 30 the year before last year to sell $ 20 this year, only $ 10.” According to the National Star announced the first half of 2015 annual report, the company overseas market operating income fell 10% over last year. Huo Hai said that although the amount of overseas exports in the third quarter stabilized, but the product prices fell again and again. “Downstream product prices than the same period last year, plunging more than 30%, the middle package prices also fell.”

Profits decline: Buddhist enterprises look to emerging markets

Export unit price decline, so that deep-rooted competition, excess capacity plight of the LED industry to add more cold, a new round of price war quietly started. “A Russian buyers talk to you for a long time, and finally said to go to Zhongshan to understand the situation, compare prices to see who is more favorable.” Foshan Royal Ascot Industrial Co., Ltd. Mr. Tan said the scene, other companies are price cuts themselves Not down, then it can only collapse. Therefore, the company can only be forced to choose price. He introduced, as small and medium enterprises, corporate profit margins have been very small, but this year’s product prices are still down about 5%.

According to customs data show that the first half of this year, China’s LED industry in Russia, Brazil, India and Asia and Africa, Latin America and emerging market share quickly pulled up. Huo Hai said that in the export price decline, profit compression environment, this year the company vigorously widen the market scope, deep plowing Southeast Asian market. Among them, the first three quarters of the Indian market sales growth of about 300%. “Indian government in recent years boost energy saving, the surge in demand.In addition, there is no LED packaging enterprises in India, so soon entered the local market.”

Akihisa this year also vigorously expand the Southeast Asian market. Li Yi Zhao, the first three quarters of this year, the company in Thailand, the Philippines, two-year sales increased by 15%. “First, because of the rapid development of Southeast Asian countries, Daxing infrastructure, the surge in demand for LED products.Moreover, various manufacturers are playing the same price, but also open up more markets to win.

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