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With the acceleration of the integration of the LED industry, the price war is the normal state of the LED industry. Undoubtedly, as an LED capacitor industry essential for LED lighting, in 2015, it is also difficult to escape the market competition "magic palm", LED liquid capacitor performance is particularly fierce. The price has fallen sharply, causing the gross profit margin to fall. Many LED capacitor companies have been affected, and the overall revenue decline trend.
Market competition is getting worse and the price is getting lower and lower. What do LED capacitor companies do to save profits?
At the beginning of 2016, Emerald introduced lean production to improve production efficiency and reduce product loss; internal cost reduction project to better internal waste and cost control; optimize product mix, reduce overall manufacturing costs, and make profits more for customers The space, the alliance together to tide over the difficulties.
Competition is constantly escalating, and if you want to survive better, it will be necessary for the company to find a new way out. At present, LED capacitors lead the enterprise Emerald to focus on the expansion of the focus on solid capacitors, to achieve a replacement liquid capacitor solution.
The solid capacitor is made of conductive polymer, and its conductive mechanism is different from that of liquid electrolytic capacitor, which makes up for the defects of congenital shortage of liquid capacitor, and can achieve smaller volume, long life and resistance to larger ripple current. At present, solid capacitors have been widely used in fast chargers and industrial power supplies.
With the increase in the amount of applications, solid capacitors are also the same as LEDs, and the cost per year is dropping sharply. According to Zhang Xiaobo, general manager of Emerald, "The future of solid capacitors is a trend to replace liquid capacitors."
Even with the general trend, the high cost of solid capacitors has caused many companies to stop.
Emeralds have said that they will lower the price of solid capacitors.
“Inside, Emerald has improved some semi-automatic equipment into a fully automated production line, reducing the production cost of solid capacitors. As the shipment of solid capacitors increases, the cost of material procurement can be reduced. Externally, Emerald launched The cost-effective BC series solid capacitors, the overall price reduction of about 30%, promoted the application of solid capacitors in the power supply industry such as fast charge, and successfully introduced the import of large customers in the fast charge industry. Zhang Xiaobo told Gaogong LED.
GGII expects that the international economy will continue to show a downturn in 2016, LED demand is still insufficient, and the LED industry's future growth is still slowing down. However, the oversupply situation in the LED market will improve with the reduction of investment in expansion, and the price of the product will also be attributed to rationality.
Zhang Xiaobo believes that once each industry matures, the price continues to be downward. The most important thing for emeralds is to study the coping strategies with customers and understand the real ideas of customers. The price competition will eventually lead to quality risks and damage to the whole. Industry development.
Emerald will continue to adhere to the high quality and cost-effective products to help customers win the reputation of the market. In the future, we will also focus on the demand for solid capacitors and new projects for LED customers with high quality requirements, and strive to double the sales of solid capacitors compared to last year.
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