Why LED Lighting Falls into Low Development

In a short period of one or two years, under the spring breeze of policy, the LED lighting industry has become a "sweet potato," and most of the traditional lighting companies have turned to the LED lighting industry. However, LED lighting development has fallen into a slump when most investors are looking forward to achieving results in the LED field. Many reasons contributed to the current situation of LED lighting.

From the perspective of the human cost and raw material cost of LED lighting, the human cost is constantly rising. At the same time, the price of rare earth, which is an essential raw material for LED lighting, has remained high. In the case of high costs, LED lighting prices can only remain high, resulting in the status of LED energy saving is not to save money, brought certain difficulties to open the market.

From the point of view of the demand for LED lighting, both the external demand and domestic demand, the current situation is not optimistic for LED companies. Due to the weak economic recovery in the United States and the debt crisis in the EU countries, foreign consumer demand has declined. Not only abroad, due to the influence of the national macro-control, especially the regulation of the property market, the demand for home and decoration is reduced. At the same time, energy saving of LED lamps does not save money. Due to the high cost and the lack of awareness of LED lamps, it leads to At present, the domestic outdoor and public lighting market has not yet been fully opened, and domestic lighting has no market at all. The domestic market mainly depends on engineering projects, such as the transformation of street lamps and public lighting (including supermarkets, hospitals, residential quarters, etc.), and domestic sales of companies are not satisfactory.

From the perspective of investors, as the government wants to promote LED and Other emerging industries, it has introduced financial subsidies and policy support, attracting a large number of blind investment costs that lack adequate technology reserves, market preparation, and manufacturing quality control capabilities. This results in the non-aggregation of industrial resources, the small and scattered enterprises, the low degree of concentration, and the decentralized distribution of industrial regions. This trend is not conducive to the emerging industries such as LED development.

From the perspective of product standards, LED lighting lacks a unified product standard, which causes product incompatibility between LED manufacturers. Once a certain part of a product has problems and cannot find the original manufacturer, the entire product can only be scrapped. This makes the replacement of products and parts in the LED lighting market quite difficult, increasing the resistance to LED development.

However, in the domestic LED industry shrouded in the crisis of the burst of the bubble, the elimination of incandescent lamps and may release 8 billion LED lighting subsidies early next year, but also to the LED industry to generate new market expectations. But in the face of such market expectations, LED companies need to be fully prepared to meet, and need to highlight the advantages of LED lighting and the differentiation of lighting products.