Knowledge

Home/Knowledge/Details

Is price war a trick for LED lighting companies to gain profits?

According to the investigation of LED industry insiders, low-cost LED products appear frequently in China's LED lighting market. 6 yuan 3W LED bulb. Some experts predict that the cost level of LED products has dropped at present, and the market retail price of LED lighting products is far from a reasonable position. At present, the market is a booming "price war", and it may also be to maintain profit LED lighting. A guise of space.

The LED general lighting market is blocked by high water level prices, and many LED companies are ready to attack this market.


2012 is the best time to enter the general lighting market. analyse as below:


1. LED general lighting products are quite mature in many technical aspects, even if the LED light source has many factors that are not conducive to general lighting, but these can be well dealt with through secondary optics;


2. The Chinese government has introduced a series of macro measures to give LED companies sufficient favorable conditions to conquer the general lighting market;


3. Incandescent lamps will withdraw from the Chinese market one by one from October this year, and LED will free up a certain market space;


Fourth, the market awareness of LED lighting has been greatly improved, which will stimulate the further opening of the market accordingly.


LED industry insiders believe that the main reason why the market retail price of LED lighting products remains at a high level is that the market has not opened up, resulting in high production costs, R&D costs, and sales costs for enterprises. The high-water price has hindered the expansion of the market, thus forming a cycle.


Huapu industry insiders infer that in view of the frequent appearance of low-cost LED lighting products, the "price war" currently being called by everyone is likely to be a pretext for companies to maintain high profit margins. However, the market rule that you get what you pay for will not change. The latest survey report of LED industry insiders shows that the price of LED bulbs replacing 40W and 60W incandescent lamps in Japan and South Korea has slowed down or increased slightly. The main reason for this phenomenon is that many companies rely on improving product performance to prevent the sharp decline in prices.

Benwei Lighting is an LED Tube, LED flood light, LED Panel Light, LED High Bay, LED  manufacturer with 12 years of experience. If you want to purchase a high-quality LED flood light or have a more in-depth understanding of the application of LED flood lights, please contact send us inquiry, our web: https://www.benweilight.com/.