Recently, in the Canton Fair exhibition area of ​​Foshan Zhaoxin Import and Export Co., Ltd., an Indian merchant pointed to a LED outdoor lighting opening, which drastically lowered the price, allowing the sales staff to shake their heads again and again. In the past few days, the reporter learned at this session of the Canton Fair that the global LED industry prices have continued to dive this year, and the export prices of Foshan LED companies have also fallen sharply. In the cold winter of the industry with continuous unit price, fierce competition and overcapacity, enterprises are forced to fall into a new round of price wars.
Continuous price cuts: LED export prices have bottomed out
This year's Canton Fair, the organizers deliberately integrated the various LED companies that were originally scattered in the building materials hall, and set up a special LED lighting exhibition area. However, on the 17th, the reporter saw in the lighting exhibition area that the scene of the crowds in previous years no longer appeared, and many booths were cold and clear.
Li Yi, the overseas sales manager of Foshan Zhaoxin Import & Export Co., Ltd., took care of the records of these days, and the on-site transaction volume was very small. This year, he only received a few sporadic European and American merchants in the Canton Fair, most of whom are customers in the Southeast Asian market. He remembered that when he participated in the exhibition last year, many customers, especially European and American customers, would first ask about the technical parameters and quality indicators of the products. This year, when buyers come up, they will push down the price. "The price can't be turned away." Li Yizhen said that the current price of LED finished products almost bottomed out, and the profit margin is very meager.
Guoxing Optoelectronics' overseas trade department Huo Haida spit bitter water, and the price of a lamp tube has tripled in three years. "The previous year sold 30 dollars, last year sold 20 dollars, this year only 10 dollars." According to the first half of 2015 published by Guoxing Optoelectronics, the company's overseas market revenue fell more than 10% year-on-year. Huo Hai said that although the overseas export quotas in the third quarter have stabilized, the prices of products have fallen. “The price of downstream products has fallen by more than 30% compared with the same period of last year, and the price of midstream packaging has also fallen.â€
Declining profits: Buddha enterprises are counting on emerging markets
The export unit price has dropped, which has made the LED industry, which is deeply mired in white-hot competition and overcapacity, even more chilly. A new round of price wars has quietly started. “A Russian buyer talked with you for a long time, and finally said that he would go to Zhongshan to understand the situation and compare the price to see who is more favorable.†Mr. Tan, the person in charge of Foshan Junjing Industrial Co., Ltd. said that other companies have lowered their prices. If you don't drop, you can only close down. Therefore, the company can only be forced to choose a price cut. He introduced that as a small and medium-sized enterprise, the company's profit margin is already small, but this year's product price is still lowered by about 5%.
According to customs data, in the first half of this year, China's LED industry has rapidly increased its share in emerging markets such as Russia, Brazil, India, and Asia, Africa and Latin America. Huo Hai said that in the environment of continuous decline in export prices and shrinking profits, the company has vigorously expanded its market scope and deepened its market in Southeast Asia this year. Among them, the Indian market's sales growth in the first three quarters reached about 300%. “The Indian government has promoted energy conservation and environmental protection in recent years, and the demand has surged. In addition, there is no LED packaging company in India, so it quickly entered the local market.â€
Zhaoxin also vigorously expanded its Southeast Asian market this year. Li Yizhen introduced that in the first three quarters of this year, sales in Thailand and the Philippines increased by 15% year-on-year. "One is because the rapid development of Southeast Asian countries, Daxing infrastructure, the demand for LED products has surged. Moreover, while the prices of various manufacturers are playing, they are also exploring more markets and winning by quantity."
Vecsel Module,Laser Module Violet,10 Watt Laser Module,Laser Module Fritzing
AcePhotonics Co.,Ltd. , https://www.cgphotonics.com