The Price War in LED Market is on the Verge of Breaking Out

The 18th Guangzhou International Lighting Fair held in Guangzhou, more than 2,600 companies participated in this exhibition. It is learned from the exhibition that LED commercial and residential markets seem to achieve explosive growth in this year due to the benefits from the enthusiasm of distributors to the LED lighting products.

However, fierce price war and channel war are on the verge of breaking out along with the market blowout. The industry believes that LED industry will develop rapidly in the next three to five years, and the duel among enterprises will become more intense.

Outdoor lighting and commercial lighting are the greatest forces for LED industry to realize a great growth. Wenbo Pan, the founder of Guangzhou International Lighting Exhibition, believes that under the trend of energy saving, the public lighting field around the country will set off the climax of LED popularity at first. The rapid growth in commercial lighting led this round of blowout in LED industry.

But it is worth noting that the prices are rapidly declining with the increase in orders. According to survey data, the current price of LED lamps is less than 1/3 of the price in 2011, the price has dropped by 30% during January to May of this year. Even some LED products are sold at lower price than energy-saving lamps.

While most LED companies are generally trapped in the incomplete channel. As a result, the competition for channels is more and more intense. Recently, the NVC has banned the sale of LED products of Everlight. Industry experts believe that the war among distributors indicates that LED companies have really started to fight on the market.

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