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LED Lights Price War Leads to LED Industry Integration

It was reported that from October 1, 2014, China will prohibit the import and sales of 60 watt or more incandescent. Formerly in 2011, Chinese government had formulated incandescent phase-out schedule for five stages. This year entered the third stage, when government encouraged LED lights replacement for incandescent bulb or fluorescent tube light.

LED Tube Lights Price War

Recently LED lighting industry has been developing rapidly, with the advantage of more than 80% energy saving, environmental-friendliness, more enterprises and insiders got into LED lighting business.Currently, LED lamps have accounted for larger proportion of energy-saving lamps market.Especially, LED tube lights has been considerably applied in indoor LED lighting for replacement of traditional fluorescent tubes. A lot of LED tube manufacturers specialized in LED tube OEM and ODM projects can achieve great profit making. However, LED tube manufactories for OEM and ODM projects have led to fierce LED tube price war. On the one hand, more and more LED tube suppliers take part in LED tube OEM and ODM. On the other hand, most of LED tube manufactories purchased LED tube components parts which are generic, thus resorting to the fatal LED tube price competition.

In the face of this situation, most LED tube lighting enterprises and manufacturers frequently adopted lower price tactics as the key step to occupy LED lighting market while quality of LED tube decreased. How to assure the reasonable price and best quality has become the keen issue for LED tube manufacturers.

Integration of LED Industry Resources, Cost Reduction

How to survive LED lighting industry has been the turning point of every LED lighting insiders. 2014 in China LED lighting has developed very rapidly. Many provinces and districts governments carried out LED lighting policies to promote LED lighting development. It was reported that in Chongqing, newly-developing areas have established LED industrial Parks, until then all types of LED enterprises contingent moving into LED industrial park, which can greatly reduce logistics cost and labor cost but ensure the quality.

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