"0.8 US dollars era" penetration speeding or supply chain reshuffle?

[Text / high-tech LED Xu Chaopeng] Recently, the industry supply chain manufacturers said that Philips asked domestic and Taiwan OEMs and ODMs to reduce the LED bulb ex-factory price to 0.8 US dollars in 2016, which is in the LED circle.

Lenovo has started the first half of this year, the price war of domestic LED products has risen to the stage of in full swing, companies and multinational giants in various countries have shown low-cost strategies, and the market has become a river.

Among them, Philips Lighting can achieve the "big killing of the Quartet", following the launch of the cheapest 60W LED light bulb set on the market in the North American market - two for only $ 5 price, and in Taiwan and Southeast Asia markets have launched concessions The program adopts a step-by-step low-cost layout strategy, attracting many fans, and taking advantage of strong brand benefits to build a fortress in the low-price market.

“At present, the ex-factory price of cheap design and simple construction LED bulbs launched in the second half of 2015 has dropped to the lowest level of US$1-1.2, and domestic OEMs and ODM companies are accumulating competitive advantages in production costs, and strive to lower the quotation. Below the current ex-factory price of 1 US dollar." According to a person familiar with the industry.

And, at the end of the third quarter of this year, Taiwanese LED packaging giant Everlight Electronics also said that they will use domestic LED chips to reduce costs, and people in the industry also predict that their final LED bulbs will be shipped. The price can be reduced to around $0.9 development plan.

“But I also think it would be easy to reduce the price of LED chips and packaging to $0.8, which would be necessary to minimize the total production cost by providing new designs.” Foshan Lighting LED Division Manager Chen Wenji said.

However, this kind of gradual spread and more and more endless "price reduction frenzy" is good or bad. It may be a good thing for consumers, but the majority of domestic small and medium-sized lighting companies are not so.

“Because Philips is a big LED lighting manufacturer, its series of price-cutting promotions will inevitably attract global attention. Its comprehensive low-cost layout will help stimulate the penetration of LED lighting, but its bidding is too intense, it will also squeeze the second line. The living space of the manufacturer." Zou Zhengkang, general manager of Foshan Qianbai Plating Lighting, can't help but sigh, even the international giants like Philips are pushing down prices, what are the interests of SMEs?

It is worth noting that this year's price cuts are accompanied by many light-emitting recalls of multinational lighting companies. CREE recalled more than 700,000 lamps in the United States and Osram recalled 55,000 because of fire hazards and safety issues. To know that these can be about 20 dollars in the high-end series, Lenovo's current domestic lamp price of about 1 US dollar, people can not help but express their concern about the quality.

"The price cuts we are leading must be made by technological advancement, efficiency improvement, and cost reduction, rather than if some manufacturers use small-size chips, gold wire to copper wire, power supply with the cheapest solution, and substrate for cheaper. Fiberglass panels and plastics for the outer casing do not use glass. These are strongly opposed by us and are not advocated by the industry." Zou Zhengkang said.

GGII believes that under the price decline frenzy, the majority of small and medium-sized lighting companies face the pressure of international giants, the difficulty of getting out of the difficulties can be imagined, but how to keep the bottom line? Find new ways to minimize the total production cost, To become the current necessity, "low price is not low quality" must become the standard of every LED practitioner, otherwise "Made in China" will gradually lose its advantage, and we will also eat the consequences.

Enclosure: 2015 “price reduction” schedule for all lighting products of Philips

In March, Philips released a "warm radiance" dimming function LED bulb, priced at only 9.97 US dollars, through the dimmer switch can control the brightness, the color temperature also dropped from pale yellow 2700K to red-orange tones, similar to the sunset light The difference, the same price of the same price of Osram and Cree's similar products can not provide such "light characteristics."

In April, Philips celebrated World Earth Day and launched the cheapest 60W LED light bulb kit on the market – two $4.97 for up to three months, after which it will resume the price of $5 each. The industry believes that Philips will fold out the old stocks in the same time. Although there will be short-term price interference, the recovery of one US$5 will have an indicator significance. Since the price has approached the energy-saving lamps, the service life is longer and will be able to Helps attract consumer purchases to LED bulbs.

In August, the Hue Wireless Dimming "Light Bulb + Remote Control" kit, a new member of Philips' Hue Smart Light Bulbs family, also went on a low-cost route for $39.95. The biggest benefit of this product is that it is cheap enough and can be used directly, without the need to "bridge" like a regular Hue smart light bulb. The new bulb has a brightness of 800 lumens at 2700K of soft white light and has a lifetime of approximately 25,000 hours.

At the same time, since August, the war has gradually spread to the Asian market.

On the 12th, Philips launched a 75W color temperature "Hengyu LED ceiling lamp" 9999 yuan (original price 11900 yuan) discount program in Taiwan market Tellus House; from the 20th, pure light LED bulb 6.5W price to kill more than 30% off From the original price of 249 yuan to 169 yuan.

On the 28th, in order to increase the market share of Philips LED table lamps in the Taiwan market, Philips further launched the “low price” mode. The retail prices of different types of LED table lamps were reduced from NT$2,499 (US$76.90), NT$1,500 and NT$1,499 respectively. To NT$999, NT$899, NT$799. Philips said it expects sales to reach 400,000 to 500,000, and market share will rise from the current 30% to 35%-40%.

In addition, Philips (Thailand) Electronics also announced the launch of an integrated marketing campaign: customers will receive a 20% discount on every purchase of an LED bulb, and the event will continue throughout September. The campaign aims to encourage consumers to make changes through some integrated marketing communications activities. Inform consumers of the advantages of using LED lighting through television broadcasts, print ads, internet marketing and roadshows in 16 provinces across the country.

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