The current LED lighting market can be described as two heavy fires. In the end of May, the spring boom of Guangdong's 500 billion market cake has just given a positive signal to domestic LED lighting companies. In early July, the European and American markets started a round of war against Chinese LED lighting export products. Several families are happy and happy.
The technical barriers encountered by export trade have been common in the lighting industry. This is undoubtedly another weight in the face of many export pressures such as the appreciation of the renminbi, export tax rebates, raw material prices, and anti-dumping. What will China's LED lighting export companies face and how should they respond?
The exit threshold raises the "double-edged sword"
Recently, the Guangdong Provincial Bureau of Quality Supervision received consecutive TBT notifications from the European Union, the United States, Chile, and other countries on raising the threshold for the import of LED lamps.
Among them, the European Union's notified regulations require that only directional LED lamps and directional fluorescent lamps with an energy efficiency index of more than 0.2 can enter the EU market in the future, which is a 2.5-fold increase over previous energy efficiency index requirements. On the other hand, in the United States, the testing procedures for LEDs, such as the notification of conformity assessment and market supervision and inspection procedures for LED lighting products, are also very demanding, which will bring huge testing cost to Chinese enterprises.
Although the LED lighting market has started, but due to price, the domestic market demand is insufficient, most of the products are still exported overseas. Therefore, the improvement of the export standard of LED lighting products will bring a lot of impact to some export-oriented companies.
“Enterprises should positively view the EU's regulations to raise barriers to entry, and the development of standards is inevitably linked to international standards. The follow-up may be further enhanced.†Nie Pengxiang, general manager of Shanghai Lixie Detection Technology Services Co., Ltd., seems to have “predicted†". He pointed out that there are two main indicators for the quality of lamps. One is the safety issue and the other is the product performance. Traditional lighting companies have always paid more attention to safety issues, but when the lamps enter the LED era, the market will definitely put higher requirements on product performance.
Nie Pengxiang said that the European and American markets have actually been disgusted with some low-end, low-quality products from China. The improvement of this standard threshold can effectively block inferior products from the market, and improve the status quo of companies that are in trouble with imperfect regulations. . "But for companies producing high quality products, this is undoubtedly a positive news."
Du Yanxi, the technical director of Shenzhen Letia Lighting Co., Ltd. (hereinafter referred to as Letia), which is listed by domestic LED company Hongli Optoelectronics, stated that: “Laytia is not afraid of increasing barriers to entry in Europe and the United States, and overseas orders will not It has been greatly affected.†In addition to the strict adherence to international standards, Laytia has a stable base of overseas customers, coupled with the current vigorous promotion of energy-saving products in European and American markets, all of which make Letia easily deal with this Europe and the United States. Increase the market threshold.
"Lettia had more than one billion sales last year, of which overseas markets accounted for more than 60%." Du Yanxi said that Leitia was based on the parent company's Hongli Optoelectronics' advantage in white light packaging devices. Positioned in the high-end, the products have basically passed the UL, CE, TV and other international certification.
Although for large companies like Letia, the improvement of the export standard threshold will not cause much impact on them, it may not be so calm for other SMEs.
In fact, Europe and the United States have always been the major markets for LED exports in Guangdong Province. Relevant statistics show that in 2011, Guangdong's LED exports to Europe and the United States reached more than 34 billion yuan. The "encirclement and suppression" from many countries and regions in recent days will inevitably cause a certain impact on the domestic LED industry.
In this regard, Du Yanxi said that raising the threshold is a double-edged sword. “Perhaps Latiya will suffer a loss in the earlier period, and customers will feel that our prices are high. Now the advantages of this block are reflected.†Du Yanxi bluntly stated: In the context of the increase in the threshold, some enterprises are inevitably closed down.
Some small and medium-sized enterprises with weak overall strength have previously failed to design and certify products in strict accordance with international standards in order to reduce costs. Therefore, the improvement of standards will definitely lead to the need for these companies in terms of design options, material selection, and packaging methods. Make appropriate adjustments to meet the requirements of the export.
The most direct increase in the export standard threshold is the increase in cost.
Du Yanxi said that the increase in costs is mainly reflected in the material and certification costs. Prior to the selection of general materials, you must use materials that have passed UL, CE, and other certifications. This has increased costs to some extent. In addition to the increase in material costs, there is a huge amount of certification fees. According to the reporter's understanding, each type of LED lighting certification costs a lot, such as the United States UL certification, the cost is probably between 10-20 million, while the TV certification price is even higher, up to more than 20 million.
With such expensive test and certification fees, the cost of certification is too high for companies that cannot achieve a certain volume of production, and there is a lack of profitability. So for many SMEs, they are reluctant to spend a large amount of money to do international standard certification.
"Now the improvement of European and American market thresholds will undoubtedly have a huge impact on these companies." Du Yanxi believes that according to the current market development trend, there are only two ways to force SMEs to go: either to withdraw from the market or to be acquired by large companies.
Aside from blind market price warfare, under such market conditions, it is meaningless to resort to price wars. Only relying on mass production, the higher the output, the lower the overall cost. Du Yanxi disclosed that Hongli Optoelectronics has successfully landed since last year. In the capital market, in order to ease the overall overcapacity pressure in the domestic LED packaging industry, it began to expand its application of downstream lighting products.
Hongli Optoelectronics annual report shows that in 2011 the company's SMDLED and LED lighting applications have become the two major supporting businesses that drive the company's performance against the market growth. During the reporting period, the operating income of the above two businesses increased by 39.40% and 33.42% year-on-year respectively. It can be seen from the data that the terminal's application products have become Hongli Opto's new profit growth point.
Du Yanxi told reporters that at present, the company is very optimistic about the lighting market, especially the domestic market. The market share of Leticia has always been dominated by overseas markets, but with the start of the domestic lighting market, the domestic market will receive more attention. Since the beginning of this year, domestic channels have been established in focus, and more will be invested in the future. The energy to layout the entire lighting market.
“At the end of this year, Shenzhen Letia will also be relocated to the production base in Guangzhou. In the future, Guangzhou Laitia will become the production and R&D base of Hongli Optoelectronics LED application products.†Du Yanxi revealed.
In the case of possible impediments to exports from Europe and the United States, companies have responded to each other. Moyi, deputy general manager of Shenzhen Taidilun Optoelectronics Technology Co., Ltd., stated frankly: “The new regulations introduced by the EU may result in the export of products. Some influences are unavoidable. In the future, they may move to the domestic market.†He suggested that small companies can move to markets such as China or the Middle East and Africa, or cooperate with big companies. “The stronger the stronger ones, must change marketing strategies for the market and discard them. Cheap competition, using high-quality materials, as far as possible to meet the EU standards, otherwise the impact will be fatal."
Liu Mingqiang, director of the R&D and Design Center of Guangdong Tianxieguang Photoelectric Co., Ltd., which is mainly based on the domestic market, also stated that “companies must plan ahead and speed up the development of standards in Guangdong Province.†He pointed out that he is actively participating in the Guangdong LED benchmarking system. For the construction, it is recommended to refer to the latest practices in developed countries such as Europe and the United States, and actively convert foreign advanced standards into local standards, in line with international standards.
In addition to improving product quality in line with standards and moving to the domestic market, speeding up technological innovation and striving for technological success will also be a good strategy.
As the global labor cost becomes higher and higher, and the digitalization process is accelerating, intelligent control is increasingly becoming the mainstream trend of future circuit and lamp design. In this regard, Du Yanxi said that Leitia has not stopped the research and development of intelligent lighting.
Du Yanxi introduced to reporters a new generation of intelligent downlights with the intelligent dimming function newly developed by Leitanya. The light source uses the COBLED-LB016 series independently developed by the parent company Hongli Optoelectronics. This light source uses a variety of chip combination modes, and light mixing can change the light/color effect with the current control, with the advantages of the traditional COB surface light source. At the same time power range, light source color temperature, color rendering index are adjustable.
Smart lighting has an advantage in overseas markets. Because of its high labor costs, high labor costs for finding faults and replacing lamps, the use of smart lamps can greatly reduce labor costs. It can be more humane to meet the requirements of users and achieve maximum Limit energy saving, effectively reduce the maintenance costs of future lighting projects. "LEDs replacing traditional lighting have become a trend of development." Du Yanxi finally said.
The technical barriers encountered by export trade have been common in the lighting industry. This is undoubtedly another weight in the face of many export pressures such as the appreciation of the renminbi, export tax rebates, raw material prices, and anti-dumping. What will China's LED lighting export companies face and how should they respond?
The exit threshold raises the "double-edged sword"
Recently, the Guangdong Provincial Bureau of Quality Supervision received consecutive TBT notifications from the European Union, the United States, Chile, and other countries on raising the threshold for the import of LED lamps.
Among them, the European Union's notified regulations require that only directional LED lamps and directional fluorescent lamps with an energy efficiency index of more than 0.2 can enter the EU market in the future, which is a 2.5-fold increase over previous energy efficiency index requirements. On the other hand, in the United States, the testing procedures for LEDs, such as the notification of conformity assessment and market supervision and inspection procedures for LED lighting products, are also very demanding, which will bring huge testing cost to Chinese enterprises.
Although the LED lighting market has started, but due to price, the domestic market demand is insufficient, most of the products are still exported overseas. Therefore, the improvement of the export standard of LED lighting products will bring a lot of impact to some export-oriented companies.
“Enterprises should positively view the EU's regulations to raise barriers to entry, and the development of standards is inevitably linked to international standards. The follow-up may be further enhanced.†Nie Pengxiang, general manager of Shanghai Lixie Detection Technology Services Co., Ltd., seems to have “predicted†". He pointed out that there are two main indicators for the quality of lamps. One is the safety issue and the other is the product performance. Traditional lighting companies have always paid more attention to safety issues, but when the lamps enter the LED era, the market will definitely put higher requirements on product performance.
Nie Pengxiang said that the European and American markets have actually been disgusted with some low-end, low-quality products from China. The improvement of this standard threshold can effectively block inferior products from the market, and improve the status quo of companies that are in trouble with imperfect regulations. . "But for companies producing high quality products, this is undoubtedly a positive news."
Du Yanxi, the technical director of Shenzhen Letia Lighting Co., Ltd. (hereinafter referred to as Letia), which is listed by domestic LED company Hongli Optoelectronics, stated that: “Laytia is not afraid of increasing barriers to entry in Europe and the United States, and overseas orders will not It has been greatly affected.†In addition to the strict adherence to international standards, Laytia has a stable base of overseas customers, coupled with the current vigorous promotion of energy-saving products in European and American markets, all of which make Letia easily deal with this Europe and the United States. Increase the market threshold.
"Lettia had more than one billion sales last year, of which overseas markets accounted for more than 60%." Du Yanxi said that Leitia was based on the parent company's Hongli Optoelectronics' advantage in white light packaging devices. Positioned in the high-end, the products have basically passed the UL, CE, TV and other international certification.
Although for large companies like Letia, the improvement of the export standard threshold will not cause much impact on them, it may not be so calm for other SMEs.
In fact, Europe and the United States have always been the major markets for LED exports in Guangdong Province. Relevant statistics show that in 2011, Guangdong's LED exports to Europe and the United States reached more than 34 billion yuan. The "encirclement and suppression" from many countries and regions in recent days will inevitably cause a certain impact on the domestic LED industry.
In this regard, Du Yanxi said that raising the threshold is a double-edged sword. “Perhaps Latiya will suffer a loss in the earlier period, and customers will feel that our prices are high. Now the advantages of this block are reflected.†Du Yanxi bluntly stated: In the context of the increase in the threshold, some enterprises are inevitably closed down.
Some small and medium-sized enterprises with weak overall strength have previously failed to design and certify products in strict accordance with international standards in order to reduce costs. Therefore, the improvement of standards will definitely lead to the need for these companies in terms of design options, material selection, and packaging methods. Make appropriate adjustments to meet the requirements of the export.
The most direct increase in the export standard threshold is the increase in cost.
Du Yanxi said that the increase in costs is mainly reflected in the material and certification costs. Prior to the selection of general materials, you must use materials that have passed UL, CE, and other certifications. This has increased costs to some extent. In addition to the increase in material costs, there is a huge amount of certification fees. According to the reporter's understanding, each type of LED lighting certification costs a lot, such as the United States UL certification, the cost is probably between 10-20 million, while the TV certification price is even higher, up to more than 20 million.
With such expensive test and certification fees, the cost of certification is too high for companies that cannot achieve a certain volume of production, and there is a lack of profitability. So for many SMEs, they are reluctant to spend a large amount of money to do international standard certification.
"Now the improvement of European and American market thresholds will undoubtedly have a huge impact on these companies." Du Yanxi believes that according to the current market development trend, there are only two ways to force SMEs to go: either to withdraw from the market or to be acquired by large companies.
Aside from blind market price warfare, under such market conditions, it is meaningless to resort to price wars. Only relying on mass production, the higher the output, the lower the overall cost. Du Yanxi disclosed that Hongli Optoelectronics has successfully landed since last year. In the capital market, in order to ease the overall overcapacity pressure in the domestic LED packaging industry, it began to expand its application of downstream lighting products.
Hongli Optoelectronics annual report shows that in 2011 the company's SMDLED and LED lighting applications have become the two major supporting businesses that drive the company's performance against the market growth. During the reporting period, the operating income of the above two businesses increased by 39.40% and 33.42% year-on-year respectively. It can be seen from the data that the terminal's application products have become Hongli Opto's new profit growth point.
Du Yanxi told reporters that at present, the company is very optimistic about the lighting market, especially the domestic market. The market share of Leticia has always been dominated by overseas markets, but with the start of the domestic lighting market, the domestic market will receive more attention. Since the beginning of this year, domestic channels have been established in focus, and more will be invested in the future. The energy to layout the entire lighting market.
“At the end of this year, Shenzhen Letia will also be relocated to the production base in Guangzhou. In the future, Guangzhou Laitia will become the production and R&D base of Hongli Optoelectronics LED application products.†Du Yanxi revealed.
In the case of possible impediments to exports from Europe and the United States, companies have responded to each other. Moyi, deputy general manager of Shenzhen Taidilun Optoelectronics Technology Co., Ltd., stated frankly: “The new regulations introduced by the EU may result in the export of products. Some influences are unavoidable. In the future, they may move to the domestic market.†He suggested that small companies can move to markets such as China or the Middle East and Africa, or cooperate with big companies. “The stronger the stronger ones, must change marketing strategies for the market and discard them. Cheap competition, using high-quality materials, as far as possible to meet the EU standards, otherwise the impact will be fatal."
Liu Mingqiang, director of the R&D and Design Center of Guangdong Tianxieguang Photoelectric Co., Ltd., which is mainly based on the domestic market, also stated that “companies must plan ahead and speed up the development of standards in Guangdong Province.†He pointed out that he is actively participating in the Guangdong LED benchmarking system. For the construction, it is recommended to refer to the latest practices in developed countries such as Europe and the United States, and actively convert foreign advanced standards into local standards, in line with international standards.
In addition to improving product quality in line with standards and moving to the domestic market, speeding up technological innovation and striving for technological success will also be a good strategy.
As the global labor cost becomes higher and higher, and the digitalization process is accelerating, intelligent control is increasingly becoming the mainstream trend of future circuit and lamp design. In this regard, Du Yanxi said that Leitia has not stopped the research and development of intelligent lighting.
Du Yanxi introduced to reporters a new generation of intelligent downlights with the intelligent dimming function newly developed by Leitanya. The light source uses the COBLED-LB016 series independently developed by the parent company Hongli Optoelectronics. This light source uses a variety of chip combination modes, and light mixing can change the light/color effect with the current control, with the advantages of the traditional COB surface light source. At the same time power range, light source color temperature, color rendering index are adjustable.
Smart lighting has an advantage in overseas markets. Because of its high labor costs, high labor costs for finding faults and replacing lamps, the use of smart lamps can greatly reduce labor costs. It can be more humane to meet the requirements of users and achieve maximum Limit energy saving, effectively reduce the maintenance costs of future lighting projects. "LEDs replacing traditional lighting have become a trend of development." Du Yanxi finally said.
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