The domestic LED industry is facing an embarrassing situation of overcapacity and "shuffling". A well-known Japanese LED lighting company has announced its high-profile expansion into the Chinese market. Recently, Hao (Fujian) Optoelectronics Technology Co., Ltd. signed a cooperation agreement with Mitsubishi Weibo, Japan, and officially became the general agent of Mitsubishi Weibao in China. The industry believes that Mitsubishi Weibao has used this to enter the country in order to grab the "welfare" of the Chinese LED industry.
"Wolf" is coming
"It is indeed a matter of courage to enter the Chinese market now." A person in charge of a marketing department at Mitsubishi Wimbledon in Japan told reporters.
"In the past, LED companies listed financing and investment boom led to overcapacity, which led to the collapse of LED companies." Xiamen Optoelectronics Industry Association told reporters that due to the impact of the European debt crisis, China's LED companies export orders fell sharply. At the same time, with the slowdown in LED market demand, technology and price bottlenecks have not broken through, and the LED industry has been shuffled.
In this context, Mitsubishi Weibao has announced its entry into the Chinese market. It is reported that Japan's Mitsubishi Group and its subsidiary Mitsubishi Chemical are among the world's top 500. Mitsubishi Weibo is a sub-brand of Mitsubishi Chemical. With the brand advantage of Mitsubishi Group, Mitsubishi Weibo's LED lighting products have occupied a large share in the European and Australian markets, and belong to the “international first-line†brand.
Mitsubishi Weibao entered the Chinese market with morality and was interpreted by the industry as "the wolf is coming." "Mitsubishi Weibao's strong entry into China will inevitably share the LED market with its Chinese counterparts. This threat is very big." Xiamen Tongshida lighting related person told reporters.
Grab the "welfare"
In the industry's view, in the context of the sluggish domestic LED lighting, Mitsubishi Weibao's "anti-market" raid, the purpose is to rush to grab China's industry "welfare."
It is reported that last year the country released the roadmap for eliminating incandescent lamps, and decided to ban the sale and import of incandescent lamps for general lighting of 100 watts and above from October 1 this year; by October 1, 2016, it is forbidden to sell and import 15 watts or more. Incandescent lamps for general lighting.
"The exit of incandescent lamps, how much space is the market space for LEDs? More than 100 billion yuan!" Shen Qingquan, chairman of 徳泓 (Fujian) Optoelectronics Technology Co., Ltd. told reporters that this good news has injected a lot of LED companies. Stimulant. For LED lighting, the positive factors are that domestic electricity prices are increasing, and LED lighting can save 80%; at the same time, the price of LED lights is falling, which means that their consumer demand will become stronger and stronger.
"Mitsubishi Chemical Co., Ltd. has a large number of independent intellectual property rights in the field of LED raw materials and chip packaging, and has a complete industrial chain structure. With such strong brand backing support, plus the channel advantage of Desheng Optoelectronics' more than 3,000 sales points nationwide, I believe Mitsubishi Weibao will develop smoothly in the Chinese market.†Mitsubishi Weibao related people told reporters.
Intensive warfare
In fact, in the eyes of others, the involvement of Mitsubishi Weibo will lead to an increase in industry melee. "One of the current situation is that the current LED industry lacks standards, which leads to extremely low entry barriers for the entire industry." According to relevant sources, at present, there are about 8,000 domestic LED manufacturers, but most of them are in a small and scattered state. Many are indiscriminate." At the same time, many companies hope to seize the market with low-price strategies, forcing other companies to fight price wars. As a result, low-priced and low-quality products are rampant, affecting the healthy development of the entire industry.
It is reported that Mitsubishi Weibao's current price is positioned at the mid-range. However, according to relevant sources of the company, after entering the Chinese market, the company may adjust the industry and gradually reduce the price of some products. "This move will undoubtedly set off a 'price war' again, more companies will continue to be 'washed'." Xiamen Fu Neng Lighting Company told reporters.
"Wolf" is coming
"It is indeed a matter of courage to enter the Chinese market now." A person in charge of a marketing department at Mitsubishi Wimbledon in Japan told reporters.
"In the past, LED companies listed financing and investment boom led to overcapacity, which led to the collapse of LED companies." Xiamen Optoelectronics Industry Association told reporters that due to the impact of the European debt crisis, China's LED companies export orders fell sharply. At the same time, with the slowdown in LED market demand, technology and price bottlenecks have not broken through, and the LED industry has been shuffled.
In this context, Mitsubishi Weibao has announced its entry into the Chinese market. It is reported that Japan's Mitsubishi Group and its subsidiary Mitsubishi Chemical are among the world's top 500. Mitsubishi Weibo is a sub-brand of Mitsubishi Chemical. With the brand advantage of Mitsubishi Group, Mitsubishi Weibo's LED lighting products have occupied a large share in the European and Australian markets, and belong to the “international first-line†brand.
Mitsubishi Weibao entered the Chinese market with morality and was interpreted by the industry as "the wolf is coming." "Mitsubishi Weibao's strong entry into China will inevitably share the LED market with its Chinese counterparts. This threat is very big." Xiamen Tongshida lighting related person told reporters.
Grab the "welfare"
In the industry's view, in the context of the sluggish domestic LED lighting, Mitsubishi Weibao's "anti-market" raid, the purpose is to rush to grab China's industry "welfare."
It is reported that last year the country released the roadmap for eliminating incandescent lamps, and decided to ban the sale and import of incandescent lamps for general lighting of 100 watts and above from October 1 this year; by October 1, 2016, it is forbidden to sell and import 15 watts or more. Incandescent lamps for general lighting.
"The exit of incandescent lamps, how much space is the market space for LEDs? More than 100 billion yuan!" Shen Qingquan, chairman of 徳泓 (Fujian) Optoelectronics Technology Co., Ltd. told reporters that this good news has injected a lot of LED companies. Stimulant. For LED lighting, the positive factors are that domestic electricity prices are increasing, and LED lighting can save 80%; at the same time, the price of LED lights is falling, which means that their consumer demand will become stronger and stronger.
"Mitsubishi Chemical Co., Ltd. has a large number of independent intellectual property rights in the field of LED raw materials and chip packaging, and has a complete industrial chain structure. With such strong brand backing support, plus the channel advantage of Desheng Optoelectronics' more than 3,000 sales points nationwide, I believe Mitsubishi Weibao will develop smoothly in the Chinese market.†Mitsubishi Weibao related people told reporters.
Intensive warfare
In fact, in the eyes of others, the involvement of Mitsubishi Weibo will lead to an increase in industry melee. "One of the current situation is that the current LED industry lacks standards, which leads to extremely low entry barriers for the entire industry." According to relevant sources, at present, there are about 8,000 domestic LED manufacturers, but most of them are in a small and scattered state. Many are indiscriminate." At the same time, many companies hope to seize the market with low-price strategies, forcing other companies to fight price wars. As a result, low-priced and low-quality products are rampant, affecting the healthy development of the entire industry.
It is reported that Mitsubishi Weibao's current price is positioned at the mid-range. However, according to relevant sources of the company, after entering the Chinese market, the company may adjust the industry and gradually reduce the price of some products. "This move will undoubtedly set off a 'price war' again, more companies will continue to be 'washed'." Xiamen Fu Neng Lighting Company told reporters.
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