Recently, according to LED industry, the international lighting giant Philips (Philips) will reduce the ex-factory price of LED bulbs to 0.8 US dollars, a drop of 20%. The price of LED products continued to decline, causing the upstream LED component quotation to be close to the cost line. The profitability of the manufacturer was severely tested. Although the overall LED bulb shipment increased, it did not help the manufacturer to improve the operating conditions. Some competitors were forced to withdraw from the market. .

Under the price war, some companies compete for the market and seek sales, at the expense of product and service quality. They will use the cheapest solution and the worst components to produce low-priced, low-quality products. The influx of products into the market will accelerate the deterioration of LED homogenization competition, and these evil consequences have begun to appear.

Domestic: unqualified testing

On February 22nd, the Guangdong Provincial Bureau of Quality and Technical Supervision announced on the official website of the quality of 13 product quality supervision and inspections of household refrigeration appliances in 2015. Among them, 194 batches of lamps and lighting fixtures were spot-checked, and the unqualified product discovery rate was 18.6%.

On February 5th, the Shanxi Provincial Quality Supervision Bureau conducted a supervised spot check on the quality of 20 batches of LED lamps produced by Shanxi Province's production and distribution units, qualified 17 batches, failed 3 batches, and the unqualified product detection rate was 15%. The main quality problem that exists is that the LED lamp power is unqualified. The lamp power determines the power consumption of the energy saving lamp.

On January 22, the General Administration of Quality Supervision, Inspection and Quarantine announced the results of the national supervision and spot check on the quality of 34 kinds of products such as toys in 2015. This batch of 73 batches of self-ballasted LED lights produced by 73 enterprises in 10 provinces and municipalities including Shanxi, Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, Jiangxi, Shandong, Hubei and Guangdong, including non-directional self-ballasted LED lamps and reflective self-ballasted LED lamps have a non-conforming detection rate of 28.8%.

On January 8th, the Provincial Quality Supervision Bureau of Anhui Province carried out provincial-level supervision and spot checks on lamps and lamps in the province. This sampling selected 19 samples from 6 regions in Anhui Province, including Hefei District. Group, 2 groups in Huangshan area, 2 groups in Lu'an area, 2 groups in Wuhu area, 1 group in Tongling area, and 1 group in Zhangzhou area, samples were taken from production enterprises. The test results were as follows: 15 groups were qualified, the total pass rate was 79%, and 4 groups were unqualified, and the failure rate was 21%.

On January 5th, the Shandong Provincial Bureau of Quality and Technical Supervision announced the results of the provincial supervision and spot check of the third batch of LED lighting products in 2015 on its official website. One batch of products of one enterprise did not meet the requirements of relevant standards.

International: recalled

On February 16th, the European Commission's Non-Food Rapid Alert System (RAPEX) imposed a mandatory recall on a domestically produced ElectroGEAR downlight. The notified country of this case is Finland. The notified product is a 6-watt downlight with a diameter of 120 mm and comes with a power supply. The product barcode is 6438140414601, the light source model of the product is 41460, and the power supply model is LDE-6W350. The OECD belongs to the OECD industry classification code. It is 78000000 (electrical). The reason for the recall was that the windings of the transformer in the power supply were insufficiently insulated and the product did not comply with the requirements of the European Low Voltage Directive and the relevant European standard EN60598. The product will be enforced in Europe due to mandatory withdrawals from the market and recalls.

In February, the US Consumer Product Safety Commission (CPSC), Health Canada and IKEA North America Services LLC (IKEA) jointly announced the recall of Chinese-made ceiling lamps. The reason for the recall is that IKEA has received 224 consumer complaints from all over the world, saying that the plastic buckle of the lampshade is broken and the ceiling lampshade is dropped, posing a threat to consumer safety. Of the 224 consumer complaints, 11 were reported as accidents involving consumers.

In January, Lunera recalled about 60,000 fixtures in the United States (and 1,000 of them were sold to Canada), and the recalled model was the Lunera13wattHelenGX23LED industrial lighting fixture. The United States said that in the case of the case, it was found that the luminaire could not be used when the surge voltage occurred. It may cause problems such as burnt of the board. Lunera received a total of 11 overheating reports for this luminaire. However, no user injury occurred. Consumers should stop using the luminaire immediately and contact Lunera for a full refund. The above lamps are all made in China.

Countermeasures:

LED industry must be self-disciplined

The chaotic price war in the LED lighting industry not only has quality problems, but also serious risks of safety accidents. Companies that initiate price wars often say that price cuts are conducive to consumers and consumers are benefited. This is understandable. However, the price cuts are suddenly too large, even far below the overall level of industry cost, and there is no doubt that there is malicious competition.

Before the government departments have yet to be suitable for administrative intervention, local industry organizations should play a self-discipline role and maintain normal competition order. Enterprises should agree on a reasonable price range on the premise of the overall cost price level. Exceeding this price range is regarded as malicious competition and will be jointly sanctioned by industry enterprises. In order to achieve the sanctions, the contracting companies can be pre-collected with margins and establish an internal financing system for the industry organizations so that they have sufficient financial resources to impose internal sanctions on the largest companies, prohibit suppliers from providing production materials, and prohibit distributors from acting on their products.

Advancing LED standardization and standard optical components is even more urgent. At present, the LED industry standard system is still not mature and complete, the standard gap is large; the standard technical indicators are backward, and the standard implementation feedback is poor; the LED industry has many kinds of technologies, multi-disciplinary crossover, and fast technology update, which makes the matching in standard setting. Coordination is difficult to guarantee.

In addition, enterprises should actively fulfill their social obligations and responsibilities and establish a sound voluntary recall system. For products that have already been sold, once a production link is found to have problems, the batch product may have quality problems, and the product should be actively recalled in the first time to eliminate the influence of the bad product on the customer or reduce the damage of the product to the customer. In particular, avoid creating a safety incident.

Industry development needs to be adjusted

In 2016, the “price war” of the domestic LED industry has become increasingly hot. If the LED industry is to develop healthily, it is necessary to make some adjustments.

In the process of industrial development, it is difficult to avoid the process of overcapacity and the elimination of old products, old equipment and old markets. The LED industry is also the same. The early market demand is rapidly expanding. It can indeed occupy a part of the market through imitation and low-cost methods, and it is even possible to create a phenomenon in which “bad money drives out good money”.

As for how to adjust the industry to promote the healthy development of the industry, some experts said that this actually requires breakthroughs in standards, industry norms, research and even consumer education.

1. Industry standards need to follow the development of the industry, and it is necessary to continuously update relevant technical indicators, strengthen the mandatory certification system and market access system of safety regulations;

2. The industry needs to strengthen information exchange, understand the development of the industry, avoid blind investment in homogenization and low-quality products, and guide capital and technology forces to invest in industrial upgrading and cross-border applications;

3. It is necessary to strengthen exchanges with universities, scientific research institutions, industry associations and other industries, and to find new application development directions, such as plant factories, visible light communication, etc., to achieve the purpose of diverting some excess capacity.

to sum up:

In the face of price wars, the thinking of many LED companies is to obtain a certain market share by reducing prices, but for consumers, the price is not the lowest, only lower, if only through the blind price reduction, only in the price war cycle The vicious circle continues. The "disordered" price competition, blindly playing "malignant price wars", is bound to bring about both losses, not only bad for business development, but also cause certain damage to the normal market economic order, which is undoubtedly a next step.

Now the LED lighting market is developing very fast, the market space is very large, but the competition is fierce. Inevitably, some enterprises will be eliminated. Therefore, LED companies must find their own characteristics to develop and choose the direction that suits them.

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