[Text/Reporter Wang Cairong] The Shanxi Provincial Economic and Information Committee issued the "Action Plan for Accelerating the Development of Industrial Energy Conservation and Environmental Protection Industry" after the Spring Festival in 2014. Shanxi Province will implement the full coverage of LED lighting in the public sector. By 2015, we will strive to promote the public in the province. The lighting field has completed the transformation of LED lighting.
The policy push and the rapid decline in the price of lighting products have led to a surge in demand for the domestic LED public lighting market. The investment focus of the entire LED industry chain is gradually shifting to the middle and lower reaches.
At the same time, however, many problems such as lack of standards, vicious competition, homogenization of products, and uneven quality levels have followed. In this development background, LED lighting companies with different scales and strengths are beginning to differentiate. The LED lighting market is also showing a new competitive situation.
Although the development of the domestic LED public lighting market has been in full swing in the past year, it cannot be ignored that the vicious competition among LED companies, the unevenness of products and the hidden dangers of quality are also emerging.
At the end of October 2013, the Guangdong Provincial Bureau of Quality and Technical Supervision showed 40 batches of LED street light and light source controller products produced by 40 companies in 9 regions including Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Jiangmen and Shunde. The proportion of unqualified products is as high as 25%.
In addition, in the LED engineering lighting renovation projects that have been completed in various parts of the country in the past two years, many LED street lighting renovation projects have experienced quality problems. For example, Nanchang Bayi Avenue, Jinsha Street in Jincheng City, Zhejiang Province, Jinsha Street, and Guancheng Street in Dongguan have been frequently complained of LED lights.
Pushing and blaming, the main responsibility of the above quality accidents lies in the fact that the winning bidders and manufacturers have lack of control over product quality, or intend to cut corners on the winning products. However, a frequently overlooked phenomenon is that some local governments require bidding companies to ensure that high-quality, high-performance LED lighting products must meet the requirements of high quality and high performance. However, when bidding, the price is quite low. It is difficult for suppliers or manufacturers to make considerable profits.
For example, in 2013, the LED street light lighting project of the 2 billion yuan administrative village street in Shanxi has attracted widespread attention in the industry. Many successful LED companies have said that the cost is too high, the profit is too low, and the southern enterprises with lower cost are selected. Some companies even choose to return the bid after winning the bid.
In addition to quality hazards, vicious competition among downstream LED lighting companies has also occurred from time to time.
“After winning the bidding for the LED street lamp energy-saving renovation project of Nanhai Avenue, the unsuccessful bidders have complained about our malicious price reduction. In fact, they have the most price pressure during the bidding process.†Yang Yuehua reluctantly said that in the municipal engineering lighting project In this, such vicious competition has long been commonplace, and it is difficult to find a compromise solution.
“Affected by the change of government, the progress of domestic LED street lamps and other engineering lighting market has slowed down in 2013. The competition among LED companies for government orders is very fierce.†Dehao Runda’s secretary-general Deng Fei told reporters that with the recent development The number of LED lighting companies has gradually increased, and the upper and middle-end LED companies on the scale have accelerated vertical integration to the downstream. The LED engineering project market capacity has been quite limited.
“The volatility of policies in the decision-making process of municipal engineering projects is relatively large, so the LED industry will develop more in the field of commercial lighting in the future.†Zhu Bingzhong, deputy general manager of Qinshang Optoelectronics, once said that LED lighting will eventually go to the civilian market.
The policy push and the rapid decline in the price of lighting products have led to a surge in demand for the domestic LED public lighting market. The investment focus of the entire LED industry chain is gradually shifting to the middle and lower reaches.
At the same time, however, many problems such as lack of standards, vicious competition, homogenization of products, and uneven quality levels have followed. In this development background, LED lighting companies with different scales and strengths are beginning to differentiate. The LED lighting market is also showing a new competitive situation.
Although the development of the domestic LED public lighting market has been in full swing in the past year, it cannot be ignored that the vicious competition among LED companies, the unevenness of products and the hidden dangers of quality are also emerging.
At the end of October 2013, the Guangdong Provincial Bureau of Quality and Technical Supervision showed 40 batches of LED street light and light source controller products produced by 40 companies in 9 regions including Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Jiangmen and Shunde. The proportion of unqualified products is as high as 25%.
In addition, in the LED engineering lighting renovation projects that have been completed in various parts of the country in the past two years, many LED street lighting renovation projects have experienced quality problems. For example, Nanchang Bayi Avenue, Jinsha Street in Jincheng City, Zhejiang Province, Jinsha Street, and Guancheng Street in Dongguan have been frequently complained of LED lights.
Pushing and blaming, the main responsibility of the above quality accidents lies in the fact that the winning bidders and manufacturers have lack of control over product quality, or intend to cut corners on the winning products. However, a frequently overlooked phenomenon is that some local governments require bidding companies to ensure that high-quality, high-performance LED lighting products must meet the requirements of high quality and high performance. However, when bidding, the price is quite low. It is difficult for suppliers or manufacturers to make considerable profits.
For example, in 2013, the LED street light lighting project of the 2 billion yuan administrative village street in Shanxi has attracted widespread attention in the industry. Many successful LED companies have said that the cost is too high, the profit is too low, and the southern enterprises with lower cost are selected. Some companies even choose to return the bid after winning the bid.
In addition to quality hazards, vicious competition among downstream LED lighting companies has also occurred from time to time.
“After winning the bidding for the LED street lamp energy-saving renovation project of Nanhai Avenue, the unsuccessful bidders have complained about our malicious price reduction. In fact, they have the most price pressure during the bidding process.†Yang Yuehua reluctantly said that in the municipal engineering lighting project In this, such vicious competition has long been commonplace, and it is difficult to find a compromise solution.
“Affected by the change of government, the progress of domestic LED street lamps and other engineering lighting market has slowed down in 2013. The competition among LED companies for government orders is very fierce.†Dehao Runda’s secretary-general Deng Fei told reporters that with the recent development The number of LED lighting companies has gradually increased, and the upper and middle-end LED companies on the scale have accelerated vertical integration to the downstream. The LED engineering project market capacity has been quite limited.
“The volatility of policies in the decision-making process of municipal engineering projects is relatively large, so the LED industry will develop more in the field of commercial lighting in the future.†Zhu Bingzhong, deputy general manager of Qinshang Optoelectronics, once said that LED lighting will eventually go to the civilian market.
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