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    Why have many lighting conppanies withdrawn from Chinese LED lighting market

    Industry News 2016-07-16

    It is reported that Japan's largest semiconductor maker Toshiba Lighting Co., Ltd. (Toshiba) recently formally handover its lighting business in China to Anhui Konka lighting, so far, that Toshiba formally withdraw from China LED lighting industry.


    This is not foreign enterprises exit lighting market in China for the first time, prior to this, Samsung announced is no longer involved in China's lighting market, Philips Lighting also sold the equity of 25%, and general electric separation of its lighting business, Hon Hai's acquisition of sharp case. Many well-known lighting companies have quit China lighting market, what are the reasons? How many difficulties are there in China's lighting industry?


    There are always two sides to everything. Foreign lighting enterprises have quit the Chinese market on the one hand, indicating that the lighting market in China development may be unsatisfactory. However, this does not mean that China lighting market development prospects. On the contrary, it is the development and prosperity of the Chinese lighting market and fierce competition, the survival of the fittest.




    How many difficulties are there in China's lighting industry?


    LED lighting market competition has reached an extremely fierce stage

    As everyone knows, China lighting industry shows great potential for development in the early stages of development, and LED related enterprises in the early stages of development but also tasted the sweetness, then, LED industry wide market and substantial profits, attracting more and more manufacturers and investors to join the industry, especially in recent years, there is more and more related enterprises the influx of the development of LED lighting industry has been close to maturity, therefore, leading to the LED industry increasingly fierce competition, if the company didn't do enough preparation to deal with such fierce competition, whether it can adapt to the law of survival of the fittest market will be an unknown, of course, may choose to give up China lighting market this big cake to strength nothing, just for the strategic goal of enterprise development。


    High cost

    Recently, a number of LED lighting business forecast in the first half of the performance, there are many related businesses said declines in the first half of this year's performance, however, whether earnings growth or decline, most of the enterprises said LED lighting industry development of high cost, labor force, fixed equipment and research and development costs are high, the high cost of natural decline, profit.


    LED product similarity is high, it is difficult to highlight the advantages

    Led the development of the industry to such a period that the market will appear many similar products, between peers in the products is almost the same, not unique advantages. A solution is to price war, especially business platform of the price war is particularly intense, which led to vicious competition, is not conducive to the healthy development of the LED industry, however the high cost of R & D, many enterprises do not want to input more R & D expenses to solve this problem.


    In the face of many enterprises to withdraw from the market in China, enterprises need not panic, more should is preparing to face fierce competition, reduce cost, at the same time, increase innovation, highlight the product difference and uniqueness, so that their products off Ying。


    (editor / Artbright: Aly)


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