The cause of LED market competition at present stage
in domestic field of LED lighting industry, basically in a state of disorderly competition, and have intensified trend.
the cause of this chaos phenomenon mainly include:
a: blind investment expansion caused by the phenomenon of excess production capacity.
although the market mainstream products are still energy-saving lamps. And LED lighting because price is too high, quality is uneven, standards, non-standard factors, such as market potential has not been outbreak, and many other haven't has gained popularity. But many investors, manufacturers can't wait, big investment, large-scale expansion, even some government departments at the county level should also strongly encouraged to build LED industrial park.
with large and small enterprises, the lighting in other industries, and even know nothing about the LED products market investors have also entered the LED industry. Such a situation, it will only cause rapid expansion, lead to the industrial chain upstream and downstream in excess capacity.
2: the products on the market is uneven
LED products on the market to avoid uneven quality, each brand product price difference is big, affects both LED products marketing, also influence public trust LED products to the market. This on the benign development of lighting industry is very adverse.
3: the price war will lead to industry reshuffle
current technology LED products not up to standard, immature market application, has become a target of capital hyped. Investment overheat, leading to a price war, coupled with rising production costs, the capital chain rupture adverse factors, such as small and medium-sized enterprise is facing the failure problem, industry will face a new round of reshuffle.