[Text / high-tech LED Ganqin] North America has become a new competition for global LED lighting companies. Chinese lighting companies have identified the North American market as a strategic location for accessing the world stage and demonstrating international status.
However, in the face of the huge but highly competitive North American market, are Chinese LED companies really ready and able to compete in this market? What is the current situation in the North American market? What obstacles will domestic companies face in this market?
Layout overseas heat is not reduced
In the United States and Canada, for example, the GGII survey data show that the total amount of lighting exported by Chinese companies to the United States in the first half of this year reached US$1.09 billion, an increase of 59.6% year-on-year; It reached US$96.209 million, a year-on-year increase of 42.9%.
Taking sunlight lighting as an example, from the perspective of the company's LED lighting performance growth, the company's overseas market growth rate is relatively fast, with North America and Europe as key markets, and South American and African markets expanding.
According to the financial report data for the first half of 2015, the scale advantage of the Sunlight LED business has further expanded, accounting for 66%. The revenue of LED products was 1.245 billion yuan, a year-on-year increase of 92.26%.
Chen Yiping, general manager of Sunshine Lighting China, said: "The company's overseas LED lighting penetration rate has increased by about 30%. In addition, benefiting from the US economic recovery, the development speed is still ahead of other developed countries. From the first half of the year, the company as a whole The main revenue comes from the US market."
In addition, Debang Lighting has maintained a high-speed growth in the overseas lighting market layout, and the heat is not reduced. According to GGII survey data, from January to September 2015, Debon Lighting's exports reached US$129 million.
Ni Qiang, chairman of Debon Lighting, said that the company's main market is currently focused on foreign countries, with exports accounting for more than 80% of revenues. The export region covers most countries in North America, Latin America, Europe and Asia.
"price war" that can't escape
Take the US market as an example. Compared with 2014, this year, the manufacturing industry has been steadily improving, the unemployment rate has been gradually reduced, and the import and export trade has maintained positive growth. The economic growth rate has maintained a healthy growth.
However, in the view of Nie Pengxiang, the president of the incentive test, the US economy has not yet reached a very healthy state. Although the US market has recovered from the employment rate and operating rate, it still has a gap compared with the previously high-speed development of the US market. .
"In terms of employment rate, although the unemployment rate has dropped very low from the data point of view, many people are not very ideal in employment. For example, the previous salary of 200,000 is currently working for 100,000 annual salary. It turns out that there is a full-time job. Working, now can only do a part-time job, in general, the phenomenon of insufficient employment." Nie Pengxiang said.
Another phenomenon in the US market is that the price war is relatively fierce. Large enterprises such as Philips, Puri, and Cree can't escape this situation and are struggling.
Nie Pengxiang said that in terms of price, it can be seen that Cree is the first to launch a low-priced light bulb in the market with the image of the challenger. It has now dropped to 8.99 US dollars or even 7.99 US dollars. Then, Philips' price reduction is more thorough, and even the US$4.79 two balls are launched. Bulbs, while GE introduced the price of $10 and three replacement lamps. These price cuts have caused a big blow to Cree, which has prevented its products from being sold.
Nie Pengxiang believes that in the lighting market, because its channels are relatively hidden, the original LED channel still continues to accept the dividends brought by traditional lighting, and the competitive situation is becoming increasingly fierce. Therefore, in the future, the US market will gradually withdraw in addition to mergers and acquisitions. The market situation will also become increasingly apparent.
"American entrepreneurial companies are currently in a very struggling stage. New or small companies are hard to rise in this market. It is difficult to compete for some shares from traditional giants. It is also common sense to face up or even leave." Nie Pengxiang said frankly.
Quality and certification threshold
At present, excessive price competition in China makes quality difficult to guarantee, resulting in buyers in many countries have a certain resistance to Chinese LED products, frequent product recall cases.
On July 15, the US Consumer Product Safety Commission and Health Canada jointly announced a voluntary recall of 1.447 million fluorescent lamps in China. The main reason for the recall is that the socket may be hot, arcing or melting, and there is a danger of fire.
Prior to this, there were countless such recall cases. GGII pointed out that in the overseas market, China LED lighting products recalled more than 70 brands, including 44 unknown brands, most of which were related to electromagnetic compatibility. related.
Zhang Xiaofei, chairman of Gaogong LED, once called for the construction of a healthy LED industry ecological environment. China's LED lighting industry should be self-disciplined, avoiding damage to the overall image of Chinese brands and affecting overseas LED lighting orders.
In addition, Nie Pengxiang revealed that with the increase in international market access requirements and the strengthening of market supervision, it has also caused obstacles in the “going out†strategic path of domestic LED companies.
Nie Pengxiang said, "The entry threshold for the United States is the highest in terms of safety and reliability for lighting products worldwide, including the US Department of Energy, the Environmental Protection Agency, the Federal Trade Commission and other agencies for access regulations and requirements. Increasingly high, from the previous requirements for product samples only, to the gradual improvement of market regulatory requirements."
In addition, to enter the North American market, it also needs to face technical barriers and intellectual property restrictions. The industry believes that the former is a test and standard constraint that Chinese companies must overcome when entering the United States, and the latter is a serious injury for most Chinese companies entering the North American market.
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