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LED Lighting Will Popularize Civil Market
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At the working meeting of the State Council on energy conservation and emission reduction and climate change response, Premier Li Keqiang stressed that hard measures must be taken to accomplish the hard task of energy conservation and emission reduction. From Premier Li Keqiang's speech, we can see that the future in energy conservation and emission reduction, the government will give strong support. Melt Optoelectronics believes that LED, as a new energy-saving industry, will take hard measures to promote the popularization of industry in the future. For us in the industry, how about the LED industry in the form of big policy? What is the direction of industrial development? In this regard, Shenzhen Mert Optoelectronics to address these problems, some views for the industry reference.


Layout: Forming a relatively complete industrial chain


Since the beginning of the year, the share price of LED industry chain companies has risen significantly worldwide, while the performance of A-share related enterprises is lagging behind. In view of the market underestimating the upward resilience of LED OFweek semiconductor lighting network industry after the outbreak of household lighting, the short-term callback will usher in the golden opportunity of industrial layout.


Behind the Conference on Energy Conservation and Emission Reduction: The Popularization of LED Lighting in Civil Market is approaching


The upstream of LED industry is mainly epitaxy production and chip manufacturing. Upstream links in the LED industry chain have high technology content, large equipment investment, and relatively high profit margin in the overall industry chain. 2014 will be the stage of increasing gross interest rate of chip industry. In the second quarter of 2013, the balance of effective supply and demand capacity of chips has basically been reached. Chip prices have basically stabilized in the third and fourth quarters. The price of chips has dropped by about 10% in the whole third and fourth quarters. Chip prices are also expected to fall by about a dozen points this year, and there may be structural shortages in the second quarter. In terms of target selection, it is suggested that attention should be paid to leading enterprises which have long-term accumulation in the LED industry and have cost, scale advantages and upstream and downstream integration capabilities.

The most direct beneficiaries are midstream packaging enterprises. From 2014 to next year is the stage of big integration of packaging industry. Many small and medium-sized companies will withdraw from the market. After the integration, the pattern of packaging end will be clear and stable. From the published performance forecast, many packaging enterprises achieved good growth in the fourth quarter of 2013, and this trend will continue in 2014. Data show that China's packaging industry in 2013 was 47.3 billion yuan, an increase of 19% over the previous year, and is expected to reach about 60 billion yuan by 2015.


On the downstream side, the light source is the largest possible area in the future. At present, there is no strong brand of LED lamps in China. Basically, the starting line of these enterprises with traditional channel advantages is almost the same. Therefore, enterprises with advantages in technology, product control and management will gradually take the lead in the future. Secondly, traditional channels still have great advantages, but Internet channels will play a more important role in the downstream of this year. The point of view is that the light source companies will invest a lot in brand, in addition to increasing the investment in Internet e-commerce. Among them, in the field of energy-saving lamps has occupied the commanding heights of brands and channels, traditional lighting manufacturers are expected to take the lead in the future competition and make full efforts.


Goal: Civil lighting is the biggest market


As an important energy-saving and environmental protection product, LED lighting has been popularized and penetrated into the rural market. With the gradual improvement of living standards of rural residents, their demand for new products is also rising. It can be imagined that this is an attractive cake for emerging industries. How to make LED benefit the people?


1. From the enterprise's point of view, it is necessary to develop products, strengthen brand publicity and provide better services. Rural consumers are usually more "face-saving, good-looking", and "quality assurance, safety" is also their appeal point. Because of this, rural consumers are more "superstitious" brand. Therefore, when setting up channels for rural enterprises, they should have a definite aim and conform to farmers'consumption habits.


In terms of brand promotion, wall advertisements and shop signs (through important national highways of cities, counties and towns, houses on both sides of provincial highways, OFweek semiconductor lighting network houses; entrance of villages, village committees, snack shops, etc.), cross-street banners and radio loudspeakers, film implantation in the countryside, caravan direct sales, etc., are all effective means of advertising dissemination.


2. Agents should aim at balancing their energies and cultivating rural markets. Local agents are the core force to directly promote the development of the local market. If agents ignore their distribution outlets, or "do nothing", then the distribution outlets can not "produce grain" for the general agent, which will form a vicious circle. Level 3 and 4 distribution points should not be neglected. Therefore, the agent should pay more attention to the distributor, from the logistics, publicity, service and other aspects.


3. Distributors should break through each other, gather consumers and disseminate brand reputation in time. Local distributors should be the people who know the local consumers best. They can gather contractors, builders and decorators from all districts and villages to help recommend products and give them a certain percentage point. On the other hand, one-to-one service is not difficult for rural areas.


Although the current civil market in the use of LED, there are still many drawbacks. However, Xiaobian believes that "government support", "market supervision in place", "healthy competition of enterprises". Under the three-wheel drive, the popularization of LED civilian market is imminent.

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