Just as demand in the LED lighting market began to slow down and companies fell into sharp decline in profits, the dangerous signs of the “black list†of the domestic LED lighting industry have intensified the industry’s concerns about the industry’s new round of “crisisâ€.
Recently, the General Administration of Quality Supervision, Inspection and Quarantine released the quality of the national supervision and inspection products in 2015. From the perspective of specific products, there are 30 kinds of products with a pass rate of less than 80%, of which the pass rate of self-ballasted LED lamp products is only 65.6%.
In the last week of 2015, Hungary, Germany, France and Latvia exported a variety of LED lighting to China.
Prior to the 2015 “Double Elevenâ€, the Zhejiang Provincial Quality Supervision Bureau first purchased a total of 832 batches of 19 categories of products in the market. The samples were from Taobao Tmall, Jingdong Mall, Suning Tesco, No. 1 Shop. And many other mainstream e-commerce platforms. The test showed that 324 batches were unqualified, and the failure rate was 38.9%, which was close to 40%. The most serious product was the LED lamp. Of the 49 batches purchased in total, 48 batches were unqualified. The brands involved include a number of well-known brands such as Midea, Op, Louis Martin and Bull. In this sample test, the self-ballasted LED bulb has the highest unqualified rate of 98.0%, while the stroller LED bulb is closely followed by an unacceptable rate of 82%.
Under the price war, some LED companies have begun to taste the consequences by sacrificing the quality of products and services to deal with price wars.
In particular, many small and micro enterprises operate at low prices and low prices, and their quality control capabilities are low, resulting in frequent product quality problems. It is not uncommon for large enterprises and even some well-known listed companies to have quality problems. It can be seen that quality problems have become an obstacle to the development of the domestic lighting market to a certain extent.
In recent years, the LED industry has been heated up by various capitals, and thousands of troops have advanced. However, the fierce competition in the market has also led to the price wars, and the chaos has been raging: cutting jobs, shoddy, and counterfeiting. Disaster, product quality is even more uneven.
Some unnamed industry veterans said, "There is no big problem in terms of technology. The problem of product quality is mainly due to too many enterprises, product homogeneity is serious, everyone can only fight prices and reduce costs. Some small enterprises have adopted unqualified raw and auxiliary materials. Some large enterprises have outsourced orders but the supervision is not effective, which has also caused the unqualified rate of lamps."
Li Benjie, CEO of Lianlang New Materials, pointed out that due to the high price of the packaging factory in 2015, companies with no quality advantage can only choose to fight the price war, which is why the price of glue continues to drop.
At the same time, the current inadequacy of domestic lighting product standards has also given some companies a chance to get rid of, even if some companies get a variety of certification, but the actual quality of bulk products and inspection products vary greatly.
In this regard, Deli's deputy general manager Pu Cheng believes that "product certification is passed, but the first step of the product to the market, to ensure that the product batch operation and the inspection of the type test sample consistency is the responsibility and conscience of the enterprise."
In fact, as LED lighting gradually matures, consumers are more rational, and the price is not the only standard for customers to choose products. Product quality has become the most important factor affecting customer purchase.
"The next three years will be the last three years of all companies involved in the LED industry, and the low-end and low-end will die." Dr. Zhang Xiaofei, Chairman of Gaogong LED believes that price competition is the initial level of competition, and companies are cutting prices. At the same time, it is necessary to increase the technical content, enhance the value of products, and shift the competition of products from price competition in order to obtain more comprehensive and longer-term development.
How to achieve both price and quality has become a difficult problem for many LED lighting companies to overcome.
Li Zhaohua, general manager of Mingwei Electronics, believes that in fact, quality and price can be both. A cheaper price does not mean sacrificing quality. "When Mingwei Electronics' products are sold for 1 cent, they must go through a rigorous process to test. Every employee of Microelectronics strictly requires itself to be rigorous in doing things and controlling quality. In addition, the company achieves high cost performance through institutionalization and product standardization."
Finding differentiation and increasing product added value have become an important means for many LED companies to crack low-price competition.
Zhou Shuiming, general manager of Jiamei Lighting, believes that increasing the added value of products must provide competitive solutions and services in combination with the needs of customers, and this has high requirements for the talents of enterprises and the comprehensive strength of enterprises. In the case of bottoming out, by providing customers with quality solutions to increase the added value, it will bring better overall benefits to the company."
As Li Daxin, deputy general manager and general manager of the brand department, Tang Qiongshan said at the 2015 high-tech LED annual meeting, no matter what competition in the future, manufacturing-oriented enterprises must be brand-oriented, "reflecting the true strength of a company, not in How big is your plant and capacity, and it is possible to integrate internal and external resources, and to provide customers with high quality products is the king."
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