Low-cost advantage fades Shenzhen LED high-end market

Recently, it was learned from the LED lighting conference held in Shenzhen Summit on “From Excellent Design to Excellent Sales” that although China’s LED industry is currently facing difficulties such as overcapacity, low-end products, rising costs, and price competition, some Shenzhen enterprises with strategic vision have already avoided price war difficulties and rely on measures such as independent innovation, patent application, and improved design and process to reduce costs. They have occupied high-end markets such as Europe and America with lean quality and excellent technology, and have achieved steady growth in their businesses outside China.

President of Global Sources Corporate Affairs Juncker analyzed that the low-cost advantage made by China is gradually receding. In addition, the needs of buyers and consumers have also undergone great changes. The focus has shifted from the traditional value-for-money to the overall value of the product. This trend is a trend indicator for enterprise transformation and upgrading. Jun Ke said that the LED lighting market has huge business opportunities and development potential. However, the current development of China's LED lighting industry still faces some challenges, including China's LED upstream and downstream technology is weak. LED chips and device products are mostly concentrated in low-power, medium- and low-end products. For Chinese LED lighting companies, improving their own anti-risk capabilities and market competitiveness is currently the top priority. To truly get rid of the market crisis, enterprises must strengthen their overall competitiveness by increasing their R&D efforts, raising their technological level and product quality, and increasing the added value of their products.

Mr. Cui Jian, the managing director of Shenzhen Keripop Optoelectronics Co., Ltd., stated that in order to avoid a price war, Kerip began to choose high-end positioning, and the main target market was locked in the United States and Japan. Products are strictly controlled and pursue high-end quality. To this end, the company has obtained more than 10 national new structure patents and one product patent for inventions, and has actively conducted foreign market access certification. Due to the strong competitiveness of the products, LED lighting products achieved a net increase of 137% year-on-year.

Shenzhen Laiford Optoelectronics Co., Ltd. also tasted sweetness in the pursuit of high-end process. Zhou Honglin, general manager of the company, stated that Raiford is a company engaged in research and development and manufacturing of high-end LED constant current power supply. Power is the key to ensuring the lifespan of LED lighting products. At present, more than 100 products sell well in the mainland market, and some products are exported to Europe, the United States, Brazil, India, and Russia. Zhou Honglin disclosed that currently, the power of Leiford has occupied 30% to 40% of the domestic and foreign markets.