Profit "story" behind 360 billion market

In 2020, the novel coronavirus pneumonia caused serious impact and impact on the global economic development and consumer market, and superimposed the intense market competition in the lighting industry. LED lighting enterprises are generally faced with enormous operating pressure.

Today, LED lighting has become the mainstream lighting products in the market, and its technology and market are quite mature. According to statistics, China's LED lighting market will reach 365 billion yuan in 2020. But in contrast, the number of lighting enterprises in China is more than 10000, and the number of lighting enterprises above scale is also nearly 2000.

In the whole LED lighting industry chain, the application of LED lighting is in the downstream link. Due to the relatively low entry threshold, there is an obvious problem of structural overcapacity, and the market competition is increasingly fierce.

Coupled with the rising prices of raw materials and labor costs, it also brings great pressure to the rapid development and profitability of lighting enterprises to a certain extent.

At the present stage, the first-line brands still occupy the high-end market, while many small and medium-sized lighting manufacturers have low product technology maturity and quality stability, relatively low added value and serious product homogenization, so they can only participate in the low-end market competition by means of price competition.

Long term low price competition will inevitably lead to disorderly competition in LED lighting industry, which not only affects the profitability of LED lighting enterprises, but also is not conducive to the healthy and sustainable development of LED lighting industry.