LED Lights Suppliers Market Analysis 2018 Status

1, LED lights suppliers on the definition of lights (LED spotlights and LED ball bulbs):

LED spotlight refers to the light emitted is directional (directional) LED bulb, the main types are MR16, GU10, PAR series.

LED bulb refers to the emitted light is dispersive LED bulb, the main type is E27base.

According to the power, LED bulbs can be divided into: small power (mainly for 5mm LED production) and high power (mainly for 1W, 3W, and even 5W LED production). Together, the market, there are also super-power (for example, 50W LED spotlights), but this has not been tested by the market, but also did not see a large market.

Among them, low-power LED spotlights, bulbs for the earliest planning and production of LED bulbs, has been a large-scale use, but the quality is uneven. These bulbs are mainly sold on foreign retail sites, such as theledlight.com, wiedamark.com, ledwaves.com, 1000bulbs.com. And high-power LED spotlights, bulbs for the last 2-3 years before the large-scale use and implementation of the overall stability than the small power LED bulbs Many; with the price of high-power LED down, high-power LED bulbs will become the mainstream of the mall.

2, the LED lamp customer market analysis:

Overall, now the LED lights in the market, whether it is the producer, the acquirer or the end customer, are not professional, most of them are still only by experience or subjective assumptions such as appearance to judge the quality of products. In the case of similar product appearance, the price plays a dominant role.

2.1 Acquirers:

As the LED market now the channel effect is not significant. Now the LED bulb buyers do not have significant characteristics, that is, but all the acquisition of LED products (especially the use of products) are likely to acquire LED bulbs. However, the purchasers who do lighting decoration, mainly purchase LED display, wall washer, guardrail tube and so on, the possibility of buying LED bulbs is not big.

The main buyers are distributors (such as LEDsign.dk), online stores (such as theledlight.com), construction lighting contractors and those who do energy-saving system retrofitting (such customers are also selling solar products). Regardless of the type of purchaser, it is possible that often receive small projects in the local area (for example, a store to replace LED lights, for example, a window to replace LED lights)  

2.2 end-customers:

The end customer is represented by the retail store as the primary commercial users, and the family as the representative of the individual users.

The acquisition of commercial users represented by retail stores tends to be completed locally. Individual users, represented by households, tend to complete their acquisitions on ebay.com or other retail sites.

2.3 Geographical markets According to the analysis of geographical markets, the most acquisition of LED bulbs should be in Europe. This is followed by North America. The reasons are

1) Europeans are more environmentally aware, more willing to spend money on energy saving. 

2) North American market has a higher entry barrier, mainly because the process of doing UL certification is too troublesome and expensive. And CE certification is relatively informal, domestic out of a 1000 yuan to get the certificate. And CE certification is not consistent supervision and query organizations (where to do certification, where to query. But who can not say which is legally authorized, qualified CE certification organizations), so they post a CE mark and no one can check out.

So the domestic LED bulb supplier's primary market is basically Europe.

3、Competitor and competitor analysis:

3.1 Competitive analysis: energy-saving lamps (compact fluorescent light), incandescent lamps, LED bulbs.

Between energy-saving lamps, incandescent lamps and LED bulbs, LED bulbs are used to replace incandescent lamps and halogen lamps (halogen lamps), rarely see the publicity LED bulbs are used to replace energy-saving lamps because:

1) there are now many countries and regions have issued decrees banning the use of incandescent lamps;.

2) LEDs are similar to CFLs in terms of luminous power and stability.

From the comparison between LED bulbs, LED bulbs are sold in two main situations:

1) public mold LED high power or small power bulbs.  

2) Own mold or imitation of large companies LED bulbs (such as Philips, Osram, especially Philips). The former represents a low-level product competition, price is the primary determinant; the latter represents the self-developed and developed products, the competition is not very intense.

4, LED lights Product performance and the existence of problems:

The selling points of LED bulbs are primarily in:

Ultra-energy-efficient, energy saving

Long working life, less or no maintenance

No mercury, heat, UV or infrared

Existing LED bulbs exist in the first place, dead light or perhaps light failure is relatively serious; the actual luminous power is not high, not enough to replace the traditional incandescent lamp; off the cover (the periphery of the lamp body of the secondary lens); off the base (such as E27 base part off); the price is too high, not affordable.

The difficulty of selling is, first of all, how to overcome the customer does not understand the case of CE certification, product appearance without differences in the competition strategy (price, brand, etc.).

5, sales channel analysis:

Now there is a phenomenon in the LED industry is to do LED does not understand the lighting, lighting does not understand the LED. So in terms of products, LED lighting products are diverse, but the photoelectric thermal test are not pass or the bottom can not provide, and some do not even know the need to do this aspect of the test. In terms of sales channels, we are all selling LED products in a foreign trade method. Most are to do a website, hire a few salesmen, where to send sales letters; better, is to do advertising on alibaba, participate in the exhibition, and orders are more mixed, scattered, small, and custom more.

These companies doing LED products for export, so far, many of them can maintain a living, and even some of them are doing well. That is, the existence is reasonable. But, conceivably, in 5 years there will be how many small companies out?

From my personal understanding, the traditional lighting manufacturers of products and pathways are in accordance with the Consumer and professional two types of laying. Consumer products are primarily home lighting, and sold through retailers; and professional products are primarily for commercial customers, and sold through The professional products are mainly for commercial customers, and are sold through distributors.

And this kind of traditional lighting sales chosen by the sales channel but not in the LED lighting products sales have any performance. Of course, at this point, it is not clear that there is one way to promote LED bulbs, as each middleman will be retailing, or perhaps taking on a project locally.

But on the whole, in the current stage of the market situation is relatively chaotic, is still the low-end products + high-end products coexist sales strategy. And on the low-end products, choose the low price dumping method to promote (but this is not our strength); on the high-end products, choose the professional (including catalog, datasheet, user manual, package, etc.) method to promote.

So according to my understanding, it may be possible to LED bulbs under 10USD policy for the home market; LED bulbs above 10USD policy for the commercial market (displays, stores, offices, hotels, bars...) , and now, the LED bulb for commercial market is the mainstream, only here the awareness of energy saving is relatively strong, and willing to pay to test.

But the need to establish the home lighting LED bulb sales system as soon as possible, because in the end, the family is the largest use of these bulbs collective, and they do not need a high degree of expertise.

6, the LED lamp market demand analysis and prospects:

With the introduction of countries have banned incandescent decree, along with the gradual improvement of norms, so it is expected to replace many incandescent and halogen lamps, so the LED bulbs are expected to be in great demand. As long as the quality is stable and there is continued customer demand, I believe that the increase in this area will continue for at least 10 years.

7. Conclusion:

7.1 What is a better LED bulb?

Nowadays, a stable LED bulb needs to have the following characteristics. 

1) the use of high-power LED as the light source. 

2) outstanding heat dissipation structure, that is, the use of aluminum housing and other heat dissipation structure to ensure a slow light decay, within 2 years without significant light decay. 

3) high luminous power, at least instead of the traditional 40W incandescent lamp. 

4) not easy to die and leakage, etc:

7.2 What features are required for more advanced LED bulbs?

In addition to the features mentioned above, the more advanced LED bulbs need to have a more unique form factor. Together, the product needs to be packaged in a more advanced way through marketing, packaging and other techniques.

Finally, the need for the warranty period on the performance, preferably 2-3 years. In this way, whether it is the middlemen or end customers are more determined.

7.3 The future of LED bulbs choose what LED is better?

As DC LEDs now have the contradiction of brightness and heat dissipation, while Han and a half AC LEDs have better characteristics in terms of heat dissipation (at least it seems so from the datasheet).

Overall, the product is the first, the way is king, and the brand is enhanced. Our advantage does not lie in mass production, and then mass marketing at low prices. Our current situation is high price, medium quality, no product features, and no brand features. Therefore, our position and situation in the market is very difficult. In the market to open sales, it is necessary to avoid homogeneous competition, it is necessary to make the product a little characteristic, then you have to develop a LED bulb out of their own, mass production and sales.