According to the introduction of Lu jinqing, product manager of LED lighting from Philips lighting in Asian-Pacific Area, because of low market entrance threshold, all the accessories can be purchased from market, so that all traditional lighting industry and electronic businesses are marching into LED lighting. “It results in excess capacity and investment capacity. Some businesses have to sacrifice the quality to exchange for the room of price reduction when they cannot sell their goods out”. Philip made sample tests before to find out that the light of some jerry-built low-price bulbs got darker after 3-5 months use. “Customer from the earlier stage got fooled which is a great harm to the entire industry.”
High-price is still the consumption barrier
The price of LED lighting goes down as the decline of the cost. But customers shrink back at the sight of 30 or 40 yuan brand bulbs. Although Philips released the low-price all-round bulbs, they are just entry-level products, only “as a result for most families start to know and use”. Philips declared that the sale of customer-friendly series bulbs is better than expectation. But they also admitted that acceptability of first and second tier cities is relatively higher. Price is still the restriction of popularization.
Meanwhile, the insiders said, “The high price of LED components impact the popularization and acceptability for the whole LED lighting market.” Besides, the incomplete realization of the LED products performance is still the main problem of popularization phase.