From later this year, many LED lighting enterprises like PHILIP, NVC, EVERLIGHT all bring down their selling prices. According to the data in July, the selling price of 7W LED bulbs was brought down by 37.3% in Tsing Hua Tong Fang and 36% in NVC lighting, both of which are the first line manufacturers in the mainland. Some enterprises have announced the cost reduction of their products and the highest reduction rate is up to 40% which leads to great prices change and low price competition in the industry.
The trend of price reduction undoubtedly received wide attention from the industry. The price reduction by leading enterprises plays a very important part. However, we can not deny that the fact that the middle and small LED enterprises has been threatened in the market.
Middle and small enterprises live by their price advantages in sales in the second and third class cities. If the branded enterprises initiate price competitions and extend their markets to the second and third class cities, then the surviving of small and middle enterprises will be further threatened. Once the well-known branded enterprises also bring down their selling prices, the market share of middle and small enterprises will surely be taken away.
Wording of enterprises as follows:
‘The cost reduction by these leading enterprises has little impact on the enterprises in the old city. The reasons are as follows. The enterprises in the old city take great advantage in the low selling prices. There is still room for their price reduction with certain profits if big enterprises reduce their cost for competition. We also own advantages in distribution, strong productivity, and high volume, which other manufactures can not catch up with. Therefore, if NVC reduced the prices of all their products, there would be little influence on us as NVC is not our actual competitors and we have different distribution channels and competitors. ‘