Theme: Industry Compared with 2009, the LED lighting market is heating up in 2010. In 2010, the global LED lighting promotion dawned, especially in developed markets such as Japan and Europe, the demand for LED lighting products rose rapidly. In this regard, LEDinside interviewed Fan Banghong, President of Zhen Mingli, to discuss how LED lighting can replace traditional lighting, and how the LED decorative lighting market has developed.
LED lighting will quickly replace traditional lighting
Fan said that LED lighting will replace traditional lighting products very fast. At present, LED lighting and application lighting in Europe accounts for almost 100% of the market. Because Europe has a high positioning quality and effect, it is not so sensitive to price. Although LED lighting is about three times more expensive than traditional lighting, it is the best choice for European consumers due to the environmental, energy saving and lighting effects of LED lighting and application lighting. In the United States, LED lighting also accounts for 20%-30% of the lighting and application lighting market, and it is expected that the market share will increase to over 90% by the end of 2010.
As for the fast-moving Chinese market, LED lighting is also developing rapidly. There are no fewer than 500 employees in the LED lighting and lighting industry. The entire Chinese LED lighting store should be far more than 1,000.
LED lighting will inevitably replace traditional lighting, and it will solve the price problem.
Zhen Mingli started LED lighting as early as 2005. In 2009, due to the financial crisis, many LED lighting orders were cancelled by customers. In 2010, LED lighting started to start again. The sales of Zheng Mingli's Q1 LED lighting products increased by more than 100% annually. Mr. Fan believes that the price challenge of replacing traditional lighting with LED lighting will be solved soon. At present, the retail price of True Mingli 7W LED bulb is priced at around RMB 80, but it is expected that the retail price of the terminal will be reduced to RMB 50. Market competitiveness is the focus of observation.
General Fan said that the minimum cost must be done to the entire industry chain. The experience of Zhen Mingli is available for peer reference. There are several requirements:
First, we must do the entire industry chain. Zhen Mingli has a mature industrial chain from LED upstream epitaxial chip to downstream application. Zhen Mingli's current chip cost is half lower than other manufacturers. With the introduction of 20 new MOCVD machines in 2010, the company's LED chip costs will be further reduced. It is not easy to achieve the entire industrial chain. For example, when MOCVD is mass-produced, there are more than 2000 parameters, and the parameters of each machine are different. From chip to application, if you have to do well, you really need to overcome all kinds of difficulties and have a certain threshold.
Second, use a small power chip. Most of our LED lighting products use our own low-power chips. Through good heat dissipation design, the comprehensive cost of lighting products for low-power chips is much smaller than that of high-power chips. Because the low-power chip has high luminous efficiency, the cost or price is relatively low, and because of the use of multiple small power chips, the processing is simple in terms of the angle of illumination without the need for optical design again. For example, on the 7W LED bulb, Zhen Mingli uses 96 low-power chips, and the illumination angle can be arranged freely. It is not necessary to do optical design again, and the whole lamp efficiency has reached 70-80lm/W.
Third, a single package size LED is used. For general lighting products, Zhen Mingli uses only one type of LED, namely the 3528 model SMD LED. Since only one model of small power package SMD LED, Zhen Mingli can make 3528 the ultimate. Simplification, scale, and simplification will make LED lighting the lowest cost.
Fourth, establish a strong sales network and reduce the intermediate cost of sales. For example, Zhen Mingli will set up offices in each province of China, and also cooperate with large-scale channels such as Red Star Macalline and Real Home B&Q to directly face customers. In other words, Zhen Mingli has both agents and direct customers, and the intermediate cost is much lower. Through cost control, the retail price of the terminal in 2010 will be set at 50 yuan, even at such a price, Zhen Mingli can still achieve better profits.
Fifth, provide high quality products and increase customer confidence. Low prices do not reduce the quality of the products, and the quality of LED lighting products provided to customers must be guaranteed. For example, Zhen Mingli's entire resort lighting project in Huizhou has an overall project of 40 million RMB, while the price of traditional lighting products is also 20 million. Compared with the price advantage of the bright and beautiful, the customer is easy to make choices. Because of the high quality of the products, Zhen Mingli provides a 5-year warranty, and the company will replace the lamps for free within 5 years.
Mr. Fan Banghong said that to do LED lighting, he is doing his mission and merit. It is expected that LED lighting will replace traditional lighting in time and will be much faster than most people know.
LEDinside view:
At present, more than 90% of Zhen Mingli's products are still mainly exported. As Zhen Mingli actively explores the Chinese market, the proportion of sales in the Chinese market will continue to rise.
At this stage, China's LED lighting market is still dominated by government projects, and commercial lighting is expected to gradually improve. LED lighting used in commercial space and home space is regarded as the company's key development direction in the future. With its LED industry chain advantage, the price of terminal LED bulbs can be as low as RMB 50, and the company. The brand advantage, Zhen Mingli has occupied a relatively favorable position in the Chinese LED lighting market.
However, with the popularity of LED lighting products, LED patent issues will become a more difficult problem in the short term, and more and more manufacturers willing to establish independent patent protection networks.
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