Market chaotic LED enterprise wants to settle price alliance

For many LED companies, participating in the development of standards will help them master the industry dynamics.

The rapid development of the LED industry is a fact, but due to technological innovations, cost fluctuations and other factors, buyers and sellers are not accurate in capturing the price of LED products, and the LED municipal lighting market is in a chaotic state. At the same time, some short-term behaviors such as shoddy filling have gradually emerged, which has hidden hidden dangers for the emerging LED industry.

In order to solve this problem, recently, under the organization of Zhongshan Science and Technology Bureau, Guangdong Provincial Construction Cost Management Station, Zhongshan Branch and Zhongshan Semiconductor Industry Alliance, dozens of LED manufacturing companies have gathered together for the first time on Zhongshan Municipal Construction. The price of engineering LED products is discussed. While providing a price reference for the LED industry, it also provides a favorable basis for the government's “sunshine procurement”.

It is understood that this kind of government-led, enterprise-sponsored "LED product guidance price" is the first in the country.

【status quo】

LED product pricing has no rules to follow

The LED industry has always fixed the hearts of people with the image of “high technology” and “high price”. However, regardless of its price or technical advantages, it is currently unable to replace traditional lighting products on a large scale. "LED products really want to go to the market, and go to thousands of households, the price will drop by at least 70%." Recently, Huang Chuanqian, lighting manager of Shenghui Electronic Technology (Dongguan) Co., Ltd. made such an assertion in an interview.

This is also the current difficulty faced by many LED companies in Zhongshan City. According to the reporter, in addition to a few export enterprises such as Mulinsen Electronics, the commercial lighting of most LED companies in Zhongshan is only a by-product, and municipal lighting and engineering construction products are the mainstay of sales. According to Su Yong, general manager of Yanxin Industrial (Hong Kong) Co., Ltd., about 70% of the company's LED accessories are used in municipal lighting products.

On the one hand, the price of LED products is too high to be able to be used on a large scale. On the other hand, short-term behaviors in which some companies ignore costs and deliberately suppress prices are also beginning to emerge. "Our 100W LED street light offer is 4,000 yuan, and now some small factories have reported a low price of 2,000 yuan," said one participant. The quality and after-sales service of these LED products will not be very good. It will hurt the LED industry.

【influences】

A win-win situation promotes healthy development of the industry

As an emerging industry, government support plays a vital role in the development of the LED industry. Since the country listed the semiconductor lighting project as the "Eleventh Five-Year Plan 863" in 2006, governments at all levels have taken measures to increase support for LEDs. The most important means is to represent the "Ten Cities and Ten Thousand Cities". Road lighting plan. However, due to factors such as rapid technological innovation and cost changes, the price of municipal lighting LED products is still in a state of chaos. When the company cannot find reference materials, it also makes government procurement unrestricted, and it is difficult to achieve the promise of “sunshine procurement”. .

Since 2009, Zhongshan City has successively issued policies such as “Zhongshan New Energy Industry Plan” and “Green Lighting Demonstration Town Creation Project”, and set up a special fund for industrial development with a total amount of 100 million yuan. Making government procurement a big cake that many LED companies in Zhongshan are reluctant to give up.

In July of this year, entrusted by the Zhongshan Branch of the Construction Engineering Cost Management Station of Guangdong Province, the Zhongshan Semiconductor Industry Alliance called the key enterprises in the city to formulate the guiding price for LED construction engineering products.

Wen Shangsheng, a professor at South China University of Technology, believes that “the industry has just begun to develop and the government’s support is indispensable. The “purchase guide price” is conducive to eliminating corruption and promoting the government’s sunshine procurement. On the other hand, it can promote the benign nature of the industry through standards and prices. development of".

For many LED companies, participating in the development of such a standard is also conducive to their immediate grasp of industry dynamics, to find their own coordinates in comparison with peers.

â–  News depth

Is the price system a price alliance?

Is the price system a price alliance? Should the prices of products with different quality and different technical parameters be different? The market is changing rapidly, how long should the price be updated? The three major doubts of the company have become the focus of debate.

Why should we introduce a "guide price"?

When Du Jifang, president of Zhongshan Semiconductor Alliance, announced the concept of the alliance, the venue was in a short silence. "The products are not well priced, and the price of each one is different. Moreover, the price of the product is the trade secret of the enterprise. We may be passive when we report low," Chen Guangping, general manager of Zhongshan Minghong Semiconductor Lighting Co., Ltd., took the lead to break the boring. Like many attendees, he thought that the "guide price" is the legendary "price alliance", which may hamper the hands and feet of the company.

"We are not asking everyone to quote today. The 'guide price' is a dynamic reference system based on many companies in the industry." Du Jifang explained that the "guide price" is not mandatory and binding, and will not The actual sales price of a company constitutes a limit, which is quite different from the “price alliance” that people imagine.

Should I set a standard before pricing?

“Before formulating the 'guide price', I think we should first set the technical standards. Products with different quality and different technical parameters should have different quotations.” Li Jianping, manager of the street lamp department of Mulinsen Electronics Co., Ltd., said that the current LED source used by Zhongshan’s LED companies The process, raw materials and technical indicators are different. It is not practical to let the company report a general price in a general way, and it is not conducive to the sound development of the LED industry.

This opinion has been unanimously recognized by many participants. Chen Guangping said that for a simple 100W LED street light, some products use dozens of low-power lamp beads to splicing, while some products are combined with high-power lamp beads. The technical and technical difficulties are different, and the cost is different. The quality is not the same, the price should naturally be distinguished.

The final meeting unanimously concluded that the Zhongshan Semiconductor Alliance has divided the LED products into several different grades according to technical parameters and quality through several meetings, and different levels of products have different "guide prices".

How often is the price updated?

"At present, LED products are expensive, but they are falling very fast." A participant said that the price of a certain LED product last year was 9,000 yuan, but after one year the price dropped to 6,000 yuan. Due to advances in technology and technology, LED product price reduction has become a major trend, so the “guide price” cannot be static and must be updated dynamically to reflect market changes. In response to this doubt, Du Jifang said that according to the concept of the Zhongshan Semiconductor Industry Alliance, the alliance will update the company price once a month to provide real-time basis for government procurement, and also provide a reference system for LED companies.