China's LED lighting market is still in short supply
With the falling prices of LED lighting products, the company's sales have appeared in the explosive growth. The chairman of KINGSUN OPTOELECTRONIC CO. LTD. Li Xuliang said that at present, the company is full load production for 24 hours, but still can't satisfy the customer demand, so we need to outsource some production links.
Since the beginning of this year, traditional enterprises strengthen the transformation of the LED lighting. After May, the industry appeared a significant turning point, and the industry entrepreneurs and experts have never expected this phenomenon. Everyone thought the industry transition will appear in 2014, but now there are many very obvious signs have showed that the LED lighting market is in short supply.
This phenomenon has two main reasons behind it. One reason relates to the launch of indoor lighting market, the second is the domestic LED lighting enterprises especially the upstream was manufacture inadequate. Since last year, because of the lower profit, a glut on the market, domestic manufacturers generally manufacture inadequate, equipments basically didn't run 100%, and the market supply and demand kept balanced. This year, the demand of market increases suddenly, but it needs a process for the equipment to completely start production. The capacity temporarily couldn't keep up with, so the market appeared in short supply situation.
The Vice President of China’s lighting appliances association, Wang Haibo also agreed with the point. On the one hand, recently, the market situation is bad, the industrial chain are basically manufacturing according to sale, dare not to have inventory. For example, the time for chip manufacturers to start manufacture generally less than 50%. On the other hand, the cost performance of LED lighting products makes it has the basic conditions of the marketing sales, the average consumers also accept the price. After all, its price is not much higher than energy-saving lamps.
The promoted cost performance of LED lighting products is the important reason for the rapid growth of the market. With the falling price of LED lighting products, they have been widely used in all fields. From the point of the domestic market, previously LED lighting products are mainly used in engineering, such as hotels, shopping malls, parking lots, etc. Such as LED display screen and LED decorative lighting. But, now more and more family consumers use LED lighting products, such as LED table lamp and LED fancy lamp. From the foreign market, the demand of LED lighting products also has maintained growth, and the growth had been very obvious since last year.